Ryanair Cuts Unhedged Jet Fuel Exposure, Passenger Targets to Mitigate Losses
Ryanair is cutting its exposure to unhedged jet fuel costs during the winter 2026 (November 2026 – March 2027) schedule, the airline said in a news release Wednesday.
It will therefore trim its 2027 traffic targets to 214 million passengers from 216 million to mitigate losses associated with unhedged fuel prices. The reduction in passenger numbers will reduce losses to €100 million ($116 million) from €170 million, it said.
The Dublin-based airline has hedged 80% of its jet fuel supply with crude forecast at around $67/barrel for 2027, and expects to report another “profitable year”, Ryanair said in the new release.
“If high oil prices continue [into 2027] Ryanair believes short-haul airfares in Europe will increase materially to reflect higher oil prices, as some less well-hedged competitors will struggle to maintain capacity or even survive this coming winter season,” Ryanair said in the statement.
Jet fuel prices soar amid disruption: OPIS data
European airlines seem to have successfully navigated the peak summer demand season, despite fears of jet fuel shortages following the closure of the Strait of Hormuz. However, prices remain elevated owing to continued disruptions in the Middle East.
On Feb. 27, the last business day before the U.S. and Israel began strikes against Iran, CIF Northwest European jet cargoes were assessed at $830.50/metric ton, according to OPIS pricing data.
By contrast, on Sept. 2, CIF Northwest Europe jet fuel was assessed at $1,465.50/mt, up $142/mt from Aug. 28, as the conflict between the U.S. and Iran resumed.