Budapest, July 22 - In a significant shift in its operational strategy, Wizz Air, the Hungarian ultra-low-cost carrier, announced the cessation of all operations of its Abu Dhabi-based subsidiary, Wizz Air Abu Dhabi, effective September 1, 2025. The decision marks the end of a five-year venture in the United Arab Emirates, where the airline sought to establish a foothold in the Gulf region’s competitive aviation market. Wizz Air’s CEO, József Váradi, provided a candid explanation of the reasons behind this withdrawal, citing a combination of operational, geopolitical, and regulatory challenges that rendered the venture unsustainable.
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Wizz Air Abu Dhabi was launched in January 2021 as a joint venture with the state-owned Abu Dhabi Developmental Holding Company (ADQ), which held a 51% stake, while Wizz Air Holdings owned the remaining 49%. The subsidiary aimed to tap into the growing demand for low-cost travel in the Middle East, Africa, and the Indian subcontinent, operating from Zayed International Airport. With a fleet of 12 Airbus A320 and A321 aircraft, the airline served approximately 40 destinations and carried over 3.5 million passengers in 2024, contributing 25% of Zayed International Airport’s point-to-point traffic. Despite these achievements, the subsidiary consistently reported financial losses, with a net loss of €39.3 million in the fiscal year ending March 31, 2025, up from €35.6 million the previous year.
Váradi highlighted three primary reasons for the exit. First, engine reliability issues posed a significant challenge. The airline’s Airbus A321neo aircraft, equipped with Pratt & Whitney geared turbofan engines, struggled in the Gulf’s hot and harsh climate, leading to accelerated engine degradation and reduced aircraft availability. Nearly one-fifth of Wizz Air’s total fleet was grounded due to these issues, severely impacting operational efficiency. Second, geopolitical instability in the Middle East, including airspace closures triggered by regional tensions, disrupted flight operations and dampened travel demand. These disruptions, compounded by events such as the 2023 Hamas attack on Israel and an unprecedented Iranian strike on a U.S. military base in Qatar, underscored the region’s volatility. Third, regulatory barriers significantly limited Wizz Air Abu Dhabi’s growth potential. The airline had anticipated access to key markets like India and Pakistan, but local authorities favored their national carriers, blocking previously agreed-upon routes and restricting market entry.
The decision to exit Abu Dhabi reflects Wizz Air’s strategic realignment toward its core markets in Central and Eastern Europe, alongside select Western European countries like Austria, Italy, and the UK, where demand remains robust and operational conditions are more stable. By redeploying aircraft and resources to these regions, Wizz Air aims to bolster profitability, which saw a 41.5% year-on-year decline in net profit to €213.9 million in the last fiscal year. Váradi described the move as “difficult but necessary,” emphasizing the airline’s focus on enhancing its customer proposition and building shareholder value in more predictable markets. The closure will impact hundreds of employees, including pilots, cabin crew, and ground staff, with Wizz Air offering relocation opportunities to its European bases. Passengers with bookings beyond August 31, 2025, will receive refunds or alternative travel options. While the exit leaves destinations like Astana, Chișinău, and Tashkent unserved from Abu Dhabi, it opens opportunities for competitors like Air Arabia and flydubai to capture the budget travel market. Aviation analysts suggest that Wizz Air’s departure was not unexpected, given the Gulf’s unique operational challenges and the airline’s limited investment in the venture. As Wizz Air retreats to its European stronghold, the move signals a broader industry trend of low-cost carriers prioritizing stability and profitability over ambitious expansion in volatile regions.