Ryanair group chief executive Michael O’Leary has reiterated his belief that there will be a new wave of consolidation sweeping across the airline industry in the next few years as competition hots up after the post-pandemic recovery period.
Mr O’Leary was quoted by Reuters, at an event in Lisbon, as saying: “We are definitely, post-Covid, entering a four or five-year period of consolidation.”
In the past week, UK low cost operator Flybe has ceased trading and Norwegian low fares airline Flyr has filed for bankruptcy less than two years after starting business.
Last month, Mr O’Leary opined that Ryanair rival EasyJet – which has since updated the market with strong trading results – could be bought out by either British Airways or Air France, or by both as a joint-venture move.
Avolon – the Irish-founded, Dublin-headquartered and China-owned aircraft leasing giant – said, recently, that it expects airline consolidation to accelerate and the pattern of takeovers of existing carriers to become more commonplace than airline startups.
Ryanair, which has been adding routes from Irish and British airports for months, recently said its third quarter profits were boosted by strong Christmas and New Year bookings and that it is well-placed for further growth.
