Source: Fortune.com
Summary
Ryanair CEO Michael O’Leary warns that airlines may be forced to cancel flights due to a potential jet fuel shortage caused by the ongoing U.S.-Israel war on Iran. O’Leary predicts that 5-10% of flights in May, June, and July may be canceled if the Strait of Hormuz remains closed for two to three more months. He advises travelers to book their flights as soon as possible to avoid higher prices. The war has caused jet fuel prices to soar, with some U.S. airport hubs seeing prices nearly double compared to pre-war prices.
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Ryanair CEO Michael O’Leary is preparing for a worst-case scenario, warning of potential flight cancellations and advising travelers to book now. The airline industry is bracing for a prolonged war that could send oil prices as high as $175 a barrel. United Airlines is making contingency plans, including reducing capacity. O’Leary acknowledges that travelers who face canceled trips may not be able to get refunded. The situation is a gamble, but O’Leary believes that 95-90% of flights will still operate.
Jet fuel shortages are the new normal.
Author: Evan Null
