European low-cost airline Wizz Air is confident that strong bookings combined with a big investment in its operations to avoid last year’s summer travel snags plus its growing fleet will help it swing to a profit this year – Reuters reported.
Wizz Air may have reported a EUR 535.1 million loss for its business year ended 31 March, but it looks like the skies are clearing up for the Hungary-based low-fare carrier. For the 12 months to the end of next March, it is expecting a net profit of 350 million to 450 million euros, dependent on there being no major negative events like the Ukraine War, as it is seeing strong bookings and higher fares for the summer.
Its forecast resulted in the airline’s shares lifting by 3% on Thursday, but since then, they have seen a decrease, continuing the negative tendency witnessed since its May 17th peek, on a one-month basis. It seems like the investors’ trust is yet to be won.
The main contributing factor to last year’s loss was Russia’s invasion, which significantly impacted Wizz’s performance as well as other airlines, forcing it also to suspend operations there. It was also forced to cancel flights last summer after chaos at airports emerged due to a faster-than-expected rebound in air travel, coupled with labor shortages.
József Váradi, Wizz’s chief executive reminded that summer is the most profitable period for European airlines, and claimed the airline was better prepared this time around with more spare aircraft, spare parts, extra pilots and cabin crew available.
József Váradi, CEO, Wizz Air; File photo: Facebook/EFR Business Week
Wizz said it was seeing strong bookings and higher fares for summer, in line with trends identified by its competitors.
Via reuters.com; Featured image: Facebook/Wizz Air