Ryanair Cuts Capacity Amid Soaring Jet Fuel Prices

Ryanair, Europe's largest low-cost airline, is cutting winter capacity in response to surging jet fuel prices. The company estimates that reducing flights will save approximately €70 million to €100 million and European short-haul ticket prices could see a material increase next year if the current surge persists.

The airline has already hedged approximately 80% of its fuel requirements, but the remaining unhedged exposure is still vulnerable to elevated spot costs. Ryanair's move to cut capacity first could set a precedent for the aviation industry's response to persistently elevated energy costs.

Average Brent Crude prices have briefly touched $97.04 per barrel on Wednesday, its highest level since late July, before retreating below $95. The recent situation has taken a new turn: the United States struck Iranian targets while oil prices were already elevated and during trading hours, further intensifying market concerns.