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Airline Earnings · Guidance Withdrawal · Middle East Conflict · Wizz Air
Wizz Air reported a significant drop in annual operating profit by 16.6% to €139.7 million (£120.6 million), with net profit almost entirely wiped out to €1.3 million (£1.1 million), after taking a €50 million (£43.1 million) hit from the Middle East conflict, leading the low-cost airline to withhold its full-year outlook despite flying a record 69.7 million passengers.
The airline attributed the profit slump to the Middle East conflict, specifically the Iran war and the closure of the Strait of Hormuz, which forced the cancellation of flights to Tel Aviv, other Middle East routes, and Cyprus in March. These cancellations impacted earnings by an estimated €50 million (£43.1 million), according to the firm.
Wizz Air also faced one-off costs including maintenance from fleet phase-out, new aircraft delivery, and a 16% jump in crew costs. Despite these challenges, the company flew a record 69.7 million passengers, a 10% increase year-on-year, and revenues from airfares rose 8.4% to €3.16 billion (£2.73 billion).
The load factor dipped 0.5 percentage points to 90.7%, largely due to the conflict's aftermath. Flights to Tel Aviv resumed in late May, and Wizz Air improved summer offers to alternative destinations like Spain, Italy, Croatia, and Albania.
CEO Jozsef Varadi highlighted the company's strategic decisions for long-term resilience amidst volatility.
