Wizz Air has reported a significant decline in annual profits amid persistent supply chain issues and conflicts in Ukraine and the Middle East, leading to a sharp 22.7% fall in shares as markets opened on Thursday.
The airline's annual operating profit plummeted by 51.7% year-on-year to €167.5m (£141m), falling short of analyst forecasts, despite passenger numbers reaching a record high of 63.4m, as reported by .
Revenue saw a modest increase of 3.8% to €5.3bn.
The Hungarian budget carrier has been forced to ground many of its aircraft due to complications with Pratt and Whitney-manufactured GTF engines, while regional conflicts have disrupted several of its routes over recent years. The company has chosen not to provide full-year 2026 guidance, citing "lack of visibility."
József Váradi, the chief executive, reflected on the fiscal year 2025, saying, "I describe our fiscal year 2025 with two words: resilience and transformation."
He elaborated on how Wizz Air has adapted to the changing environment, stating, "In an environment where rare challenges have become recurrent, Wizz Air has evolved structurally, embedding increased flexibility into our standard operating model."
Váradi also commented on the company's response to recent trials, noting, "While often dismissed as 'easier said than done,' the past year's events tested both our company and management. We emerged stronger, wiser, and better prepared."
Despite shares dropping nearly a third over the past year, there has been a 17.9% increase since January, indicating that the airline may be on the mend.
"Despite the unproductivity of a grounded fleet, we successfully delivered a second consecutive year of profitability," Váradi stated. "We have the benefit of more than a year of experience operating under these unique circumstances – conditions airlines would never experience when demand exceeds supply."
Wizz Air outlook uncertain
Wizz Air's future prospects appear uncertain. Looking forward, Wizz Air anticipates that low fares will stimulate traffic during the summer and allow the airline to "leverage higher summer close-in booking yields."
The carrier has outlined strategies for resuming services to Ukraine, pending multilateral talks about a potential ceasefire with Russia.
Services are expected to recommence approximately six weeks following regulatory approval, which Wizz Air views as an opportunity to attract 5 million passengers by the end of the first year and 15 million by the third year. The airline also mentioned: "With regards to Israel, we operated an intermittent service through F25 based on security considerations, however, we remain committed to providing a full service to this market once it is deemed safe to do so."
