Wizz Air Holdings Plc has announced that it will suspend its operations in Abu Dhabi from September 1, marking the end of a joint venture that spanned more than half a decade.
The decision comes as the Hungarian low-cost carrier continues to grapple with prolonged engine issues, elevated costs, and geopolitical and regulatory headwinds in the Middle East.
Chief Executive Officer Jozsef Varadi said the exit will improve the airline’s overall profitability by freeing up grounded aircraft and redeploying them to more viable markets.
“The more we operate in Abu Dhabi, the more engines we have to ground,” Varadi noted, referring to the hot climate that exacerbates wear on the airline’s Pratt & Whitney engines.
The Abu Dhabi pullback is the latest step in Wizz’s broader effort to optimize its cost base and realign its operational strategy. The move follows a turbulent stretch for the airline, including its steepest-ever stock drop in June after posting higher-than-expected costs in its results.
Engine troubles and rising costs weigh on strategy
Wizz Air has faced mounting challenges tied to its all-Airbus SE fleet, particularly the ongoing maintenance problems with Pratt & Whitney engines.
The harsh operating environment in Abu Dhabi has been especially problematic, leading to a significant number of aircraft being grounded.
In June, the airline reported that fiscal 2026 costs are expected to rise slightly due to aircraft retirements, grounded jets, and delays in cost-saving airport deals.
These issues prompted the airline to reassess its exposure to hotter climates, with Varadi previously stating that Wizz would reduce flying in such regions to preserve engine life.
The review has now extended to Wizz’s fleet strategy, including discussions with Airbus SE about modifying the order for 47 extra-long-range A321XLR jets.
Wizz currently operates two A321XLR routes between London Gatwick and the Middle East but is “very carefully reviewing” plans to expand services using the long-range aircraft.
The airline’s broader goal is to minimize disruptions from fleet-related constraints and focus resources where they can be deployed more effectively.
Refocusing on core european markets
As Wizz winds down its Middle East presence, the airline plans to shift its attention back to its core markets in Central and Eastern Europe.
Varadi acknowledged that this region has been underserved due to the company’s prior focus on Abu Dhabi and its fleet challenges.
Redeploying aircraft and personnel to Europe is expected to enhance operational efficiency and support growth in the region.
Wizz Air staff based in Abu Dhabi will be offered new roles across European operations, ensuring continuity and minimizing job losses.
The company is aiming to strengthen its position in key European markets, where demand remains robust and infrastructure is better suited to its current fleet capabilities.
Shares of Wizz rose by as much as 2% in London on Monday following the announcement, although now the stock is trading up only by 0.97%.
Despite the modest rebound, the stock remains near its 52-week low and has declined more than 26% year-to-date.
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