The Times has criticised Ryanair and Michael O'Leary for his decision not to hedge against rising oil prices, which has left the airline almost completely exposed to oil at more than $130 a barrel. The 'crappy airlines' that he suggested would go bust this year also criticised the budget airlines failure to hedge its fuel needs.
British Airways has hedged about 65 percent of its fuel needs this year at $85 a barrel and Flybe, which Mr O'Leary singled out yesterday as a potential casualty of high oil prices, is 76 percent hedged. Yet Ryanair is almost completely unhedged at a time when fuel costs are at record levels.
The Times says: 'Mr O'Leary's comments about 'idiot' regulators and bureaucrats do not sound so clever when he himself is messing up.' The long knives may not be out yet, but if fuel costs do not fall as he has predicted, it won't be long. |
