Ryanair Holdings CEO Michael O’Leary expects European airfares to climb as much as 20% in 2027, a rise that may still leave airlines with squeezed margins as oil costs increase, Bloomberg reported.
At an Oct. 20 news conference in Brussels, O’Leary said higher ticket prices and fuel surcharges would not fully offset airlines’ larger oil bills. Passengers would bear some of the increase through fares, while carriers would absorb the rest through narrower margins. He described the possible fare rise as historic.
Fuel hedging offers limited protection against that pressure next year, O’Leary said. “We’re 85% unhedged next year,” he said of Ryanair’s 2027 fuel needs, adding that most other European airlines were in a similar position.
O’Leary linked the outlook to higher oil prices amid the continuing war in the Middle East. Bloomberg’s account also pointed to reduced capacity as some carriers struggle and to higher taxes across the industry.
O’Leary said tax increases would prompt Ryanair to scale back operations in France and Belgium. The airline lowered its fiscal-year passenger target in September, saying it would offer fewer seats during the quieter winter season.
O’Leary also expects further consolidation as weaker carriers face higher costs. airBaltic has announced a financial reorganization; Bloomberg reported that Spain’s Volotea is restructuring.
