Small Airlines Stall on High Fuel Costs
Airline collapses hit highest level in a decade as carriers brace for tough winter
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September 27, 2019 - by Robert Wall and Doug Cameron for wsj.com
Fuel costs are driving more small airlines out of business.
More than 20 carriers have gone bust around the world this year, the highest number in a decade.
Most are smaller European airlines, such as Primera Air, a Scandinavian budget operator that collapsed in October just months after starting flights to the U.S. Primera said rising costs prompted its demise, along with delays securing new planes from Airbus SE to expand its fleet of 14 jets.
Executives expect the shakeout to continue despite a recent dip in oil and jet-fuel prices, as the industry enters the off-season for air travel.
"There will be more and larger failures this winter," Neil Sorahan, chief financial officer of European budget giant Ryanair Holdings PLC, said in an interview last month.
The sudden shutdowns have stranded passengers and crews, forcing them to make alternative...
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