Ryanair says it will not add fuel surcharge despite rising costs

Investing.com -- Ryanair will not add a fuel surcharge despite higher jet oil prices, group CEO Michael O'Leary said Wednesday, while predicting competitors may introduce such charges.

O'Leary told reporters that most airlines had fuel hedges in place through summer 2026, allowing them to manage the impact of elevated oil prices during that period.

The CEO said airlines will struggle to absorb higher oil prices next year, leading to fuel surcharges or increased airfares across the industry.

"Ryanair will not levy a fuel surcharge, but the legacy guys certainly will next summer," O'Leary said.

He added that rising jet fuel prices could accelerate airline failures and industry consolidation. O'Leary said loss-making airlines will fail, speeding up the consolidation of Europe's airline market.

"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. "It will accelerate the consolidation of Europe into four large airlines: BA (British Airways), Lufthansa, Air France and Ryanair."

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