Wizz Air profits slump on higher fuel prices

(Sharecast News) - Wizz Air reported a sharp drop in first‑quarter profits as a 39% surge in fuel costs due to the Iran war offset strong passenger and capacity growth. Revenue rose 5.5% to €1.51bn in the three months to June 30 as the airline carried 21.2m passengers, up 25% year on year, but operating performance weakened as cost pressures intensified. The low-cost carrier reported an operating loss of €183m compared with a €27.5m profit a year earlier.

EBITDA fell to €147.4m from €300.2m a year earlier, while the group posted a €198m net loss compared with a €38m profit in the prior period.

The decline in EBITDA was driven primarily by a 39% surge in fuel costs, reflecting an 87% jump in market prices, alongside higher depreciation linked to fleet redeliveries and the expanding NEO fleet.

Lower unit revenue also weighed on performance, with revenue per available seat kilometre down 8.1% as rapid capacity growth diluted yields. Additional pressure came from a €15.6m FX loss, compared with a large foreign exchange gain last year, and higher maintenance and airport charges tied to fleet expansion.

Reporting by Frank Prenesti for Sharecast.com