Airfares in Europe could increase by between 10 and 20% in 2027, which would represent the biggest price increase in the history of European aviation. Ryanair CEO Michael O'Leary made this prediction during a press conference in Brussels on Tuesday, quoted by “Reuters“, reports News.bg.
As the main reasons for the expected increase, he pointed to the sharp increase in the price of aviation fuel as a result of the war with Iran and the likely reduction in the capacity of European airlines due to bankruptcies and acquisitions.
“You will see how the prices of airline tickets in Europe will increase next year, in my opinion by 10, 15, maybe 20%. "I would say that in the next 12 months we will witness the biggest increase in airfares in the history of Europe," said O'Leary.
Expensive fuel will put pressure on prices
The war with Iran has led to a sharp increase in the price of aviation fuel, which is creating serious financial difficulties for carriers who have not insured themselves in advance against such price fluctuations.
According to O'Leary, Ryanair and a number of other European airlines had favorable contracts for pre-fixing fuel prices in 2026.
When the conflict began in late February, Ryanair had already secured 80% of its fuel needs through such contracts until March 2027 at a price of $ 67 per barrel.
However, this protection will weaken significantly from April next year, when most European airlines will have much more limited options to protect themselves from high prices.
O'Leary explained that for the next period Ryanair has fixed in advance only 15% of its fuel costs at a price of $ 85 per barrel. Meanwhile, current market prices are approximately twice as high.
This means that airlines will have to purchase a significant part of their fuel needs at much higher prices, which will probably also lead to higher ticket prices.
Bankruptcies and acquisitions can limit supply
An additional factor in the increase in prices may be the contraction of capacity in the European aviation market. According to the head of Ryanair, some airlines in Europe may go bankrupt or be acquired by their competitors, which will reduce the number of seats offered to passengers.
O'Leary made his forecast in Brussels, where he also announced specific cuts in Ryanair's operations in Belgium. The airline will remove 20 routes and more than a million seats from its winter schedule for the country.
The reason is the intention of the Belgian authorities to increase the aviation tax from the current 2 euros to 7 euros, starting in January.
Ryanair expects the new Boeing 737 MAX 10 in early 2027.
Along with warnings about rising ticket prices, O'Leary expressed optimism that the US aviation authorities will complete the certification of the Boeing 737 MAX 10 aircraft as early as October.
If this happens, Ryanair will be able to receive 16 new aircraft in early 2027.
„Boeing hopes that the new MAX 10 will be certified before the end of October. "We are quite optimistic that this deadline will be met," O'Leary told Reuters.
U.S. Transportation Secretary Sean Duffy is expected to announce the approval of the model by the U.S. Federal Aviation Administration (FAA) on Tuesday.
The certification process for the Boeing 737 MAX 10 has been delayed, including due to a problem with the navigation system software that has created the risk of further delays.
Ryanair's forecast for a significant increase in airfares comes against the backdrop of rising operating costs for European airlines, uncertainty in energy markets and the need to renew their aircraft fleets.