Ryanair boss warns of record air fare rises in 2027

Summarised from 2 outlets · Updated 20 Oct, 15:58 · Archive

Ryanair chief Michael O'Leary predicts European air fares could rise by up to 20 per cent next year due to high jet fuel costs.

Ryanair chief Michael O'Leary has predicted what he describes as the biggest increase in European air fares in history, forecasting rises of between 10 and 20 per cent next year. The prediction stems from soaring jet fuel prices driven by the Middle East conflict, which has disrupted fuel supplies and pushed costs substantially higher. Airlines body IATA has predicted jet fuel prices will average $152 a barrel in 2026, compared with $90 in 2025.

Whilst many European airlines, including Ryanair, hedged their fuel requirements for 2026 at lower prices, the situation changes dramatically from April 2027. O'Leary stated that Ryanair is 85 per cent unhedged for 2027, with most other European carriers in a similar position. He warned that most European airlines lack significant hedging contracts to protect them if oil prices remain high, describing airlines as 'unhedged into the summer of 2027'.

O'Leary predicted that airlines will respond by reducing capacity, warning of 'dramatically less capacity this winter and into the summer of 2027'. He suggested this could trigger bankruptcies and takeovers across the sector, though he stated Ryanair would remain profitable despite higher costs. Separately, Ryanair is cutting 20 routes from Belgium this winter in response to an increase in national aviation taxes.

How it is being reported

• European air fares could rise by as much as 20% in 2027, Ryanair boss predictsConflict in Middle East is pushing jet fuel costs higher and many carriers are not hedged against such increases, Michael O’Leary says Ryanair’s chief executive has predicted a record increase in European air fares next year, as airlines grapple with fuel bills pushed higher by the Middle East conflict. Many carriers are not hedged against rising jet fuel costs, Michael O’Leary said, which he predicted would lead to airline bankruptcies and takeovers. He forecast these pressures would result in the price of plane tickets rising by as much as 20%. Continue reading...Guardian World · 20 Oct, 15:28
• Ryanair’s O’Leary warns of ‘biggest increase’ in EU airfares next yearHigh fuel prices could push up ticket prices and force airlines to cut capacity as their hedging contracts expire.Politico Europe · 20 Oct, 12:59

In this story: Michael O'Leary · Ryanair · European Union · Belgium · Iran · Middle East · IATA · Europe

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