Wizz Air Expects 17% Summer Growth Despite Jet Fuel Supply Concerns
Wizz Air's Summer Outlook and Jet Fuel Challenges
By Joanna Plucinska
Summer Schedule Expansion
LONDON, April 27 (Reuters) - Wizz Air's CEO said on Monday the European budget airline's summer schedule would be 17% larger this year, with growth focused on the Balkan and Caucasus markets, despite concerns over jet fuel supply and costs tied to the Iran war.
Booking Trends Compared to Competitors
"We are much stronger on summer bookings this year than last year," Jozsef Varadi told reporters at a briefing, after some airlines like easyJet and TUI announced drops in forward bookings and issued profit warnings in recent weeks.
Industry Context and Fuel Hedging
European airlines are entering their first-quarter reporting season, with analysts uncertain about longer-term outlooks as jet fuel hedges start running out in the coming months.
Wizz Air's Hedging Strategy
Varadi said Wizz Air was 70% hedged for its fuel needs for the summer period and would receive 35 new Airbus aircraft during 2026. The Hungarian-based airline was set to renew some of its hedges when they run out this summer in order to protect it against price volatility, he added.
Global Jet Fuel Supply Dynamics
At a price of $1,500 a metric ton for jet fuel, tankers were incentivised to head to the U.S. to collect it, Varadi said, which made up for shortfalls from the Middle East, a major source of jet fuel for European carriers.
(Reporting by Joanna Plucinska, writing by Sarah Young; Editing by Kate Holton and Alexander Smith)
