Ryanair admit preparing for jet fuel shortage 'Armageddon' and think airlines could go bust

The price of fuel has been rising rapidly in recent months due to the ongoing war between the US and Iran and airlines could perhaps be the businesses that have been hit hardest.

After the US and Israel launched strikes in Iran, killing the Supreme Leader Ali Khamenei over fears that the Middle Eastern country was hiding nuclear weapons, the price of goods such as fuel have been massively on the up.

The primary reason for this is Iran blocking the Strait of Hormuz, where a significant percentage of the world's oil supplies pass through every day.

Although Donald Trump demanded that Iran re-open the Strait as part of the tentative ceasefire, peace talks have continued to stall and Iran is continuing to prevent any shipping traffic from passing through the Strait.

It is no surprise therefore that airlines, who obviously rely heavily on jet fuel in order to sort flights, have been suffering massively from the increase in prices, with many passengers in the UK encouraged to make alternative plans this summer rather than heading on their usual trips abroad.

Now Ryanair, who host a huge number of flights to Europe from the UK and Ireland at affordable prices, has had its say about the jet fuel shortage and why it is planning for an 'Armageddon situation' and why other airlines might struggle to make it through the winter.

“Do we have plans for some kind of Armageddon situation? Of course, we do, but I don’t see that coming to pass. As things stand, we’re operating a full schedule this summer, and plan to operate a full schedule into the winter period,” Neil Sorahan told CNBC in an interview.

Iran's blockade of the Strait of Hormuz is causing huge issues across the world (Majid Saeedi/Getty Images)

However, the strength of Ryanair compared to other airlines might benefit them at first, so long as the jet fuel shortage doesn't prolong to the extent where all airlines become unsustainable.

Sorahan added: “I think we will see some of the weaker carriers who were already struggling before the war possibly go to the wall in the winter."

While Ryanair admits to having the Armageddon plans, Sorahan also suggests that the company is 'increasingly confident' that the issues around oil won't extend too far into the summer, particularly as Europe is adapting to get oil supplies from countries such as Brazil and Venezuela to avoid passing through the Strait of Hormuz.

Michael O'Leary seems confident that Ryanair will benefit in the medium term (Alan Crowhurst/Getty Images)

“We’re in obviously very volatile oil markets at the moment. If we go back a couple of months ago, we probably had some concern around oil supply, but we’re increasingly confident that there won’t be issues in relation to oil into this summer,” Sorahan said.

Meanwhile, Ryanair CEO Michael O'Leary said: “I think there will be failures. If it continues at $150 a barrel into July, August, September, then you’ll see European airlines fail and that, in the medium term, would probably be good for Ryanair’s business.”