Wizz Air Anticipates Easing of Iran Conflict Impact on Finances

Hungarian budget airline Wizz Air Holdings Plc expects the financial impact of the conflict in Iran to diminish starting in April, with a potential return to growth anticipated in the new fiscal year. The airline initially warned of a €50 million hit to its net profit due to the conflict, contributing to a selloff of its shares.

Impact on Capacity and Routes

The conflict is currently affecting approximately 5% of Wizz Air’s capacity, equating to around 50 flights out of its 1,000 daily operations. However, the airline’s decision to exit its Abu Dhabi base in September 2025 has lessened its overall exposure to the disruption. Wizz Air is reallocating 60% to 70% of its Middle East capacity to European destinations, including Italy, Spain, Greece, and Albania. [RTE]

Financial Outlook and Growth Expectations

CEO Jozsef Varadi anticipates that the pressure on finances will ease in April. Wizz Air is forecasting a return to growth in the fiscal year starting in April, with demand expected to recover. The airline believes the fallout from the Iran conflict will be less severe than the impact of the war in Ukraine. [RTE] [GBAF]

Short Selling Pressure

Wizz Air has experienced increased short selling activity following the profit warning. Short interest in the airline has risen from 9.59% in February to 14.61% in March, making it the most shorted company in the UK. Funds including Citadel, JP Morgan, and Voleon Capital have contributed to this trend, driven by concerns over rising fuel prices and flight cancellations. [CityAM] [FT]

Suspended Routes and Capacity Reallocation

Wizz Air has suspended all flights to and from Israel until March 29, 2026, and routes to Dubai, Abu Dhabi, Amman, and Jeddah until September 2026. The airline is utilizing the temporary suspension to increase capacity on popular European summer routes. [CityAM]

Future Expansion Plans

The airline does not plan to expand into Israel until the situation stabilizes. Varadi expects Wizz Air to be operating at full capacity by the end of May or early June. [RTE]