Ryanair CEO sees European fares rising up to 20% in 2027

Ryanair chief executive Michael O’Leary says European airfares could rise 10% to 20% in 2027 as higher fuel costs pressure airlines, while the carrier reduces its passenger target and reviews operating expenses. The fare increase is a forecast, not an announced price change. O’Leary has said the airline may not be able to pass on the full increase in fuel costs, even if fares rise by 20%. Ryanair expects its annual fuel bill to increase by about €2 billion in the financial year ending in March 2028, based on current market prices. Its fuel hedging covers 80% of requirements through March 2027 at about $67 a barrel. For the following financial year, it has hedged 25% of its fuel needs at about $95 a barrel, leaving a larger share exposed to market prices. The airline lowered its passenger target for the financial year ending in March 2027 from 216 million to 214 million. It expects traffic from November through March to remain broadly unchanged from a year earlier, and said it had scaled back its winter flying schedule as fuel costs rose. Ryanair is reviewing expenses, including staffing arrangements and airport charges. The review could include temporary pay freezes when labor...