Wizz Air has warned it may cut capacity on UK routes as it assesses the impact of record air passenger duty (APD) rates on demand and profitability.
The budget carrier said it is reviewing how rising aviation taxes are affecting its British operations and future network plans.
József Váradi, Wizz Air’s chief executive, said the airline was still evaluating the measures before deciding whether to scale back services.
“We are evaluating the impacts of those measures to see how they would play out, so that would affect our capacity in the UK,” he said.
APD rose to a record level in April, with further inflation‑linked increases already scheduled.
Mr Váradi said future decisions on the airline’s UK presence remained open. “Nothing is ever engraved in stone,” he said.
Wizz Air operates more than 100 UK routes and has major bases at Luton and Gatwick. Mr Váradi warned that rising operating costs could ultimately force airlines to reduce services if they are unable to pass those increases on to passengers.
“If the cost of business is going up, that will result in capacity rationalisation if you are unable to pass it on to customers,” he said. “We are committed to the UK strategically, but we are going to act rationally.”
Wizz Air warns of UK flight cuts as record air passenger duty increases pressure on airlines
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APD currently stands at £15 for economy passengers travelling to most European destinations — a significant share of the ticket price for low‑cost carriers. Wizz Air said it is attempting to maintain competitive fares despite mounting cost pressures.
Concerns over aviation taxation have also been raised by British Airways.
Sean Doyle, BA’s chief executive, said a combination of higher APD, increased employers’ National Insurance contributions, environmental charges and tourism taxes was making the UK less attractive to overseas visitors.
He argued that competing European destinations were benefiting as international tourists increasingly chose to travel elsewhere, describing the cumulative impact of the measures as “a penalty” on foreign visitors.
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Mr Doyle said the policies risked restricting economic growth by discouraging tourism and travel
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Mr Váradi also criticised the direction of UK aviation tax policy, warning of broader consequences for the industry.
He said ministers were moving “directionally the wrong way”.
“I do not think the UK should be overcharging airline customers to raise funds for other activities and commitments, because this is going to undermine airlines and the UK is going to lose out on tourism at the end of the day,” he said.
The comments came as Wizz Air reported lower earnings for the year to March.
The airline continues to face challenges linked to Pratt & Whitney engine issues, which have grounded aircraft for maintenance and repairs.
It has also been affected by disruption stemming from tensions involving Iran and the closure of the Strait of Hormuz, with higher fuel costs adding further pressure.
Wizz Air said it had secured 84 per cent of its fuel requirements for the summer at previously agreed prices, helping to limit exposure to recent increases.