Ryanair CEO Michael O’Leary warned that European airfares could climb by as much as 20% in 2027, which he described as the largest annual increase the continent has ever seen, as surging fuel costs, taxes and constrained capacity squeeze airlines.
Speaking at a press conference in Brussels, O’Leary said fares could rise “by 10, 15, maybe 20%,” adding bluntly: “You’re going to see the biggest increase in airfares, I would say, in history in Europe for the next 12 months.”
The warning comes as jet fuel prices across Europe and the CIS averaged $207.61 a barrel in the week ending October 16, an increase of almost 128% from a year earlier, according to data from the International Air Transport Association.
The spike in fuel costs traces back to the outbreak of the Iran war and the effective closure of the Strait of Hormuz, which sent crude oil and refined product prices, including jet fuel, climbing rapidly across global markets.
O'Leary noted that Ryanair itself is 85% unhedged against fuel prices for next year, leaving the airline directly exposed to further volatility, and said most other European carriers are in a similarly exposed position heading into 2027.
With fuel costs still climbing and capacity constrained across the industry, O'Leary's warning suggests European travelers should brace for a meaningfully more expensive year of air travel, regardless of which airline they fly with.
