AIRLINES across Europe could collapse by September if the fuel crisis continues, the boss of Wizz Air has warned.
The ongoing war in Iran has seen the closure of the Strait of Hormuz, one of the world’s busiest shipping routes.
This has meant a shortage in fuel, including jet fuel, which has resulted in prices per barrel doubling in price.
Wizz Air chief executive József Váradi has since warned that airlines will be forced into closing if the prices remain high.
He told the Telegraph: “Airlines go bust two times a year, in September and February [and] airlines with weak liquidity positions will come under immense pressure in September time.
“At the moment, all airlines are selling against summer demand, which is the highest-priced capacity during the year – but you run out of steam by the end of June.”
He added that airlines will be fine during summer as they are “making money” due to demand.
However, he said that winter was not the same, which will see a “flood of capacity removed” in September and October.
In the worst chaos scenario – which he called an “Armageddon situation,” Wizz Air could cancel up to 30 per cent of flights.
Lots of airlines have already cancelled flights in recent weeks.
This includes:
- Lufthansa – 20,000 cancelled up to September
- United – around 250 a month cancelled
- Air New Zealand – around 1,000 cancelled
- Scandinavian Airlines – around 1,000 cancelled
- KLM – 160 cancelled
- Cathay Pacific – two per cent of flights up to June 30
Here are what all the other UK airlines are saying about the fuel crisis.