Jozsef Varadi, the co-founder and CEO of Wizz Air Holdings Plc, has announced a bold plan to steer the budget airline back on course within the next two years, aiming to restore investor confidence after a series of operational and strategic challenges. Varadi, who helped launch Wizz Air in 2003, has set a target to complete the airline’s turnaround by mid-2027 — timing that coincides with the anticipated resolution of technical issues plaguing the airline’s Airbus fleet and the fading impact of its ill-fated expansion into the Middle East.

“The priority is a drastic improvement in our performance. By 2027, the Pratt & Whitney geared turbofan engine problems should be behind us,” Varadi said in an exclusive interview from London. “There is no worse scenario than being grounded.”

Wizz, headquartered in Hungary, has faced a daunting couple of years. Its share price has slipped by more than a third since early 2020, with a sharp 35% drop just last year, reflecting investor skepticism amid operational disruptions and external pressures such as geopolitical conflicts. One of the airline’s biggest challenges has been a critical defect in the metal coating of the Pratt & Whitney engines powering its Airbus planes, which forced Wizz to ground a significant portion of its fleet for expensive and lengthy repairs, derailing growth plans.

The airline’s ambitions to grow in the Middle East also suffered a major setback. After opening a base in Abu Dhabi to tap into routes connecting to India, Pakistan, and beyond, Wizz was compelled to retreat from the region following a mix of regulatory hurdles and challenging market conditions exacerbated by ongoing conflicts in surrounding areas. The withdrawal left some aircraft stranded in the UAE and dealt a blow to investor sentiment.

Asked if these difficulties stemmed from misfortune or missteps, Varadi acknowledged a bit of both. “There were unprecedented elements—engine troubles and regional instability. While I stand by many of our decisions, in hindsight, recalibrating our risk appetite might have been wise.”

Analysts back this view, noting the airline’s lack of visibility on the engine issues at the time of entering Abu Dhabi, and the unpredictable regulatory shifts in the Gulf’s aviation sector. Experts consider the recent course correction—exiting an unprofitable region—a smart move to stabilize the operation.
With expansion in the Middle East off the table, Wizz is now sharpening its focus on its core markets in Central and Eastern Europe.

 Facing stiff competition from rivals like Ryanair and EasyJet on western routes, Varadi is betting on enhancing Wizz’s foothold closer to home. The company aims to grow its market share from 26% to 30% or more in the region within five to six years, capitalizing on faster GDP growth and emerging travel hotspots like Albania’s coast and Romania’s Transylvania.

“Competition with Ryanair is a given, but there’s room for both of us to thrive while traditional airlines lose ground,” Varadi said.

A key feature of the recovery plan involves simplifying Wizz’s network and recalibrating fleet strategies. The airline no longer expects to take delivery of all 47 Airbus A321XLR super long-range jets it ordered; instead, Varadi plans to accept roughly a dozen, primarily for UK routes to Saudi Arabia, while converting many others to standard A321neos. Discussions with Airbus are underway to extend aircraft delivery schedules through 2030.

Despite the setbacks, including the heavier-than-expected XLR jets which increased operating costs, Varadi remains resolute. “We are still here,” he said. “It requires adjustments, corrections, and decisive actions, but we are committed to emerging stronger, more efficient, and with a more focused network.”

As Wizz Air charts its path forward, the emphasis is clear: a return to fundamentals, careful risk management, and a laser focus on Central and Eastern Europe to reclaim its place as a dominant low-cost carrier on the continent. The two-year deadline marks a critical milestone that could define the future of the airline and its appeal to investors eager for a turnaround.

Saudi Arabia’s newest national carrier, Riyadh Air, is gearing up for a bold entry into the vibrant and fast-growing Indian aviation market, with plans to launch flights to five key Indian cities in the summer of 2026.

The airline is targeting Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai as its initial points of entry, signaling a strategic move into one of the world’s most dynamic air travel sectors.

While Delhi and Mumbai are natural choices as India’s political and commercial epicenters, Riyadh Air’s decision to include Bengaluru, Hyderabad, and Chennai reflects a deeper understanding of India’s evolving economic landscape.

Bengaluru, known as the country’s IT powerhouse, boasts strong business links with the Middle East, while Hyderabad has rapidly emerged as another major technology hub. Chennai, the gateway to Tamil Nadu’s industrial heartland, rounds out this mix of traditional and emerging metropolitan regions.

However, the path to launching international flights in India is complex. Riyadh Air will need to secure traffic rights amidst a competitive bilateral framework, negotiate airport slots at packed Indian airports, and coordinate extensively with local aviation authorities.

Establishing ground handling, catering, and passenger services across five cities also demands substantial investment and partnerships on the ground.

The routes hold significant promise. The travel corridor between India and Saudi Arabia is buoyed by a spectrum of passengers – from the millions of Indians journeying for religious pilgrimages like Umrah and Hajj, to business travelers engaged in sectors such as IT services, construction, and oil and gas. 

