Ryanair Warning as Two Major Airlines 'Could Collapse' Amid Jet Fuel Crisis
Michael O'Leary said Wizz Air and AirBaltic could run out of cash by winter as Ryanair's fuel bill rose £50 million this month.
- Ryanair CEO Michael O'Leary warned on Wednesday that Wizz Air and AirBaltic face potential bankruptcy by October or November if oil prices remain elevated, suggesting both carriers risk depleting cash reserves before winter.
- The warning follows a fuel crisis sparked by the war in Iran and the Strait of Hormuz blockade, which has driven jet fuel prices up nearly 84 per cent since February 28, with Brent crude remaining significantly more expensive than the pre-war cost of around $70 per barrel.
- A Wizz Air representative responded firmly, stating "Michael O'Leary's recent comments about Wizz Air's financial prospects are flatly untrue and false," noting the airline funds aircraft 18 months in advance with 75% A320neo family aircraft.
- International Air Transport Association head Willie Walsh stated there is a risk of fuel supply rationing in Europe, while British Airways parent company IAG announced it will raise prices to "reflect higher fuel costs."
- Darren Jones, chief secretary to the Labour Party prime minister, warned on Sunday that Britons could face elevated airfare prices for up to eight months due to the conflict, as analysts remain cautious about capacity reductions.
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11 Articles
The price of aviation fuel has doubled since the beginning of the war in Iran
Airline CEO: Europe's Airlines Could Fail Over Fuel Costs
Politico reports: Ryanair CEO Michael O’Leary warns that some of Europe’s airlines will go out of business if jet fuel prices remain elevated. “If pricing stays higher for longer this summer, we think a number of our airline competitors in Europe are going to face real financial difficulties,” O’Leary said on Tuesday, speaking to CNBC at a conference in Oslo. “Pricing has mushroomed since March. Jet A-1 was about $80 a barrel in March. It’s now …
Ryanair CEO Warns Of Airline Failures Over Fuel Costs
Ryanair CEO Michael O’Leary has warned that several European airlines could collapse if jet fuel prices remain elevated through the summer, as reported by CNBC. Jet fuel prices have surged following the Middle East conflict and the blockade of the Strait of Hormuz. O’Leary said prices have risen from about $80 per barrel in March to nearly $150, putting pressure on airline finances. Ryanair’s O’Leary warns European airlines could fail if jet fue…
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