Hungary Fines Wizz Air for Misleading Customers

Hungary’s competition watchdog has imposed a substantial fine of 770,000 euros ($839,916) on Wizz Air, citing misleading communication practices. According to Reuters, the authority announced the penalty on its website on Saturday.

The Hungarian competition authority accused the budget airline of breaching professional due diligence. Per Reuters, Wizz Air was found to have misled consumers regarding its automatic check-in service, thereby nudging them towards more expensive travel packages. This development comes on the heels of Wizz Air’s announcement earlier this week that it had reduced its annual profit forecast, following a 44% drop in its first-quarter operating profit. The decline was attributed partly to engine troubles with Pratt & Whitney (RTX.N) and the need for one-off wet leases to maintain capacity.

The airline, known for its all-Airbus fleet, has been grappling with significant operational challenges. According to the report, Wizz Air is facing issues with Pratt & Whitney RTX engines, necessitating the grounding of 46 aircraft for inspections this summer. This has further strained the company’s capacity during a period already marked by high costs and a normalization of post-pandemic travel demand.

The European aviation sector has had a turbulent first half of the year, with rising costs and stabilizing demand affecting major carriers. Companies such as Air France-KLM, Lufthansa, and Ryanair have all reported difficulties in their second-quarter earnings. Despite these hurdles, Wizz Air managed to transport 5.9 million passengers in July, achieving a load factor of 93.8%. However, the airline was forced to cancel 1% of its scheduled flights due to global outages.

The financial penalty from Hungary’s competition authority highlights the growing scrutiny on airline practices amid a competitive and cost-sensitive market.

Source: Reuters