Wizz Air issues profits warning due to Middle East crisis; China tells refiners to halt diesel and gasoline exports' business live

"Wizz Air warned investors last night that it believes the current crisis in the Middle East will wipe 50m off its profits this financial years. Wizz had previously predicted that earnings would fall within a profit of 25m to a loss of 25m, so today's warning means it expects a loss for the year."

"In terms of the expected impact, approximately one third is a result of the cessation of certain scheduled services to the Middle East, with the remainder from the adverse movement in macroeconomic factors as a result of the Iran conflict. Our assessment of the impact of these macroeconomic factors is based on jet fuel and US$/ rates as of today, and assumes that these rates will remain at current levels for rest of Fiscal Year 2026."

"The US-Israel war with Iran could disrupt supplies of key semiconductor manufacturing materials, a South Korean ruling party lawmaker said on Thursday. South Korea's chip industry which supplies around two-thirds of global memory chips was also concerned that a prolonged conflict in Iran would lead to higher energy costs and prices."

Wizz Air issued a significant profit warning, revising its financial outlook from a predicted range of €25 million profit to €25 million loss to an expected loss for the year. The €50 million negative impact stems from two sources: approximately one-third from halting scheduled services to the Middle East, and two-thirds from macroeconomic deterioration caused by the Iran conflict, including elevated jet fuel costs and unfavorable currency exchange rates. The airline's assessment assumes current fuel and currency levels persist through fiscal year 2026. The warning triggered a 6% share price decline for Wizz Air, with broader airline sector weakness as rising oil prices threaten industry-wide cost increases. Other carriers including IAG and easyJet also experienced significant share declines.

Read at www.theguardian.com