Experts deem Wizz Air the most vulnerable, yet the Hungarian low-cost carrier readies a sharp riposte

According to a Morningstar analysis, Wizz Air stands as the most exposed among Europe’s airlines amid the fuel crisis triggered by the Strait of Hormuz closure. The Hungarian budget operator, by contrast, insists all is well – indeed, it is expanding capacity, not least because it secured a sizeable chunk of its summer fuel needs at favourable rates. It rules out any fuel surcharges, though ticket prices will duly reflect shifts in the market and business landscape.

Wizz Air ramps up capacity despite the kerosene crisis

Ryanair’s chief, Michael O’Leary, reiterated last week his long-standing prediction that Wizz Air faces bankruptcy. He had previously floated the idea of a swift takeover of the Hungarian carrier – a prospect that has evidently come to naught, with no whisper of such intent.

Wizz Air chief executive József Váradi concedes, however, that Europe remains overly reliant on the Middle East for kerosene supplies. Even if the war were to end (an outcome that shows no sign of materialising), prices would linger at elevated levels for months yet. Come autumn, this could force capacity cuts across the industry, meaning fewer flights taking to the skies.

Wizz Air, for its part, appears utterly unperturbed by any downturn. It is, in fact, boosting capacity. On Tuesday, commercial director Ian Malin told an online press briefing that the airline expects 80 million passengers and brisk summer traffic this year. It has no plans for flight reductions owing to soaring kerosene prices, nor for introducing fuel surcharges. Peak season will see 1,200 daily flights – a 20 per cent increase on the same period in 2025.

Regional expansion powered by low fares

Mr Malin outlined the airline’s strategic push to grow capacity in central and eastern Europe, bolstering links between capital cities. To that end, it has opened new bases in Bratislava, Palermo, and Warsaw, while expanding existing ones – including Budapest and Milan – to strengthen its foothold in the Italian domestic market.

The carrier is holding firm on low fares: some 40 per cent of tickets are priced below €40, underpinned by a modern fleet and lean cost structure, he noted.

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In response to questions, Mr Malin revealed that around 70 per cent of summer fuel needs have been hedged at advantageous rates, limiting cost increases compared with rivals lacking such foresight. Despite the adverse geopolitics and rising kerosene prices, it will not cut flights or impose surcharges; ticket prices, nonetheless, will mirror evolving market and business conditions.

He stressed that Wizz Air’s finances are robust, with some €2 billion in liquid assets.

The most vulnerable European airline

Pénzcentrum, citing the Morningstar report, counters that the Hungarian low-cost carrier is the most vulnerable in the current Middle East crisis – far more so than Ryanair or IAG, which are better prepared. Its vulnerability stems from a far lower fuel-hedging ratio than competitors, coupled with razor-thin margins. Flight times to Asian destinations have lengthened by one to three hours due to the Iranian conflict, eroding load factors, complicating crew scheduling, and hiking fuel burn into the bargain.

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