Home Business NewsBusinessAviation News Wizz Air announces increase in operating losses

Wizz Air announces increase in operating losses

by Thea Coates Finance Reporter
25th Jan 24 11:11 am

Wizz Air to resume flights to Israel from the UK after most airlines suspended flights in October when the conflict started.

On Thursday Wizz Air said that they will resume flights to Israel from the start of March “with routes from Budapest, Sofia, Bucharest, Krakow, London (and) Rome to Tel Aviv.”

Between October and December 2022 Wizz Air said they have seen an increase in operating losses from £133 million or 16% in the same period last year.

Chief executive Jozsef Varadi said: “At the beginning of the quarter we faced geopolitical crises in Israel and the Middle East and have responded by cancelling affected flights to protect our passengers, employees, assets and general public.

“Despite the associated flight cancellations and redeployment of capacity at short notice, we managed operations well, delivering improved on-time performance and significantly better utilisation year on year.”

Neil Shah, Executive Director of Content & Strategy at Edison Group said, “Wizz Air’s recent financial performance reveals a challenging landscape, with the budget airline experiencing a significant operating loss of 180 million euros.

“This figure surpasses the previous year’s loss of 155 million euros, primarily attributed to flight cancellations.

“Contributing factors to this downturn include the necessity for engine inspections leading to grounded fleet segments and the impact of the Middle East conflict causing suspension of flights.

“Despite these setbacks, the company’s outlook remains cautiously optimistic. Wizz Air retains its net income forecast for fiscal 2024, bolstered by a promising commencement to the fourth quarter ending in March.

“Nonetheless, early trading showed a concerning 8% decrease in its share value. The broader context for European airlines is a blend of robust travel demand driving strong results, juxtaposed with a clouded future due to geopolitical tensions, escalating jet fuel prices, and economic uncertainties.”

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