0747 GMT - European airlines are facing a challenging environment that will be far worse for those with poorer access to capital, Bernstein analysts Alex Irving and Antoine Madre say in a research note. Dublin-listed Ryanair has higher margins and a stronger balance sheet than its main competitors, the analysts say. The increase in fuel costs, set to hit Ryanair in 2027 and 2028, will hurt its weaker competitors first, they say. The rising fuel prices set the stage for industry capacity cuts, they add. "That raises the risk of industry capacity rationalization near term: either voluntary schedule reductions, or involuntary ones as airlines fall into bankruptcy," Bernstein says. Ryanair shares trade 0.4% lower at 24.69 euros. (nina.kienle@wsj.com)
(END) Dow Jones Newswires
July 21, 2026 03:48 ET (07:48 GMT)
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