Wizz Air announced on Thursday that it has cut its planned capacity for the second half of its fiscal year by five per cent. This decision comes as the ongoing Iran war continues to drive a sharp rise in fuel costs, impacting the global aviation industry.
Despite the capacity reduction, the budget carrier raised its near-term revenue outlook following a stronger-than-expected summer period. Shares in Wizz Air were up 3.4 per cent, trading at 985.5 pence by 8.40am GMT.
The U.S.-Iran war has been identified as a significant factor in the aviation industry's cost shock, with Latvian airline airBaltic filing for bankruptcy earlier this week. Wizz Air is reported to be among the better-positioned carriers, holding over €2.2 billion in liquidity and with fuel hedging covering 80 per cent of its requirements for the next 12 months at approximately half the current market price.