Ryanair CEO Michael O’Leary predicts ‘biggest increase in air fares in history’ next year

Flying around Europe could cost more next year

According to Bloomberg, the airline boss made the prediction at a press conference in Brussels on Tuesday, pointing to rising fuel bills, higher taxes and a shrinking number of available flights. 

Carriers may increase ticket prices and fuel surcharges to cover their expenses, but O’Leary warned that their profits could still take a hit.

Ryanair has limited protection against next year’s fuel price increases, with O’Leary revealing that 85% of its fuel needs remain unhedged. He said many rival European airlines were in a similar position.

Airlines face mounting pressure as fuel fears hit bookings and profits

The pressure is already showing across the industry. Ryanair’s July results revealed that the Iran war had affected its profits, while concerns over jet fuel supplies encouraged customers to delay bookings. 

Its shares have also struggled, falling as much as 2.1% on Tuesday and leaving them down 25% for the year.

O’Leary expects weaker airlines to face further difficulties, with Air Baltic and Spain’s Volotea among those restructuring. 

Lufthansa has also secured a deal to acquire a stake in Portugal’s TAP, beating Air France-KLM, while Apollo Global Management is preparing a potential takeover of easyJet.

He also criticised aviation taxes in France and Belgium, where Ryanair plans to reduce its presence.

Despite the challenges, the airline expects its first Boeing 737 MAX 10 delivery in January, followed by around 16 more aircraft by April.