Ryanair warns of 2027 airfare rise as fuel costs climb

Ryanair has announced a company-wide cost review after warning that rising jet fuel prices could add about 2 billion euros to its expenses in the financial year ending March 2028. The Irish carrier said it may temporarily freeze pay increases, reduce the ratio of cabin crew to aircraft, renegotiate airport fees, and use more artificial intelligence in administrative and support work.

Michael O’Leary presented the review on November 2 in Dublin while releasing first-half results for the 2027 financial year. He blamed the Middle East conflict and higher jet fuel prices for the pressure on the company’s accounts, and said fuel prices are likely to stay high for much of 2027 unless the conflict ends quickly.

Ryanair has so far limited its exposure through advance fuel purchases. About 80 percent of its fuel needs until March 2027 are covered at roughly 67 dollars per barrel, while only 25 percent of its fiscal 2028 needs are secured at about 95 dollars per barrel. Uncovered fuel prices have already doubled to around 130 dollars.

O’Leary warned that European airfares could rise by 10 to 20 percent in 2027, calling it the biggest increase in European history. He said a ticket costing 50 euros today might reach roughly 60 euros next summer at the high end of the predicted range.

The airline carried 125.8 million passengers in the first half, up 6 percent from the same period last year, and revenue grew by 3 percent. O’Leary said rival budget airlines face the same fuel problem, so baggage and seat selection fees could also increase.