When people in the US think of Wizz Air, it might not be a frequent occurrence, but when it does happen, it’s often linked to the airline’s reputation for budget travel. For those who follow the airline industry closely, Wizz Air is recognized as a key player in the Indigo Partners portfolio. However, the airline hasn’t quite lived up to its potential recently. Its latest earnings report was underwhelming, prompting the company to make some strategic changes. Founded in Budapest in 2003, Wizz Air aimed to be the Ryanair of Eastern Europe, a strategy that initially paid off. Over the years, it expanded by establishing subsidiaries in the UK and Malta, which are still operational, while others in Bulgaria, Ukraine, and Abu Dhabi have either closed or are in the process of shutting down. The airline’s performance was stable for a decade until the pandemic hit, causing significant disruptions.
After the initial post-COVID turbulence, Wizz Air managed to turn an operating profit in 2024, but 2025 saw a decline. The fiscal year, which runs from April 1 to March 31, showed a drop in operating margin to a mere 3.2 percent, with unit costs (CASK) rising by nearly 25 percent compared to 2019. The latest quarterly results reveal ongoing challenges, with unit costs up 14 percent from the previous year and operating margins falling from 3.5 percent to just 1.9 percent. Contributing factors include temporary issues like the Pratt engine problems affecting its A320neo fleet, as well as ongoing challenges such as increased depreciation, air traffic control costs, and airport charges.
In response, Wizz Air is revisiting its strategy. The airline has decided to close its Wizz Air Abu Dhabi subsidiary, which was part of a broader plan to operate regional flights from Abu Dhabi and connect back to Europe. This move is part of a larger effort to return to its roots, focusing on smaller and secondary airports rather than medium-sized and major hubs. By realigning its strategy, Wizz Air hopes to regain its footing and improve profitability. #WizzAir #AviationNews #AirlineIndustry
Originally reported by Cranky Flier Read More
