European travelers may face a significant hike in airfares by 2027, as Ryanair CEO Michael O’Leary warns of a potential 20% increase in ticket prices due to rising jet fuel costs. The ongoing conflict in the Middle East has driven up fuel prices, posing a serious challenge to airline profitability and potentially triggering financial strain within the industry.
O’Leary highlighted that airlines are likely to see a sharp rise in operating expenses over the next year, which could lead to higher ticket prices. Jet fuel, being a major expense for airlines, has seen sustained price increases, and Ryanair, like many other European carriers, faces limited protection against these rising costs in the coming years.
While Ryanair has hedged about 80% of its 2026 fuel requirements at $67 per barrel, the airline’s protection diminishes significantly from April 2027 onward. O’Leary noted that only 15% of Ryanair’s fuel needs for 2027 are hedged at $85 per barrel, leaving the majority of their consumption vulnerable to market fluctuations.
Other airlines are experiencing similar challenges. EasyJet, for instance, has reported increasing fuel expenses and plans to scale down its winter schedule to manage costs. The airline has also taken steps to secure fuel-price protection for parts of 2027.
In addition to fuel costs, Ryanair is adjusting its operations in response to external factors such as tax increases. The airline plans to cut 20 routes and over one million seats from its winter schedule in Belgium following a rise in the country’s aviation tax from €2 to €7.
The prospect of rising airfares raises concerns for both airlines and passengers. While carriers may attempt to offset higher costs with increased ticket prices, there is uncertainty about how long consumers will be able to sustain more expensive air travel.