European airfares could rise by up to 20% next year as airlines face significantly higher fuel costs, according to Ryanair CEO, Michael O’Leary.
During a conference in Brussels and reported by Reuters, he warned that many carriers, including Ryanair, had limited fuel hedging in place from April 2027, leaving them exposed if jet fuel prices remained elevated.
The airline expects European short-haul fares to increase as carriers pass on some of the higher fuel costs to passengers. Reduced capacity among competitors could also contribute to higher ticket prices.
“Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027. While we believe European short-haul airfares will increase materially to reflect these much higher jet-fuel prices and competitor capacity reductions, this is still unlikely to provide a full offset for an estimated €2bn (R36,8bn) increase in our FY28 fuel bill,” said O’Leary, as part of the airline’s H1 financial results.
