Ryanair boss Michael O’Leary has claimed that ‘two or three’ European airlines could ‘go bankrupt’ due to the ongoing fuel crisis.
O’Leary stated that the war in the Middle East has already cost his budget airline an additional €42.6million on fuel in April alone.
The Ryanair CEO believes that the impact the soaring oil prices are having on airlines will see a couple of them go out of business altogether.
The Mullingar man named Wizz Air and airBaltic as some of the airlines that are most at risk, though the former has denied these claims.
O’Leary told Italian newspaper Il Sole 24 Ore: ‘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.
‘A good thing for our business’ because there will be fewer competitors.’
Wizz Air has since stated that O’Leary’s comments are ‘flatly untrue and false’.
A spokesperson told Euronews Travel: ‘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…
‘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!’
The Hungarian airline has bases in Budapest, Bucharest and London Luton, travelling to over 200 destinations.
O’Leary has previously questioned Wizz Air’s long-term viability on numerous occasions, repeatedly remarking that he believes a takeover is imminent.
Meanwhile, Latvia’s parliament recently approved a €30million short-term loan to airBaltic to ‘mitigate the negative impact of the conflict in the Middle East region on the company’s financial situation’.
While this loan must be repaid by August 31, the airline is majority-owned by the Latvian government.
It offers short-haul routes to destinations primarily across Europe, with some extending to North Africa and the Middle East.
