Ryanair CEO anticipates European airfare prices up as much as 20% next year

Ryanair CEO Michael O’Leary expects European airfare prices to rise as much as 20% next year, citing the continuing conflict in the Middle East and the knock-on effect on fuel costs. Speaking on CNBC, O’Leary said carriers face 2027 with much higher oil prices that will likely be passed on in higher airfares. Jet fuel has been extremely volatile since U.S. and Israel attacks on Iran, rising faster than oil due to both higher crude prices and tight supplies of refined fuel. IATA data cited by Ryanair puts global jet fuel at about $196 a barrel now, after reaching $209 in early April and $195 in mid-September. IATA expects fuel to take nearly one-third of airline operating expenses in 2026. Ryanair said it won’t see short-haul fares fully offset its next-year fuel bill, so it is reviewing costs and may consider temporary pay freezes, lower crew ratios and more AI for back-office productivity.