- Ryanair’s chief executive, Michael O’Leary, has warned that several European airlines could face significant financial difficulties and potential failures if jet fuel prices remain high throughout the summer season.
- Jet fuel costs have surged by nearly 84 per cent since the war in Iran began on 28 February, primarily due to Tehran's blockade of the Strait of Hormuz, a critical shipping lane for oil and gas.
- This substantial increase in fuel expenses has already prompted major carriers like United Airlines and Lufthansa to consider implementing fare increases and reducing flight schedules.
- O'Leary predicted that if crude oil prices persist at around $150 a barrel into July, August, and September, European airlines will fail, though he noted this could ultimately benefit Ryanair's business in the medium term, while also calling for the Strait of Hormuz to be reopened.
- Despite the volatile market, O'Leary affirmed that Ryanair is 'the best insulated, most hedged airline in Europe' and committed to not imposing price increases or fuel surcharges on its customers.
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