Bali and world news and views editor's comments:
Looks like we not only better fire tickets now before airfares revised to meet the over doubling of oil prices which means a doubling of fuel prices in just the last year, but we better be careful of smaller lines that may be on the verge of collapsing completely and taking all our money with no flights provided.
- O'LearyBTN NewsTuesday, 22 May 2018
Irish budget carrier Ryanair ceo Michael O'Leary says rising oil prices are likely to bring down a number of budget carriers that operate with tight profit margins.
Predictably, he didn't name names.
"A lot depends on oil. Spot prices close to US$80 a barrel are going to lead to a shakeout in the industry as early as this (northern) winter," he said.
O'Leary added that some airlines "couldn’t make money when oil was at US$40 a barrel", indicating US$80 a barrel would be hard to survive.
He made the comments at the same time as Ryanair reported a 10 per cent rise in profits but warned rising wages, higher oil prices and competition meant future challenges.