The boss of Ryanair said he has “no doubt” air fares will rise next year for summer holidaymakers amid the surging price of oil and the Iran war.

Earlier this month, oil prices rose above 100 dollars a barrel for the first time since July after the latest round of strikes in the conflict.

Michael O’Leary, chief executive of the budget airline, told reporters in London that flight prices were “only going one way”, which is “significantly upward”.

Ryanair has already cut its air traffic target for next year on the back of efforts to use less unhedged fuel over the winter period.

Speaking at a press conference on Wednesday, Mr O’Leary said: “Fares for Ryanair passengers and every other passenger into the summer of 2027 are going to rise materially, I believe, because of significantly higher oil prices.

“I have no doubt fares are rising next year.

“The question is by how much.”

He added: “We’re essentially hedged this year at about 80 dollars a barrel.

“If we hedge next year at 100 dollars a barrel, our oil bill goes up by 25%.

“Our oil bill this year is six billion.

“If it goes up by 25%, that’s seven-and-a-half billion next year.”

The airline has previously warned that it believes some of its competitors will “struggle to maintain capacity or even survive” this winter if oil prices remain high.

According to the International Air Transport Association (IATA), the average global price of jet fuel rose 7.4% last week compared to the week before to 194.90 dollars per barrel.