MORE airlines could fail in the coming months as fuel costs remain high and the global economy softens, the boss British Airways has claimed.
The comments come just weeks after the UK’s oldest holiday provider Thomas Cook collapsed.
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Willie Walsh, chief executive of British Airways’ owner IAG, said: “In an environment where you are seeing softening economic conditions, where you are seeing fuel prices still in the $60 (£50) range […] weaker airlines will struggle”.
He added Norwegian Air was among those “in a very challenging position” as the airline had “had to sell off the silver […] for liquidity”.
IAG sold its stake in Norwegian after a takeover approach was rebuffed, and Mr Walsh said said it would not bid again.
A spokesman for Norwegian said: “Our results show that we are delivering on our strategy of moving from growth to profitability.
“We continue to focus on building a strong, sustainable and profitable business.”
Mr Walsh isn’t the only airline boss to suggest Norwegian could be vulnerable.
Ryanair CEO Michael O’Leary claimed the low-cost airline would be the next to go bust earlier this month.
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Airlines have struggled due to rising fuel costs.
The cost per barrel has increased from around $30 (£23) in 2016 to $66 (£52) in 2019, according to The Points Guy, making it more expensive for airlines to fly.
Winter is also difficult for carriers, with fewer people travelling abroad leading to lower fare sales.
Competition between low-cost airlines has resulted in a number of airlines going under as they compete to offer the cheapest fares.
This could eventually lead to much higher fares, with Michael O’Leary previously saying he thought the future of flying would leave just “four major carriers” in Europe.
Other airlines to have recently gone bust include Aigle Azur, the second largest airline in France, along with smaller French airline XL Airways.
Slovenian airline Adria Airways also went under earlier this month.
Thousands of Brits were affected by the collapse of Thomas Cook with the rescue mission to bring stranded holidaymakers home said to have cost £100million.
Willie predicted there will be a law change relating to airline failures in the wake of the Thomas Cook collapse so taxpayers don’t have to foot the repatriation bill.
Thomas Cook ceased trading with immediate effect on September 23 after the travel firm was unable to pay £200 million to its creditors.
The travel firm’s demise sparked the largest peacetime repatriation since World War Two after 150,000 passengers were stranded abroad.
Other airlines to have gone bust in recent years include Monarch Airlines, which collapsed in 2017.
More than 300,000 bookings were cancelled, leading thousands stranded abroad.
Last year Primera Air and Cobalt went under, with WOW Air following this year, although has been rescued since.
If a holiday provider goes into administration, Brits’ package holidays are ATOL-protected meaning they will be refunded and brought back to the UK for free.
If an airline goes under, Brits have little protection and could be forced to may for their new flights.
Brits could be forced to pay an extra 50p for their flight to protect themselves.
