Airlines are already feeling the squeeze. Lufthansa said last Tuesday it would cut 20,000 short-haul flights through October to save “40,000 metric tons of fuel,” while SAS Scandinavian Airlines has canceled around 1,000 flights in recent days and Air France-KLM has imposed a €100 surcharge on long-haul tickets.
“I think there will be failures,” O’Leary said. “If it continues at $150 a barrel into July, August, September, then you’ll see European airlines fail and that, in the medium term, would probably be good for Ryanair’s business.”
U.S. President Donald Trump last Tuesday agreed to pause further strikes on Iran at Pakistan’s request, extending a fragile ceasefire. But he also made clear that Washington would maintain its blockade of Iranian shipping in the Strait of Hormuz, leaving the core supply disruption unresolved.
O’Leary said the pressure won’t ease until shipping through the Strait of Hormuz resumes. “It needs to reopen as quickly as possible,” he said.
Brussels is scrambling to contain the wider energy shock. The Commission last Wednesday unveiled its “AccelerateEU” plan, which includes measures to monitor jet fuel stocks and coordinate supply across airlines and airports. These steps are aimed at preventing shortages, however, rather than directly addressing fuel prices.