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Ryanair cuts winter flights on unhedged fuel exposure

  • : Biofuels, Oil products
  • 26/09/02

European airline Ryanair will cut services in the coming winter to reduce exposure to higher costs for unhedged jet fuel, and said it may increase ticket prices.

Ryanair expects 214mn passengers in the year to 31 March 2027, down from its previous forecast for 216mn.

The company did not say how many flights or which routes it will cut, but they will be during the "unprofitable" November-March period when air travel demand stoops to its annual nadir. Ryanair expects passenger demand to be broadly flat year-on-year in this period.

Ryanair has hedged 80pc of its jet fuel demand for its 2027 financial year, but significantly higher jet prices means unhedged fuel costs much more. Hedges using crude or gasoil derivatives may be less successful if jet fuel spreads remain wide.

Jet fuel prices in northwest Europe averaged almost $1,300/t in August, about 80pc higher on the year, Argus assessments show.

The cut to winter services will reduce Ryanair's projected losses over winter by €70mn-100mn ($81mn-116mn), it said.

If fuel prices stay high, Ryanair said short-haul airfares will have to rise in Europe. Airlines that are not well-hedged will struggle this winter, it said, which could force them to trim capacity or even lead to their demise.

Higher jet fuel prices have weighed heavily on airlines' financial performance, and caused the US' Spirit Airlines to shut down earlier this year.

Ryanair still expects to make a profit in its 2027 financial year, although it declined to offer a forecast. The airline made more than €2bn in profit in the 2026 financial year.

The airline carried 22.2mn passengers in August, up by 6pc on the year.


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