Wizz Air cuts capacity due to rising fuel costs

Wizz Air has announced a 5% reduction in its planned capacity for the second half of its fiscal year, driven by soaring fuel costs resulting from the conflict involving Iran. Despite this reduction, the Hungarian budget carrier raised its near-term revenue outlook following a stronger-than-expected summer season, leading to a rise in its share price.

The airline is navigating a severe cost shock in the global aviation industry, which some analysts describe as the worst crisis regarding costs since the COVID-19 pandemic. While Wizz Air maintains significant liquidity and fuel hedging, other carriers are facing more immediate distress; Latvian airline airBaltic recently filed for creditor protection under US law to strengthen its financial position.

Wizz Air has also outlined long-term strategic goals for fiscal year 2030, aiming for €10 billion in revenue, a 10% operating margin, a fleet of 335 aircraft, and an annual passenger volume of 127 million.