Low-Cost Airfares Jump 39% as Ryanair and Wizz Bank on Luggage, Seats and Extras

Why the Real Cost of a European Budget Flight Is Rising

Average economy fares for European low-cost carriers rose 39.2% year-on-year in May 2026, according to aviation data provider Cirium, covering Ryanair, easyJet and Wizz Air. Compared with early 2024, the tariffs examined have at least doubled. The headline fare, however, tells only part of the story: the cost of flying on a budget airline is increasingly determined by luggage, seat selection and boarding extras.

The main pressure is fuel. The International Air Transport Association expects global airline fuel costs to climb from $252 billion in 2025 to about $350 billion in 2026, an increase of roughly 40%. Jet fuel averaged $188 per barrel in April and, despite easing later, remains far above earlier levels. At the same time, European summer capacity is up by more than 5%, leaving airlines unable to pass every extra cost to passengers through base ticket prices.

Financial results show the squeeze. Ryanair's after-tax profit fell by a third in the April-June quarter even as its average fares dropped 6%. Wizz Air reported an operating loss of €183.3 million for the same period. To protect earnings, both are leaning harder on optional paid services.

What is changing is not the disappearance of low base fares, but the way low-cost airlines make money. Ryanair earned €4.99 billion from ancillary services in its fiscal year through March, nearly a third of total revenue of €15.54 billion and an average of about €24 per passenger. At Wizz Air, ancillary revenue supplied close to half of total turnover in the previous business year.

The Ancillary-Fee Shift Behind Ryanair and Wizz Air's Results

Ryanair: Record Traffic, Squeezed Margins

Ryanair carried a record 208.4 million passengers in its latest fiscal year at a 94% load factor, and total revenue rose 11%. Despite that, profit fell in the April-June quarter while average fares declined 6%. That mismatch is why ancillary income matters so much: revenue from optional extras reached nearly a third of the company's total, cushioning a base fare that is being kept lower than costs would otherwise demand.

Wizz Air's Losses Make Extras a Survival Tool

Wizz Air's €183.3 million operating loss in the April-June quarter shows how exposed the airline is to the same fuel and capacity pressures. With ancillary services already contributing nearly half of turnover in its previous financial year, Wizz has less room than network carriers to absorb a hostile cost environment by trimming other costs. Its model now depends on converting a share of passengers into buyers of bags, seats and priority services.

The Fuel-Capacity Double Bind

If fuel costs were the only variable, airlines would raise base fares sharply. But Cirium's capacity data shows more than 5% additional seats on intra-European routes this summer, making travellers more price-sensitive and limiting how much of the fuel bill can be passed through. The result is an industry that is protecting the advertised fare while repricing the journey through add-ons, moving the true cost closer to legacy carrier levels when passengers choose extras. The Cirium dataset also includes easyJet, though the financial detail in the report focuses on Ryanair and Wizz Air.

How to Compare Low-Cost Fares Before Booking

The fare change does not fall evenly on every passenger. The practical decisions are in what you add to the base ticket.

• Compare the all-in price, not the advertised fare. Ryanair collected an average of €24 per passenger in ancillary revenue last fiscal year, and Wizz Air earned close to half its turnover from extras. A legacy ticket that looks more expensive can narrow or disappear once luggage and seat choice are added to a budget fare.
• Travel with only an under-seat bag and skip optional services if price matters. The low-cost base fare remains lowest mainly for passengers who accept no checked luggage, no seat selection and no priority boarding.
• Weigh the 39.2% fare rise against your own habits. If your typical booking includes a cabin bag and chosen seat, your real annual increase is likely larger than the advertised base-fare rise because extras are the part low-cost carriers are expanding.
• Do not assume future base fares will fall sharply. With fuel costs forecast to rise by roughly 40% in 2026 but capacity also up more than 5%, airlines are more likely to continue repricing through optional fees than to cut base fares deeply.