Ryanair chief warns Europe faces ‘biggest increase in airfares in history’

Fares could be hiked by as much as 20 per cent, he warned.

He said: “You’re going to see the biggest increase in airfares, I would say, in history in Europe in the next 12 months.

“The question is, will that increase in airfares be enough to cover the dramatically higher oil bills? I don’t think it will be.”

Fuel-hedging positions have protected airlines from the worst of the oil price rises since the start of the Iran war, but they have begun to unwind.

As a result, airlines will be forced to buy a far bigger proportion of their jet fuel at market rates.

Prices have surged by 113 per cent to $192 (£144) a barrel since the start of 2026, more than double the increase in the cost of crude oil.

Mr O’Leary said that for 85 per cent of its estimated fuel needs for next year.

He added that “most of the other European airlines are in a similar position”.

Ryanair share prices fell by around two per cent in the immediate aftermath of his remarks.

European airlines, including Ryanair, have been forced to cut flights for the winter low season in an attempt to minimise fuel prices.

Ryanair is expected to carry two million fewer passengers this financial year after reducing its capacity.

These measures should reduce the fuel bill by as much as £84million

The Irish firm has traditionally chased market share at all costs, but the change in strategy is indicative of the challenge the industry faces.

Mr O’Leary said that even if the Iran war ended tomorrow, airlines are “facing an enormous cost challenge”.

He added it could take a year before kerosene prices returned to normal, with high fares likely to continue into 2028.

Fellow budget airline EasyJet will also eliminate thousands of services this winter.

A further 3,500 flights – equivalent to about 700,000 seats – will be scrapped from the timetable.

It said the move should come as “no surprise” given the high fuel prices caused by Russia’s invasion of Ukraine and the Iran war.