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Ryanair chief executive Michael O’Leary warned that European airfares could rise by as much as 20% in 2027. He expects a sharp increase in jet-fuel costs to push ticket prices higher across the continent.
The airline estimates that its fuel bill will rise by about EUR 2 billion, or USD 2.24 billion, in the financial year ending March 2028. O’Leary said higher fares would help offset some of the cost pressure, but they would not cover the entire increase.
Ryanair used fuel hedges to limit its exposure to volatile oil prices. Those protections will largely expire in April 2027. The airline locked in only a small share of its fuel requirement for next year, leaving it exposed to market prices.
O’Leary said, “Jet fuel prices could remain elevated well into 2027 if the Middle East conflict continues. Fuel prices were running at roughly double their pre-conflict levels. That increase would affect every airline, but Ryanair’s low-cost model leaves limited room to absorb the hit.” The Ryanair chief expects European short-haul fares to rise materially next year.
He described the likely increase as the biggest in Europe’s aviation history, with a possible rise of 10%, 15% or even 20%. Airline failures, consolidation and slower aircraft deliveries could reduce the number of seats in the market. Lower supply would strengthen airlines’ ability to raise fares.He also expects available capacity to fall.
Ryanair is examining ways to reduce its operating costs. O’Leary said, “The company may seek temporary pay freezes during labour negotiations. Ryanair would continue to invest in growth, but cost discipline would become more important if fuel prices stay high.”
The airline is in talks with airports to lower charges and is considering leaner crewing arrangements. It also plans to use artificial intelligence more widely in back-office functions.