Finance
Exclusive-Wizz air CEO sees iran hit easing from April after profit warning hammers shares
Published by Global Banking & Finance Review®
Posted on March 5, 2026
3 min readLast updated: March 5, 2026
Quick Summary
Wizz Air has warned of a roughly €50 million profit hit in its fiscal year to March 2026 due to the Iran–Middle East conflict but expects easing from April and growth in fiscal year 2027. Its robust fuel hedging minimizes downside risk.
Wizz Air CEO Predicts Iran Conflict Impact Will Ease From April
Wizz Air's Financial Outlook Amid Iran Conflict
By Joanna Plucinska
LONDON, March 5 (Reuters) - Wizz Air expects to limit a financial hit from the Iran conflict to its fiscal year ending this month, CEO Jozsef Varadi told Reuters, with the pressure set to ease from April after a profit warning slammed the budget airline's shares.
The comments are the first since Wizz flagged a 50 million euros ($58 million) hit to its net profit from the war in Iran, which has sideswiped the global aviation market and pushed up oil prices. Its shares fell as much as 10% on Thursday.
The aviation sector has seen a massive selloff this week globally on fears of a protracted conflict in the Middle East, which has hit key airport hubs, led to thousands of flight cancellations and prompted a spike in fuel costs.
CEO Jozsef Varadi's Perspective on Recovery
Varadi said in an interview that the budget carrier expected growth to return for the new fiscal year starting in April and that the fallout from the conflict would be less severe than the war in Ukraine, with demand set to recover and even a potential boost for bookings in Europe.
"We are expecting improvement for fiscal 2027," he said, adding Wizz was still calculating a more detailed outlook and that some uncertainty remained around how long the war might last and how oil prices are affected.
Capacity Shifting Back to Europe
CAPACITY SHIFTING BACK TO EUROPE
The conflict will affect about 5% of Wizz Air's capacity - some 50 flights out of 1,000 daily, he said, but the firm's decision to leave its Abu Dhabi base in September meant that it was far less exposed than it otherwise would have been.
The airline is allocating 60% to 70% of its Middle East capacity back to Europe, to destinations including Italy, Spain, Greece and Albania. For now, it will not focus on expanding into Israel until the situation stabilises, Varadi added.
"The disruption is happening in our low season ... we will have time to reallocate for peak summer," he said, adding that by the end of May or early June, he expected Wizz to be running at full capacity.
Oil Price Hedging and Fleet Management
OIL PRICE HEDGING: 'WE ARE NOT NAKED'
Varadi said Wizz was well hedged for the short term, so a spike in oil prices was unlikely to have a big impact. He added that with fewer flights from Middle Eastern carriers, repair times for RTX-owned Pratt and Whitney GTF engines could also be accelerated for Wizz's fleet.
Wizz said in January it was hedging 83% of its jet-fuel needs for the year to March 2026 at $681 to $749 per metric ton. It has 55% coverage for the year to March 2027 and 7% for the year to March 2028, at $650 to $716 per metric ton and $628 to $694 per metric ton, respectively.
"I don't think any airline is better hedged than Wizz Air," Varadi said. "We are not naked."
(Reporting by Joanna Plucinska. Editing by Adam Jourdan and Mark Potter)
Key Takeaways
- •Profit warning: expecting about €50 million net profit impact in FY2026, with one-third due to halted Middle East services and the rest from macroeconomic factors like fuel and FX movements.
- •Operational adjustment: reducing Middle East exposure (~5% capacity) and re‑allocating 60–70% of that capacity back to Europe; expects full capacity by late May or early June.
- •Strong hedge position: 83% of jet‑fuel needs hedged for year to March 2026, 55% for year to March 2027, and 7% for year to March 2028, insulating against fuel‑price volatility.
Frequently Asked Questions about Exclusive-Wizz Air CEO sees Iran hit easing from April after profit warning hammers shares
1How much has the Iran conflict impacted Wizz Air's net profit?
Wizz Air flagged a 50 million euros ($58 million) hit to its net profit due to the war in Iran.
2When does Wizz Air expect the financial pressure from the Iran conflict to ease?
Wizz Air expects the pressure to ease from April, after the fiscal year ending this month.
3How is Wizz Air shifting its flight capacity due to the conflict?
Wizz Air is reallocating 60% to 70% of its Middle East capacity back to Europe, including Italy, Spain, Greece, and Albania.
4Is Wizz Air protected against rising oil prices?
Wizz Air is well hedged for the short term, covering a significant portion of its jet-fuel needs through 2028.
5When does Wizz Air expect to return to full capacity?
Wizz Air expects to be running at full capacity by the end of May or early June.