The large Indian expatriate community in Saudi Arabia further guarantees steady demand for direct flights, often preferred over connecting flights through regional hubs like Dubai or Doha.

Yet Riyadh Air faces hurdles. Launching five routes simultaneously is an ambitious endeavor more commonly approached through a phased strategy.

The summer 2026 launch date aligns with the delivery of new Airbus A321-200 aircraft, ideal for these routes due to their range, passenger capacity, and efficiency for flights spanning 3.5 to 5 hours. Crafting flight schedules that cater specifically to Indian business travelers’ preferences will be critical for success.

A key challenge lies in navigating the limited bilateral air services agreements (BASA) between India and Saudi Arabia, which may restrict flight frequencies and capacity.

Furthermore, lasting success depends on Riyadh Air’s ability to offer competitive pricing while maintaining the high service standards expected of Gulf carriers.Indian travelers are notoriously price-conscious and quick to choose carriers delivering superior value and reliability.

If Riyadh Air can master these complexities, the airline’s bold five-city launch could serve as a robust foundation for broader expansion across South Asia, potentially encompassing other Indian cities and neighboring regional markets such as Thailand and Bangladesh.

With ample time for meticulous planning, Riyadh Air is poised to thoughtfully enter a challenging but opportunity-rich market, facing stiff competition from established carriers but bringing fresh capacity and options to one of the world’s fastest growing aviation corridors.

Brazilian aerospace giant Embraer has set an ambitious target to deliver 100 commercial aircraft annually by 2028, a milestone the company last reached in 2017, CEO Francisco Gomes Neto told Reuters. While the manufacturer has steadily increased deliveries since 2021 as part of its recovery from the pandemic-induced aviation crisis, persistent supply chain issues are expected to delay hitting the 100-unit mark until 2028.

The company forecasts delivering between 77 and 85 commercial jets in 2025, up from 73 in 2024, reflecting a roughly 10% year-on-year increase. Gomes Neto emphasized that 2026 will remain a challenging year production-wise due to ongoing bottlenecks, but he projects strong growth resuming in 2027, with 2028 marking the return to triple-digit deliveries.

Embraer continues to grapple with supply disruptions, including delays in fuselage parts sourced from Europe and GE Aerospace engines for its first-generation E1 jets. The situation has improved compared to last year’s engine supply delays for the next-generation E2 jets, yet the supply chain remains vulnerable.

Despite these obstacles, Embraer’s backlog of orders is solid and production slots are nearly fully booked through 2026 and 2027, extending partially into 2028. The recent firm order of 50 E195-E2 jets from U.S.-based low-cost carrier Avelo Airlines, marking Embraer's first U.S. deal for E2 jets, highlights robust demand. The company also secured orders earlier in 2025 from Japan’s ANA, Scandinavian Airlines SAS, and U.S. regional carrier SkyWest for a mix of E2 and E1 models.

Looking ahead, Gomes Neto noted that further E2 orders may be announced before year-end as multiple sales campaigns proceed, though new sales for the E1 fleet—which primarily serves the U.S. market—are not expected in 2025.

Regarding manufacturing strategy, Embraer currently assembles both E1 and E2 aircraft at its Sao Jose dos Campos plant in Brazil. Despite the U.S. imposing a 10% tariff on Brazilian-built aircraft, the company is not planning to establish a U.S. assembly line for E2 jets at this stage. Any consideration for a second assembly facility closer to major buyers would depend on a significant surge in orders, which is not yet evident.

“We prefer to present Embraer’s overall business case,” Gomes Neto explained, highlighting plans to purchase $21 billion from U.S. suppliers over the next five years while exporting $13 billion. He cautioned that establishing a new line would require substantial investment and risk increasing costs, potentially making the aircraft less competitive.

Embraer also maintains assembly lines for some executive jets in Florida and has proposed a $500 million U.S. production line for its C-390 military cargo aircraft, contingent on U.S. government procurement decisions.

Analysts view Embraer’s delivery target as ambitious but achievable if supply chain pressures ease and demand continues to grow, especially for regional jets that address evolving air travel needs. The company’s resilience in navigating post-pandemic recovery and maintaining a robust order book underscores its position as the world’s third-largest commercial aircraft manufacturer.

flydubai has announced a new strategic interline agreement with Romania’s national carrier, TAROM, expanding travel options by providing passengers seamless access to 15 destinations across TAROM’s network via Bucharest International Airport (OTP). This partnership enables flydubai customers to enjoy simplified travel itineraries, single-ticket bookings, and through-check-in of baggage to their final destination, enhancing convenience and connectivity.

Through the agreement, travelers flying between the UAE and Romania can now easily connect to key destinations within TAROM’s domestic and international network. These include major European cities such as Athens, Amsterdam, Brussels, Cluj-Napoca, Frankfurt, Madrid, and Paris, among others. This development supports greater trade, tourism, and cultural exchange between Dubai and Eastern and Central Europe.

flydubai operates double daily flights from Dubai International Airport (DXB) to Bucharest Henri Coandă International Airport and will be adding Iași as its second Romanian destination starting from 19 September 2025. The airline has steadily grown its presence in Romania since launching flights to Bucharest in 2012, responding to rising passenger demand.

