Air Baltic & Wizz identified as Europe’s ‘most vulnerable airlines’ by Michael O’Leary

Ryanair CEO Michael O’Leary warned that a prolonged Iran conflict could drive two or three European airlines into bankruptcy by late 2026.
He identified Wizz Air and airBaltic as the most vulnerable if oil prices remained elevated.
Jet fuel prices have doubled to around $150 per barrel.
The increase added $50m to Ryanair’s fuel bill in April.
Wizz Air rejected the claims citing strong liquidity and fleet efficiency.

Ryanair CEO Michael O’Leary has warned of potential airline bankruptcies amid ongoing fuel price rises linked to Middle East disruptions.

Michael O’Leary identified Wizz Air and airBaltic as particularly exposed if oil prices stayed high after the closure of the Strait of Hormuz. Ryanair recorded an extra $50m added to its fuel bill in April alone.

Jet fuel prices have doubled to around $150 per barrel. Ryanair held hedging that covered 80 pc of its requirements and limited its immediate risks. Industry observers noted broader vulnerabilities during the peak summer season because of unhedged positions and possible supply issues. O’Leary criticised rising airport taxes and EU climate policies that combined with fuel shocks to threaten airline sustainability.

Wizz Air rejected the bankruptcy predictions and pointed to its strong liquidity together with fleet efficiency and aircraft financing arrangements. The comments formed part of wider industry discussions on structural costs.

Michael O’Leary shared “Wizz announced recently that they’ve increased their hedging for this summer from 60 to 75pc. As far as we can tell, that’s all come from cutting flights and capacity. They’re cutting flights all over the place.

A prolonged Iran conflict and continued disruption to global fuel supplies could drive two or three European airlines into bankruptcy by late 2026. Wizz Air and airBaltic as the most vulnerable if oil prices remain elevated.”

Wizz Air shared “strong liquidity, fleet efficiency, and advanced aircraft financing.”