Low-cost Irish airline Ryanair can absorb much higher fuel costs than competitors because of its higher profit margins and will never introduce fuel surcharges, its chief executive said on Tuesday.
“We’ve guaranteed no fuel surcharges at Ryanair,” Michael O’Leary told reporters. “Ever.”
O’Leary said if oil prices continue to rise it will benefit Ryanair because it will have fewer competitors.
“If Vueling was losing money with oil at $65 a barrel then it’s bankrupt at $95,” he added, referring to Spanish airline Vueling which announced a 73 percent dive in its third-quarter net profit last month to 1.35 million euros and pre-tax losses rose to 48.6 million.