RYANAIR BOSS MICHAEL O’Leary 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 a barrel for the first time since July after the latest round of strikes in the conflict.

O’Leary 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.

Chief executive Michael O'Leary points to a graph during a business update (Yui Mok/PA) PA PA

Speaking at a press conference today, 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 (€70) a barrel.

“If we hedge next year at $100 (€87) 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.”

Ryanair has already cut its air traffic target for next year (Nick Ansell/PA) PA PA

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 per barrel.