Need to know
High fuel prices and Middle East conflict could see airlines collapse by September, leading to axed flights and soaring holiday costs for UK families this summer
- Airlines face a double whammy of soaring fuel costs and a potential collapse in bookings by the end of summer. Wizz Air’s boss warns that while planes are full now, the industry could “run out of steam” as early as June.
- The month of September is being highlighted as a major danger zone for struggling flight operators. Many airlines with low cash reserves typically go bust once the profitable summer season ends and winter pressure kicks in.
- Major players like British Airways and Air France are not immune to these massive financial pressures. Experts predict a “flood” of flights will be pulled from schedules this autumn to save money and stay afloat.
- Lufthansa has already axed 20,000 summer flights across Europe to cope with the “unprofitable” cost of fuel. The cancellations target short-haul routes to save roughly 40,000 tons of precious jet fuel.
- Fuel prices have doubled following the conflict with Iran, which has choked off vital shipping routes. The closure of the Strait of Hormuz means high prices could plague the travel industry for the next 18 months.
- Industry experts are calling on the UK Government to step in and prevent a total travel meltdown. Suggestions include boosting fuel production at refineries and temporarily slashing taxes to keep ticket prices down.
- Ryanair boss Michael O’Leary claims some rivals could run out of cash and collapse by Christmas. He argues that certain airlines failed to “lock in” lower fuel prices early, leaving them exposed to the current price spikes.
- Despite the dire warnings, Wizz Air insists they have a massive £1.7billion safety net to survive the storm. While the industry remains on edge, the airline’s leaders claim they have enough liquidity to keep their planes in the air.
- Read the full story here: https://www.dailystar.co.uk/news/latest-news/breaking-airlines-across-europe-could-37085747
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