Wizz Air posts €139.7M operating profit, withholds guidance on Iran war

Wizz Air Holdings reported operating profit of €139.7 million for the fiscal year ended March 31, beating analyst estimates by 58 percent, as the budget carrier cut costs and ramped up promotions to offset disruption from the Middle East conflict.

The result compared with the €88.51 million consensus compiled by LSEG. The airline did not provide a forecast for fiscal 2027, citing a lack of visibility caused by the prolonged war with Iran.

The Iran conflict cost Wizz Air £43 million during the year through higher fuel costs and disrupted flights across the Middle East. The carrier's shares have declined since the US-Israeli military campaign against Iran began, prompting a prior profit warning from the company.

Wizz Air has responded by reducing expenses and increasing promotional activity to stimulate demand, raising hopes among some investors for a summer turnaround. The airline operates one of Europe's largest networks to Middle Eastern destinations, leaving it disproportionately exposed to the regional conflict.

The guidance withdrawal signals that management sees no near-term resolution to the disruption. Investors will watch the company's summer capacity plans and any update on Middle East route resumptions for signs of a recovery.

This article is for informational purposes only and does not constitute investment advice.