Wizz Air Holdings announced the suspension of its operations in Abu Dhabi after more than five years, including closing its local operations and gradually exiting its partnership with Abu Dhabi Developmental Holding Company (ADQ), reflecting one of the most substantial route reductions since its launch, according to The Independent.
The closure of Wizz Air's Abu Dhabi base will also result in the cancellation of the popular route between Tel Aviv and Abu Dhabi, with Etihad Airways remaining the only carrier on this route, as reported by Travel And Tour World.
According to The Independent, Wizz Air's decision to suspend operations came just five weeks after its shares recorded their largest decline in history due to investor fears of rising costs. The airline stated that the suspension is due to a combination of engine-related reliability concerns, volatile geopolitics in the region, and "changes in existing market dynamics," according to Travel And Tour World.
"The more we expanded our operations in Abu Dhabi, the more engines we had to ground due to the harsh weather conditions and high temperatures," said József Váradi, the CEO of Wizz Air Holdings, according to Asharq News. "The decision to withdraw from the joint venture and stop domestic flights starting September 1 will contribute to improving profitability, as a larger number of aircraft will be available for use on other destinations," Váradi added.
According to Travel And Tour World, Wizz Air's operational headwinds are notably linked to ongoing engine supply issues, which have tied up airplanes for non-scheduled routes and contributed to its operating challenges in Abu Dhabi.
According to The Independent, despite a decrease in net profits, Wizz Air's revenue increased by 3.8% to 5.3 billion euros ($6.2 billion). However, escalating costs and limited fleet availability have constrained revenue generation for Wizz Air, contributing to investor concerns that led to its worst-ever drop in share value. The airline's net profit dropped by 41.5% in the financial year ending March 31.
Wizz Air is now shifting its resources to core markets in Central and Eastern Europe as part of its strategic shift, which offers better long-term prospects for profitability.
"Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain the airline's original ambitions," explained Váradi, according to The Independent. "We are proud of what we have achieved," Váradi said.
Passengers affected by the suspension of operations will be notified directly by the airline via email about refunds or alternative travel options. Those who booked through third-party providers are advised to contact their agents.
Written with the help of a news-analysis system.