Wizz Air has blamed "market volatility in the airline sector" for its decision to cancel plans to be listed on the London stock exchange.
The planned £160m flotation was to be used to help strengthen its balance sheet and fund future growth.
But despite the decision, the Hungarian low cost airline remained upbeat about its business.
"The outlook for Wizz Air’s business remains extremely positive and unaffected by the decision not to proceed with an IPO; the board will continue to focus on executing its strategy of driving growth and value," the company said in a statement.
The airline reported revenue of €1billion in the year to March 31, up 19% on 2012-13, with net profit up 193% to €89 million.
It plans to increase its fleet of Airbus narrow-body aircraft from 50 to 82 in the next three years.
The decision to abandon the listing comes as low-cost rivals, including Ryanair and EasyJet, have all seen a drop in share prices over the past two weeks.
The FTSE Mid-250, the index on which the airline would have traded, has also fallen.