The partnership not only broadens flydubai’s network but also reinforces Dubai’s role as a global aviation hub by linking the UAE to a wider range of European destinations through efficient connections with TAROM. Business Class passengers on flydubai enjoy lie-flat seats, international cuisine, and immersive entertainment, while Economy Class travelers benefit from comfortable reclined seats with adjustable leather headrests.

With a fleet of 93 modern Boeing 737 aircraft, flydubai serves over 135 destinations in 57 countries, having launched more than 100 previously underserved routes, demonstrating its commitment to expanding global connectivity and passenger choice.

TAROM's network, reachable through this agreement, includes approximately 28 destinations across 22 countries, covering vital European cities and regional hubs, making it a strategic partner for flydubai’s continued expansion into Eastern and Central Europe.

Overall, the strategic interline agreement between flydubai and TAROM offers travelers greater flexibility, convenience, and choice, allowing seamless access between the UAE, Romania, and many prominent European destinations. This collaboration is expected to boost business and leisure travel, supporting economic ties and tourism growth in the region.

Hong Kong is increasing its Air Passenger Departure Tax (APDT) for the first time in 22 years, effective October 1, 2025. The tax will rise from HK$120 (approximately $15) to HK$200 (about $25), a 67% increase. This tax applies to passengers aged 12 and above departing by air from Hong Kong International Airport (HKIA).

The increase was enacted through the Air Passenger Departure Tax (Amendment) Bill 2025, passed by the Legislative Council in May 2025. The government anticipates that the hike will generate around HK$1.6 billion in annual revenue.

To maintain Hong Kong's competitiveness as an international aviation hub, exemptions to the tax have been expanded. Previously, direct transit or connecting flight passengers who remained airside and those who arrived and departed on the same day were exempt. From October 1, 2025, new exemptions will include:

• Passengers who arrive and depart by aircraft within 48 hours.
• Passengers arriving by land or sea and departing by aircraft within 48 hours.

Passengers eligible under these new exemptions will still be charged the tax as part of their ticket but can claim a refund through a forthcoming online portal managed by the airport. This refund mechanism aims to encourage more transfer passengers, especially from the Greater Bay Area, enhancing HKIA’s role as a regional hub.

The APDT is typically absorbed into the price of the flight ticket, so passengers may not notice a significant fare difference when booking. Tickets purchased before October 1, 2025, will not be affected by the increased tax.

While some officials worry the increase could impact Hong Kong's attractiveness compared to regional competitors, others view the hike as reasonable and necessary for government revenue and airport infrastructure support.

Gulf Air, the national airline of the Kingdom of Bahrain, has taken a major step in its long-term fleet renewal by signing an agreement valued up to USD 4.6 billion with Boeing to acquire 18 Boeing 787 Dreamliners. Powered by GE Aerospace engines, the new aircraft will enhance Gulf Air’s operational efficiency, sustainability efforts, and passenger comfort.

The deal was formalized during the official visit of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, to Washington D.C., symbolizing the strengthening economic and commercial ties between Bahrain and the United States.

Khalid Taqi, Chairman of Gulf Air Group, emphasized the significance of the acquisition: “Adding 18 additional 787 Dreamliners an aircraft highly appreciated by our customers increases our passenger capacity by over 20%, marking a crucial milestone in our growth and modernization journey. This also aligns with our strategy to deliver a more fuel-efficient, environmentally friendly, and passenger-focused travel experience. 

Partnering with Boeing and GE Aerospace, global leaders in aviation innovation, affirms our confidence in advancing Gulf Air’s future. This collaboration also highlights the strong and enduring partnership between Bahrain and the USA.”

The Boeing 787 Dreamliner is celebrated worldwide for its fuel efficiency, cutting-edge technology, and superior passenger experience. It will play a central role in supporting Gulf Air’s long-haul operations, route expansion, and sustainability initiatives.

Stephanie Pope, President and CEO of Boeing Commercial Airplanes, commented, “We are proud to deepen our more than six-decade partnership with Gulf Air by delivering the 787 Dreamliner. This investment underscores Gulf Air’s commitment to innovation and sustainable growth, strengthening Bahrain’s status in the global aviation industry.”

In conjunction with the aircraft order, Gulf Air and Boeing signed a Memorandum of Understanding (MOU) to explore establishing maintenance, repair, and overhaul (MRO) workshop capabilities in Bahrain. This initiative, still in its early stages, aims to localize MRO operations, develop local aviation talent, create jobs, and bring world-class services aligned with the latest technologies.

This strategic partnership further reinforces Gulf Air’s ambition to position Bahrain as a key aviation hub in the region, contributing to the Kingdom’s goals for economic diversification and enhanced global connectivity.