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.

Speaking to Italian newspaper Il Sole 24 Ore, Mr O'Leary said: "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."

Wizz Air entirely rejected the claim, with a spokesperson telling 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!"

Express.co.uk has approached airBaltic for comment.

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