Ryanair Warns European Airfares Could Surge by Up to 20% in 2027 Due to Rising Fuel Costs

Expected Rise in European Airfare Prices

According to УНІАН — Туризм: Ryanair CEO Michael O'Leary has warned that airfares across Europe could see a significant increase by 2027, driven primarily by soaring aviation fuel prices linked to the ongoing conflict with Iran. According to O'Leary, ticket prices for flights within Europe might climb between 10% and 20%. He emphasized that

“the next 12 months will witness the largest increase in European airfares in history.”

How the Iran Conflict is Disrupting Aviation Fuel Supply

The war involving Iran has sharply reduced the availability of aviation fuel. The International Air Transport Association (IATA) projects that the average price of fuel will reach $152 per barrel in 2026, a steep rise from around $90 per barrel in 2025. Ryanair managed to secure about 80% of its fuel at $67 per barrel by late February 2026. However, from April 2027 onward, 85% of Ryanair's fuel costs remain exposed to market volatility, with only 15% locked in at $85 per barrel. Presently, market fuel prices are approximately double this locked-in rate.

O'Leary also pointed out that

“85% of our fuel cost risks are unhedged next year, and most other European carriers face similar challenges.”

Despite these pressures, Ryanair announced plans to launch 29 new routes for summer 2027 from Poland, Hungary, and Slovakia. The airline currently operates more than 2,500 routes to 230 destinations, highlighting its commitment to expanding even amid rising fuel expenses.

The forecasted rise in European ticket prices is likely to impact the tourism industry, as higher travel costs could reduce passenger demand. In the face of global economic uncertainty and fuel market instability, airlines are forced to adjust their strategies to maintain competitiveness. Ryanair's continued expansion of its route network suggests confidence in sustained or growing demand for air travel in the years ahead.

As Ryanair anticipates a significant surge in airfares, it's crucial to understand the broader implications for travelers. The airline's warning about increased ticket prices highlights a trend that may affect not only flight availability but also the overall travel experience. For more insights on how these evolving costs could shape summer travel plans in 2027, check out our detailed report on rising air ticket prices.