Ryanair’s chief executive has predicted a record increase in European airfares next year, as airlines struggle with rising jet fuel costs pushed higher by the Middle East conflict.
Many carriers are not protected against rising jet fuel costs, Michael O’Leary told a news conference in Brussels, which could lead to airline bankruptcies and takeovers. The Ryanair boss predicted that we will see the biggest increase in airfares in history in Europe over the next 12 months, with the price of plane tickets rising by as much as 20%.
Jet fuel prices have soared in recent months, as the war on Iran continues to affect fuel supply chains – and jet fuel accounts for a large portion of carriers’ costs. The International Air Transport Association (IATA) previously predicted jet fuel prices would be 70% higher across 2026, estimated to average $152 (£114) a barrel for the year, drastically reducing airlines’ profits.
Ryanair and many other European airlines had hedged their jet fuel requirements for 2026, with Ryanair 80% hedged at $67 (£50) a barrel at the time the Iran conflict began in late February. However, most European carriers, including Ryanair, do not have significant hedging in place from April 2027 onwards to protect them if oil prices remain high.
EasyJet reported a £105 million annual rise in fuel costs in July, hedging 62% of its fuel requirements for the first half of 2027 and 37% for the second half of the year. EasyJet is cutting 700,000 seats, and Ryanair is cutting 1 million seats, from their winter schedules in an attempt to save fuel.