Ryanair warns European airfares could rise up to 20%

European travelers could face higher ticket prices next year as airlines grapple with rising jet fuel costs. Ryanair chief executive Michael O’Leary said fares might climb 10% to 20%, though he cautioned that increases may not fully cover the airline’s additional fuel expense.

Ryanair has fixed the price for 80% of its fuel needs through March 2027 at $67 a barrel. For the next fiscal year, it has secured prices for just one-quarter of its fuel needs, averaging about $95 a barrel, leaving the rest exposed to market prices.

The company expects its annual fuel bill to rise by about 2 billion euros in the fiscal year ending March 2028. O’Leary said a 20% fare rise, equivalent to around 10 euros per passenger, would be needed to cover the increase. Ryanair is also reviewing costs, including possible temporary pay freezes for agreements due for renewal in April and lower crew ratios.

The airline has lowered its passenger target for the fiscal year ending in March, from 216 million to 214 million, and expects winter traffic to remain flat as it limits exposure to costly fuel. O’Leary said other European carriers were reducing capacity, which could mean fewer seats and further upward pressure on fares.

Ryanair’s fuel costs have been partly shielded by its advance purchases, but its remaining exposure comes as Brent crude traded near $110 a barrel on November 2. O’Leary urged travelers to book early, saying fares would rise the longer they waited.