Airlines warn of rising ticket prices due to high fuel costs

Airlines including Ryanair and Wizz Air have warned that airfares may rise significantly if oil and kerosene prices remain high. The industry is facing sustained cost pressures from rising fuel expenses, which are a major operational cost that carriers cannot absorb indefinitely.

Ryanair has adjusted its passenger forecasts for the fiscal year ending March 31, 2027, lowering expectations from 216 million to 214 million passengers. To mitigate losses, the airline is reducing capacity and has moved away from its goal of increasing passenger numbers during the winter season. While Ryanair has hedged approximately 80 percent of its upcoming winter fuel at $67 per barrel, the broader industry remains vulnerable.

Global trends reflect this pressure. In Southeast Asia, carriers like AirAsia, Scoot, and Cebu Pacific have struggled to offset fuel costs, with AirAsia considering a 25 percent capacity reduction. In China, three major state-owned airlines reported a combined net loss of $1.22 billion for the first half of 2026 due to fuel cost increases of 35–38 percent. In the United States, ticket prices rose 25.5 percent year-over-year in July, with United Airlines CEO Scott Kirby anticipating further gradual increases through the first half of 2027.