Wizz Air has suspended its Abu Dhabi subsidiary amid operational challenges, the company said on July 14, 2025.
With the suspension joint venture with state-owned Abu Dhabi Development Holding Company, Wizz Air will suspend all locally based flight operations from September 1. Wizz said it intends to exit from the joint venture going forward, instead focussing on core markets.
The company pointed to its issues with the Pratt & Whitney geared turbofan (GTF) engines and geopolitical volatility leading to this decision.
Wizz Air's profits dropped over 40% in the fiscal year ending March 31, 2025, with its results impacted by the continued Pratt & Whitney geared turbofan (GTF) engine issue. As of 11:20am BST on June 5, the company's shares plummeted over 27% following the results.
As of the end of the fiscal year, the company had 42 aircraft on ground (AOG) due to GTF inspections. Three aircraft are also grounded in Ukraine.
Wizz said “regulatory barriers” had also limited its ability to “access and scale” in key markets, which also drove the decision.
The challenges have “significantly impacted" the viability of the company's low cost model in the region and to deliver profitability in line with its European operations, the company added.
“The operating environment has changed significantly,” said Wizz Air CEO Jozsef Varadi. "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."
Wizz Air said it will “intensify” its focus in central and eastern European markets, as well as select western European countries such as Austria, Italy, and the UK. With the Abu Dhabi subsidiary suspended, the company said it will be able to redeploy resources to more profitable regions.