Apr. 28 at 3:09 PM
European airlines will fail if the price of jet fuel remains elevated over the summer, the CEO of budget airline Ryanair
warned.
Speaking to CNBC on Thursday, CEO Michael O’Leary said that his airline was protected because it had hedged 80% of its fuel but predicted “real failures” for other airlines if the price of jet fuel did not fall.
The price has surged since the critical Strait of Hormuz was blockaded after the war in the Middle East began on Feb. 28.
“Pricing has mushroomed since March. Jet A-1 was about
$80 a barrel in March. It’s now
$150,” O’Leary told CNBC’s Ben Boulos at the Norges Bank Investment Management Conference in Oslo. The average price of jet fuel surged to
$179 per barrel for the week ending April 24, according to the International Air Travel Association’s Jet Fuel Price Monitor.
$RYAAY