Ryanair boss makes dramatic predictions about easyJet and Wizz Air’s future

As Europe’s aviation industry reels from the sudden closure of two low-cost airlines in the same week, Michael O’Leary is making ominous predictions.

Known for making bold statements, the Ryanair CEO has made his name with a bit of controversy and a whole lot of commercial success.

Few can dispute his credentials: Ryanair, now Europe’s largest airline, carried more than 200 million passengers in 2024, soaring far beyond easyJet by over 100 million seats.

But his latest comments are less about celebration and more about caution.

Following the collapse of Icelandic carrier Fly Play and Swedish carrier Braathens International, O’Leary has suggested that easyJet and Wizz Air could face serious trouble in the months ahead.

So, what did Ryanair boss Michael O’Leary say?  

The Ryanair Group boss unveiled his latest predictions for Europe’s low-cost carriers in an interview with Corriere della Sera, Italy’s oldest and most-read publication. 

He warned that more airlines could be at risk of bankruptcy, suggesting that by Christmas, both easyJet and Wizz Air could find themselves in hot water. 

Asked about the state of the industry following the collapse of Play and Braathens, O’Leary did not hold back.

‘I also think Wizz Air is in trouble,’ he said. 

O’Leary pointed to the recent culling of Wizz Air routes and the closure of its Abu Dhabi operations, suggesting the airline’s expansion has stalled.  

He went on to claim that easyJet, while not in immediate danger, is also struggling to grow – noting that its strength lies in a handful of markets rather than broader expansion across destinations.

‘Not even easyJet: it’s not in trouble, but it’s not growing,’ he added.

Metro approached Wizz Air for comment, but did not receive a response.

What’s going on with Wizz Air?  

This season has been anything but smooth for Wizz Air.

From persistent engine issues to the closure of key bases, the airline has faced a turbulent summer.

According to CAPA, Wizz reported a 42% drop in net profit and a 5.4% decline in operating margin, signalling one of its more challenging quarters.

The primary cause lies with the Pratt & Whitney Geared Turbofan engines, which have forced the grounding of nearly 20% of Wizz Air’s fleet. 

Alongside these engine complications, Wizz Air also closed its Abu Dhabi base over the summer.

The airline attributed this decision to extreme weather conditions in the region, which negatively affected engine performance, as well as to rising geopolitical tensions that disrupted routes and forced longer, less efficient flight paths.  

The closure prompted a significant shift in direction. Wizz Air scaled back its aircraft orders with Airbus, cutting its planned deliveries from 47 to just 15 as it reconsiders its expansion strategy.

Despite the headwinds, CAPA reported that Wizz Air still achieved 3.8% revenue growth. While the airline has entered a period of recalibration, there remains cautious optimism that this restructuring could ultimately produce a smoother operation.

No growth in sight for easyJet? 

While Michael O’Leary has suggested that easyJet is struggling to expand, limited by its current destinations, the airline appears to be charting a new course.

As of August 2024, easyJet is reportedly exploring a new presence at London Heathrow, following the completion of the airport’s long-awaited third runway.

Private investors have submitted plans to spend £49 billion on the expansion and modernisation of Heathrow, including the construction of the third runway, a development backed by the government. Chancellor Rachel Reeves has expressed her support for the project, commenting that the addition would ‘make Britain the world’s best connected place to do business’.

The new development is intended to be completed within the next decade, and easyJet has already signalled its interest in operating from Heathrow, aiming to introduce low-cost services to a new market of passengers.

In response to O’Leary’s remarks, easyJet PR Manager Andy Cockburn firmly denied any suggestion of decline within the airline, stating:

‘We see absolutely no prospect of this happening. We are fully focused on executing our strategy, delivering for our customers, and progressing towards our targets.’ 

Kenton Jarvis, easyJet CEO, agreed, saying:

‘Expansion at Heathrow will provide consumer and economic benefits and represents a unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares for customers.’ 

So, despite O’Leary’s comments around the potential liquidation of the company, future plans seem to be in motion for easyJet. 

Is Ryanair facing disruptions? 

Ryanair has also faced disruption to its recent services, with widespread delays and cancellations caused by strikes by French air traffic control workers. 

While this disruption has affected many airlines, Ryanair has been notably vocal about the lack of overflight protections, taking to social media to call on Ursula von der Leyen, President of the European Commission, to take action.

Other notable changes include the airline’s move to pull out of three airports across France, blaming high tax rates, which increased air fares, and the axing of 12 routes in Spain, also due to airport taxes.  

Ahead of the summer, Ryanair also warned that a rise in fares is incoming.