Business

Wizz Air reports financial losses but says it’s trying to minimize travel disruption | business news

Wizz Air has posted a reported net loss of €642.5m (£546.5m) for the year but has pledged additional resources to help minimize the disruptions that have erupted across the airline industry in recent weeks.

Airlines across the UK and across Europe are struggling to keep up with demand as travel returns to normal for many holiday destinations for the first time since the start of the COVID-19 pandemic.

Group Chief Executive József Váradi said: “The industry is witnessing supply chain issues at all airports, including our network.

“Staff shortages in air traffic control, security and other parts of the supply chain directly impact airlines, our employees and our customers.

“We are dedicating additional resources to minimize disruption and encourage all other stakeholders to do the same, always keeping our customers’ best interests in mind.”

Wizz Air carried more than 27 million passengers in the year ended March 31 – a 166% increase over the previous year, which was impacted by COVID-related travel restrictions.

Mr Váradi said he believed the virus was now endemic.

He also said the company had “managed” the trade impact of the war in Ukraine that began with Russia’s invasion in late February.

Wizz Air said it plans to increase capacity by over 30% and 40% in the first two quarters of this fiscal year and is confident of returning to pre-COVID productivity later in the year.

However, Mr Váradi said that despite strong consumer demand for the summer, an operating loss is expected from the first quarter of this fiscal year.

“The airline industry continues to be exposed to external factors such as air traffic control disruptions and ongoing operational issues within the airport sector, contributing to a volatile macro environment.”

He added: “Rising energy costs and inflation across Europe will continue to favor ultra-low-cost carriers as consumers reconsider their spending choices.

“We have partial coverage over the summer, which provides partial protection against fuel price increases, and we continue to look at ways to extend these insurance coverages for the full fiscal year on the right terms.”

Wizz Air reports financial losses but says it’s trying to minimize travel disruption | business news

Source link Wizz Air reports financial losses but says it’s trying to minimize travel disruption | business news

Back to top button