Wizz Air’s CEO, József Váradi, has firmly rejected bankruptcy claims made by Ryanair’s chief, Michael O’Leary. This assertion comes amid rising fuel prices and ongoing challenges in the airline industry.
The ongoing Iran conflict has shut down the Strait of Hormuz, limiting fuel shipments and destabilizing the oil market. Despite this, Wizz Air has hedged 70% of its fuel needs for the summer. As a result, Wizz Air only pays $700 per metric ton of jet fuel, significantly lower than the market price of around $1,700.
Váradi stated, “I don’t think we’re going to be running out of fuel.” He emphasized that Wizz Air’s operational stability and liquidity position are strong. The airline currently holds two billion euros in cash, providing a buffer against fluctuating costs.
Key statistics:
- Wizz Air’s summer schedule is expected to be 17% larger compared to last year.
- Ryanair has hedged around 80% of its fuel needs at $67 per barrel through March 2027.
- Wizz Air’s Chief Commercial Officer reported that the carrier has hedged 86%, 71%, and 61% of its fuel needs in Q1, Q2, and Q3 of 2026 respectively.
O’Leary suggested that if oil prices remain high, two or three European airlines could face bankruptcy. He specifically mentioned Wizz Air as a potential candidate for this crisis. However, Váradi called O’Leary’s comments “flatly untrue and false,” reinforcing Wizz Air’s resilience in the face of economic pressures.
No timeline has been shared regarding how fluctuating oil prices will impact airline operations moving forward. Observers remain vigilant as they monitor the evolving situation in the airline industry.