Ryanair CEO Michael O'Leary told CNBC on Monday that airfares in Europe are expected to rise "significantly" by perhaps 20% next year as fuel price hedging contracts expire. The company's profits fell by 15% and reached 2.15 billion euros ($2.3 billion) during the first half of the fiscal year. This decrease comes in light of the doubling of aviation fuel prices for the part not covered by hedging contracts, which is 20% of the company's total needs. O'Leary says: "We are approaching 2027 with much higher oil prices and I believe that this cost will be reflected in the prices of plane tickets, which will cause a significant increase." O'Leary adds: “Passengers have been protected from price fluctuations over the past 12 months, but these hedging contracts are starting to expire. The situation in the Middle East remains unresolved, and the price of a barrel of jet fuel today reached $170." "We are facing a huge cost gap next year. I think we will see airfares across Europe go up 10%, maybe up to 20%," O'Leary said.

Ryanair CEO Michael O'Leary told CNBC on Monday that airfares in Europe are expected to rise "significantly" by perhaps 20% next year as fuel price hedging contracts expire. The company's profits fell by 15% and reached 2.15 billion euros ($2.3 billion) during the first half of the fiscal year. This decrease comes in light of the doubling of aviation fuel prices for the part not covered by hedging contracts, which is 20% of the company's total needs. O'Leary says: "We are approaching 2027 with much higher oil prices and I believe that this cost will be reflected in the prices of plane tickets, which will cause a significant increase." O'Leary adds: “Passengers have been protected from price fluctuations over the past 12 months, but these hedging contracts are starting to expire. The situation in the Middle East remains unresolved, and the price of a barrel of jet fuel today reached $170." "We are facing a huge cost gap next year. I think we will see airfares across Europe go up 10%, maybe up to 20%," O'Leary said.