Wizz Air shines in London after its Abu Dhabi joint venture halted operations in September

(Il Sole 24 Ore Radiocor) - Wizz Air rose on the London Stock Exchange after announcing that it would suspend operations of its joint venture, Wizz Air Abu Dhabi , its de facto hub for the Middle East, to focus on its core markets in Europe . Wizz Air announced that "as part of a strategic realignment," it will suspend operations of Wizz Air Abu Dhabi, suspending all flights from September 1st with the intention of exiting the joint venture. The airline explains that it has encountered increasing operational difficulties over the past year, which have significantly compromised the sustainability of its business model and profitability in the region.

Among the obstacles cited are engine reliability issues related to the hot and challenging climate, geopolitical instability leading to declining customer demand, and regulatory barriers limiting Wizz Air's ability to access and expand in the region's key markets. The airline has therefore concluded that it is best to strengthen its core markets and focus on Central and Eastern Europe and select Western European markets, "such as Austria, Italy, and the United Kingdom." "We have had an extraordinary journey in the Middle East and are proud of what we have built. However, the operating environment has changed significantly . Supply chain constraints, political instability, and limited market access have made it increasingly difficult to sustain our initial ambitions. While this was a difficult decision, it is the right one given the circumstances," CEO Josef Varadi said in a statement.

"They simply haven't managed to make their presence in the Middle East profitable," Davy analysts commented. The CEO also indicated in an interview that Wizz Air is in talks with Airbus to reduce its order of 47 long-range A321X LRs and convert some of them to conventional A321s, given the suspension of operations in the Middle East. Wizz Air Abu Dhabi—founded in 2020 in collaboration with its local partner Abu Dhabi Developmental Holding Company—had taken off with high expectations, aiming for an expansion that would see the airline operate a fleet of 100 aircraft within 15 years.