UAE travelers face higher holiday airfares as fuel costs surge

UAE residents planning overseas holidays in December could face higher airfares as rising jet fuel costs put pressure on airlines worldwide, prompting some carriers to increase fares and reduce flight schedules, Gulf News reported.

The impact will vary by destination, airline and travel dates, but warnings from major carriers point to continued pressure on international travel costs.

Ryanair, Europe's largest airline by passenger numbers, has warned that European airfares could rise by as much as 20% in 2027 if fuel prices remain elevated.

Why are airlines warning of higher airfares?

Ryanair Chief Executive Michael O'Leary said airlines could face significant cost increases as existing fuel hedging agreements, which allow carriers to purchase fuel at predetermined prices, begin to expire.

The airline expects its annual fuel bill to increase by about €2 billion ($2.24 billion) in its next financial year. It has already reduced its winter flight schedule.

"Unless there is a swift resolution of the Middle East conflict, we expect jet-fuel prices to remain elevated well into 2027," O'Leary said in the company's earnings statement.

The International Air Transport Association (IATA) said global jet fuel prices climbed from around $99 a barrel on February 27 to more than $209 in early April. Prices later eased before rising again to approximately $196 a barrel in September.

IATA expects fuel to account for nearly one-third of airline operating costs this year, compared with about a quarter in 2025.

How are higher fuel costs affecting holiday fares?

The United States is already experiencing higher holiday travel costs.

According to travel platform Hopper's September 2026 Holiday Travel Index, average return fares for Thanksgiving reached $402, up 31% from last year. Christmas fares averaged $452, an increase of 23%.

International fares from the US have also increased, with Christmas flights to Europe up 15% year on year and fares to Mexico and Central America rising 23%.

These figures relate to departures from the United States and do not reflect airfare trends on UAE routes.

What does this mean for UAE holidaymakers?

For UAE residents planning trips to Europe, South Asia or other international destinations, the impact will depend on individual routes and available airline capacity.

There is no confirmed across-the-board increase for flights departing the UAE. However, higher operating costs and potential capacity reductions could limit cheaper travel options, particularly during the busy December holiday period.

Travellers can compare alternative departure dates, connecting flights and airports to find better fares. Checking the total ticket cost, including baggage, seat selection and change fees, is also important when comparing airlines.

Could airfares rise further in 2027?

Ryanair expects elevated fuel costs to continue into 2027 unless tensions in the Middle East ease. Its warning of potential fare increases of up to 20%, however, relates to European air travel and should not be interpreted as a forecast for all international routes.

For UAE travelers, the immediate concern is the cost of December holidays. The extent of any increase will depend on fuel prices, airline capacity, passenger demand and competition on individual routes.