“Cheap flights in Europe face a fuel cost reckoning as Ryanair’s CEO says fares could rise up to 20% next year because of the Iran war”

Key points

• Iran war disrupts supply chains and closes Hormuz, boosting oil and jet fuel prices.
• Ryanair expects European airfares to rise 10% to 20% next year.
• Ryanair hedges 80% of fuel at $67/barrel through March 2027; 25% hedged at $95/barrel later.
• Brent crude around $110/barrel, up 70% from a year ago.
• Ryanair plans to cut capacity and consider cost cuts to offset higher fuel costs.