Ryanair’s O’Leary warns of ‘biggest increase’ in EU airfares next year

BRUSSELS — High jet fuel prices could trigger “the biggest increase in airfares, I would say, in history in Europe” next year, Ryanair CEO Michael O'Leary told reporters Tuesday . If fuel prices remain twice as high as before the U.S. war against Iran, O'Leary warned ticket prices could rise by up to 20%. Hedging contracts have locked in fuel prices for much of airlines' consumption so far. This has helped European carriers avoid sharp ticket price increases, despite jet fuel prices more than doubling following disruptions to shipping through the Strait of Hormuz since the war in the Middle East began. But O'Leary said most European airlines lack significant hedging next year. “As we go out into next year, we're only 15% hedged at $85 a barrel.