Ryanair is warning that flight prices in summer 2027 will rise significantly due to an expected surge in aviation fuel costs. The company’s chief executive, Michael O'Leary, urged passengers to book their tickets as early as possible.
“My advice to consumers for next year is, if you are going to travel in the summer, book now. Do it as early as possible while fares are low. They will rise dramatically next year,” O'Leary told Sky.
Ryanair expects its fuel costs to increase by around €2 billion at current futures prices. The company says that if the conflict in the Middle East is not brought to an end quickly, aviation fuel prices will remain high in 2027 as well.
More expensive fuel and lower profit
The airline has hedged 80% of its required fuel at between $50 and $67 per barrel through March 31. The remaining 20%, however, has doubled in price over the past year and contributed to a 10% increase in costs for the six months to September 30.
For this period, Ryanair reported a 15% decline in post-tax profit to €2.15 billion. In the second quarter alone, which is usually the company’s most profitable, profit fell by 6% to €1.61 billion.
Quarterly revenue rose by 4% to €5.7 billion, while the number of passengers carried reached 64.5 million, an increase of 5%. Average fares, however, fell by 2% year on year in the three months to the end of September.
Company reviews all costs
Ryanair says higher flight prices in Europe and capacity reductions by competing airlines are likely to lead to higher fares for short-haul flights. According to the company, this increase will not be enough to fully offset the expected rise in fuel costs.
That is why the carrier is reviewing all costs. Measures under consideration include temporary wage freezes, reducing the ratio of crew members to passengers and making wider use of artificial intelligence in administrative and support activities.
Ryanair has not announced a final decision on wages. The company presented the measures as part of a cost review needed to limit pressure on profit as cheaper fuel contracts expire ahead of the summer 2027 season.