Wizz Air has issued a profit warning, citing the ongoing Middle East crisis and its impact on travel and fuel costs. The low-cost airline expects the conflict to wipe €50 million off its profits for the current financial year, pushing it into a loss.
Shares in Wizz Air fell 6% at the start of trading on Thursday, as investors reacted to the warning. The airline had previously forecast a profit range of €25 million to a loss of €25 million, but now anticipates a net loss for the year.
Approximately one-third of the expected impact is due to the cessation of certain scheduled services to the Middle East, with the remainder attributed to higher fuel costs and travel disruption. The warning came as Brent crude oil prices rose 3.3% to $84 a barrel, driven by the conflict.
Other airlines also faced pressure, with IAG, the parent company of British Airways, down 2.6%, and easyJet losing 2.9%. The rising oil price threatens to increase operating costs across the sector.
The crisis has also affected global markets, with the pan-European Stoxx 600 index dipping 0.3%. The UK's FTSE 100 fell 0.19%, dragged down by airline and mining stocks. Sterling weakened against the US dollar, falling more than half a cent to $1.331.
