- 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.