Hungarian ultra-low-cost carrier Wizz Air is ending operations in Abu Dhabi.
In a statement released Monday through the London Stock Exchange, the airline said it will suspend all flight operations out of Abu Dhabi’s Zayed International Airport effective Sept. 1. The carrier is also withdrawing from Wizz Air Abu Dhabi, its Middle East subsidiary, which was created as a joint venture between Wizz and the Abu Dhabi Developmental Holding Company.
Customers with flights booked after Aug. 31 will be contacted directly and offered a refund or alternate travel arrangements, Wizz Air said.
Company officials said their low-cost model was running up against significant hurdles in the Middle East, including regulatory issues, “geopolitical volatility,” and engine reliability constraints, which were exacerbated by the Gulf’s extremely hot and harsh weather conditions.
“The operating environment has changed significantly,” Wizz Air CEO József Váradi said in a statement. “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 launched its Abu Dhabi subsidiary in 2020. The Abu Dhabi Developmental Holding Company, which functions as the sovereign wealth fund for the Emirate of Abu Dhabi, owned 51% of the venture, while Wizz Air Holdings owned the remaining 49%. Wizz Air Abu Dhabi currently offers flights to destinations in the Middle East, Central Asia, and Eastern Europe, including Cyprus, Egypt, Jordan, Kazakhstan, Romania, and Saudi Arabia.
The regional airline has faced challenges as fighting among Israel, Lebanon, Iran, and the Palestinian organization Hamas has repeatedly forced the shutdown of airspace over and around the United Arab Emirates. Abu Dhabi has also been overshadowed by its larger Emirati neighbor, Dubai, which hosts the busiest airport in the region and the second-busiest airport in the world.
Wizz Air said it now plans to focus on its core markets in Europe and will look at increasing its presence in Austria, the U.K., and Italy.
