Ryanair CEO Michael O’Leary warned that Europe could face its biggest-ever increase in airfares next year, with prices potentially rising by 10% to 20%. He cited soaring jet fuel costs linked to the ongoing conflict in the Middle East as the main driver.
Many airlines, including Ryanair, have hedged against fuel price volatility through early 2027. Those protections are set to expire.
O’Leary said that from April 2027, most European carriers will be largely exposed to spot fuel prices, which are nearly double their previous hedged rates. Higher costs, potential industry consolidation and fewer available seats could lead airlines to pass those expenses on to travelers.