Wizz Air has abandoned a no fuel hedge policy because of surging fuel costs and the ongoing volatility in commodity prices in the wake of Russia’s invasion of Ukraine.
The revised policy will be implemented “over the next few weeks”, according to the airline. The European low-cost carrier will also place additional fuel price caps for the second half of FY2023.
“Wizz Air has a superior competitive advantage on its fleet, enabling lower operating cost and lower fuel burn versus any major player in the industry. Equally Wizz Air has a sustainable competitive advantage given its exposure to a faster growing CEE footprint, characterized by higher GDP growth and market growth,” Wizz Air Group CEO József Váradi said.
Váradi added: “This will allow us to focus on what we are best at – attracting consumers into our franchise at the lowest fares versus competition, enabled by lowest cost, operated by the youngest fleet in a fast-growing region.”
Russia’s invasion of Ukraine has led to a sharp increase in fuel prices prompting airlines across the world to use fuel hedges to counter high oil prices.