Ryanair (RYAAY) Chief Executive Michael O'Leary expects much higher European airfares in 2027 if the Middle East conflict keeps oil prices elevated, multiple media outlets reported Tuesday.
Airfares could rise up to 20% next year, Bloomberg cited O'Leary from a press conference in Brussels. Most European airlines, including Ryanair, lack significant hedging to protect against higher oil prices amid reduced capacity next year, the Ryanair boss was cited as saying.
On the same day, Ryanair unveiled a "substantially reduced" winter 2026 schedule for Belgium that includes the loss of 1.1 million seats and the closure of 20 routes across Brussels Charleroi and Zaventem Airports, according to a company statement.
These cuts are a "direct" result of a decision to raise Belgium's aviation tax by 250% as of January next year from two years ago, making the country "hopelessly uncompetitive against [its] tax free, cost-reducing EU neighbors," the company said.
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