Wizz Air warns of weaker second-quarter revenue

Dhaka: European low-cost carrier Wizz Air has warned that a key revenue metric is expected to decline in the second quarter as soaring fuel prices and weaker ticket fares continue to weigh on its performance.

The airline forecast that its revenue per available seat kilometer (RASK) will fall by a low single-digit percentage year-on-year, despite expecting seat capacity to grow by up to the high-twenties percentage range.

Wizz Air also reported an operating loss of EUR 183.3 million for the first quarter, reversing from a profit a year earlier, as rising fuel costs and pricing pressure eroded earnings.

The carrier said the conflict involving Iran and the resulting spike in fuel prices have increased operating costs, while competitive fare levels have limited airlines' ability to pass those costs on to passengers.

Chief Executive József Váradi said forward bookings continue to build, but cautioned that the remainder of the year is likely to present both challenges and opportunities for the airline.

The results mirror wider pressures facing Europe's budget airline sector. While low-cost carriers are grappling with higher operating expenses and soft fares, many full-service airlines have shown greater resilience, supported by stronger demand for premium travel and long-haul international routes.

Following the announcement, Wizz Air shares fell more than five percent in early trading, according to reports.