Ryanair, Europe’s largest airline, warns that jet-fuel prices could reach $140 per barrel this winter. The company has reduced its winter capacity to mitigate its exposure to unhedged fuel prices. Even though Ryanair is among the best-hedged airlines with 80% of its jet-fuel requirements already locked in, the high prices force it to cut capacity and save between 70 and 100 million euros. This energy crisis, linked to hostilities in the Strait of Hormuz, is contributing to rising inflation expectations and spiking global bond yields.
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