Wizz Air annual profit falls after 50 million euro impact from Middle East conflict
The airline reported a 16.6 percent drop in operating profit and near-total elimination of net profit for the year ended March. Flight cancellations to Israel and other Middle East routes contributed an estimated 50 million euro cost.
The IndependentWizz Air reported an operating profit of 139.7 million euros for the year ended March, down 16.6 percent from the prior year. Net profit fell to 1.3 million euros from 213.9 million euros. The company attributed part of the decline to flight cancellations after the onset of conflict involving the United States, Israel, and Iran at the end of February.
Cancellations to Tel Aviv and other routes to the Middle East and Cyprus in March produced an estimated 50 million euro impact.
Financial results and passenger growth Revenue from airfares rose 8.4 percent to 3.16 billion euros. The airline carried a record 69.7 million passengers, a 10 percent increase from the previous year. Load factor declined 0.5 percentage points to 90.7 percent, which the company linked to the aftermath of the conflict.
One-time costs included maintenance from fleet changes and a 16 percent rise in crew expenses.
Outlook and route adjustments The company said it could not provide a full-year outlook due to volatility from the conflict and the closure of the Strait of Hormuz. Flights to Tel Aviv resumed at the end of May. The airline added capacity on routes to Spain, Italy, Croatia, and Albania to offset lost Middle East demand.
