The surge in the price of a barrel of oil penalizes motorists but also airlines. Ryanair, for example, has already announced that this will slow down its recovery.
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After the health crisis, this is a second blow for the aviation world: the low-cost company Ryanair estimated that the rise in barrel prices due to the war in Ukraine was going to cost it at least 50 million euros. euros more over the next 12 months. It is “only” 50 million euros, because the company has already negotiated purchases for 80% of its consumption until March 2023, at a barrel fixed at 65 dollars. The price increase therefore only concerns the remaining 20%.
Except that with a barrel price of more than 117 dollars on Thursday March 3, we understand that there is concern in the air. the fuel, this is one of the biggest expense items for companies. Planes can no longer fly over Russia and Siberia, companies must review their flight plans, especially from Europe to Asia. This lengthens journeys and requires the use of even more fuel. The airline industry didn’t need that.
This increase will last, Emmanuel Macron said on Wednesday March 2, prices will continue to rise. Yesterday, in addition, the OPEC oil producing countries refused to open wide the floodgates to put more crude on the market which would have lowered prices. They are continuing their drip sourcing strategy.
What alternatives for companies? AT short term, not much. In the longer term, this crisis is accelerating research to be less dependent on oil. For example, yesterday, in Japan, several companies including major companies (Japan Airlines for example) announced that they were joining forces to develop a Japanese sector of fuels of non-fossil origin, to produce fuel from natural resources natural sources such as used cooking oils, animal fats from household waste.
In France, Airbus and Safran are working on the hydrogen plane. The idea being to switch as quickly as possible to post-kerosene.