Ryanair's CEO, Michael O'Leary, has raised concerns about the financial stability of European airlines, predicting potential failures if jet fuel prices stay elevated.
Speaking to CNBC, O'Leary highlighted that while Ryanair is shielded by having hedged 80% of its fuel costs, other airlines may struggle to absorb the rising expenses.
The warning comes as jet fuel prices have surged since the onset of the Iran war, creating a challenging environment for the aviation sector.
The airline industry is particularly sensitive to fuel price fluctuations, and the current situation has intensified the pressure on carriers with less financial cushion.
O'Leary's remarks underscore the broader market implications of sustained high fuel costs, which could lead to operational cutbacks, fare increases, or even insolvency for some airlines.
This development adds to the growing concerns about the sector's resilience in the face of geopolitical and economic headwinds.