With the Strait of Hormuz still functionally closed to global trade and oil prices hovering at $100 per barrel, airlines are facing an increasingly difficult situation , given their reliance on jet fuel.
Delta Air Lines, Air Canada, KLM, and Lufthansa have all canceled dozens of less-popular routes to prioritize those that bring in the largest numbers of passengers. Lufthansa also shut down its regional airline CityLine a year earlier than initially planned.
U.S. carriers, including JetBlue, American Airlines, and United Airlines, have all also raised the price of checking a bag. While this has been presented as necessary to avoid airfare increases, United CEO Scott Kirby recently warned that ticket prices may rise by as much as 20% by the summer if the situation with jet fuel does not improve by then.
"The war has already cost us $50 million more in fuel": Ryanair CEO
CEO of Dublin-based low-cost carrier Ryanair since 1994, Michael O'Leary has also given frequent interviews, citing the far-reaching impact of current jet fuel prices.
In his latest press conference in Dublin, O'Leary said most European airlines have their fuel supply needs covered throughout the summer, Il Sole 24 Ore reported. Beyond that, we may start to see bankruptcies, as carriers that have already been struggling with operating costs are unable to cover oil at such prices.
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"The war has already cost us $50 million more in fuel in April alone," O'Leary said on April 22, according to Il Sole 24 Ore. "If it continues and the price stays at $150 a barrel, within a year this could rise to $600 million."
A longtime familiar face in the industry, O'Leary is known in aviation circles for his bombastic comments and, in some cases, quick temper. In the most recent interview, this also meant not holding back on naming airlines he thinks will struggle with oil prices to the point of bankruptcy.
"Two or three European airlines could go bankrupt": Ryanair CEO
"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 Air Baltic," O'Leary said, according to Il Sole 24 Ore. He was referring to Wizz Air's threat of legal action over his past comments questioning the airline's financial state.
A Wizz Air spokesperson called O'Leary's comments "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," the spokesperson said in a statement for TheStreet. 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."
These are the airlines that shut down in 2026:
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Magnicharters: While not yet fully shut down, Mexican low-cost airline Magnicharters canceled all flights until May 2026 in a shutdown that left thousands stranded.
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Starflite Aviation: Houston-based Starflite Aviation had its AOC license revoked in March 2026, amid FAA claims that owners falsified pilot training records to bypass safety audits.
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AlpAvia: Slovenian charter airline AlpAvia also shut down in March 2026 over financial problems.
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H-Bird: Charter airline H-Bird was declared bankrupt by a Swedish judge after losing its operating license at the end of 2025.
O'Leary's comments mirror the sentiment of the International Energy Agency, which earlier this month warned that "several European countries may start to face shortages of jet fuel in the next six weeks" and classified the current situation as "the biggest energy security threat in history."
Related: Airline shuts down in bankruptcy, runs last flight
This story was originally published by TheStreet on Apr 24, 2026, where it first appeared in the Travel section. Add TheStreet as a Preferred Source by clicking here.
