Fuel Crisis in the Middle East to Drive Ryanair Ticket Prices Up by 20% in 2027, Reports CEO

Ryanair Projects Higher Airfare and Fuel Costs Amid Middle East Tensions

According to УНІАН — Туризм: Ryanair anticipates a roughly 20% increase in airfares by 2027, driven primarily by soaring aviation fuel prices linked to the ongoing conflict in the Middle East. In response, the airline is preparing cost-cutting measures including freezing wages, reducing crew numbers, and expanding the use of artificial intelligence to boost efficiency.

• Implementing a salary freeze;
• Downsizing flight crews;
• Increasing reliance on AI to enhance operational productivity.

The company expects fuel expenses to surge to approximately €2 billion in the financial year ending March 2028. Ryanair’s current fuel hedging covers 80% of its needs until March 2027 at $67 per barrel and 25% for the following 12 months at $95 per barrel. The fuel insurance contracts expire in 2027, adding further uncertainty to costs.

“Without a swift resolution to the Middle Eastern conflict, we foresee aviation fuel prices remaining elevated throughout 2027.”

Michael O’Leary, Ryanair CEO

O’Leary emphasized the company’s comprehensive review of expenses, focusing on renegotiating airport fees and labor agreements. Temporary wage freezes and crew reductions are among the strategies under consideration, alongside greater integration of AI technologies.

Ryanair already leverages artificial intelligence to improve operations, back-office tasks, and customer support, which has increased its throughput capacity by 4%. “Managing a fleet of 650 aircraft is too complex for humans alone. Machines can optimize scheduling better than we can, resulting in enhanced aircraft utilization,” O’Leary explained.

Additionally, Ryanair is making significant route adjustments by canceling many flights to Belgium while introducing new services to Italy and Spain. The carrier has announced 29 new routes for summer 2027 as part of its ongoing network expansion.

These forecasts reflect broader economic and geopolitical forces influencing the aviation sector. Ryanair’s moves toward workforce downsizing and AI adoption show a strategic effort to remain competitive amid rising costs and market volatility. However, changes to flight availability may impact travelers planning trips to Belgium and other affected destinations.

For global travelers, rising fuel prices and geopolitical instability underscore the challenges airlines face in balancing affordability with operational sustainability.

As Ryanair navigates the challenges posed by rising fuel costs, the airline is also expanding its network with an exciting announcement of new routes for the upcoming summer season. This strategic move aims to enhance its offerings and attract more travelers despite the increased airfare expectations. To learn more about Ryanair's plans for summer 2027 and the newly available tickets, check out the details here.