A Wizz Air plane
(Picture: Steve Parsons/PA)Wizz Air has seen its losses soar in recent months after the emergence of Omicron derailed a hoped-for recovery in air travel.
The budget carrier lost €267.5 million in the three months to 31 December, 130% higher than the same period a year earlier.
Higher losses came despite a recovery in passenger numbers. Wizz Air flew 7.7 million in the third quarter of its financial year, up from just 2.2 million 12 months earlier. Revenue rose 172% to €408 million in the period.
The Hungarian airline has been ramping up its capacity in anticipation of a return to more normal levels of demand this year. That left it with higher costs when the Omicron wave hit and bought a halt to much international travel. Wizz Air also slashed ticket prices over Christmas in a bid to boost demand.
CEO József Váradi said: “Travel restrictions continued to affect demand as we continued to ramp up our workforce, fleet, bases and routes.”
Váradi warned that losses in the fourth quarter were set to be even larger due to a continued Covid drag but said he was “cautiously optimistic for a continued recovery into Spring.”
“We continue to back our strategic choices to invest in our fleet, grow our bases and routes, and lower our unit cost in order to take advantage of the market created in the wake of COVID-19,” he said.
“We are on track to have 170 aircraft fully utilised this Summer, in a more connected and diversified network and with 6,700 people engaged in what they do best, which is to provide superb service at unbeatable prices aboard the youngest and most sustainable and efficient fleet of narrow-body aircraft operated in Europe today.”
Shares rose 64p, or 1.5%, to 4322p in line with a broader rally for travel stocks after the UK scrapped day two testing for fully vaccinated travelers.
In December, Wizz Air bought 15 take-off and landing slots at Gatwick from Norwegian as part of its push to challenge EasyJet and other short-haul operators. It plans to expand its presence at the airport from one to five planes and has promised to launch new routes.
