Key facts
- Wizz Air's net profit dropped by nearly 99% to €1m for the year ending March.
- Operating profit decreased by 17% to €140m.
- Route cancellations in Vienna and Abu Dhabi, along with the Iran war, were cited as reasons for the profit decline.
- The airline experienced a €50m financial impact from the Middle East conflict.
- Revenue rose by 8% to £5.7bn, while net debt slightly decreased to £4.9bn.
Wizz Air has stated it is positioned for "long term resilience" despite a nearly 99% drop in net profit, which fell to €1m from €214m due to "one-off headwinds" including route cancellations in Vienna and Abu Dhabi. Operating profit also slipped 17% to €140m.
The budget airline faced further disruption from the Iran war, leading to temporary route cancellations in the Middle East and Cyprus. Wizz Air withdrew from Abu Dhabi in July last year to focus on its European market, followed by the cancellation of its Vienna operations in September, decisions chief executive Józef Váradi described as positioning the business for long-term resilience and competitiveness.
The company reported a €50m financial impact from the Middle East conflict, though fixed-price fuel contracts mitigated a larger hit. Despite resuming Middle East and Cyprus flights, the ongoing conflict clouds the outlook for the coming financial year, with Wizz Air unable to provide profit guidance due to visibility concerns and the war's impact.
In the year to March, Wizz Air's seat capacity decreased by 0.5% to 90.7%, largely due to the Iran war's effects, while passenger ticket revenue grew by 8% to €3bn. Overall revenue increased by 8% to £5.7bn, and net debt slightly decreased by 0.3% to £4.9bn. The airline operated 262 planes and plans to expand its fleet to 383 aircraft by 2033. Founded in 2003, Wizz Air is Europe's third-largest budget carrier and has been listed on the London Stock Exchange since 2015.