Michael O'Leary

Ryanair is 80% hedged on jet fuel at $67/barrel through March 2027, while spot is ~$150, giving it a massive cost advantage over competitors. This allows Ryanair to remain profitable and grow while weaker European airlines face bankruptcy risk.

Wizz Air is a likely candidate for failure if the Straits of Hormuz remains closed and oil prices stay elevated, because it is not hedged on fuel and carries high net debt. The airline is a low-fare but not low-cost carrier with a weak balance sheet, making it vulnerable to rising costs and likely to go bust by late summer.

Oil prices will trend back downwards by the end of summer as the Strait of Hormuz is likely to reopen and the situation resolves. Sustained $150 oil would cause global recession, but he expects a decline.