European travellers could face the steepest airfare increase in the region's history over the next 12 months, with ticket prices potentially rising by as much as 20%, Ryanair CEO Michael O'Leary has warned.
Reuters reported that while speaking at a news conference in Brussels on Tuesday, O'Leary said airlines were likely to pass on higher operating costs to passengers as elevated jet fuel prices squeeze profit margins and fewer seats become available because of airline bankruptcies and takeovers.
“You're going to see airfares rise next year in Europe, I think by 10, 15, maybe 20%,” O'Leary said, adding that the region could witness the “biggest increase in airfares” in its history.
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The warning comes as the Iran war drives jet fuel prices sharply higher, putting pressure on airlines that have not adequately hedged their fuel requirements against price fluctuations.
Fuel hedging allows airlines to lock in prices in advance, protecting them from sudden increases in the cost of aviation fuel. Carriers with limited hedging arrangements, however, face greater exposure to market rates and may have to raise fares to protect margins.
Reuters reported that O'Leary said Ryanair and several other European airlines had entered 2026 with relatively strong fuel hedging positions. When the conflict began at the end of February, Ryanair had secured around 80% of its fuel requirements at $67 per barrel through March 2027.
However, the outlook beyond that period is less favourable. From April 2027, most European airlines have relatively little fuel-price protection in place, O'Leary said.
Ryanair itself has hedged just 15% of its fuel costs for next year at $85 per barrel, he added, against spot prices that were around twice that level.
The combination of rising fuel expenses and tighter seat availability could therefore leave passengers paying more, particularly if airlines struggle to absorb the additional costs.
O'Leary's comments came as Ryanair announced plans to cut 20 routes and more than one million seats from Belgium during its winter schedule.
The decision follows plans by the Belgian government to increase its aviation tax to €7 in January from the current €2. The move adds to cost pressures for the airline and could reduce capacity on affected routes.
O'Leary also expressed optimism that the US certification of Boeing's 737 MAX 10 aircraft would be completed by the end of October, potentially allowing Ryanair to receive 16 aircraft in early 2027.
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“Boeing are hoping to have the MAX 10, the new aircraft, certified before the end of October,” he told Reuters, adding that the airline was optimistic the timeline would be met.
The US Federal Aviation Administration's approval process for the long-delayed aircraft has been closely watched by airlines awaiting deliveries. Certification would be an important step towards Ryanair receiving the planes, although the expected delivery schedule remains dependent on the process being completed as anticipated.
For European travellers, however, the immediate concern is the prospect of higher ticket prices as airlines contend with fuel-cost pressures and possible reductions in capacity over the coming year.
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