The Dublin-based carrier has secured fixed-price contracts for 80 percent of its fuel requirements for the upcoming year, yet the company is still trimming flight schedules to mitigate exposure to volatile market rates. By reducing capacity, Ryanair expects to soften winter losses by between €70 million and €100 million. Despite these adjustments, the firm remains on track to grow its summer traffic by five percent to 145 million passengers.
Ryanair Warns of Industry Shakeout as Jet Fuel Costs Surge
Rising jet fuel prices, triggered by intensified conflict in the Middle East, could force weaker European airlines out of the market. Ryanair, attempting to insulate itself from the volatility, has reduced its annual passenger growth targets while warning that higher fuel costs will inevitably translate into significantly more expensive airfares next summer.
Financial strain is already evident across the sector. Ryanair reported that its own unhedged fuel costs spiked to $150 per barrel earlier this year, driving operating costs up 11 percent to €3.8 billion. Consequently, pre-tax profits slumped 36 percent to €593 million in the quarter ending in June. Competitors face even steeper challenges: EasyJet reported a £200 million hit to profits, while the Tui Group swung to a €17 million loss, citing the dual burden of rising fuel prices and dampened consumer demand.
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