Wizz Air Expects Summer Revenue Growth Despite Iran War and Fuel Costs
By Joanna Plucinska
Wizz Air's Summer Outlook and Financial Performance
LONDON, May 14 (Reuters) - European budget carrier Wizz Air expects revenue to rise 2% in the key summer season versus a year earlier, Chief Executive Jozsef Varadi told Reuters on Wednesday, as its budget fares attract passengers and help it to offset the impact of the Iran war.
Positive Signals Amid Market Challenges
"We are seeing not just volume lift, but also revenue lift for peak summer," Varadi told Reuters in an interview, offering a positive signal from the air travel market as it grapples with spiking jet fuel prices and worries that fewer people will fly.
Reversal of Fortunes Since Iran War
The relatively upbeat projection, previously unreported, reinforces the carrier's reversal of fortunes since it issued a profit warning after the start of the Iran war. It has been battling to win over investors, who drove its already-struggling shares lower as worries mounted over high jet fuel prices and belt-tightening consumers.
Financial Year Projections
Wizz Air said on Tuesday it expects to break even or achieve slightly positive full-year earnings for its 2026 financial year that ended March 31.
Summer Capacity and Bookings
The airline has said that 44% of summer capacity has been booked, some two percentage points ahead of last year.
Cost Management and Strategic Adjustments
Varadi told Reuters the stronger projection for the 2026 financial year was enabled in part by cost cuts as it postponed or rolled back new IT innovation programs. The results will be released in June.
"I think we are seeing roughly around somewhere between 100 and 200 million euros worth of cost savings being materialised in the current financial year," he said.
Pricing Strategies and Demand Trends
Varadi added that the airline was offering lower ticket prices on routes that had experienced a slight dip in demand, particularly those serving destinations close to the Middle East such as Cyprus and Egypt.
"We make sure our prices are competitive in that context," he said, adding that demand was already growing on those routes.
Fuel Supply and Market Confidence
Echoing increasingly bullish views from some European airlines, a handful of which have benefited as Europeans book holidays closer to home during the Middle East conflict, he said he was not concerned about jet fuel supplies for the next six months and the carrier had not cancelled any flights due to a lack of fuel.
"Fuel is available in Europe," he said. "Looking at the next, I don't know, six, eight months, I think we just look fine. And we got the confirmations by suppliers for availability of fuel."
(Reporting by Joanna Plucinska; Editing by Adam Jourdan and Edmund Klamann)
