Wizz Air CEO, Jozsef Varadi, has a reputation for being an eternal optimist, hungry to make the airline a much larger player in the global aviation sector.
Despite saying the business is on track for a record summer, Varadi can’t escape the fact the airline industry is on the verge of a meltdown thanks to a lack of staff in airports.
There is no way of glossing over the issue that a growing number of people are likely to be ditching plans to fly this summer as they don’t want the hassle of flight delays, cancellations and long queues.
“There is also the issue that air fares are going up and more people have less money in their pocket each month after paying the bills, so they might not be able to afford to travel,” said AJ Bell’s Russ Mould.
“Add in disruption with air traffic control and you’ve got a chaotic backdrop which means airlines could experience a third consecutive summer of misery. That explains why Wizz Air is not providing further financial guidance for its current year.
“Despite this negative situation, Wizz Air continues to expand as a business, adding more aircraft, new bases and new routes. It’s giving Ryanair a run for its money in terms of finding new ways to get customers to pay for things beyond a ticket. This so-called ‘ancillary revenue’ now accounts for more than half of group revenue.”
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