Ryanair Rules Out Fuel Surcharges, CEO Predicts Pressure on Rivals

Ryanair will not impose fuel surcharges on its fares despite rising jet oil prices, positioning itself against competitors who are expected to pass higher costs on to consumers. The announcement was made Wednesday by Group CEO Michael O’Leary, who also predicted the cost pressure would hasten consolidation in the European airline market.

Stance on Surcharges

Speaking to reporters, O'Leary stated that while many airlines have fuel hedges in place through the summer of 2026 to manage current price volatility, they will struggle to absorb elevated costs next year. He contrasted his airline's approach with that of its rivals.

"Ryanair will not levy a fuel surcharge, but the legacy guys certainly will next summer," O’Leary said. He anticipates that other carriers will be forced to introduce such charges or implement broader airfare increases to cope with the financial strain.

Forecast for Industry Consolidation

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O'Leary argued that sustained high jet fuel prices would ultimately benefit stronger carriers by weeding out weaker, loss-making airlines. He suggested this environment would serve as a catalyst for significant market restructuring.

"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 stated. In his view, this will speed up the consolidation of Europe's airline industry into four dominant players:

• British Airways (BA)
• Lufthansa
• Air France
• Ryanair