Ryanair CEO Michael O’Leary has warned that airfares in Europe could see their “biggest increase in history” in 2027, as rising fuel prices are expected to push fares up by as much as 20%.
“You will see airfares in Europe rise next year, I estimate by 10%, 15%, maybe even 20%. I believe we will see the biggest increase in airfares in European history over the next 12 months,” O’Leary said at a press conference in Brussels.
Ryanair has hedged 80% of its fuel requirements for 2026 at $67 per barrel, compared with just 15% for 2027 at $85 per barrel.
The war in Iran has driven a sharp increase in jet fuel prices, putting significant pressure on the profit margins of airlines that have not hedged against price fluctuations.
Airfares are expected to rise in 2027 because, while airlines have hedged most of their fuel requirements for 2026, they have secured only a small proportion for 2027. Ryanair, for example, has hedged 80% of its fuel requirements for 2026 at $67 per barrel, compared with just 15% for 2027 at $85 per barrel.
Meanwhile, Ryanair has announced plans to cut 20 routes from Belgium as the Belgian government raises its aviation tax from €2 to €7.
Source:Reuters
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