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.