Wizz Air exits Abu Dhabi: Low-budget airline Wizz Air has shuttered its Abu Dhabi operations, citing unpalatable costs amid engine issues, unfavorable weather conditions, and geopolitical turmoil, CEO Jozsef Varadi told Bloomberg. The decision to phase out Abu Dhabi flights will take effect on 1 September 2025.

What happened? Wizz Air fell under pressure to review its cost structure after its stock plummeted — as much as 29% — following an earnings report last month that revealed unusually high expenses. In June, the budget airline said it anticipates slightly increased costs for fiscal year 2026. This rise was attributed to grounded jets, the retirement of older aircraft, and a slower-than-expected improvement in airport costs.

Too hot to fly: Wizz Air has faced protracted maintenance problems with Pratt & Whitney engines, which wear out easily or run into crippling issues in hot environments, therefore grounding the airline’s aircraft. “The more we operate in Abu Dhabi, the more engines we have to ground” thanks to hot weather conditions, Varadi is quoted as saying. The company will redeploy aircraft in more suitable markets in order to raise profitability.

Costs associated with suspended operations during temporary airspace closures amid heightened geopolitical tensions did not help with rising costs, Varadi said. This is in addition to an inability to use its Abu Dhabi base to break into India and Pakistan due to a lack of regulatory approvals from Abu Dhabi, he added.

Abu Dhabi made up about 5% of the airline’s operations, while Central and Eastern Europe accounts for roughly two thirds.

What now? The airline will shift its focus to the Central and Eastern European markets, where Wizz Air has under-invested on the back of its prolonged pre-occupation with Abu Dhabi. It is currently “very carefully reviewing” any further services for its long-range A321 jets in the region, and is amending an order of 47 jets, he said. Staff based in Abu Dhabi will also be offered roles in Europe.

There were signs this was coming: Wizz Air Abu Dhabi announced last week the discontinuation of flights to Sarajevo, Varna, Tirana, Kutaisi, and Belgrade due in July and August, which followed the termination of flights to Sofia and Cluj. The move followed a 20% y-o-y surge in seat capacity and passenger numbers in 2024, offering over 4.4 mn seats and flying over 3.5 mn passengers.

MEANWHILE- Emirates also seems to be taking a more cost-conscious approach this year with more modest pay increases for its staff, Bloomberg reports, citing documents it has seen. The airline granted most employees a 3% increase, one percentage point less than last year, while cockpit and cabin crew got a 5% increase. The business news information service cited headwinds for the industry amid geopolitical tension as a possible reason for the decision.

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