AerCap CEO Expects Some Airlines to be Stretched by Oil at $80
The head of the world's largest independent aircraft leasing company, AerCap, said the business models of some airlines would be stretched if the oil price rises to $80 per barrel, nudging fleet planners towards newer planes.
The global Brent benchmark briefly climbed above $70 per barrel earlier this month for the first time in three years. Rises in oil price tend to increase the attractiveness of new, more fuel-efficient aircraft.
"No one is rushing to change their fleet strategy on the basis of it just getting towards the $70 mark," AerCap chief executive Aengus Kelly told the Airline Economics conference in Dublin on Monday.
"That being said, there is no doubt that oil at 70, airlines are still making money. Oil at 80? That's a different proposition and things will get a lot more stretched," he added.
Reporting by Conor Humphries
