Ryanair CEO Michael O’Leary has warned that European airfares could rise by 20% in 2027, describing it as possibly the “biggest increase in history” for flight prices across the continent. According to POLITICO, O’Leary attributed the potential surge to rising fuel costs, fewer available seats, and global tensions that are likely to push airlines into passing higher costs on to travellers.
Capacity Cuts and Financial Pressures
O’Leary said that with more airlines facing financial trouble, fewer seats and higher fares could become the norm. “You're going to see dramatically less capacity this winter and into the summer of 2027,” he stated.
The ongoing US-Iran conflict is pushing up oil prices and energy costs. As fuel gets more expensive, airlines are raising ticket prices since jet fuel is their highest cost after labour. Oil prices remain high because of the conflict, and shipping through the Strait of Hormuz remains heavily affected. This key route handles about 20-25% of the world’s seaborne oil trade, so any disruption can quickly upset supply and demand and raise global risks.
Impact on Fares and Surcharges
As a result, travellers are seeing big price hikes, especially on some routes. Flights from Europe to Asia that once cost £350-700 now cost £1,700-2,000 or more return. Airlines have mostly avoided higher fuel costs in 2026 by locking in prices ahead of time, but these deals will end by April 2027.
Along with higher airfares, airlines are adding surcharges and increasing baggage fees. US airlines JetBlue and United Airlines raised their baggage fees earlier this year. Lufthansa and Turkish Airlines have also added a temporary €10 fuel surcharge per passenger on Europe-bound flights from Turkey starting May 1, 2026.
Booking Advice for 2027 Holidays
If you already know your destination, booking now can help you get early perks or spread out your payments. Major UK airlines and tour operators such as TUI, Jet2holidays, and Virgin Atlantic Holidays have already released their Summer 2027 schedules, and many offer low-deposit options.
You can secure a 2027 holiday package now with low upfront costs: £19 per person with On the Beach, a £60 deposit per person with easyJet Holidays, and £60 per person with Jet2holidays. You can also spread the cost with interest-free monthly payments. You can also find free kids' places, special offers, and packages from companies like TUI and Virgin Atlantic Holidays.
If you plan to book flights and hotels separately, booking early lets you lock in current prices and avoid increases driven by global tensions and high demand. Waiting might mean paying more or getting fewer options. If you are not ready to book yet, set up a flight alert to track fares. To find the best flight prices, use tools like Skyscanner to search for cheap flights and Google Flights to track fares for specific dates or get email alerts when prices go down. You can track a specific flight or an entire route, check price history, and compare current prices to see if they are high, low, or typical for that route.
