A fuel crisis amid the war with Iran could lead to airline bankruptcies
The fuel crisis unfolding against the backdrop of the war with Iran could trigger a new wave of bankruptcies among airlines. One of the first victims of the financial pressure was the American airline Spirit Airlines. Meanwhile, Ryanair CFO Neil Sorahan warned that due to the sharp rise in the cost of jet fuel, several more carriers could cease operations following Spirit Airlines.
Business Insider reports on this.
In an interview with CNBC, the top executive stated that the greatest risk faces carriers that were already experiencing financial difficulties before the war between Iran and the U.S. began.
"I think this winter we will see some of the weaker airlines, which were already in a difficult position before the war, simply not survive," Sorahan said.
Oil prices have skyrocketed
After the war began in late February, the price of Brent crude oil jumped by more than 50%—to over $110 per barrel. The cost of jet fuel nearly reached $200 per barrel, although it subsequently fell slightly—to approximately $163.
"Fuel is traditionally the second-largest expense for airlines after staff salaries," the article states.
Spirit Airlines became the most high-profile victim of the fuel crisis. The American low-cost carrier underwent bankruptcy and restructuring proceedings last year and completely ceased operations in early May 2026, citing the sharp rise in fuel prices as one of the key reasons.
Ryanair protected itself from the price spike
Ryanair stated that the company managed to avoid a serious blow thanks to fuel price hedging.
The carrier’s CEO, Michael O’Leary, reported that approximately 80% of Ryanair’s fuel was purchased at a fixed price of $67 per barrel. As a result, the airline currently has no plans to cut flights or change its summer schedule.
According to O’Leary, just a few months ago Ryanair was seriously concerned about a fuel shortage due to the situation surrounding the Strait of Hormuz, but the company is now much more confident about stable supplies.
He also noted that Europe is now less dependent on oil from the Middle East, as it is increasingly importing it from the U.S., Venezuela, and Brazil.
The company is even preparing for "Armageddon"
Despite relative optimism, Ryanair is also considering worst-case scenarios, according to Business Insider.
"Do we have plans in case of a sort of 'Armageddon'? Of course we do. But I don’t think it will come to that," the company’s CFO said.
For now, Ryanair plans to operate its full summer and winter flight schedules.
On Monday, the airline reported that it carried 208 million passengers in the 2026 fiscal year, retaining its status as Europe’s largest airline. Ryanair’s net profit rose by 40% to €2.26 billion.
In India, the fuel crisis is escalating, with global implications for food security.
We also reported that Iran attacked the UAE with 20 missiles and 37 drones.
In Russia, the fuel crisis is deepening, prices are rising, and gas stations are going bankrupt – Forbes.
