Ryanair chief executive Michael O’Leary said European airfares will rise sharply in 2027, with increases of 10, 15 or perhaps 20 percent. He made the remarks at a press conference in Brussels on Tuesday, 20 October. O’Leary said the coming year would bring the biggest airfare increase in Europe in history.
Fuel costs drive the forecast
Jet fuel prices have surged since the war in Iran began and the Strait of Hormuz was effectively closed. According to the International Air Transport Association, the average jet fuel price in Europe and the CIS reached 207.61 US dollars per barrel in the week ending 16 October. That was roughly 128 percent higher than a year earlier. Brent crude futures traded at 109.86 dollars a barrel on Wednesday, near a five-month high.
Ryanair fixed its fuel price for this year at about 67 dollars a barrel. O’Leary said the airline is 85 percent unhedged for next year. Protection, he said, becomes much more limited from April 2027. He added that most other European carriers are in a similar position.
Capacity cuts and tax dispute
O’Leary also said bankruptcies and acquisitions in European aviation will reduce seats available in 2027. Ryanair plans to cut 20 routes and 1.1 million seats from its Belgian winter schedule. It will also move six aircraft to lower-cost European markets.
The airline blames a planned rise in Belgium’s aviation tax. The levy would increase from 2 euros to 7 euros in January 2027. O’Leary criticised environmental taxes across Europe, arguing they add to passenger costs.
Source: Ryanair
