Wizz Air in deep red in London, profit warning due to Middle East crisis
The company indicated that the conflict in the region will have a negative impact of about EUR 50m on net profits for the fiscal year 2026, which ends in March
(Il Sole 24 Ore Radiocor) - Wizz Air's share dropped sharply on the London Stock Exchange after it issued a profit warning due to the crisis in the Middle East, triggered by the US and Israeli attack on Iran and the subsequent escalation in the region. The low-cost airline's share price dropped about nine points. Wizz Air warned that 'the current crisis in the Middle East will have a negative impact of approximately EUR 50 million on net profits for the fiscal year 2026', which ends in March.
The company points out that 'approximately one-third of the impact is due to the termination of certain scheduled services to the Middle East, with the remainder due to unfavourable macroeconomic factors following the Iranian conflict'. The assessment of the impact of these factors is based on current fuel prices and dollar/euro fares, and assumes that the exchange rate will remain at current levels for the remainder of the 2026 fiscal year, a statement further indicated. As a result, "Wizz Air expects its reported net profit to fall below the guidance published on 29 January 2026, which at the time forecast a range of +€25 million to -€25 million."
Wizz Air's direct exposure to the Middle East region is estimated at a high single-digit percentage of its total capacity, and its hedging position is relatively less robust than that of its competitors, note analysts at AlphaValue, who forecast a net loss of EUR 22 million, at the lower end of the previous forecast range and are now 'adjusting their estimates to incorporate revised forecasts for 2025 (fiscal year 2026) and probably 2026 (fiscal year 2027) if the conflict persists'.
Experts at Panmure Liberum reiterated their 'sell' rating on Wizz Air shares, with a price target reduced from 960 pence to 600 pence. The research firm points out that the various factors cited by the group weigh on the outlook, while profitability remains very low. Wizz Air will report its accounts for the year ending March 2026 on 11 June.
