Wizz Air to exit Middle East citing ‘operational challenges’

Wizz Air is suspending operations in the Middle East amid “increasing operational challenges”.

 

The suspension of Wizz Air Abu Dhabi operations as part of a “strategic realignment” will see the budget carrier close all locally based flights from September 1.

 

The airline "intends to exit from the joint venture going forward and will focus on its core markets”.

 

More: Wizz Air to start Saudi service from Gatwick [Sept 24]

 

The decision follows a “comprehensive reassessment of market dynamics, operational challenges, and geopolitical developments in the Middle East”.

 

Wizz Air cited “increasing operational challenges” including geopolicital volatility, engine reliability issues and regulatory barriers.

 

These factors have “significantly impacted” the viability of the carrier’s ultra-low-cost model in the region and its ability to deliver profitability in line with its core European operations. 

 

Instead, Wizz Air will intensify its focus on its core central and eastern European markets, as well as selected western European countries such as Austria, Italy and the UK. 

 

“This strategic realignment to core markets will enable the company to redeploy resources to regions with greater long-term potential for sustainable growth and profitability,” Wizz Air added.

 

Chief executive Jozsef Varadi said: “We have had a tremendous journey in the Middle East and are proud of what we have built. I thank our highly dedicated employees for their relentless efforts and commitment for developing the WIZZ brand in new and dynamic markets. 

 

“However, the operating environment has changed significantly. Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions. 

 

“While this was a difficult decision, it is the right one given the circumstances. 

 

“We continue to focus on our core markets and on initiatives that enhance Wizz Air’s customer proposition and build shareholder value."