Is Wizz Air in trouble? Its biggest rival predicts bankruptcy soon
The European low-cost airline market has entered a turbulent period, and according to Ryanair’s CEO Michael O’Leary, Hungary-based Wizz Air is also facing serious challenges. In an interview with the Italian daily Corriere della Sera, O’Leary sharply criticised his competitors and did not rule out further bankruptcies in the near future.
Bankrupt and suspended airlines
O’Leary pointed out that in recent months not only Iceland’s Play Airlines had to suspend operations, but Sweden’s Braathens International also declared bankruptcy. He argued that these carriers partly failed because, although they presented themselves as operating a low-cost model, their expenses were far too high. “Several airlines may go bust before Christmas,” O’Leary warned.
Wizz Air’s risky business model
He described Wizz Air’s situation as especially precarious: while the airline may not collapse in the short term, its fate could be decided by either bankruptcy or acquisition. O’Leary noted that Wizz Air took risky steps during the Covid era: the company sold its aircraft, leased them back at high rates, and later expanded its fleet by buying planes from its shareholders, financing them through further expensive sale-and-leaseback deals, HVG reported.
“It’s like a pyramid scheme: growth drove the profits, but in the long term it may not be sustainable,” Ryanair’s CEO said.
Wizz Air’s own struggles
The airline itself has acknowledged difficulties. In June, Wizz Air reported a 40% drop in profits, partly due to the recall of Pratt & Whitney aircraft engines, which restricted capacity. As a result, the company abandoned its summer expansion plans in the Middle East and scrapped its proposed Abu Dhabi hub.
Scattered growth and uncertain future
According to O’Leary, Wizz Air has been attempting to grow in a scattered fashion in recent years—expanding in Italy, Vienna, and then the Middle East, but without success. “Now they want to go to Kazakhstan and expand in Poland, but it’s too late—we’ve already invested there,” he said, adding that Wizz Air “will not make a single euro in total,” while Ryanair is poised for growth across Europe, with airports lining up to host its new routes.
EasyJet and Ryanair’s expansion
O’Leary was less critical of EasyJet, another major competitor. While it is not expanding, he said, it is not currently in difficulty, maintaining strong positions in London, Paris, and Switzerland. In his view, British Airways could eventually acquire its London operations, while Air France–KLM could take over the other two.
He emphasised that Ryanair’s business decisions are driven by cost–revenue optimisation, and the airline is preparing for continuous expansion across Europe, particularly in Italy, where it could immediately offer more than one million additional seats.
Wizz CEO Váradi’s pay tripled
According to FlightDrama and Aviation A2Z, Wizz Air CEO József Váradi received a compensation package worth almost €3.9 million in the financial year ending in March 2025. This amount is nearly triple what he earned the year before. The increase was largely driven by a one-off restricted share award worth €2.3 million, on top of his €775,000 base salary and other incentives.