Wizz Air reassures about its future and promises not to introduce fuel surcharge

Wizz Air has sought to calm concerns following its recent profit warning, with COO Ian Malin outlining a clearer picture of the airline’s financial position during the annual Aviation Event conference in Cluj-Napoca on March 20. In an exclusive interview with Rüdiger Kiani -Kress, Aviation and Defense journalist with the German weekly Wirtschaftswoche. Malin explained why, in his words, Wizz Air has been “a little bit lucky” in recent months.

The profit warning itself was largely driven by external variables rather than a sudden deterioration in underlying demand. “It was based on where fuel prices and exchange rates were at that moment,” Malin said. “Some of the impact is non-cash, but cancellations also reduced revenue. If flights don’t operate, they don’t generate profit. It’s that simple.”

The “lucky” closure of Wizz Air Abu Dhabi

A major turning point for Wizz Air has been its strategic withdrawal from Abu Dhabi. Although not linked to the current Gulf war, the move significantly reduced the airline’s exposure to today’s geopolitical turmoil in the Middle East.

“We made some difficult decisions last year,” Malin admitted. “Pulling out of Abu Dhabi wasn’t easy, but we were increasingly concerned about geopolitical risk and the amount of management attention it required.”

At its peak, Wizz Air Abu Dhabi had around a dozen aircraft and hundreds of crew. But the operation was absorbing resources while delivering limited strategic value compared to the airline’s core Central and Eastern European markets. More importantly, it exposed Wizz Air to a region that has become highly unstable since 2025.

“That’s where we’ve been a bit lucky,” Malin said candidly during the Cluj-Napoca event. “If this crisis had happened a year ago, we would have had significant exposure. Today, we have zero flights to the Middle East. And we will take also a rapid decision regarding flights to Tel Aviv.”

Capacity has since been redeployed into Europe, particularly on routes linking Italy, Spain and Central and Eastern Europe. These markets currently benefit from strong leisure demand as travelers opt to stay closer to home.

Regular service to the USA abandoned for now

Operationally, Malin highlighted that Wizz Air has also been recovering from the Pratt & Whitney engine issue that forced it to ground a significant portion of its fleet. At one point, around 55 aircraft were out of service; that number has now dropped to roughly 30, while total fleet size has expanded to more than 260 aircraft.

“The worst is behind us,” Malin said. “We are back to growth, and this year will be a strong growth year before normalizing to around 10–12% annually.”

Sacrificed are however regular international flights to the USA that Wizz Air intended to start this year. “We will for now only schedule some charter flights. In the current geo-political context, flying on a regular basis could conduct us to a situation similar to the one we had with Wizz Air Abu Dhabi,” admitted Malin.

Fuel, in the meantime, remains the biggest short-term challenge. Prices have surged dramatically — from roughly $600 to over $1,700 per metric ton at peak — following geopolitical tensions. However, Wizz Air’s hedging strategy has softened the blow considerably.

Unlike some U.S. carriers that operate largely unhedged pointed Malin, Wizz Air has reinstated a structured and forward-looking hedging policy since 2023. The airline is currently about 86% hedged for its fiscal year ending in March, around 71% hedged for the following quarter, and 61% for the subsequent quarter. At prices closer to $700 per metric ton — far below current spot levels.

No fuel surcharge on fares

Wizz Air also hedges currency, particularly the US dollar, which is critical given that fuel and aircraft lease obligations are largely dollar-denominated. This provides additional protection against volatility on the balance sheet.

Consumers are even for some good news from Wizz Air. Despite rising costs, the airline has ruled out introducing fuel surcharges. “We don’t believe in them,” Malin said. “They’re opportunistic and difficult to remove when prices fall. Our model is about structural cost control and keeping fares low.”

Strategically, Wizz Air is now doubling down on its core markets, focusing on network density, frequency and reliability. “Reliability drives both cost efficiency and revenue,” Malin told. “Customers are willing to pay for predictability.”

With engine issues gradually easing, a younger and more fuel-efficient fleet coming online, and geopolitical exposure reduced, Wizz Air believes it is entering a more stable phase.

“We’ve been through multiple crises in recent years,” Malin concluded. “And each time, we’ve come out more resilient. That’s what gives us confidence going forward.”