Ryanair CEO Eddie Wilson has laid out a direct threat: if the Strait of Hormuz crisis continues to affect fuel supply, the airline will reduce operations at Spanish regional airports. According to Wilson, the measure responds to a global logistical problem that drives up kerosene prices and jeopardizes low-demand routes. Meanwhile, passengers wonder if their €20 flight will remain viable.
Route optimization technology amid fuel volatility ✈️
Ryanair uses a route planning system based on algorithms that evaluate fuel costs in real time. Faced with a 15% rise in kerosene prices, the software adjusts frequencies and assigns more efficient aircraft, such as the Boeing 737-800. However, if the Strait of Hormuz is blocked, supply to European refineries decreases, and margins on regional routes (with an average 60% occupancy) become negative. The technical alternative is to use hub airports with higher traffic, leaving out smaller terminals.
Eddie Wilson discovers that oil doesn't come out of a magic tap 😅
Ryanair's CEO has announced that if fuel becomes scarce, he will do what any sensible person would: cancel flights and blame Iran. Meanwhile, travelers from regional airports can start packing their tents, because flying for €9.99 comes at a price, and that price is being stranded by a geopolitical crisis. Wilson, of course, promises to keep selling low-cost tickets; the problem is that the plane might not take off. Ironies of capitalism: savings don't reach the fuel tank.