Ryanair (RYAAY) and Lufthansa have paused new jet fuel hedging after prices surged following the Iran conflict, as European airlines bet costs would ease later this year, the Financial Times reported Wednesday.

Ryanair Chief Executive Michael O'Leary told the publication that the carrier was unlikely to lock in additional fuel contracts for the next three months, adding the airline would prefer to hedge again if prices move below $70 per barrel.

Several European carriers typically hedge fuel on a rolling basis and have already secured about 80% of their fuel needs for this year at pre-crisis rates, the report said.

Lufthansa also said it has paused new hedging since the conflict began, while noting most of its 2026 fuel exposure had already been locked in earlier at lower prices, according to the report.

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