The golden age of cheap flights in Europe was nice while it lasted
The pressure on margins will be greater for low-cost airlines, which start with less room for maneuver to reduce expenses.
European airlines are bracing for a challenging scenario as persistently high fuel prices impact their profits. Low-cost carriers, such as Ryanair, are under significant pressure, with fuel expected to account for 44% of its revenue next year, up from 37% currently. Ryanair's fuel bill is set to increase by €2 billion in the next financial year, prompting the airline to consider cost-cutting measures and possible fare hikes.
Lufthansa has also revised its annual profit forecast downward, citing a 20% increase in fuel costs despite having financial hedges in place.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
