Here’s when Wizz Air could return to full capacity, according to CEO Váradi

Wizz Air is targeting a return to full operational capacity by the end of May or early June, following a disruptive outbreak of conflict in the Middle East, the airline’s CEO, Váradi József, told Reuters.

The low-cost carrier reported a EUR 50 million hit to its profits due to the escalation, but Váradi indicated that the financial impact will largely remain confined to the fiscal year ending in March. From April onwards, the airline expects relief from the pressure that earlier profit warnings placed on investor expectations.

Middle East disruptions affecting flights

The conflict, now in its seventh day, has severely affected aviation in the region. Thousands of flights were cancelled in the initial days, and fuel prices surged. Wizz Air swiftly suspended its routes to Israel, Dubai, Abu Dhabi, and Amman, initially until 7 March, later extending cancellations to 15 March, then announcing an even longer suspension. In response, the airline increased the frequency of flights between Budapest and Sharm el-Sheikh.

Analysts estimate that the suspended Middle Eastern routes accounted for roughly 8–10% of Wizz Air’s weekly capacity. Gábor Bukta of Concorde Értékpapír highlighted that the airline, which would normally be in a period of aggressive growth, now faces the challenge of reallocating capacity and managing additional costs. Rising oil prices could add EUR 130–150 million in extra expenses for the next financial year, potentially putting further pressure on Wizz Air’s stock, with a possible 15–20% decline forecast.

Strategic reallocation to Europe

Váradi explained that around 60–70% of the capacity originally intended for the Middle East is being redirected to European destinations, including Italy, Spain, Greece, and Albania. The airline has temporarily paused expansion plans towards Israel until the situation stabilises.

He emphasised that Wizz Air’s exposure has been reduced following last September’s decision to exit the Abu Dhabi base. The impact of the conflict affects roughly 5% of the airline’s capacity, around 50 of its 1,000 daily flights.

Looking ahead to 2027

Despite the current turbulence, Váradi is optimistic about the medium term. “We expect improvements in the 2027 fiscal year,” he said, noting that the airline continues to monitor both the duration of the conflict and fuel price developments. He also stressed that Wizz Air’s hedging strategies have largely shielded the company from immediate oil price shocks, allowing for uninterrupted maintenance of its Pratt & Whitney GTF engines.

“Short-term, we are well covered against fuel price rises. I do not believe any airline is better hedged than Wizz Air. We are not defenceless,” Váradi added.