Wizz Air losses narrow; carrier prepares for 'exceptional opportunity' on horizon
Low-fare Hungarian carrier Wizz Air on Thursday reported a loss of EUR 120.9 million for the first half of its business year started April 1, narrowing from a EUR 243.1 mln loss in the base period, according to a report by state news wire MTI.
Revenue jumped 86.8% to EUR 880.4 mln during the period as passenger numbers climbed 92.7% to 12.5 mln.
"The second quarter of this fiscal year marks Wizz Air's return towards 2019 traffic levels as we continue to transition to operational normality and see more people return to flying despite lingering restrictions," CEO József Váradi said.
He added that Wizz Air delivered an operating profit of EUR 57 mln in Q2 and finished the period with EUR 1.7 billion in cash, "highlighting our ability to manage liquidity well and continue to maintain our investment grade rating".
Wizz Air will add 26 aircraft to its summer 2022 fleet, bringing the total number to 170 by the end of September.
"This will allow us to maximally take advantage of market opportunities and next year's peak season," Váradi said.
Wizz Air also projects headcount will rise to 6,700 by the end of the summer of 2022, up from around 4,000 people before the pandemic.
Váradi said Wizz Air's investments in network, fleet, and people lay the foundation for "exceptional opportunity" in the next business year.
"We will have further widened our competitive edge and will be operating a superior fleet from a cost and sustainability point of view in a more diverse and scalable network," he added.
Wizz Air anticipates a loss of "around EUR 200 mln" in Q3 which may carry over into Q4, depending on operating conditions.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.