Ryanair CEO O’Leary says no fuel surcharge despite rising jet fuel price uncertainty

O’Leary said airfares may need to rise by 10%, 15%, or even 20% next summer if oil prices remain at their current elevated levels in the coming months.

Ryanair Group CEO Michael O’Leary said the airline “will not levy a fuel surcharge” on passengers despite higher jet fuel prices, though he predicted competitors could introduce additional charges and forecast further consolidation in the aviation sector as rising fuel costs pressure weaker airlines, he told reporters on Wednesday.

O’Leary said airfares may need to rise by 10%, 15%, or even 20% next summer if oil prices remain at their current elevated levels in the coming months.

“Most of the airlines were well hedged into the summer of 2026, and therefore we absorb the kind of shock of the much higher oil prices this summer,” O’Leary told reporters. However, he said those hedging agreements are now expiring, meaning airlines will face higher fuel costs going into next year, which will likely be passed on to customers through higher fares and fuel surcharges.

He said Ryanair would not impose a fuel surcharge on passengers next summer, while taking aim at competitors that may do so.

O’Leary also said he hoped jet fuel prices would rise further next year, as this would accelerate consolidation in the European aviation market by putting additional pressure on struggling airlines.

O’Leary predicts airline consolidation as Ryanair targets further growth

“I very much hope that jet [fuel] prices will rise faster into next year because that will accelerate the extent to which other airlines will fail,” O’Leary said.

“Airlines who are currently loss-making will fail. It will accelerate the consolidation of Europe into four large airlines: BA [British Airways], Lufthansa, Air France, and Ryanair,” he added.

Looking ahead, O’Leary said Ryanair expects continued growth, with the airline targeting 200 million passengers by fiscal year 2028. He also said the company expects to begin accepting deliveries of 15 Boeing 737 MAX 10 aircraft in the spring, following anticipated certification of the aircraft in the coming weeks.