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Ryanair’s O’Leary Warns European Airlines Could Fail if Jet Fuel Price Doesn't Fall
Ryanair says April fuel costs rose $50 million as O'Leary warns weaker carriers could face bankruptcy if oil prices stay high.
- Ryanair CEO Michael O'Leary warned Thursday that European airlines could face "real failures" if jet fuel prices do not decrease, predicting current high costs would drive competitors out of business.
- Global oil prices have surged to $150 per barrel since the Strait of Hormuz blockade following the war in the Middle East, costing Ryanair an extra $50 million in fuel expenses in April alone.
- While O'Leary claimed competitors like Wizz Air and airBaltic "could go bankrupt," Wizz Air dismissed the comments as "flatly untrue and false," and Ryanair remains protected with 80% of its fuel supply hedged.
- Latvia's parliament recently approved a €30 million loan to airBaltic to mitigate financial impacts from the regional conflict, as O'Leary suggested fewer competitors would ultimately benefit Ryanair's business.
- If fuel costs persist at $150 per barrel through summer, O'Leary expects industry failures to accelerate, though he guaranteed Ryanair customers "no price increases, no fuel hedging, no fuel surge levy surcharges.
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Ryanair's Director General, Michael O'Leary, warned on Tuesday that several European airlines could enter into financial difficulties or even bankruptcy if the fuel price for aircraft remains high in the summer months, reports CNBC.
Ryanair CEO Michael O的Leary sees Europe's airlines under massive cost pressure. Rising oil prices could trigger insolvencies already in the autumn. Flight cancellations from June are also in place.
Coverage Details
Total News Sources13
Leaning Left3Leaning Right1Center3Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
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