Ryanair, Transavia, other budget airlines slash flights as fuel costs surge

Budget airlines such as Ryanair, Transavia, Volotea, and other low-cost carriers are beginning to feel financial pressure as jet fuel prices rise sharply due to the Middle East conflict, leading to flight reductions, News.Az reports, citing AFP.

The closure of the Strait of Hormuz has removed a significant portion of global oil supply from the market, pushing jet fuel prices higher and raising concerns about potential shortages that could force further flight cancellations.

Airlines are not waiting for supply disruptions to fully materialize before responding.

“Travel alert: airlines are cutting thousands of flights right now,” Travel Therapy TV host Karen Schaler said in an Instagram reel over the weekend. “Book early.”

That advice aligns with comments from Ryanair CEO Michael O’Leary, who earlier this month expressed concern that fears of fuel shortages were causing travelers to delay booking flights.

Low-cost carriers, which account for just over one-third of the global airline market according to various estimates, are among the first to feel the impact due to their business model.

Because they operate with cheaper fares, they have less flexibility to absorb rising fuel costs.

Some of the current cancellations may also reflect routine seasonal schedule adjustments when demand falls short on certain routes.

“It is not unusual for carriers to adjust their schedules at this time of the year,” financial analyst Dudley Shanley of investment bank Goodbody told AFP.

However, he added that “if jet fuel prices remain at this level, there will have to be a little bit more trimming for low-cost airlines.”

Before the war, airlines were often able to maintain marginally profitable or even unprofitable routes, but the surge in jet fuel prices is now forcing tougher decisions.

These cuts are expected to become more noticeable during the peak summer travel season.

“Unfortunately, it’s very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets,” EU energy commissioner Dan Jorgensen told Sky News last week.

News.Az 

By Nijat Babayev