Low-cost carrier Wizz Air reported a €183.3 million operating loss for the April-June quarter, as higher fuel costs and weaker fares put pressure on its financial performance. This marks the airline’s third consecutive quarterly operating loss, following a €36 million loss recorded in the previous quarter.
Reportedly, the company faced a €198.2 million net loss, compared with a net profit of €38.4 million in the same quarter. Thus, highlighting the growing pressure on European budget carriers. This comes as fuel prices remain elevated and airlines struggle to raise fares without hurting demand.
Wizz Air attributed much of the pressure to rising jet-fuel costs following the conflict involving Iran. Jet fuel costs rose after the conflict disrupted expectations for oil supplies, increasing costs for airlines. However, Wizz Air could not shift the extra costs onto its customers. The airline operates in an industry that is highly sensitive to price changes.
Moreover, Wizz Air experienced falling fares in connection with expansion of capacity. Passenger revenue per available seat kilometre, a standard measure of revenue per unit, declined by 8% despite the rise in passengers by 25%. The company's total revenue grew by 5.5% to €1.5 billion.
Despite the setbacks, Wizz Air is planning to move forward with expanding both its routes and fleet. Seat capacity is expected to rise by up to the mid-twenties percentage during the quarter.
The airline plans to shift towards increasing European routes, while minimizing its presence in the medium-range markets in the Middle East. The shift is happening amid continuing geopolitical uncertainties that impact airline operations and demand.
Wizz Air has suspended its financial guidance for the 2026-27 fiscal year amid uncertainty over fuel prices and geopolitical conditions. The airline expects revenue per available seat kilometre to decline slightly year-on-year in the current quarter.
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