Air travelers in Europe could face significant ticket price hikes by 2027 due to escalating jet fuel costs driven by the ongoing conflict in the Middle East. Ryanair CEO Michael O’Leary cautions that airfares may increase by as much as 20% as airlines grapple with rising operational expenses, which could lead to financial strain and potential bankruptcies within the industry.
O’Leary forecasts an unusually steep rise in ticket prices over the next year as airlines contend with heightened fuel bills, a major cost factor for carriers. He notes that sustained jet fuel price increases could severely impact profitability across the aviation sector.
Ryanair has hedged a significant portion of its 2026 fuel requirements, securing 80% at $67 per barrel before the escalation of hostilities involving Iran earlier this year. However, the airline’s protective measures against surging fuel prices are limited beyond March 2027, with only 15% of its fuel needs hedged at $85 per barrel, leaving the majority exposed to market fluctuations.
Other European airlines are similarly vulnerable to potential fuel price surges. EasyJet has already reported rising fuel expenses and intends to curtail its winter schedule to mitigate costs. The airline has hedged part of its fuel needs for the first and second halves of 2027, aiming to shield itself from price volatility.
In addition to fuel-related challenges, Ryanair is also scaling back its operations in Belgium, cutting 20 routes and over one million seats from its winter schedule in response to a planned increase in the country’s aviation tax from €2 to €7 starting in January.
This outlook is concerning for both airlines and consumers. While carriers may respond by increasing ticket prices to alleviate financial pressures, there is uncertainty about how much of these costs passengers will be able to absorb, raising questions about the future affordability of air travel.