Ryanair cut its FY27 traffic target by 2 million to 214 million passengers, mainly reducing winter flights to avoid unhedged high fuel prices. Summer demand remains strong with August traffic up 6% to 22.2 million, but margins are under pressure. CEO O'Leary believes weaker-hedged rivals may be forced to cut capacity or exit, while Ryanair builds cost advantages via Boeing 737 Max 10 and in-house engine maintenance.
United Airlines CEO Scott Kirby expects oil prices to gradually decline through 2027 but remain elevated, allowing airlines to pass on higher fuel costs through sustained fare increases. Fares have already risen over 20% this year to offset fuel costs driven by the Iran war. Kirby argues that reduced domestic capacity from Spirit Airlines' collapse, plus higher labor, maintenance, and airport fees, have boosted pricing power, ending ultra-low fares. United is adding 10 international routes, betting on strong demand.
The Iran war closed Gulf airspace and spiked fuel prices, leading to divergent Q2 results among five major Asia-Pacific carriers. Korean Air saw revenue grow 26% but its margin halved to 5%; Cathay Pacific performed best due to its Hong Kong hub advantage; Japan Airlines and ANA were hampered by Tokyo's connecting geography; Singapore Airlines posted a net loss due to its stake in Air India.
GBTA and ALTOUR released the 2027 Global Business Travel Forecast, indicating that business travel prices will remain elevated through 2026 due to higher energy prices, rising labor costs, and resilient demand, before moderating in 2027. Global average airfare is forecast to reach $756, up 4.7%; hotel ADR is expected to increase 3.7% to $168; car rental rates are forecast to increase 3.6% to $46.50 per day.