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I am trying to book a 2/2.5 hour flight across Europe 3 months in advance, and the price of a return ticket has just increased from £125 to £190 at some point over the last week. This was an increase in price for all flights on this route with Ryanair across July/August. Do flight prices go down after a sharp increase, or will they stay this high?

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    Usually, but no hard rule here, prices go up once the cheaper chairs in the flight have been sold and do not come down. But if the flight is not selling well enough before a set (by the company) date, they might offer some more cheap seats. Or there might be a company wide 'sale'. More likely is that the £190 will also sell and you will only find higher prices. July and August are top months for holiday travel and seats will almost or completely all sell. – Willeke Apr 28 '18 at 13:17
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Flight prices are based on supply and demand, which the airlines implement through (rather convoluted and complicated) revenue optimization systems.

In ticket prices go up early, that means, they are selling faster than the airline had expected. There is a high likelihood that this trend will continue and so chances are: prices will stay or go up further. July/August are high demand times anyway.

It's not impossible for prices to go down again: if demand slows, they may lower them again. However, it's unlikely.

Also, it doesn't harm keeping an eye on it: the revenue optimization systems are so complicated that they misfire occasionally. For example, I've got occasionally bought business class tickets that were cheaper than economy.

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