Wizz Air has said it will exit its operations in Abu Dhabi to focus on its core markets after a "comprehensive reassessment" and "strategic realignment."
The low-cost carrier will suspend its UAE operations from September 1, it said in a statement on Monday.
The move comes even as Abu Dhabi continues to welcome more passenger traffic across its airports.
The emirate's five airports reported a record 29.4 million travellers in 2024, up 28 per cent year-on-year, driven by growth at Zayed International Airport that is home to Gulf major Etihad Airways.
Abu Dhabi's Zayed International Airport handled 28.8 million passengers last year, up from 22.4 million in 2023, as the emirate's main hub added airlines and expanded its network, according to state-owned operator Abu Dhabi Airports.
Zayed International Airport connected travellers to a network of more than 125 destinations with 29 routes launched last year.
In 2024, Wizz Air Abu Dhabi carried more than 3.5 million passengers, up 20 per cent year-on-year, on 19,000 flights that offered 4.4 million seats. Load factor, a measure of how well an airline fills available seats, stood above 80 per cent last year.
The airline said it faced increasing operational challenges over the past year, including engine reliability problems, particularly in "hot and harsh environments", which have affected aircraft availability and operational efficiency.
It has faced prolonged maintenance issues with Pratt & Whitney engines that have grounded dozens of aircraft in its all-Airbus fleet.
Passengers with existing bookings beyond August 31 will be contacted directly via email with options for refunds or alternative travel arrangements, the airline said.
Those who booked through third-party providers are advised to contact their respective agents, it said.
"We have had a tremendous journey in the Middle East and are proud of what we have built," said Jozsef Varadi, chief executive of Wizz Air.
"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."
Abu Dhabi is seeking to diversify its non-oil sectors – as part of wider plans to reduce the economy's reliance on hydrocarbons – with a focus on growing strategic industries including tourism, aviation and hospitality.
In April 2024, the emirate announced plans to invest more than $10 billion in infrastructure as part of a strategy to boost international visitor numbers and cultural activity.
Abu Dhabi's tourism sector is expected to contribute Dh55 billion ($14.97 billion) to the emirate's gross domestic product in 2024, up from Dh46 billion last year, with a “north star” target of more than Dh90 billion by 2030, Saood Al Hosani, undersecretary of the Department of Culture and Tourism in Abu Dhabi, told The National in December.
Middle Eastern airlines recorded a 6.2 per cent year-on-year increase in travel demand in May, the International Air Transport Association (Iata) said in its latest monthly traffic report. Capacity increased 6.3 per cent year-on-year. Meanwhile, load factor was 80.9 per cent, a 0.1 percentage point decrease compared with May 2024.
Global airlines are keeping an eye on oil price volatility and geopolitical developments in some areas, but travel demand remains robust, Iata added.
"Consumer confidence appears to be strong with forward bookings for the peak northern summer travel season, giving good reason for optimism,” said Willie Walsh, Iata's director general.
According to Iata's annual report in June, the Middle East will generate the highest net profit per passenger among the world's regions. "Robust economic performance is supporting strong air travel demand, both for business and leisure travel. However, with delays in aircraft delivery, the region will see limitations in capacity as airlines embark on retrofit projects to modernise their fleet, hence limiting growth," it said.
Etihad Airways carried 1.8 million passengers in June, a 16 per cent increase compared to the same month last year, it said in its monthly traffic report on Monday. Its passenger load factor rose to 88 per cent, up from 86 per cent in June 2024.
The Abu Dhabi-based airline carried 10.2 million travellers in the first half of 2025, reflecting a 17 per cent rise year-on-year. The average passenger load factor for the year to date stands at 87 per cent.
Etihad has already started inaugural flights to four new destinations this year – Prague, Warsaw, Sochi and Atlanta – and is set to add another 13 routes before the end of the year.
Air Arabia Abu Dhabi, the UAE capital's first low-cost carrier, is also launching new routes this year. Most recently it announced services between Abu Dhabi and Almaty, Kazakhstan, and Sialkot, Pakistan.
Aviation and aviation-related tourism contributed 18 per cent of the UAE's GDP and created nearly one million jobs in the country in 2023, supported by "smart regulation and investment in world-class infrastructure", Iata said in a report in May this year.
