The British pound is at a record low. If that continues and demand weakens, Ryanair’s boss said there will be consequences.
The energy crisis, dim economic prospects – like other European currencies, the pound sterling has been under pressure for months. But the government of new Prime Minister Liz Truss has allowed it to fall further in the new budget. A pound costs just €1.13.
As managing director Eddie Wilson explains, Irish low-cost airline Ryanair wants to draw conclusions from this. The manager said he was ready to shift flights from the UK to more dynamic markets if the pound’s collapse, rising inflation and higher interest rates start to dampen travel demand in the country, Bloomberg news agency reports. In addition, Ryanair accounts are in Euros and therefore have less income in the UK.
Present in 36 countries
“When there are issues with demand, we can grow and base aircraft where costs are lowest and demand justifies adding capacity,” Wilson said. The Irish airline is currently represented in 36 different countries.
Wilson’s boss also has an opinion on the government’s plans – as usual, his words don’t count. The budget is “insane”, according to Ryanair’s group boss Michael O’Leary. They could potentially bankrupt the UK economy.
Optimism in spite of problems
According to Wilson, Ryanair does not see demand weakening in general. The airline boss said the airline would even benefit from the fact that many smaller rivals are struggling with high fuel costs. Anyone who doesn’t hedge themselves against higher fuel prices, for example by hedging, will have a problem. “The little ones on the side” “will probably go away.”
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