Ryanair CEO predicts European airfares could rise by up to 20% — CNBC

Ryanair CEO Michael O'Leary said that airfares in Europe could rise by 10–20% in 2027 due to a significant increase in jet fuel prices. He said this in an interview with CNBC.

Fuel costs are rising

According to O'Leary, airlines will face a substantial increase in costs next year when fuel price hedging contracts expire. He noted that jet fuel was priced at $170 per barrel and that the situation in the Middle East, he said, has still not been resolved.

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Ryanair reported that its profit in the first half of the financial year fell by 15% to €2.15 billion, or $2.3 billion. The company explained this by saying that the cost of 20% of its unhedged jet fuel had doubled.

Cost review

The low-cost carrier expects that higher fares on short-haul routes will not be able to fully offset the projected increase in fuel costs of around €2 billion. Ryanair is launching a cost review that includes cutting crew meal allowances, a possible temporary pay freeze, and the use of artificial intelligence to improve efficiency.