Ultra-low-cost carrier Wizz Air on Monday said it is suspending its Abu Dhabi operation from September 1, 2025 and will exit the joint venture due to geopolitical situation, regulatory challenges and stiff competition.

The London-listed company said this is part of its “strategic realignment” to focus more on its core strength and focus in Central and Eastern Europe and select Western European markets, as it finds it challenging to scale operations in key regional markets.

It added that the decision has been taken after “a comprehensive reassessment of market dynamics, operational challenges, and geopolitical developments in the Middle East.”

Wizz Air Abu Dhabi was the first ultra-low-cost carrier to begin operations from the UAE, facing stiff competition from other local and regional budget carriers such as Air Arabia, Jazeera Airways, flynas and others, who were giving a tough time to the Abu Dhabi-based carrier.

“As a result of the suspension of Wizz Air Abu Dhabi operations and as part of this strategic realignment, Wizz Air will suspend all locally based flight operations effective September 1, 2025 and intends to exit from the joint venture going forward and will focus on its core markets,” the airline said in a statement posted on the London Stock Exchange, where its listed.

“We have had a tremendous journey in the Middle East and are proud of what we have built. I thank our highly dedicated employees for their relentless efforts and commitment to developing the WIZZ brand in new and dynamic markets,” said József Váradi, CEO of Wizz Air.

Wizz Air shares jumped 1.84 per cent to £1,051.0 on the London Stock Exchange on Monday after the announcement.

The airline said passengers with existing bookings beyond August 31, 2025, will be contacted directly via email with options for refunds or alternative travel arrangements.

Customers who booked through third-party providers are advised to contact their respective agents. The above suspensions do not affect other flights of the Wizz Air group, it said.

In 2024, Wizz Air Abu Dhabi reported more than 20 per cent year-on-year growth in seat capacity and the number of passengers carried. The airline operated more than 19,000 flights, providing more than 4.4 million ultra-low-cost seats, and carrying more than 3.5 million point-to-point passengers, contributing 25 per cent to Zayed International Airport’s point-to-point traffic. Wizz Air carried more than 1.2 million international visitors to Abu Dhabi in 2024.

The airline’s promotional airfare starting from Dh79 was quite a popular campaign among the UAE travellers.

The airline also optimised its network by increasing its capacity by 40 per cent on its most popular routes, ensuring a more flexible, reliable, and affordable travel experience for its customers.

Additionally, it also introduced the region’s first flight subscription models, the Wizz MultiPass and All You Can Fly, in 2024, which were sold out twice within 48 hours.

It covered many destinations across the Middle East, Eastern Europe and Asia including Alexandria, Almaty, Amman, Baku, Belgrade, Bishkek, Cairo, Cluj, Dammam, Kutaisi (Georgia), Larnaca, Male, Madinah, Astana, Samarkand, Sarajevo, Sohag, Tashkent, Turkistan, Tirana, as well as Varna and Yerevan, among others.

The company blamed three key factors for its decision to pull out of Abu Dhabi. These include engine reliability constraints, particularly in hot and harsh environments, which have impacted aircraft availability and operational efficiency; geopolitical volatility, which has led to repeated airspace closures and operational disruptions across the region, as well as wreaking consumer demand; and regulatory barriers, which have limited the company's ability to access and scale in key markets.

“The operating environment has changed significantly. 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,” said Váradi.

Due to these challenges, the airline noted that it is not able to deliver profits in line with its core European operations.