Michael O'Leary said that the situation with aviation fuel has so far bypassed his company // Photo: businessinsider.com.
In an interview with Sky News (UK). O’Leary notedO’Leary noted that the increase in oil prices due to the blockade of the Strait of Hormuz by Iran is the main catalyst for the growth of jet fuel prices.
Hoping for a return to stability
O’Leary expressed hope that fuel shortages will be avoided if the situation in the Middle East stabilizes. At the same time, there remains a risk that 10% to 25% of fuel deliveries scheduled for May and June could be in danger of being disrupted. Travelers’ plans could then be subject to severe changes.
“Fuel suppliers are constantly monitoring the market. We don’t expect any disruptions until early May, but if the war continues, we risk disruptions to European supplies in May and June. If the war ends earlier, the risk of supply disruptions will be eliminated,” the head of Ryanair emphasized.
Unlike other airlines
According to O’Leary, Ryanair is 80% supplied with fuel at pre-crisis prices, but has to pay twice as much (about $150 per barrel) for the remaining 20%. Despite this, the low-cost carrier, unlike other airlines, manages to prevent flight cancelations.
Logos Press previously reported that the situation in the Middle East has led to a a sharp rise in global airfaresThe situation in the Middle East has led to a sharp rise in global airfares, which in March were 70% higher than a year ago.
According to estimates of “Oxford Economics” (UK), the escalation of the conflict in the Middle East will lead to the fact that this year the countries of the Persian Gulf will see 23-38 million fewer tourists than originally projected. The damage to the region’s tourism industry may exceed $55 billion.
