Budget airline Wizz Air lost £157 million in the months after the Iran War began, according to its latest trading update. Accounts show that Wizz Air Holdings Plc reported an operating loss of €183 million (£157 million) between April and June, down from a profit of €27.5 million euros (£23.6 million) for the same period last year.
Fuel costs surge
In an update issued to investors on Thursday morning (August 6), Wizz said this largely reflected a 21 percent rise in unit fuel costs, which were pushed up by soaring oil and gas prices since the Iran war began at the end of February and has slammed the industry.
This came despite passenger numbers soaring by a quarter to 21.2 million over the three-month period. In response to the balance sheet, company bosses said they were ‘focusing on unit cost performance’, but were pleased to see the surge in bookings.
CEO statement
József Váradi, Wizz Air Chief Executive Officer, 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.
“While we reported a net loss for this period, which reflects in particular the 21 percent rise in unit fuel costs, we operate the business with a strong balance sheet, more than €2 billion of cash and a liquidity ratio of 37 percent, which is amongst the strongest in the industry.”
Cost breakdown
The trading update said Wizz spent nearly 40 percent more on fuel in the first quarter of the new financial year, from £375.8m in Q1 of 2025 to £523.7m in the period of 2026.
Operating expenses increased by 20.7 percent, to £1.45b, while staff costs also rose by 13.5 percent to £152.7m in a year. The company also spent more on distribution and marketing; maintenance and repairs; airport and handling charges; and depreciation and amortisation.
Network reallocation
The Hungarian airline will now begin ‘reallocating’ its planes from longer-haul routes which travel near the Middle East to short-haul European services, Mr Váradi said.
Wizz mostly flies within the European continent, but does offer services to Egypt, Israel, Turkey, and Armenia.
He added: “We are focused on strengthening the core network, improving density and reallocating flying from longer-haul Middle Eastern operations into shorter European sectors. This supports higher sector productivity, creates more attractive schedules for customers, improves network integrity, and delivers incremental growth at a lower cost.
“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. Wizz Air is well positioned, with a strong liquidity position, a modern and efficient fleet, and a disciplined approach to capacity deployment.”
