Ryanair‘s ever-outspoken boss has issued a stark warning for fellow european budget airlines – and the passengers who use them. According to CEO Michael O’Leary, the jet fuel crisis that continues to rumble on as conflict between the United States and Iran, will likely have devastating consequences for the aviation industry.

Much has already been made of flight prices spiking as a direct consequence of blockades on the Strait of Hormuz, but now there are fears entire companies could collapse as a result. With Mr O’Leary revealing Ryanair‘s fuel costs have gone up by £50m this month, he claims Wizz Air and airBaltic risk running out of cash reserves next winter.

Ryanair hedged (or fixed) 80% of its fuel needs at $67 (around £49) per barrel before the war started, with coverage until March next year, protecting them from price spikes for the time being.

However, the other 20% is linked to marked rates that have surged above $150 (around £110), so they’ll face major challenges in 2027 if the conflict and resulting trade blockages isn’t resolved, MailOnline reports.

In comments to reporters quoted by Italian newspaper Il Sole 24 Ore, Mr O’Leary discussed the pressure being exerted on the sector, and decided to take aim at rivals Wizz Air and airBaltic, claiming their futures are at risk.

“If oil stays at these levels, two or three European airlines in October or November could go bankrupt like Wizz Air, which wants to sue me but won’t have enough time to do so, and airBaltic,” he said.

Wizz Air entirely rejected the claim, insisting its one of the best hedged carriers around. A spokesperson told Express.co.uk: “Michael O Leary’s recent comments about Wizz Air’s financial prospects are flatly untrue and false.

“Wizz Air has a strong balance sheet, substantial liquidity, and funds its aircraft 18 months in advance, with leasing companies and other financiers competing strongly for every opportunity. This is a business with clear stability.

“Wizz Air is one of the best hedged airlines in the industry against the rapidly changing fuel prices, while our fleet is already 75% A320neo family aircraft, providing a structural cost advantage compared to any other airline in Europe through significantly lower fuel burn and greater efficiency.

“Wizz Air also maintains long-standing relationships with leading lessors and manufacturers, continuing to execute its fleet strategy without disruption.

“We continue to rapidly expand our footprint across Italy and other key markets. Our focus remains exactly where it should be: delivering the lowest fares, operating the youngest and most fuel-efficient fleet of aircraft, and serving millions of our customers!”

Latvian airline airBaltic has faced significant financial challenges of late, and was forced to request a loan from the Latvian government due to the fuel price rises.

Nevertheless, like Wizz Air its continuing its rapid expansion, adding Groningen Airport Eelde in the Netherlands to Spanish holiday hotspot Tenerife, as per the Mail.

Express.co.uk has approached airBaltic for comment.

Speaking about the war in Iran, Mr O’Leary said: “Nobody knows what will happen. At the moment what seems clear is that if the war ends at the end of April or beginning of May, there will be no problems with fuel supply during the summer, but if it continues we don’t know.”

With the start of May now just days away, that appears unlikely as negotiations between the US and Iran to end the war continue without an end in sight.

The UK and French Governments are leading a multinational coalition to reopen the Strait, and the Prime Minister Sir Keir Starmer says a resumption of oil shipments is “urgent”.

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