Wizz Air has plunged to a €198m (£170m) loss as higher jet fuel prices send airline profits into a nosedive.
The London-listed budget airline has been forced to absorb a steep rise in jet fuel costs that has swept through the aviation industry since the Iran war began disrupting oil supply routes.
The carrier swung to a loss in the three months to the end of June, down from a €38.4m profit it made a year earlier.
József Váradi, the chief executive of Wizz, said the industry was "extremely volatile over the June quarter due to conflict in the Middle East, elevated fuel prices, and changes in booking patterns".
Mr Váradi also warned there were challenges ahead for the airline, which is one of Europe's biggest low-cost operators,
He said: "While we continue to see the build-up of forward bookings, the rest of the year is expected to present both industry challenges and strategic opportunities."
Fuel costs at Wizz jumped 39pc to €610.5m over the quarter, with average fuel prices up 31.5pc. Revenue per available seat kilometre – a metric used by airlines to measure how much money it makes for every seat it flies over one kilometre – fell by 8.1pc.
The price of oil climbed as high as $126 in April as fighting between the US and Iran closed the Strait of Hormuz . Oil has since dropped to around $80, but remains far above its pre-conflict price.
The loss at Wizz came despite passenger numbers climbing by 25.1pc to 21.2m and total revenue rising 5.5pc to €1.5bn.
Surging costs have hit several airlines this quarter, including Ryanair , which said it was being forced to cut fares to encourage bookings for the summer after its profit fell by more than a third.
At easyJet, the UK's biggest low-cost airline , a £105m increase in its jet fuel bill cut its profits by more than 70pc during the quarter.
The airline noted a recovery in last-minute bookings later in the period, but that this was not enough to offset a slowdown in bookings from passengers nervous about potential fuel shortages.
Some businesses turned to cost-saving measures amid rising fuel prices. These include British Airways parent International Airlines Group, which has cut 200 head-office jobs, or 5pc of the total, as part of a "workforce efficiency" drive.
Wizz Air shares fell as much as 5.3pc in early trading on Thursday.
