At a press conference in Brussels, Ryanair chief executive Michael O’Leary warned that air fares in Europe could rise by 10–20% in 2027.
Reasons for fuel price rises
O’Leary linked the potential fare increases to reduced supplies of aviation fuel due to the war against Iran and a sharp rise in fuel costs. Aviation fuel accounts for a significant share of airlines’ expenses.
The International Air Transport Association (IATA) had forecast that fuel would cost an average of $152 per barrel in 2026, compared with around $90 last year.
Fuel hedging and Ryanair’s risks
According to O’Leary, this year Ryanair and many other carriers were protected by having locked in prices for a large portion of their fuel in advance. When the conflict with Iran began at the end of February, the company had hedged 80% of its requirements at $67 per barrel.
For 2027 Ryanair has only hedged 15% of its fuel at $85 per barrel, leaving “85% of our risks unhedged,” O’Leary said. Fuel on the market is now roughly twice as expensive, and O’Leary believes some carriers may face bankruptcy.
Change to passenger check-in rules
Ryanair has also changed its check-in rules: from 10 November the airline will close check-in and bag drop desks 60 minutes before departure instead of the current 40 minutes. This applies to passengers checking baggage at the airport.
Alongside the fare increases, the company is implementing these service process changes, which will take effect on 10 November.
