UK mortgage deals disappear at fastest pace on record

European air fares could rise by as much as 20% in 2027, according to Ryanair chief executive Michael O’Leary, who cited escalating jet fuel costs driven by the Middle East conflict. Speaking at a press conference in Brussels, O’Leary warned that airlines across Europe face significant financial strain due to rising oil prices and limited hedging strategies. He stated that the anticipated fare increases would represent the largest in European history within the next 12 months. Jet fuel prices have surged following the war in the Middle East, which has disrupted supply chains and increased costs for airlines. According to the International Air Transport Association (IATA), jet fuel prices are projected to be 70% higher in 2026, averaging $152 per barrel, compared to $90 in 2025. This sharp increase threatens to slash airline profits significantly. O’Leary noted that Ryanair and several other European airlines had hedged their fuel requirements for 2026, with Ryanair securing 80% of its fuel needs at $67 per barrel when the conflict began in late February. However, he emphasized that most European carriers, including Ryanair, are poorly protected against future fuel price fluctuations beyond 2026. Currently, Ryanair is 85% unhedged for 2027, with only 15% of its fuel costs secured at $85 per barrel, while current spot rates hover around double that amount. O’Leary suggested that this lack of protection could lead to airline bankruptcies and takeovers, further reducing seat availability and increasing ticket prices. In response to the rising costs, Ryanair has announced cuts to its operations in Belgium, eliminating 20 routes and over one million seats from its winter schedule. These reductions follow the Belgian government’s decision to raise its aviation tax from €2 to €7 in January 2027. Other airlines, such as EasyJet, have also taken steps to mitigate rising fuel costs by adjusting their schedules and hedging strategies. Industry analysts suggest that the aviation sector faces a challenging period ahead, with airlines struggling to balance rising operational costs against passenger demand. Despite potential fare hikes, travelers have shown willingness to pay more for flights, though the sustainability of this trend remains uncertain. The impact of the Middle East conflict extends beyond the aviation industry, affecting other sectors such as real estate. Mortgage deals in the UK are disappearing at an unprecedented rate, with the average deal lasting just 13 days in October 2026, according to Moneyfactscompare.co.uk. This volatility is attributed to economic instability driven by the war, influencing swap rates and mortgage pricing. Adam French, head of consumer finance at Moneyfacts, explained that each development in the Middle East affects swap rates, which in turn influence the cost of funding fixed-rate mortgages. Lenders frequently adjust or withdraw mortgage products in response to changing market conditions, making it difficult for borrowers to secure stable financing. As the aviation and mortgage industries navigate these challenges, stakeholders emphasize the importance of proactive planning and informed decision-making. For airlines, the focus remains on managing fuel costs and adapting to a rapidly evolving market landscape. For consumers, the message is clear: anticipating changes and seeking professional advice are crucial in navigating the current economic climate.