Ryanair warns of higher European airfares and cost pressures in 2027

On October 26, 2026, Ryanair Group Chief Executive Michael O’Leary estimated that European airfares could rise by 10% to 20% in 2027, and said this could be the largest increase in history. He noted that about 85% of Ryanair’s fuel requirements for next year are not hedged, that most European airlines are in a similar situation, and that fuel price protection will weaken markedly from April 2027. The report, citing IATA data, said that in the week to October 16, the average price of aviation fuel in Europe and the CIS region was US$207.61 per barrel, up nearly 128% year on year. On October 30, O’Leary again warned that European airfares could rise by 10% to 20% in 2027, citing Middle East conflict pushing up oil prices, insufficient fuel hedging by most European airlines and capacity contraction; after existing contracts expire in April 2027, only 15% of demand is hedged at US$85 per barrel, and he expects high fares may persist until 2028; the report said that in mid-October the average European aviation fuel price was €185.49 per barrel, up nearly 128% from the same period last year. Earlier reports priced it at US$207.61 per barrel, while later reports priced it at €185.49 per barrel. On November 3, Ryanair warned that it would freeze pay, slow hiring and push AI efficiency gains, while reporting a 15% fall in half-year profit and estimating that the group’s annual fuel bill for fiscal 2027/28 will increase by €2 billion (US$2.24 billion). O’Leary said he expects possible labor action next spring, and said that if a pilot strike occurs in April or May next year, from a short-term financial perspective it could actually save costs. The above fare-increase expectations remain the public judgment of airline executives, and the reports did not mention any related fare-increase decision or policy arrangement.