Ryanair Chief Executive Michael O'Leary predicts European air fares could rise by as much as 20% in 2027, citing elevated jet fuel costs driven by Middle East conflict as the primary cause.
O'Leary stated that many carriers lack hedging protection against rising fuel prices, leaving them exposed to cost volatility. He forecasted that unprotected airlines will face financial strain severe enough to trigger bankruptcies and merger activity across the sector.
The prediction reflects broader industry vulnerability to geopolitical disruptions that affect fuel markets. Airlines typically hedge fuel costs by locking in prices in advance, but O'Leary's comments suggest significant portions of Europe's carrier fleet have not secured such protections for the coming year.