Ryanair CEO predicts biggest airfare rise in European history

Ryanair CEO Michael O'Leary has predicted that airfares across Europe could increase by up to 20% in 2027, citing higher fuel costs and the ongoing Iran war as the primary factors driving up oil prices. In an interview with Euronews, O'Leary criticized European environmental taxes for adding to airlines' expenses and highlighted that many European airlines, including Ryanair, had strong hedge positions through 2026 but will be much more vulnerable from April 2027.

He stated that his company had locked in fuel at around $67 a barrel this year, but warned that the price would double next year. O'Leary noted that his airline is currently 85% unhedged for 2027, with most other European airlines in a similar position. He attributed the sharp rise in jet fuel prices to the Iran war and its impact on the Strait of Hormuz, which has caused Brent crude futures to trade near a five-month high.

In addition to higher fuel costs, O'Leary predicted that there will be fewer seats available in 2027 due to bankruptcies and takeovers in the European aviation market. Earlier in the day, Ryanair announced it would be cutting 20 routes and 1.1 million seats from its Belgian winter schedule, citing the upcoming increase in the country's aviation tax from €2 to €7 in January 2027. In response, the airline plans to move six aircraft to lower-cost European markets.