Ryanair has hedged 80% of its fuel at $67 per barrel through next March, but jet fuel now averages $180 per barrel in Europe according to the International Air Transport Association. The conflict in Iran and the closure of the Strait of Hormuz, through which a quarter of global seaborne oil supply passes, have driven up costs for airlines. Michael O’Leary, CEO of Ryanair, warned that airfares could rise significantly if oil prices remain high next year. The company has already cut its winter flight schedule and hasn’t ruled out raising prices to offset costs. Both United Airlines and American Airlines estimate approximately $6 billion increases in fuel costs compared to last year.
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