European airfares could jump 20% in 2027 in the biggest increase 'in history,’ warns Ryanair CEO. Book your trip soon to save

“You’re going to see airfares rise next year in Europe, I think by 10, 15, maybe 20%,” Michael O’Leary, group CEO of Ryanair, said at a news conference in Brussels on Oct. 20. “You’re going to see the biggest increase in airfares, I would say, in history in Europe for the next 12 months.”

The warning comes as airlines grapple with soaring jet fuel costs, largely driven by the the Iran war, and prepare for the possibility of fewer available seats as financially vulnerable carriers such as JetBlue restructure or, like Spirit, collapse altogether.

Why airfares could surge in 2027

One of the key factors behind O’Leary’s forecast is the rising cost of jet fuel, a major expense for airlines.

Many European carriers protected themselves against earlier price increases by using fuel-hedging agreements, which allow airlines to lock in fuel prices in advance. Those arrangements helped limit the impact of higher costs during 2026, but that protection is expected to weaken in 2027.

Ryanair had secured about 80% of its fuel at $67 a barrel through March 2027 when the conflict in the Middle East began in February, O’Leary said. But the airline has locked in only about 15% of its fuel requirements for the year, at $85 a barrel, leaving much of its future fuel spending exposed to market prices.

“We’re 85% unhedged next year, and most of the other European airlines are in a similar position,” O’Leary said at the news conference.

EasyJet, for one, had hedged only 62% of its fuel requirements for the first half of 2027 and just 37% for the remainder of the year, according to the airline’s July 2026 trading update.

International Airlines Group, which owns both British Airways and Iberia, faces similar exposure. It had hedged 55% of its fuel requirements for the first quarter of 2027, with coverage falling to 48% in the second quarter, 39% in the third quarter and 31% in the fourth quarter, according to its 2026 interim results.

O’Leary also expects industry consolidation to put additional pressure on fares. If struggling airlines collapse or are acquired by competitors, fewer flights and seats could be available, potentially giving surviving carriers more pricing power.

That could be particularly painful for budget-conscious travelers who rely on low-cost airlines to explore Europe affordably.

How to protect your 2027 travel budget

For Americans planning trips to Europe in the next year, the forecast is reason enough to pay attention to airfare trends and consider booking flights once dates are firm.

Although a 20% increase is not guaranteed, airline fares have already soared 22.4% between September 2025 and September 2026, according to the U.S. Bureau of Labor Statistics (BLS) — and they show no signs of slipping.