Could the war in Iran sweep away Hungarian Wizz Air? Shares could plummet, with a brutal slump in prospect

According to Telex, the Hungarian low-cost carrier Wizz Air stands to be the biggest loser among Europe’s airlines following the United States’ strike against Iran on Saturday, carried out in tandem with Israel.

Trump’s suspected aim in Iran

This latest war, launched by President Trump—who has admitted it will last at least three or four weeks—comes amid claims from the US leader that Iran’s regime wishes to negotiate. The Iranians, however, beg to differ: they are furiously preparing to select a new supreme leader after confirming Ali Khamenei’s death yesterday, while threatening to seal off the Strait of Hormuz entirely. Such a move would cripple the global oil industry—and, one suspects, the world economy for the long haul.

Trump’s attack order, which has sparked a crisis akin to the Covid pandemic, was preceded by his declaration of a desire for regime change in Iran. He stopped short of clarifying whether this means merely installing a new ayatollah or scrapping the entire Islamic Revolution and consigning post-1979 events to the dustbin. In Venezuela, after all, he merely toppled the president; the vice-president now holds the presidency and is said to be cooperating with American authorities.

Wizz Air can become the biggest loser

No such conciliatory murmurs emanate from Teheran’s leadership, however. And Telex argues that the crisis’s prime corporate casualty could be Budapest-based Wizz Air. The company has suspended all flights to the Middle East until at least March 7—a region that had been one of its key growth markets. Wizz had already decided to curtail its ambitious Middle Eastern expansion (with an eye on Central Asia instead) and refocus on eastern Europe. Yet it maintains vital footholds there, with hosts of routes and passengers. Indeed, it even plans to establish a base in Israel to secure better terms, despite fierce lobbying against it by Israeli rivals.