Ryanair boss warns European travellers face the 'biggest airfare increase in history' with fares up to 20% higher next year

Michael O'Leary told a Brussels news conference on Tuesday that Ryanair is '85 per cent unhedged' on fuel next year, and most European rivals are just as exposed. The Iran war has sent jet fuel prices soaring, and he predicts bankruptcies and takeovers will strip seats from the market. He doubts even higher fares will cover the 'dramatically higher oil bills'. Ryanair shares fell as much as 2.2 per cent.

Ryanair was 80% hedged at $67 a barrel when the conflict began in February.

For next year it has just 15% hedged at $85, against spot prices double that.

O'Leary is axing 20 Belgian routes and over a million seats over a tax hike.