- High jet fuel prices force European airlines to slash winter capacity
- Jet fuel prices soar to $140 to $150 per barrel
- Ryanair cuts fiscal year 2027 passenger target to 214m
- Air Baltic files for Chapter 11 bankruptcy proceedings
- Experts project material increase in short-haul airfares
Sustained high jet fuel prices are forcing European airlines to slash winter flight capacity, threatening the stability of smaller carriers and setting the stage for higher airfares. Triggered by geopolitical hostilities in the Strait of Hormuz, market spot prices for jet fuel have soared to around $140 to $150 per barrel, pushing global aviation fuel averages up 6.1pc in a single week. Because fuel represents the largest single operating cost for airlines, companies are actively retreating from less profitable routes to curb winter losses.
Ryanair, despite having 80pc of its fuel locked in at $67 per barrel, is exposed to market rates for the remaining 20pc. To mitigate this, Ryanair has cut its winter capacity, dropping its fiscal year 2027 passenger target from 216m to 214m. The airline slashed twom seats from its Brussels schedule, pulled five aircraft from its Charleroi base and shut down its Thessaloniki base in Greece. EasyJet is pulling aircraft from its least profitable bases and fast-tracking the introduction of fuel-efficient models while Wizz Air is reallocating its fleet out of Central and Eastern European markets that fail to clear the fuel cost barrier.
Latvia’s Air Baltic filed for Chapter 11 bankruptcy proceedings in mid-September 2026. Ryanair CEO Michael O’Leary warned that two to three European airlines could collapse by the end of 2026 if fuel stays near $150 per barrel. Because the global airline industry has only hedged about a third of its total 2026 needs, surviving carriers will likely pass unhedged fuel costs directly onto consumers with experts projecting a material increase in short-haul airfares across Europe stretching into 2027.
