Ryanair CEO warns fares could rise by up to 20% in 2027 as fuel bill jumps by $2.2 billion

Ryanair CEO Michael O’Leary warned that European airfares could rise by as much as 20% in 2027 as jet fuel costs surge and existing hedges expire. Speaking to CNBC, O’Leary called it a “significant cost cliff,” noting that jet oil is around $170 per barrel and that Middle East instability remains unresolved. Ryanair’s profit fell 15% to €2.15 billion ($2.3 billion) in the first fiscal half as the price of its unhedged jet fuel doubled, with 20% of exposure unhedged. Ryanair said it doesn’t expect short-haul fare increases to fully offset an estimated €2 billion fuel-charge rise, launching a cost review including possible pay freezes, reduced crew rations, and more AI-driven efficiencies.