Ryanair CEO warns fares could rise by up to 20% in 2027 as fuel bill jumps by $2.2 billion

Ryanair CEO Michael O'Leary warned on CNBC that European airfares could rise by up to 20% in 2027 as the carrier's fuel bill jumps by $2.2 billion. O'Leary said the region's airlines face "significantly higher airfares" next year as fuel costs climb, with Ryanair among the most exposed given its scale in the European short-haul market. The warning signals potential margin pressure across low-cost carriers and could test consumer demand elasticity at already elevated fare levels. Investors will be watching how much of the fuel cost increase Ryanair can pass through to passengers, and whether competitors follow with similar fare guidance. Any softening in booking trends or fare yield guidance in upcoming updates would be key indicators of whether the 20% scenario materializes.