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

Ryanair CEO Michael O’Leary warned that Europe’s typically low-cost short-haul fares could rise notably next year due to higher fuel prices linked to the Iran war. Speaking on CNBC after the airline’s earnings call, he forecast fares up 10%, with a possible 20% increase in 2025, potentially affecting Americans planning multiple destinations. O’Leary’s comments come as the Iran war, now in its ninth month, has disrupted global supply chains and effectively constrained the Strait of Hormuz, through which about 20% of the world’s oil flowed before the war. Brent crude was around $110 per barrel Monday, up 70% from a year earlier. Ryanair said it hedged 80% of fuel needs through March 2027 at $67 per barrel, but only 25% of subsequent-year needs are hedged at about $95, prompting cost reviews including temporary pay freezes and lower crew ratios.