Wizz Air net profit collapses to €2.2 million after Iran war disruption, airline withholds annual guidance

Wizz Air's full-year net profit almost entirely evaporated, falling to €2.2 million for the year to the end of March, down from €225.8 million a year earlier. The Hungarian low-cost airline attributed the collapse to a €50 million impact from the US-Israeli war with Iran, which forced the cancellation of flights to Tel Aviv and other Middle Eastern routes, drove up fuel costs, and shifted consumer booking behaviour. Despite the profit slump, the carrier flew a record 69.7 million passengers and reported revenues of €5.69 billion, slightly below market consensus.

The financial toll of the conflict

The airline's operating profit fell 16.6% to €139.7 million, though this still beat analyst expectations of €88.51 million compiled by LSEG. Net profit dropped to just €2.2 million, compared with market forecasts of a €34.9 million loss, according to a Bloomberg survey. Wizz Air said the Iran war impact broke down roughly as 40% from surging jet fuel prices and the reallocation of Middle East capacity, and 20% from consumers choosing alternative destinations and booking closer to departure dates.

“You see this kind of shift in booking windows for about four or five months before the market stabilises in terms of booking behaviour. People get used to everything.”

Operational pressures beyond geopolitics

Beyond the conflict, Wizz Air faced a series of one-off costs. The carrier grounded 24 Airbus A320-family aircraft due to required Pratt & Whitney engine servicing. Crew costs jumped 16%, and the phase-out of an older fleet alongside delivery of new aircraft added maintenance and repair expenses. The company's load factor dipped 0.5 percentage points to 90.7%, which it largely attributed to the aftermath of the Iran war.

Strategic response and market position

Flights to Tel Aviv resumed at the end of May, and Wizz Air redirected summer capacity toward alternative destinations including Spain, Italy, Croatia, and Albania. Chief Executive Jozsef Varadi told Bloomberg that weaker airlines would cut costs and reduce capacity over the winter, creating an opportunity for Wizz Air to expand market share. He denied the company was planning any acquisitions, calling them an unnecessary complication of operations.

“We have continued to grow and serve an increasing number of customers. Equally, the defining feature of the year was the set of strategic decisions we made to position the business for long-term resilience and competitiveness.”

Outlook withheld amid uncertainty

Wizz Air declined to provide guidance for fiscal 2027, citing a lack of seasonal visibility and uncertainty tied to the ongoing Iran conflict and the closure of the Strait of Hormuz. Shares in the London-listed carrier have fallen approximately 24% this year, though they rose as much as 2.7% on the day of the results announcement. Susannah Streeter, chief investment strategist at Wealth Club, noted that volatility continues as the twists of the Iran war collide with apprehension about tech valuations.

FY 2025225.8

FY 20262.2

FY 2025

225.8 €M

FY 2026

2.2 €M

Data from the article text