Michael O'Leary does not hold back in his words. The Irish airline Ryanair’s CEO casts a shadow over some of its competitors. In his view, some of them will not survive the test of time. He is specifically referring to Wizz Air and Air Baltic.
A tough time for the aviation industry
The situation in the aviation industry is becoming difficult. Several factors contribute to this. It concerns cancelled flights, as well as problems with access to aviation fuel that are forecasted. For now, as the Ryanair boss claims, fuel reserves should secure air transport in May, but what will happen next remains a big unknown. All because of the conflict in the Middle East, which has been ongoing for two months. After the United States and Israel’s attack on Iran, oil supplies and its extraction were disrupted. This leads to a reduction in aviation fuel refining, which is becoming increasingly hard to obtain.
Michael O'Leary urges travellers to buy airline tickets while they are available. When fuel problems become greater, it may become a luxury commodity, either scarce or very expensive. The Irish airline CEO believes the situation will not improve until Donald Trump continues his bad policy, which drives fuel prices up. In plain terms, until the war ends, the market, and thus the aviation industry, will be put to the test, which could end in various consequences for some carriers.
As highlighted, Michael O'Leary will seek to extend the contract with Ryanair until 2032. For now it is valid until 2028. The Irish airline CEO expressed hope that his new term could take place in a better reality, because the U.S. president will no longer be Donald Trump, as his second term will end.
Will airlines start falling?
The Ryanair boss predicts a bleak fate for some competitors. He admits that two or three may collapse in the near future. This includes Wizz Air and Air Baltic.
"They may sue me, but there won’t be enough time for that" – Michael O'Leary said regarding Wizz Air.
When the Irish airline CEO talks about competitors’ problems he himself seeks savings for his company. He plans to relocate the base of some aircraft from German airports. This includes closing the Berlin base. As the Ryanair president admitted, this is due to high airport fees. He added that from 2027 they will still rise by 10%. He called this type of action a “stupid tax”.
The Berlin airport will be the third from which Ryanair has recently decided to take its aircraft.
See also: Ryanair’s profit rose by 128%! They want even more passengers on board
