STORY: Budget airline Wizz Air forecast lower revenue per available seat kilometer for the fiscal first quarter on Thursday.

It comes as the Iran war disrupts the airline industry and complicates forecasting.

Its operating profit, however, beat analyst expectations, driving its share price up over 5% in early trade.

However it didn't provide fiscal guidance for 2027.

It cited the situation in the Middle East and the protracted closure of the Strait of Hormuz.

It's forced the carrier to suspend routes, accounting for about 5% of its overall seat capacity.

The airline expects first-quarter sales to fall by a mid-to-high single-digit percentage in the three months to the end of June.

But it expects to stabilize to roughly flat in the second quarter to September.

Since warning of a net loss from the war impact in March, Wizz has added capacity to existing and new routes.

It's also increased promotions to support leisure demand in the crucial summer holiday season.

One leading analyst argued the airline's capacity growth prospects might be too optimistic.

But the carrier justified its decision, claiming airlines will pull out of some markets after the busy Northern Hemisphere summer. 

Wizz would then be able to enter them with its added capacity.