Wizz Air has reported a significant swing to an operating loss, attributing the downturn to an "extremely volatile" period marked by the Middle East conflict which has led to fuel prices soaring.
The budget airline warned that the aviation industry faces ongoing challenges throughout the remainder of the year.
Between April and June, Wizz Air recorded an operating loss of 183 million euros (£157 million), a stark contrast to the 27.5 million euros (£23.6 million) profit achieved during the same quarter last year.
This reversal was primarily driven by a substantial increase in jet fuel costs, directly linked to a surge in global oil prices, with Brent crude peaking above 120 dollars a barrel in late April.
The airline's fuel expenses escalated by 39 per cent year-on-year, reaching 610.5 million euros (£523.8 million). Wizz Air noted that market prices were 87 per cent higher, a cost it partially offset through internal measures.
This trend of increased fuel expenditure has impacted the wider industry, with easyJet, British Airways owner IAG, and Ryanair all recently reporting reduced profits.
Earlier this year, Wizz Air incurred a 50 million euro (£42.9 million) hit due to the conflict in the Middle East, necessitating the cancellation of flights to Tel Aviv, Israel, and other routes to the region and Cyprus in March.
While many services have since resumed, the company is now reallocating capacity from longer-haul Middle Eastern routes to shorter European markets.
Despite the financial setback, the airline saw its passenger numbers climb by a quarter to 21.2 million over the three-month period. Total revenues also increased by 5.5 per cent year-on-year, reaching 1.5 billion euros (£1.29 billion).
Jozsef Varadi, chief executive, commented: "The industry has been extremely volatile over the June quarter due to conflict in the Middle East, elevated fuel prices, and changes in booking patterns."
He added that the company is focused on "strengthening the core network, improving density and reallocating flying from longer-haul Middle Eastern operations into shorter European sectors”, anticipating both "industry challenges and strategic opportunities" for the rest of the year.
