Michael O'Leary Foresees Wizz Air's Demise and an Eventual Breakup of easyJet
Ryanair Group CEO Michael O’Leary predicts a fresh wave of airline bankruptcies will hit Europe this winter, stating that rival Wizz Air “has no future” and will inevitably fail. At the same time, easyJet is destined to be broken up and sold off to competitors like Air France-KLM and British Airways.
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The CEO of Ryanair Group, Michael O’Leary, anticipates a new wave of consolidation in the European airline market, with more bankruptcies of small and medium-sized carriers in the coming months. In a harsh assessment of the sector, he stated that Wizz Air "has no future" and that easyJet will eventually be broken up and acquired in parts.
His statements come amid industry turmoil, following the recent bankruptcy of Icelandic airline Play and part of Sweden's Braathens. "Yes, there will be more bankruptcies before Christmas," O'Leary asserted. "The problem in Europe is that many airlines are pretending to be low-cost, but they have a high-cost structure."
In an interview with the Italian newspaper Corriere della Sera, O'Leary directed his sharpest criticism at one of his main competitors in Central and Eastern Europe. "I don't think Wizz Air will collapse in the coming weeks, but I think it's inevitable that at some point it will either fail or be acquired by someone," he declared.
O'Leary accused Wizz Air of jeopardizing its own future through complex financial operations. "During Covid, they sold their aircraft and leased them back at high rates (...) Over the past five years, Wizz has booked profits from these transactions in their accounts, like some sort of Ponzi scheme," he fired. According to him, this model depended on a growth that has now stopped, leaving the airline in a vulnerable position.
The Future of easyJet and Ryanair's Strategy
O'Leary's analysis did not stop at Wizz Air. He also addressed the future of easyJet, another major European low-cost carrier. While he clarified that it is not in immediate financial trouble, its stagnation makes it a target. "In the medium term, I think Air France-KLM will buy easyJet's operations in Paris and Switzerland. And maybe British Airways will buy those at Gatwick," he projected.
Simultaneously, O'Leary defended his aggressive negotiation strategy with airports, exemplified by his recent dispute with Aena, the Spanish airport operator. Ryanair withdrew one million seats from Spanish regional airports this winter after Aena refused to lower its fees.
"If the fees are the same as Barcelona, then we'll put more flights to Barcelona," he explained. Half of that capacity was reallocated to major Spanish airports like Palma, Malaga, and Madrid, while the other half was moved to Italian regions that eliminated municipal taxes, such as Friuli-Venezia Giulia. "My job is to shout, complain, and protest against airport charges," he stated, denying that he abuses his dominant position.
Fares and Onboard Policies
Regarding ticket prices, O'Leary indicated that after a 7% drop last year, a recovery of 6-7% is expected this year, leaving 2025 fares at the same level as in 2023.
Finally, he addressed the shift from November 12 towards exclusively app-based check-in. He assured that passengers, especially the elderly, arriving with a printed boarding pass will not be turned away during the winter. He justified the measure as an improvement in efficiency and communication, particularly in light of cyberattacks like the one on Collins Aerospace.
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