Wizz Air Warns of Higher Unit Costs as Profit Falls 66.6%

Wizz Air's net profit fell 66.6% to €108.1m in the six months to 30 September, and the carrier now expects a mid-single-digit percentage rise in full-year unit costs excluding fuel. The warning lands on top of a 33.7% jump in fuel costs to €1.24bn for the period, driven by spiking jet fuel prices tied to the Iran war.

CEO József Váradi said the biggest single cost in the second half of the financial year is more than €100m of incremental costs linked to the phase-out of older Airbus A320ceo jets. For a low-cost carrier, rising unit costs (cost per available seat kilometre, the industry's standard efficiency measure) directly compress the margin between fares and expenses. In short: Wizz Air is paying more to fly each seat at exactly the moment fuel bills are already surging.

The airline had previously held back on giving full-year guidance, citing an uncertain trading environment. With this update, it joins a broader industry chorus.

How does Wizz Air's fuel exposure compare with its peers?

The backdrop is a global aviation cost squeeze. IAG, owner of Aer Lingus and British Airways, forecast its first annual capacity decline since 2022. Ryanair said it could freeze staff pay to offset a surging fuel bill. Many airlines are also raising ticket prices to pass costs through to passengers — a dynamic that sellers of air travel should watch as fares firm across markets.

There is one patch of relief. Spot Northwest European jet fuel prices have fallen 18% this month, hitting their lowest level since August. But the decline may come too late to ease pressure for the winter season, when airlines have already locked in much of their planning.

What protection does Wizz Air's hedging provide?

Wizz Air has hedged (locked in advance prices for) 82% of its fuel needs this winter and 51% for April to October 2027. Asked about the strategy, Váradi said: "The airline remained protected whether fuel prices stayed high or fell sharply thanks to its strategy of setting upper and lower hedge price limits."

That collar structure — capping both the maximum and minimum price paid — means Wizz Air forgoes the full benefit if fuel keeps falling, but it insulates the carrier from further spikes. It is a deliberate trade of upside for certainty.

What does the outlook say about capacity and pricing?

For its fiscal third quarter, Wizz Air expects revenue per available seat kilometre (unit revenue, the average income earned per seat flown per kilometre) to rise by a low-single-digit percentage year-on-year, alongside a 19% increase in seats. Growing capacity while unit revenue improves suggests the carrier still sees firm demand — but the mid-single-digit unit cost warning means margin recovery depends heavily on fares holding up.

For distributors and agents, the combination of 19% more seats and industry-wide fare increases points to a winter of aggressive selling on volume, with yield discipline doing the heavy lifting on profitability.

Wizz Air's trajectory now hinges on whether the recent 18% fuel price slide persists into winter — and whether its hedged position and growing seat count can rebuild the margins that fuel costs and the €100m fleet phase-out have taken away.