A nightmare awaits millions of travelers in Europe in 2027, as airfares are threatened by an unprecedented wave of price hikes, which could reach as high as 20%.
Specifically, the chief executive officer of Ryanair predicts that travelers will confront the largest increase in airfares «in history» next year.
Michael O'Leary made these statements on Tuesday, during a press conference in Brussels, as airlines remain largely unhedged against soaring jet fuel costs. O'Leary estimated that in the coming months there will be fewer available seats, as a result of bankruptcies and acquisitions among airlines. This development, combined with limited risk hedging against higher fuel prices, could lead to fare hikes of up to 20%.
«I think we will see airline ticket prices in Europe rising by 10%, 15%, maybe even 20% next year. We will see, I would say, the biggest increase in airfares in European history over the next 12 months», stated O'Leary.
Jet fuel prices skyrocket
The war in Iran has led to a sharp increase in jet fuel prices, squeezing the profit margins of airlines that had not secured protection against price increases.
O'Leary stated that Ryanair and other European airlines had secured strong hedging against fuel price fluctuations for 2026. He added that, when the conflict began in late February, Europe’s largest airline had hedged 80% of its fuel requirements at a price of 67 dollars per barrel through March 2027.
The head of Ryanair stated that, from April 2027 onward, most European airlines will have secured significantly less hedging against fuel price fluctuations. As he reported, Ryanair has secured a price of 85 dollars per barrel for only 15% of its fuel needs for next year, while current market prices hover at approximately double that level.
Route cancellations
O'Leary was in Brussels to announce that Ryanair is cutting 20 routes and more than one million available seats from its winter flight schedule in Belgium. The decision is linked to the Belgian government’s plans to increase the aviation tax to 7 euros in January, up from 2 euros currently.
The veteran airline chief also expressed optimism that the certification of the Boeing 737 MAX 10 by American authorities will be completed within October, allowing Ryanair to take delivery of 16 aircraft in early 2027.
«Boeing hopes to have received certification for the MAX 10, the new aircraft, before the end of October. We are quite optimistic that this date will be met», O'Leary stated.
US Secretary of Transportation Sean Duffy was expected to announce on Tuesday that the Federal Aviation Administration (FAA) of the USA has approved the Boeing 737 MAX 10, following a long delay in the certification process.
It is noted that a technical glitch in the aircraft’s navigation software had threatened to cause a new delay in finalizing the process.
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