Ryanair trims traffic target as fuel costs cloud outlook

Ryanair reduced its annual passenger target to 214 million from 216 million to limit exposure to high oil prices, expecting flat winter passenger numbers. The airline warned that European air fares may rise if oil prices stay high, potentially causing some airlines to fail. Ryanair hedged 80% of its jet fuel at $67 a barrel, anticipating a profitable year but below 2023's record. Brent crude reached $97.04 a barrel before easing. Wizz Air reported a 25.9% increase in passenger numbers for August

The EU Parliament has announced new travel regulations affecting airlines like Ryanair, easyJet, Wizz, and Jet2. Key changes include fare transparency, mandatory display of hand luggage costs, and enhanced passenger rights. Ryanair criticized the rules, while industry groups expressed mixed views. The UK may adopt similar measures. Changes take effect next summer.

The U.S. NTSB said a Boeing 737-800 operated by Malta Air for Ryanair suffered a right-engine fan blade failure shortly after takeoff from Thessaloniki, Greece on July 10. Fragments shattered a window and a 61-year-old passenger was injured after partial cabin depressurization. Investigators found bird remains but haven’t identified the cause; Ryanair said the flight returned after a window dislodged.

Ryanair said it signed a five-year cloud deal with Google Cloud to deploy Gemini Enterprise and DeepMind models across its airline operations, including AI agents for crew scheduling, disruption mitigation, demand forecasting, and predictive maintenance. Financial terms were not disclosed. Ryanair plans to roll out the setup to its global workforce and cited support for its 2034 target of 300 million passengers.

Ryanair said it will use Google Cloud for five years, deploying Gemini AI tools and DeepMind models to support crew scheduling and operational decision-making. The airline will roll out Google Workspace and Google Cloud to 35,000 employees and build custom AI agents with Gemini Enterprise. Financial terms were not disclosed.

According to Worldoil, closure of the Strait of Hormuz has caused global jet fuel shortages, with Europe seeking supplies from the U.S. and Asia. Energy Aspects forecast a Europe jet fuel deficit of nearly 600,000 bpd in Q3. Jet fuel prices swung from $215.32/bbl (end March) to just over $130. Ryanair reported higher costs; Southwest said Q2 fuel expenses rose about $900 million YoY; United expects about $6 billion extra fuel expense in 2026.