The head of the Irish low-cost airline Ryanair, Michael O'Leary, stated that the war around Iran has already dealt a serious blow to the aviation industry. According to him, the company spent an additional $50 million on fuel in April alone.
Michael O'Leary. Photo: Alan Crowhurst/Getty Images
O'Leary noted that if the conflict drags on and oil prices remain around $150 per barrel, Ryanair's additional expenses could rise to $600 million annually.
The main problem, according to O'Leary, is not only high prices but also the risk of aviation fuel shortages in Europe as early as June. May deliveries do not yet cause major concerns, but the situation thereafter is uncertain.
The head of Ryanair stated that if the war does not end quickly, several European airlines might not withstand the financial pressure and could go bankrupt as early as autumn. He even named specific airlines that, in his opinion, might face difficulties — Wizz Air and Air Baltic.
He added that this could, in fact, create an advantage for Ryanair, as there would be fewer competitors in the market.
The Hungarian low-cost carrier Wizz Air, in response, denied O'Leary's words and stated that it has a strong financial position, sufficient reserves, and is well-prepared for rising fuel prices.
Despite the difficult situation, Ryanair currently maintains its growth plans. The company expects around 216 million passengers in 2026 and over 220 million in 2027.
O'Leary also criticized US President Donald Trump, accusing him of escalating the conflict and negatively impacting the global economy. He said the good news is that after 2028, Trump will no longer be in the White House.
Separately, the Ryanair head touched upon the issue of European airport taxes and fees. He believes that high airport taxes sometimes do more harm than wars because they remain for a long time and increase ticket prices.
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