Holidays are set to get more expensive next year, with airfares across Europe facing their biggest increase in history, Ryanair boss Michael O’Leary has warned.Fares could soar by as much as 20 per cent in 2027 as rising jet fuel costs and a squeeze on available seats push up prices for passengers.Speaking at a news conference in Brussels yesterday, Mr O’Leary predicted European airfares would rise by 10, 15 or even 20 per cent over the next year.’You’re going to see the biggest increase in airfares, I would say, in history in Europe for the next 12 months,’ he said.Airlines are facing mounting pressure from higher fuel costs and disruption to supplies through the Strait of Hormuz following the outbreak of conflict in the Middle East in February. Michael O’Leary has warned airfares are set to soar next yearMr O’Leary said that from April 2027 most European airlines had very little hedging in place, according to The Guardian.Ryanair has just 15 per cent ?of its fuel costs for next year hedged at $85 (£63.50) a barrel, compared with spot rates around double that level, he said. The jet fuel crisis triggered by the conflict is reshaping the global aviation sector, forcing major European carriers to either hold ?capacity flat or cut it ahead of the typically loss-making winter season. Earlier this month, Kenton Jarvis, easyJet’s chief executive, told reporters in Brussels the airline is removing 600,000 to 700,000 seats from its winter schedule.Combined with approximately 700,000 seats removed earlier this year, the total reduction is now between 1.3 million and 1.4 million seats. Mr Jarvis said: ‘People are taking capacity out, we see that across all competitors.’ Airlines could see prices jump for flights in Europe as much as 20 per cent in 2027The budget airline’s competitors have taken similar action in recent weeks.Ryanair said in September it would cut its 2027 traffic target to 214 million passengers from 216 million. The airline has also reduced its Belgium schedule for the winter, cutting 20 routes and more than a million seats after plans from the country to ?increase its aviation tax from €2 (£1.70) to €7 (£5.90) in January.Plus, Jet2 announced on September 4 it will be selling 200,000 fewer seats this winter.Michael O’Leary said in September: ‘Fares for Ryanair passengers and every other passenger into the summer of 2027 are going to rise materially, I believe, because of significantly higher oil prices.’I have no doubt fares are rising next year. The question is by how much.’