Brace for pricier European flights next year. Ryanair expects fares on short-haul routes across the continent to rise "materially" from 2027, with chief executive Michael O'Leary telling Sky News travellers should brace for double-digit percentage increases as jet fuel costs feed through to ticket prices.
The trigger is the war involving the US, Israel and Iran, which has pushed oil and fuel prices up. Ryanair currently has around 80% of its fuel hedged at below-market rates, but that protection runs out after the end of the current financial year. Once it lapses, the airline expects its fuel bill to jump by roughly £1.7 billion (€2 billion) for April 2027 to March 2028 — and it expects elevated fuel prices to persist well into 2027.
So what is Europe's biggest airline doing about it? Reviewing everything. That includes squeezing airports and aircraft suppliers on costs, potential temporary pay freezes and lower crewing ratios in labour negotiations, and expanded use of AI to boost productivity in operations, back-office and support functions. O'Leary was blunt about the outlook: higher fares alone won't cover the gap, so the airline will cut costs wherever it can.
The numbers behind the warning make the pressure clear. Profit after tax for the half-year to September fell 15% to £1.79 billion (€2.15 billion), even though revenue rose 3% to £8.41 billion (€10.08 billion) on the back of 6% more passengers. The problem is the cost line: operating expenses climbed 10% to £6.42 billion (€7.69 billion) over the same period. Earlier in the year, Ryanair also trimmed its annual traffic target from 216 million to 214 million passengers as one way of absorbing unhedged fuel costs.
There's some near-term nuance. Third-quarter demand is strong and fares are trending modestly ahead of last year, but bookings are coming in closer to departure dates, which makes forecasting harder. O'Leary said the quarter's outcome depends heavily on October and November school mid-term and Christmas bookings, and the airline has, as usual, no visibility into the final quarter — so no full-year profit guidance yet.
For holidaymakers, the practical takeaway is simple: if you're flying around Europe in 2027, booking earlier rather than waiting for last-minute deals looks increasingly sensible. Closer-in pricing is exactly where airlines have the most room to push fares up when fuel costs bite, and Ryanair's own guidance points firmly in that direction. Watch for knock-on effects too — cost pressure at one of Europe's dominant carriers tends to influence pricing across the low-cost market as a whole.
