Ryanair believes oil prices will break competitors such as SAS and Norwegian
Low-cost airlines Ryanair’s results show a 7 % decline in profits, despite more passengers. The Ryanair boss, Michael O’Leary, however, predicts their competitors’ death (as usual).
Ryanair boss Michael O’Leary claims that increased oil prices will hit both SAS and Norwegian, reports Bloomberg.
“We will get a winter characterized by a fall in prices. You will see bankruptcies this winter. It will be another four-five-year downturn for our industry, says Ryanair boss Michael O’Leary to the CNBC TV channel, writes Ritzau.
The six-month result shows a decline in earnings of 7 per cent compared with the same period last year. The airline explains this with higher costs for fuel and wages, as well as strikes and lower ticket prices. In addition, Easter came early this year.
Profits totalled € 1.2 billion (approximately NOK 11.5 billion) against € 1.29 billion (approximately NOK 12.2 billion) for the same period last year.
“Our routes were repeatedly hit by strikes among our airline crews, so it has been the worst summer ever,” said Ryanair boss Michael O’Leary.
He emphasizes that the so-called cabin factor, which shows how many seats were in use, were unchanged at 96 per cent.
© NTB scanpix / #Norway Today