Ryanair Holdings Plc Chief Executive Michael O’Leary warned on Monday that continued conflict involving Iran and restrictions on the Strait of Hormuz could produce a wave of corporate failures across Europe’s aviation sector.
Speaking in a television interview, O’Leary named specific carriers he sees as at risk if the strait remains closed through November. "You’d be looking at airlines failing all over Europe," he said, and added, "Wizz could well be a candidate for failure."
O’Leary referenced recent government assistance to illustrate the fragility of some smaller carriers’ finances. Air Baltic Corp. accepted a €30 million loan from the Latvian government intended to steady the airline’s cash position for the summer season. Commenting on the loan, O’Leary said, "Good luck to the Latvians trying to get that repaid at the end of August."
The Ryanair chief also addressed the topic of consolidation. He dismissed the idea of seeking takeover targets himself, saying there is "nothing in Europe you’d want to buy." That position contrasts with remarks earlier this month from IAG SA’s CEO Luis Gallego, who said the conflict had presented an opportunity for the British Airways owner to acquire struggling carriers.
While ruling out acquisition of existing airlines, O’Leary indicated Ryanair would be open to purchasing aircraft if other carriers sell them off. He did not offer further details about any potential fleet purchases or timing.
The comments underline how a prolonged disruption in a major shipping and energy choke point - if it were to persist through November, as O’Leary suggested - could intensify financial strain on Europe's airline industry, putting particular pressure on smaller, less-capitalized operators.
O’Leary’s remarks focused on the immediate financial vulnerabilities within the sector rather than on broader market dynamics or policy responses beyond the specific loan to Air Baltic and the differing strategic views expressed by other airline executives.