Ryanair CEO Eddie Wilson has warned that higher jet fuel prices will drive up airfares and accelerate consolidation across Europe’s airline industry, with weaker carriers facing increasing financial pressure.
Speaking to Corriere della Sera, Wilson said Ryanair would make only limited capacity reductions over the winter, while continuing to expand at Milan Malpensa and Bergamo airports. The airline plans to base two additional aircraft in Bergamo and introduce new direct routes.
“We will probably see both capacity cuts and higher fares,” Wilson said, adding that market prices would inevitably rise in an environment of expensive energy. He also warned that some airlines may not survive the current cost pressures.
Ryanair expects limited capacity cuts
Wilson said Ryanair plans to reduce its capacity by around 2 million seats during the winter, without cancelling routes. The cuts will mainly involve lower frequencies.
The airline currently has around 20% of its fuel requirements unhedged, according to Wilson. He said competitors were facing greater difficulties because banks were increasingly reluctant to provide fuel hedging contracts to airlines considered at risk of insolvency.
Ryanair’s CEO said the company would also be affected if fuel prices remained at current levels, particularly as its hedging coverage is expected to fall to around 15% from April 2027.
“Fuel costs will have an impact on fares,” Wilson said, while arguing that Ryanair’s lower cost base would allow it to maintain structurally lower prices than its competitors.
He said the airline’s fuel bill for the current financial year would be higher than originally budgeted, citing the impact of the conflict in the Middle East on energy prices.
Expansion in Italy
While Ryanair is expanding at Milan Malpensa and Bergamo, Wilson said the airline does not currently plan to increase its presence at Rome Fiumicino.
He criticised the airport’s infrastructure plans, including the proposed fourth runway, arguing that new capacity should be supported by genuine economic demand rather than real estate development.
Ryanair is also seeking greater operating flexibility at Rome Ciampino. Wilson said an acoustic study commissioned by the airline would argue that the airport’s current limit of 65 movements could be increased to 115 using Boeing 737 Max 8 aircraft without exceeding noise limits.
Wilson also pointed to rival Wizz Air’s expansion at Fiumicino, saying Ryanair had chosen not to accept certain costs at the airport.
Boeing 737 Max 10 deliveries expected next year
Ryanair expects to receive its first Boeing 737 Max 10 aircraft from spring, despite a recent setback in the aircraft’s certification process related to software.
Wilson said the company had received no indication that the latest issue was related to aircraft safety.
The first aircraft are expected to be based in Dublin and London Stansted, before potentially being deployed to Milan Bergamo.
Wilson also dismissed the idea that Ryanair could seek to acquire assets from easyJet, arguing that the rival airline’s stagnant passenger numbers since 2019 were part of a broader trend of airlines struggling to compete with Ryanair’s cost structure.
Business travellers make up around 30%
Despite its low-cost model, Wilson said around 30% of Ryanair passengers have characteristics associated with business travel.
He said the airline had expanded agreements with distribution systems and travel agencies to make corporate bookings easier, adding that some multinational and pharmaceutical companies require employees to fly with Ryanair.
Wilson ruled out introducing airport lounge access for business travellers, arguing that corporate passengers ultimately prioritise low fares and punctuality over premium airport services.
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