Jet fuel prices are projected to remain high for the next 12 to 18 months, potentially stretching well into 2028, driven largely by the ongoing Iran war.
According to a warning from Ryanair Group CEO Michael O’Leary at an Airlines for Europe (A4E) industry conference on 8 October 2026, global jet fuel prices have surged to approximately 50% above pre-war levels.
Airlines are facing an immense cost challenge going into 2027. While extensive fuel hedging strategies protected many carriers through 2026, these protections are beginning to wane. Airlines entering 2027 will have significantly less unhedged protection, exposing them directly to volatile market rates.
Travelers can expect ticket prices to keep climbing. Executives from major European airlines—including Air France-KLM, Lufthansa, and British Airways parent IAG—have indicated that carriers will have no choice but to pass these elevated operating costs onto consumers. Ticket prices for next summer could spike by up to 20pc.
Industry leaders emphasize that the primary issue is price rather than physical availability. Despite fourth-quarter supply anxieties in Europe, adequate fuel reserves are expected to last through the winter and into the summer of 2027.
