Ryanair CEO predicts biggest airfare rise in European history

CEO Michael O'Leary told Euronews that airfares would rise significantly in 2027 because of higher fuel costs. He also criticised European environmental taxes for adding to airlines’ costs.

The chief of Europe’s biggest budget airline expects airfares to go up by as much as 20% in 2027 across Europe, as airlines are hit by higher jet fuel costs while the Iran war continues to drive up oil prices.

According to O'Leary, airlines are largely unhedged against higher jet fuel prices from April 2027.

Jet fuel prices in Europe and the CIS averaged $207.61 a barrel in the week ending 16 October, up almost 128% from a year earlier, according to the International Air Transport Association’s (IATA) monitor.

Many European airlines, including Ryanair, had strong hedge positions through 2026, O’Leary said, but their protection is much more limited from April 2027. He told Euronews that Ryanair had locked in fuel at about $67 a barrel this year, but he added, “our oil price will double” next year.