Ryanair CEO Warns of Prolonged Fuel Cost Crisis
Ryanair CEO Michael O'Leary warns high jet fuel prices, up 50% since the Iran war, will persist for 12-18 months, forcing airlines to raise fares into 2028.
Ryanair Group CEO Michael O'Leary warned on October 8, 2026, that sustained high jet fuel costs will force airlines to raise fares for years. He stated jet fuel now costs about 50% more than before the Iran war began and expects prices to stay near that level for the next 12 to 18 months.
O'Leary described the situation as a 'full-blown crisis'. He said airlines cannot survive without passing higher fuel bills on to passengers. The main challenge is price, not availability. O'Leary expects fare increases to continue in the months to come. This marks the first time an airline executive has publicly suggested the impact could extend into 2028. "We are all facing an enormous cost challenge next year," Michael O'Leary said.
Airlines already raising ticket prices to cover costs
Carriers represented at the Airlines for Europe (A4E) press conference in Brussels have already begun raising ticket prices to offset fuel costs. Many airlines had hedged against price swings in 2026 but are substantially less hedged on jet fuel costs moving into 2027. Rising fuel costs are linked to shrinking airline margins throughout 2026.
Executives downplay fuel shortage despite warnings
O'Leary played down fears of a jet fuel shortage at the Brussels event. He said he saw no risk to supply this winter or into next summer and does not expect jet fuel supplies to run out any time soon. Other executives at the event included the CEOs of Air France-KLM, Lufthansa, easyJet, Aer Lingus, and IAG. Analysts have warned that Europe could face a jet fuel supply shortage into the fourth quarter, but O'Leary rejected those concerns.
Safety discussion follows separate security incident
Airline leaders also addressed pilot mental health following a recent attack on a flydubai flight. In that incident, the co-pilot stabbed the captain. Investigators suspect the co-pilot's attempt was to crash the aircraft. Lufthansa CEO Carsten Spohr said no airline can rule out every incident but that industry safety standards remain very high. He added that pilot mental health screening is already robust. The executives noted the last comparable case was the 2015 Germanwings disaster. On March 24, 2015, co-pilot Andreas Lubitz locked the captain out of the cockpit and deliberately flew an Airbus A320 into the French Alps, killing all 150 people on board.
O'Leary expects fare increases to continue in the months to come.
