Wizz Air issues profits warning due to Middle East crisis<\/p>\n
The travel disruption, the higher oil price and the fall in the euro caused by the Iran war has prompted low-cost airline Wizz Air to issue a profits warning.<\/p>\n
Wizz Air warned investors last night that it believes the current crisis in the Middle East will wipe \u20ac50m off its profits this financial years.<\/p>\n
Wizz had previously predicted that earnings would fall within a profit of \u20ac25m to a loss of \u20ac25m, so today\u2019s warning means it expects a loss for the year.<\/p>\n
The company told the City:<\/p>\n
double quotation markIn terms of the expected impact, approximately one third is a result of the cessation of certain scheduled services to the Middle East, with the remainder from the adverse movement in macroeconomic factors as a result of the Iran conflict.<\/p>\n
Our assessment of the impact of these macroeconomic factors is based on jet fuel and US$\/\u20ac rates as of today, and assumes that these rates will remain at current levels for rest of Fiscal Year 2026.<\/p>\n
Share<\/a><\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Closing post<\/p>\n Time to recap\u2026<\/p>\n HSBC, Nationwide<\/a> and Coventry building societies are the first big UK lenders to announce an increase in rates on their fixed mortgage deals as a result of the Middle East crisis, with brokers predicting others are likely to follow.<\/p>\n Experts have said the war could trigger an energy price shock<\/a> that pushes up UK inflation, which may in turn force the Bank of England to increase interest rates<\/a>.<\/p>\n That uncertainty has affected the money market swap rates that lenders use to decide the rates on their new fixed mortgages. Aaron Strutt at the broker Trinity Financial said these were the first large lenders to announce rate hikes \u201cbased on the funding cost increases brought on by the chaos in the Middle East\u201d.<\/p>\n It\u2019s been another volatile day in the markets. The UK\u2019s FTSE 100 is now in the red again \u2013 down 102 points or 1% at 10,464 points.<\/p>\n Oil is up 3.3%, while European gas prices are slightly higher this afternoon.<\/p>\n Ministers are discussing the possibility of intervening to protect the public against soaring household energy bills if the Middle East conflict drags on.<\/p>\n Oil and gas prices have surged since Donald Trump started his bombing campaign against Iran, which has responded by closing off a crucial shipping route through the strait of Hormuz and by attacking regional energy infrastructure.<\/p>\n Household energy bills are fixed until July, when the energy price cap is next set by the regulator, Ofgem. Forecasts suggest it could then rise by 10%, adding \u00a3160 a year to the average bill.<\/p>\n The Japanese carmaker Nissan has reportedly said it could be forced to close its plant in Sunderland<\/a> if the UK is not fully included in new \u201cMade in Europe\u201d manufacturing rules proposed by the EU.<\/p>\n The UK car industry trade representative group also said it was \u201cgravely concerned\u201d about the proposals it said could damage the \u00a370bn annual cross-channel trade.<\/p>\n Share<\/a><\/p>\n Shipping giant MCS has announced a new \u2018emergency fuel surcharge\u2019 on cargo from Northern Europe and the Mediterranean to Australia and New Zealand.<\/p>\n MSC \ud83d\udea2 | Shipping Update<\/p>\n \u2705 To apply Emergency Fuel Surcharge (EFS) on cargo from Northern Europe to the Indian Subcontinent Reflects rising fuel costs & shipping\u2026<\/p>\n \u2014 CapitalInsight (@CapitalInsight3) March 5, 2026<\/a><\/p>\n Share<\/a><\/p>\n Former Bank of England policymaker Michael Saunders reckons the Bank of England\u2019s Monetary Policy Committee is likely to remain on hold for now.<\/p>\n In a new report, Saunders \u2013 now of Oxford Economics<\/a> \u2013 says:<\/p>\n double quotation markGiven uncertainties and (in line with a robust control approach of avoiding actions that could go badly wrong), the MPC is unlikely to cut rates at the upcoming March meeting. If energy prices quickly fall back, it will probably resume easing, either in April or June. Our new base case will still assume a second cut later this year. But if the surge in energy prices persists or expands, the MPC will be set for an extended pause.