Ryanair CEO says airline will not levy fuel surcharge

Ryanair's CEO, Michael O'Leary, has pledged not to impose a fuel surcharge on passengers despite rising jet fuel prices, predicting that other airlines will follow suit next summer. The airline, which currently flies 214 million passengers for the fiscal year 2027, has cut its passenger forecast due to planned capacity limits aimed at minimizing the impact of its limited hedging of jet fuel.

O'Leary stated that most airlines are well hedged until the summer of 2026, enabling them to absorb the shock of higher oil prices. However, he warned that this will likely result in fuel surcharges being passed on to passengers in the form of higher airfares next year. Ryanair will not implement a fuel surcharge, but O'Leary believes that legacy carriers will do so the following summer.

He further anticipated that more airlines will fail, leading to increased consolidation in the European airline industry, with only four major carriers - British Airways, Lufthansa, Air France, and Ryanair - remaining.