European airline passengers could face ticket price increases of up to 20% in 2027 as carriers respond to higher fuel costs, Ryanair Group CEO Michael O’Leary warned on October 20.
Speaking at a press conference in Brussels, O’Leary said the next 12 months could bring one of the largest increases in European airfares, according to Bloomberg.
He also warned that higher ticket prices might not fully compensate airlines for rising operating expenses.
Rising Fuel Costs Put Pressure on Airlines
O’Leary attributed the expected fare increases primarily to higher jet-fuel prices linked to the war in Iran.
Earlier in October, he told Reuters that aviation fuel was approximately 50% more expensive than before the conflict and that elevated prices could persist for another 12 to 18 months.
He said airlines would increasingly pass these costs on to passengers, particularly as existing fuel-price protection agreements expire.
In July, Ryanair reported that it had hedged 80% of its fuel requirements for the financial year ending March 2027, compared with 15% for the following financial year.
The lower coverage could leave the airline more exposed to fuel-price increases during the summer 2027 travel season.
Higher Fares Expected Across Europe
O’Leary’s forecast concerns European airfares generally and does not mean that every Ryanair ticket will increase by 20%.
Ryanair has also identified aircraft delivery delays, engine maintenance backlogs and limited airline capacity as factors affecting the European aviation market.
In its July financial results, the company projected that short-haul capacity constraints could continue until at least 2030.
O’Leary previously warned that sustained fuel costs could put additional financial pressure on airlines operating with limited profit margins.
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