In Europe, two or three airlines may go bankrupt by the end of this year if high oil prices persist, stated Ryanair CEO Michael O'Leary. Among the potentially threatened companies, he mentioned the Latvian national airline airBaltic.
In an interview with the Italian newspaper "Il Sole 24 Ore," O'Leary noted that the conflict in Iran in April alone increased Ryanair's fuel costs by 50 million USD. He suggested that if the current oil price levels persist, several European airlines, including Wizz Air and airBaltic, could go bankrupt in October or November, as reported by tv3.lv.
As previously reported, the Saeima approved a short-term loan of 30 million euros for airBaltic. The purpose of the loan is to mitigate the negative impact of the conflict in the Middle East on the company's financial situation, and it must be repaid by August 31 of this year.
Meanwhile, Wizz Air sharply rejected O'Leary's statements, calling them false and misleading. The company emphasized that it has a strong balance sheet, sufficient liquidity, and a modern fleet, which helps reduce fuel costs.
airBaltic has not yet provided public comments regarding the statements made by the Ryanair chief.
O'Leary has previously criticized competitors and predicted mergers or financial difficulties for other European airlines.
