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UAE: Will airfares rise after Wizz Air Abu Dhabi's exit? Etihad CEO responds
In 2024 alone, Wizz Air Abu Dhabi operated over 19,000 flights, providing more than 4.4 million ultra-low-cost seats
- PUBLISHED: Tue 29 Jul 2025, 6:00 AM UPDATED: Tue 29 Jul 2025, 10:31 AM
As Wizz Air Abu Dhabi prepares to wind down operations by September 1, 2025, questions have emerged about how its exit will impact airfares in the UAE.
Pricing will ultimately be shaped by supply, demand, and overall market dynamics, rather than the presence or absence of any single airline, according to Antonoaldo Neves, chief executive officer of Etihad Airways.
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“The market is the king, so it doesn't matter who is leaving, who is entering, and who is adding capacity. The key question is how will supply and demand be in the future? If there is less demand, fares are going to go down,” Neves told Khaleej Times in an interview last week, when asked about the impact of Wizz Air Abu Dhabi’s departure on ticket prices.
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The ultra-low-cost carrier recently announced it will suspend operations in Abu Dhabi starting September 1, 2025, and dissolve its joint venture. Its promotional fares starting at Dh79 gained strong popularity among UAE travellers, especially those flying to Eastern Europe and CIS countries for tourism, thanks to its affordability.
Wizz Air cited three main reasons for its withdrawal: engine reliability issues exacerbated by the region's hot and harsh climate, geopolitical instability, and regulatory challenges. The airline said it will now focus on its core markets in Central and Eastern Europe, along with selected destinations in Western Europe.
In 2024 alone, Wizz Air Abu Dhabi operated over 19,000 flights, providing more than 4.4 million ultra-low-cost seats. It carried more than 3.5 million point-to-point passengers, contributing around 25 per cent to Zayed International Airport’s total point-to-point traffic. Additionally, the airline brought more than 1.2 million international visitors to Abu Dhabi last year.
Until now, Abu Dhabi has been home to three major airlines: national carrier Etihad Airways, Air Arabia Abu Dhabi, and Wizz Air Abu Dhabi — offering services that cater to every segment, from luxury travellers to budget-conscious flyers.
“I don't know how supply and demand is going to react in the next year or so, because it doesn't depend only on Etihad (as other carriers also operate in UAE),” Neves added.
Etihad chief was speaking after receiving delivery of the first of its 30 Airbus A321LR.
Despite the airline’s exit, aviation analysts expect minimal disruption.
“Wizz Air leaving Abu Dhabi does not leave a gap at all. Wizz Air tried to create something that frankly didn’t exist — and we saw the same when AirAsia X came and fled Abu Dhabi within six months,” said Saj Ahmad, chief analyst at London-based StrategicAero Research.
Neves also addressed the perception that Etihad is inflating fares.
“We price to demand and competition. So I don't know what fares are going to be. If there's a lot of demand and we don't have planes, the fare goes up. Otherwise, they go down,” he said. “The notion that Etihad is charging more is just wrong.”
He emphasised that the region's aviation market is expansive and can accommodate a variety of carriers.
“In the UAE, we have four amazing airlines — flydubai, Emirates, Etihad and Air Arabia. They all make money. So there is a space for premium carriers, a space for intermediate carriers, and a space for low-cost carriers. The UAE is one of the best markets in the world. We should be very proud of all that,” Neves concluded.
