Ryanair cuts winter capacity to reduce exposure to unhedged jet fuel costs

Ryanair is trimming its annual passenger carryings target by two million due to exposure to unhedged jet fuel costs during the winter.

Europe’s largest short-haul airline estimated that the one-off annual capacity cut from 216 million to 214 million would reduce traditional winter season losses by €70 million to €100 million.

But the no-frills carrier warned: “If high oil prices continue through to summer 2027 Ryanair believes short-haul airfares in Europe will increase materially as some less well-hedged competitors will struggle to maintain capacity or even survive this coming winter season.”

More: Ryanair projects record August bank holiday weekend carryings

Ryanair blames UK air traffic controller shortages for delays

The caution came as Iran responded with drone attacks across targets in the Middle East after the US resumed strikes yesterday (Tuesday)

Ryanair pointed out that it remains on track to grow its summer traffic in the April to October period by more than 5% year on year to 145 million, with fares trending “modestly down” in the peak quarter.

The airline insisted that it is “well placed” to achieve another profitable year with 80% of its jet fuel hedged, albeit the figure is projected to be below the previous 12 months’ record net profit.

“In light of high unhedged oil prices it is sensible to strategically reduce the group’s exposure to unhedged jet fuel during the unprofitable winter schedule from November to March,” Ryanair said.

“Ryanair’s full year ’27 traffic target is therefore cut from 216 million to 214 million passengers to reduce our exposure to unhedged oil this winter. We expect traffic from November to March will be broadly flat year on year.”

The action on winter capacity came as the carrier reported a 6% year on year rise in August passenger numbers to 22.2 million as it operated 120,500 flights.

However, more than 400 flights had to be cancelled due to Mount Etna eruptions in Sicily during the month.

Meanwhile, smaller budget rival Wizz Air reported August passenger growth of 25.9% to 8.7 million as capacity rose by almost 25% to 9.1 million seats.

“This was a slowdown from the 30.4% rate of seat growth seen in July but remains consistent with Wizz Air’s guidance for seat growth in the high twenties percent for the September quarter,” the carrier said.