Key facts
- Wizz Air reported a net loss of €198.2m, a reversal from a €38.4m profit in the prior year.
- The loss was attributed to soaring jet fuel prices driven by the conflict in the Middle East.
- Total revenue rose 5.5% to €1,507.4m, with a 25.1% increase in passengers to 21.2m.
- Revenue per available seat kilometre declined by 8.1% due to weaker fares.
- The airline is adjusting its fleet capacity towards European destinations like Spain.
Wizz Air has reported a net loss of €198.2m, a stark contrast to the €38.4m profit recorded in the same period last year. The budget airline attributed this downturn primarily to soaring jet fuel prices, exacerbated by the conflict in the Middle East. This increase in fuel costs, coupled with "extreme volatility" from the war in Iran, significantly impacted profitability.
Despite the loss, Wizz Air saw its total revenue increase by 5.5% to €1,507.4m. This growth was driven by a substantial 25.1% rise in passenger numbers, reaching 21.2 million. However, revenue per available seat kilometre decreased by 8.1%, indicating that weaker fares squeezed profit margins.
Garry White, chief investment commentator at Raymond James, described the first-quarter results as "disappointing," noting that higher fuel costs and weaker fares offset the benefits of capacity growth. Analysts are questioning whether strong summer demand can help drive a recovery, with the market seeking proof that expansion leads to better returns, not just more seats sold at thinner margins.
The airline is responding by reallocating its fleet capacity to popular European destinations such as Spain, moving away from long-haul flights to the Middle East. Wizz Air had previously halted operations in Vienna and exited Abu Dhabi last year. Chief executive Jozsef Varadi stated that this strategic shift supports higher sector productivity, creates more attractive schedules, improves network integrity, and delivers incremental growth at a lower cost.
Aircraft availability has also seen improvement, recovering from disruptions caused by grounded fleets due to engine and powder metal issues. As of June 30, 27 aircraft remained grounded, a reduction from 41 at the end of the previous year. The affected fleet is anticipated to be fully operational by the end of the 2027 calendar year. However, analyst Alex Pugh noted that the issue is "still hurting Wizz" despite the progress made.