This was the headline in the Daily Express last week, and I know similar reports were seen over here. I am always a glass-half-full person, not half empty, and when I look at the outlook for travel—particularly here to Mallorca—I am pretty positive.
Michael O’Leary is never shy about saying things that create a headline—and usually, they do. But let’s take that headline into context.
Firstly, in the short term, most airlines’ seat prices are protected by 70% fuel hedging. Airline fuel hedging is a risk-management strategy where airlines use financial contracts to lock in set prices for jet fuel, shielding them from sudden, dramatic increases in oil prices. Because fuel is one of an airline’s largest operating costs, volatile prices make budgeting difficult; hedging turns this volatile expense into a predictable one.
Secondly, you can be sure that Ryanair won’t be cancelling any of its profitable routes. They’ll use this as an opportunity to dispose of any poorly sold flights. Also remember that Mallorca is a two-hour hop from pretty much every European capital city, as it lies in the centre of the Mediterranean. Therefore, fuel consumption will be much lower than, say, flying to the Canaries.
Related to that is the fact that Palma Airport is nearing completion of its redevelopment. It started in 2022 at a cost of €560 million, so that’s four years in total. Surely some of it will soon be out of date considering how long it has taken. If some airlines want to save on fuel costs, they should check their passengers into Gate D99—I’ve never known such a long walk!
Where there might be a more challenging market is in long-haul holidays and flights. But you can be sure that if the American economy starts to be affected, then Trump will have to do something. The UK is the United States’ largest overseas inbound tourism market, contributing roughly 4 to 4.6 million annual visitors and accounting for about 11.7% of all overseas visits. UK visitors often spend heavily on leisure, making it a critical, high-value source market for American tourism.
Quite a few Americans I’ve spoken to are turning on Trump and his methods of governing. His current approval rating is 39.1%, and public sentiment in the States has trended significantly downward in recent weeks, largely driven by dissatisfaction with the ongoing conflict in the Middle East and domestic economic pressures.
I personally think Trump has used this war to deflect attention away from the Epstein files, in which he is, without doubt, implicated. I also think he’s been blindsided by the reluctance of NATO countries to join in.
Our petrol prices here in Spain have been reduced due to the cut in VAT, but if this carries on for much longer, not only will petrol rise again—everything else will as well.
With the new tourist season opening this past week, we must stay positive.
Dad Taxi Mallorca 