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Great Britain: Ryanair threatens to withdraw flights due to pound crisis

Great Britain: Ryanair threatens to withdraw flights due to pound crisis

The British pound is at an all-time high. Ryanair’s boss says that if that remains the case and demand weakens, there will be repercussions.

Energy crisis, bleak economic prospects – Like other European currencies, the pound has been under pressure for months. But new Prime Minister Liz Truss’s government has further slashed it in its new budget. A pound costs just 1.13 euros.

Irish low-cost airline Ryanair wants to draw conclusions from this, as managing director Eddie Wilson explains. It is poised to move flights from the UK to more dynamic markets if the pound’s decline, rising inflation and higher interest rates start to dampen travel demand in the country, the manager told Bloomberg News. Additionally, Ryanair’s accounts are in euros, so returns to the UK are limited.

Available in 36 countries

“When there are issues with demand, we can grow and base aircraft where costs are low and demand justifies adding capacity,” Wilson said. Irish Airlines is currently represented in 36 different countries.

Wilson’s boss also has an opinion about the government’s plans – and, as usual, doesn’t mince his words. Budgets are “crazy” these days, according to Ryanair’s group chairman Michael O’Leary. They have the potential to bankrupt the UK economy.

You will be confident despite the problems

According to Wilson, Ryanair does not see demand weakening in general. The airline boss said the airline could also benefit from the fact that many smaller rivals are struggling with high fuel costs. Anyone who doesn’t protect themselves against higher fuel prices, for example by hedging, has a problem. “The little ones on the fringes” “probably go away.”