Ryanair chief warns of record rise in European airfares

Michael O’Leary, chief executive of Ryanair Holdings, has warned that airfares across Europe could see a historic surge over the next 12 months. He said the sharp rise in rates has been fuelled by regional tensions and US aggression against Iran, especially the disruptions caused in the Strait of Hormuz. O’Leary stressed that airline profit margins are under heavy pressure and said that adding fuel surcharges may not be enough to cover the high costs resulting from rising oil prices. He also said that most European airlines, including Ryanair, do not have sufficient hedging contracts to protect against oil price volatility next year, and that more than 85% of their fuel needs are uncovered by contracts.