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Ryanair’s CEO Michael O’Leary has claimed that two or three European airlines “could go bankrupt” before the end of this year due to soaring oil prices.
The outspoken boss of Europe’s biggest airline said that the Iran war has already cost Ryanair an extra $50 million (€42.6 million) in fuel costs in April alone.
“If oil stays at these levels, two or three European airlines in October or November could go bankrupt like Wizz Air, which wants to sue me but won’t have enough time to do so, and airBaltic,” he told Italian newspaper Il Sole 24 Ore.
“A good thing for our business’ because there will be fewer competitors.”
Wizz Air has denied the claims. Euronews Travel has reached out to airBaltic for comment.
Latvian parliament approves €30m loan to airBaltic
Earlier this month, Latvia’s parliament, the Saeima, approved a €30 million short-term loan to airBaltic to “mitigate the negative impact of the conflict in the Middle East region on the company’s financial situation”.
The loan must be repaid by 31 August this year.
airBaltic is Latvia’s flag carrier, and is majority owned by the Latvian government. Lufthansa Group also has a 10% minority stake in the business.
The airline’s main base is in Riga, but it also operates hubs out of Estonia’s capital Tallinn, Lithuania’s capital Vilnius, and Tampere in Finland.
airBaltic offers short-haul routes to destinations mostly across Europe, with some flights to North Africa and the Middle East.
‘Flatly untrue and false’: Wizz Air responds
Wizz Air has said that O’Leary’s comments are “flatly untrue and false”.
“Wizz Air has a strong balance sheet, substantial liquidity, and funds its aircraft 18 months in advance, with leasing companies and other financiers competing strongly for every opportunity,” a Wizz Air spokesperson said in a statement shared with Euronews Travel.
“This is a business with clear stability. Wizz Air is one of the best hedged airlines in the industry against the rapidly changing fuel prices, while our fleet is already 75% A320neo family aircraft, providing a structural cost advantage compared to any other airline in Europe through significantly lower fuel burn and greater efficiency. Wizz Air also maintains long-standing relationships with leading lessors and manufacturers, continuing to execute its fleet strategy without disruption.
“We continue to rapidly expand our footprint across Italy and other key markets. Our focus remains exactly where it should be: delivering the lowest fares, operating the youngest and most fuel-efficient fleet of aircraft, and serving millions of our customers!”
Hungarian low-cost airline Wizz Air has bases in Budapest, Bucharest and London Luton, flying to more than 200 destinations across the globe.
This is not the first time O’Leary has questioned Wizz Air’s long-term viability.
As far back as 2019, O’Leary named Wizz Air as one of a number of European airlines he believes will be taken over in the coming years in an interview with The Mail On Sunday.
Since then, he has made similar claims repeatedly, to the point where Wizz Air CEO József Váradi joked “I think we’ve gone bankrupt at least ten times with him” in an interview with G7.
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