Ryanair CEO Predicts European Air Fares Could Jump 20% in 2027

European air fares could rise by as much as 20% in 2027, Ryanair chief executive Michael O'Leary has predicted.

The Middle East conflict is pushing jet fuel costs higher, and many carriers hold no hedges against those increases, O'Leary said. His forecast, reported on October 20, 2026, points to a record jump in ticket prices across the region next year.

Why does fuel drive the fare forecast?

Jet fuel is one of the largest cost lines for any airline. When the Middle East conflict pushes prices up, unhedged carriers absorb the increase directly. Ryanair's CEO said many European airlines sit in exactly that position.

That combination — rising fuel bills plus no hedge protection — is what O'Leary says will flow straight into ticket prices, with increases reaching as much as 20%.

In plain terms: airlines that didn't lock in fuel prices now face a choice between thinner margins and higher fares, and O'Leary expects them to choose fares.

What happens to weaker airlines?

O'Leary predicted the same cost pressures will trigger airline bankruptcies and takeovers. Carriers without hedging cover and without the balance sheet to absorb higher fuel bills become acquisition targets or exit the market.

It's a familiar pattern in European aviation: fuel shocks squeeze the weakest operators first, and consolidation follows.

How high could fares go?

The ceiling in O'Leary's forecast is 20% — which he described as a record increase for European air fares. The prediction covers 2027 and applies to the broader European market, not just Ryanair's own pricing.

One line to hold onto: a 20% fare rise in 2027 would mark the sharpest jump on record for European tickets, if the fuel squeeze plays out as O'Leary expects.

What's the takeaway for travelers and investors?

For passengers, the so-what is simple: budget for higher fares in 2027, especially on routes flown by unhedged carriers. For investors, watch the carriers with hedging programs and strong cash positions — O'Leary's bankruptcy-and-takeover prediction implies consolidation opportunities ahead.

If fuel stays elevated through 2027, the European airline map could look meaningfully smaller — and a lot more expensive to fly.