Air travellers across Asia who book European trips should expect to pay more. Ryanair chief executive Michael O’Leary told a press conference in Brussels on Tuesday that European fares could rise by as much as 20% in 2027, the largest increase the market has ever seen. “We will see the biggest increase in air fares in the history of Europe over the next 12 months,” he said, according to Bloomberg.
Fuel Bills That Fares May Not Cover
The cause is the Middle East conflict and the oil prices it has pushed up. Soaring energy costs have become one of aviation’s biggest challenges since the war with Iran escalated earlier this year. Jet fuel has cost airlines more worldwide and has also weighed on demand for flying.
O’Leary said carriers will try to pass much of the extra fuel cost on to passengers. He doubts it will be enough. “The question is whether that increase will be enough to cover the dramatically higher oil bills. I don’t believe it will be,” he said. That squeezes margins.
Hedging offers little cushion. According to O’Leary, most European airlines, Ryanair included, have little significant protection against oil price swings for 2027, so they are more exposed if prices stay high.
Taxes, Cutbacks and Consolidation
Limited capacity in the European market and rising taxes add to the pressure. O’Leary singled out France and Belgium and said Ryanair plans to scale back operations in both because of higher aviation taxes. The airline already trimmed its annual passenger target in September and plans fewer winter seats, when demand is traditionally weaker.
He also predicted that rising costs will speed up consolidation. Financially weaker airlines, he said, will find survival harder, which opens the way for more mergers.
Ryanair by the Numbers
Ryanair is Europe’s largest airline by scheduled passengers, fleet size and flights. It runs 651 aircraft on more than 3,500 short-haul flights a day to roughly 230 airports in 36 countries, with main bases at Dublin, London Stansted and Milan Bergamo. In 2025 it sold 208 million tickets, averaging €70 in revenue against €62 in cost per ticket. Nearly a third of its income comes from extras such as seat selection, baggage and airport check-in fees. When airport fees, taxes or environmental levies rise, the airline tends to cut routes or capacity in the affected region.
Sources
- Ryanair boss warns Europe faces biggest air fare increase in history, with prices set to rise 20% – ProtoThema English
- Ryanair
- Ryanair urges passengers to 'stop' making key mistake on short haul flights
Photo: Michael Oldfield (CC BY-SA 4.0)
