Wizz Air has reported an operating loss of 183 million euros (£157 million) for the April-to-June period, swinging from a profit of 27.5 million euros (£23.6 million) a year earlier, as the Middle East conflict drove jet fuel costs sharply higher.
The low-cost carrier described the period as "extremely volatile" and cautioned that the industry would face challenges for the remainder of the year. The loss largely reflects a jump in fuel expenses, which rose 39% year-on-year to 610.5 million euros (£523.8 million), amid a spike in global oil prices that saw Brent crude peak above 120 dollars a barrel in late April.
Industry-wide impact
The airline said the higher fuel costs reflected an 87% increase in market prices, which it partially offset through its own cost-saving measures. The surge has hit the wider sector, with easyJet, IAG, and Ryanair all reporting profit declines in recent weeks.
Wizz Air had previously taken a 50 million euro (£42.9 million) hit from the Iran war, leading to cancellations of flights to Tel Aviv and other Middle East and Cyprus routes in March. While many services have resumed, the company is reallocating capacity from longer-haul Middle East routes to shorter European markets.
Passenger growth and outlook
Despite the loss, passenger numbers rose by a quarter to 21.2 million over the three months, and total revenues increased 5.5% year-on-year to 1.5 billion euros (£1.29 billion). Chief executive Jozsef Varadi said: "The industry has been extremely volatile over the June quarter due to conflict in the Middle East, elevated fuel prices, and changes in booking patterns."
He added: "While we continue to see the build-up of forward bookings, the rest of the year is expected to present both industry challenges and strategic opportunities."
