Wizz Air Profits Drop as Fuel and Labor Costs Rise

Wizz Air reported a 66.6% drop in net profit to 108.1 million euros for the six months ending September 30. The airline attributed the decline largely to fuel costs, which rose 33.7% to 1.24 billion euros, influenced by the war in Iran.

CEO József Váradi warned of a mid-single-digit percentage increase in full-year unit costs, excluding fuel, driven by rising labor and airport expenses. He identified over 100 million euros in incremental costs resulting from the phase-out of older Airbus A320ceo jets during the second half of the financial year.

While Northwest European jet fuel prices recently fell 18%, the airline is utilizing a hedging strategy that covers 82% of its winter fuel needs and 51% for April to October 2027. Other carriers are facing similar pressures; Ryanair has considered pay freezes to offset fuel bills, and IAG has forecast its first annual capacity decline since 2022.