Ryanair CEO warns European ticket prices could jump 20 percent next year

Ryanair expects European airfares to rise by as much as 20 percent next year.

The budget carrier’s chief executive officer, Michael O'Leary, made the prediction in a Monday interview on CNBC. He noted that the company faces higher oil prices in 2027. O'Leary stated that these costs will likely translate into significantly higher fares for passengers.

Fuel prices have fluctuated wildly since the U.S. and Israel launched attacks on Iran. Jet fuel costs have climbed faster than crude oil due to tight supplies of refined fuel. This fuel is one of the largest operating expenses for airlines. Carriers have responded by cutting less profitable flights. They have also raised fares and baggage fees. Major U.S. airlines said higher passenger revenue only covered part of their rising fuel costs initially.

Data from the International Air Transport Association shows the global average jet fuel price was about $99 a barrel on Feb. 27. That date was the day before the war began. Prices more than doubled to $209 by early April. They fell for nearly three months before reaching $195 a barrel in mid-September. The current global average hovers around $196 a barrel. Diesel and jet fuel compete for refinery space, so shortages in one product increase pressure on the other.

The IATA projects that fuel will account for nearly one-third of airline operating expenses this year. This figure is up from about a quarter in 2025.

Ryanair stated on Monday that it does not expect short-haul European airfares to fully cover its anticipated fuel bill for next year. The airline is reviewing its costs to address the gap. It may impose temporary pay freezes and lower crew ratios. The company also plans to use artificial intelligence to boost productivity in back office and support functions.