Wizz Air shares tumbled 8% after the budget airline issued an unscheduled profit warning, citing the Middle East crisis as a €50 million hit to fiscal year 2026 net profit. The Budapest-based carrier warned earnings would fall below its guidance range of €25 million to -€25 million, based on current fuel prices and exchange rates.

RBC Capital Markets, already forecasting a -€27 million net loss below analyst consensus, expects further downgrades. Wizz Air's hedging structure, using a cap and collar mechanism rather than fixed-price hedges, leaves it more vulnerable to fuel price swings than European peers. Its eastern-oriented network also increases direct exposure to the conflict.

RBC noted that Wizz Air and easyJet carry relatively high debt loads, making their shares more volatile than lower-leverage peers. The bank maintains a Sector Perform rating on Wizz Air with a GBp1,200 price target, seeing better risk-reward elsewhere in the sector. While European airline stocks broadly face headwinds from the conflict, de-escalation could disproportionately benefit carriers with the heaviest Middle East exposure, Wizz Air chief among them.