Wizz Air ends Middle East operations after four-year profit struggle
Wizz Air Holdings PLC on Monday reported that it is ends fight operations in Abu Dhabi as part of a ‘strategic realignment’ prioritising European business.
The Budapest-based low-cost airline cited ‘market dynamics, operational challenges, and geopolitical developments in the Middle East’ for the decision. Wizz Air said it will ‘redeploy resources to regions with greater long-term potential’. These include its core central and eastern European markets, plus western European destinations such as Austria, Italy and the UK.
Wizz Air began flights from the Middle East back in 2021, as part of a joint venture with ADQ, Abu Dhabi’s sovereign wealth fund. Since then, the airline has struggled to deliver profit in line with its European business, whilst following a low-cost model. The company said its planes struggled with engine reliability due to the climate, and noted regulatory barriers as well as ‘repeated airspace closures...wreaking consumer demand’.
Wizz Air posted a 94% profit decline for the financial year that ended March 31. Pretax profit was €19.7 million, compared to €341.1 million in 2024. The company highlighted the impact of aircraft that were grounded as a result of engine problems. Still, Wizz Air reported an 11% rise in overall in traffic in June, reaching a total of 5.9 million passengers, up from 5.3 million the previous year.
As of September 1, all locally-based Abu Dhabi flights will be suspended. Wizz Air said customers with direct bookings beyond August 31 will be offered refunds or alternative travel, but takes no responsibility for third-party bookings. The suspension will not impact other flights, Wizz Air added.
‘We have had a tremendous journey in the Middle East and are proud of what we have built,’ commented Chief Executive Jozsef Varadi.
‘However, the operating environment has changed significantly. Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions. While this was a difficult decision, it is the right one given the circumstances.’
Wizz Air shares were 1.1% higher at 1,043.00 pence on Monday morning in London.
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