Airlines flying into far worse turbulence than predicted, analysts warn

[EI-BUD]

Ryanair

While we read that Ryanair may suffer in the times ahead due to unhedged fuel and harder times, I think that competitors beware.

1. No matter how long the fuel prices remain high no airline has unlimited (time wise) hedging.
2. It will eventually be a level playing field for fuel purchasing (relatively)
3. Ryanair will further cut costs and find alternative revenues to mitigate against possible losses and importantly,
4. They will emerge after the fuel situation stabilises, a more fierce and more competitive model

Not to mention the bank balance, its opportunity in hard times to get the prices down on the long haul fleet, and remember the Long Haul business has been many airlines saviour in recent years when faced with LOCO competition.. what if MOL gets onto Key routes and undercuts by half!!!!


What does anyone else think?

EI-BUD