Wizz Air expects to make an overall loss for the 12 months to March but projects a return to the black in the next financial year.
The eastern and central European budget carrier is set to recover to pre-pandemic levels of aircraft utilisation this summer with a fleet of more than 185 aircraft across a “more diversified” network, according to chief executive Jozsef Varadi.
His comments came as the airline saw carryings for the three months to December 31 rise by almost 60% year-on-year to 12.4 million.
The operating loss for the quarter was cut to €155.5 million from €213.6 million in the same period in 2021 as revenue more than doubled to €911.7 million. A net profit of €33.5 million was reported.
Ancillary revenues increased by almost 82% to €447 million Ticket revenue per passenger rose by 79.9% over the same quarter the previous year to €37.5 while ancillary revenue per passenger was up by 14.4% to €36.1.
Varadi said: “We continue to expect an overall net loss in full year ’23, but remain confident that full year ’24 will be profitable, subject to no adverse pandemic or geopolitical events.”
He pointed to “solid pricing” in the past quarter supported by “robust demand” across a broader network.
“On the cost side, operational adjustments contributed to a significantly lower flight disruption cost compared to prior quarters,” Varadi added.
“The strengthening euro currency helped to reduce overall fuel and certain maintenance costs; however, its biggest impact was on revaluation of US dollar leasing liabilities, reversing most of the prior two quarters’ losses and helping to deliver a net profit of €33.5 million for the quarter.
“More generally, we continue to see evidence of solid fare environment as average fares – combined ticket and ancillaries – are trading above 2019 and 2022 levels. As we reach the end of January, we are seeing booking volumes coming in ahead of 2022.”
The airline’s expansion into the Middle East with offshoots in Abu Dhabi and Saudi Arabia “should also bode well for better pricing opportunities” as the region continues to attract a higher volume of passengers, Varadi said.