<\/p>\n Given that policy remains somewhat restrictive, the Committee is unlikely to hike rates unless inflation expectations rise significantly.<\/p>\n Share<\/a><\/p>\n Wall Street has opened in the red,<\/p>\n The Dow Jones industrial average has dropped by 299 points, or 0.6%, to 48,439 points. Pharmaceuticals groups Merck (-2.7%) and Amgen (-2%), consumer goods maker Johnson & Johnson (-2.5%), are leading the fallers.<\/p>\n Share<\/a><\/p>\n ING have pushed back their forecast for the next cut in UK interest rates:<\/p>\n double quotation markUnless energy prices rapidly fall back, we now expect the next Bank of England rate cut to come in April rather than this month. But with the jobs market under pressure, further easing remains likely.<\/p>\n Share<\/a><\/p>\n The US jobs market remained solid in the build-up to the Iran war, new data shows.<\/p>\n The number of Americans filing new claims for unemployment benefit was unchanged last week, with 213,000 fresh \u201cinitial claims\u201d for jobless support filed.<\/p>\n Share<\/a><\/p>\n The main economic impact for most countries from the Iran crisis is that the recent rise in oil prices to around $80\/bbl will boost inflation and slow growth, say Goldman Sachs.<\/p>\n In a research note, they outline how this will work out:<\/p>\n double quotation markApplying our standard rules of thumb with our commodities team\u2019s updated forecast implies a 0.2pp boost to global inflation (with core inflation impacts <0.1pp) and 0.1pp drag on global growth.<\/p>\n Effects could be larger if the Strait of Hormuz closes for an extended period. If oil prices temporarily rise to $100\/bbl, we estimate that global headline inflation could rise by 0.7pp and global growth could slow by 0.4pp.<\/p>\n Share<\/a><\/p>\n Data provider Moneyfacts has reported that the average mortgage rates are slightly higher today:<\/p>\n The average 2-year fixed residential mortgage rate today is 4.83%. This is up from 4.82% the previous working day.<\/p>\n The average 5-year fixed residential mortgage rate today is 4.95%. This is up from 4.94% the previous working day.<\/p>\n There are currently 7,673 residential mortgage products available. This is up from 7,640 the previous working day.<\/p>\n Share<\/a>Slower UK interest rate cuts likely<\/p>\n Slower UK interest rate cuts are more likely than rate hikes, consultancy firm Capital Economics<\/a> argues.<\/p>\n Ruth Gregory, their deputy chief UK economist, says:<\/p>\n double quotation markWhile parallels are being made with the energy price shock caused by the Russia-Ukraine war in 2022, the rise in energy prices as a result of the conflict in the Middle East has so far been smaller than that in 2022 and the economic backdrop is very different.<\/p>\n So unless energy prices rise further and\/or a major fiscal stimulus is announced, slower interest rate cuts are more likely than interest rate hikes.<\/p>\n Currently, the money markets are only anticipating one cut to UK interest rates by the end of this year, down from two before the Iran conflict began.<\/p>\n Share<\/a><\/p>\n Updated at\u00a007.47 EST<\/p>\n The recent turmoil in the markets hasn\u2019t deterred UK fintech Revolut from pressing on with its plans for banking domination.<\/p>\n Revolut hsa filed an application for a banking licence in the US, a move which would allow it to offer more products to Americans.<\/p>\n Today, we officially filed our application for a U.S. banking license.<\/p>\n This is a major milestone in our mission to build the world\u2019s first truly global bank.<\/p>\n \u2014 Revolut (@Revolut) March 5, 2026<\/a><\/p>\n And for our U.S. customers, a license will allow us to move faster and deliver more, including:<\/p>\n \u2022 Rapid product innovation: We\u2019ll own the end-to-end experience ourselves.<\/p>\n \u2022 FDIC insurance: Customers\u2019\u00b9 deposits will continue to be insured by the FDIC.<\/p>\n \u2022 Real-time\u2026<\/p>\n \u2014 Revolut (@Revolut) March 5, 2026<\/a><\/p>\n Revolut secured a UK banking licence \u2013 with \u201crestrictions\u201d \u2013 in summer 2024\u2026<\/p>\n
\u2705 Effective 16 March 2026 until further notice
\u2705 Charges set at $100\/TEU (dry units) & $150\/TEU (reefer units)<\/p>\n