Flying around Europe could get considerably more expensive next year, even on budget airlines.

Ryanair, Europe’s largest airline by passenger numbers, is warning that airfares could rise by as much as 20% in 2027 as soaring fuel prices put pressure on its bottom line. And higher ticket prices might not be enough to cover the difference.

The Irish budget carrier said Monday that it is considering temporary employee pay freezes, reduced crew staffing ratios, and increased use of artificial intelligence to help offset rising expenses, Reuters reports.

The airline says that it expects its annual fuel cost to increase by approximately $2.2 billion (€2 billion) during its fiscal year ending in March 2028, in large part due to higher oil prices tied to the ongoing conflict in the Middle East.

“Unless there is a swift resolution of the Middle East conflict, we expect jet fuel prices to remain elevated well into 2027,” Ryanair CEO Michael O’Leary said in the company’s earnings announcement.

And Ryanair isn’t the only budget airline feeling the pressure. In the U.S., budget iarline Frontier Airlines recently reported a staggering 71% increase in average ticket revenue per passenger, from $39.74 to $67.82, during the third quarter compared with the same period last year due to fuel costs.

Like many airlines, Ryanair uses fuel hedging agreements to lock in prices in advance, protecting itself from sudden increases in oil costs.

Currently, approximately 80% of its fuel requirements through March 2027 are hedged at $67 per barrel.

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