Budget airline Wizz Air has warned of the high likelihood of further losses for the remainder of the current financial year. With the low-budget European carrier still reeling from the demand slump spurred on by the COVID-19 pandemic, Chief Executive Jozsef Varadi explained on Wednesday that the company is faced with yet another “transition year” during 2021.
“Unless we see an accelerated and permanent lifting of restrictions we expect a reported net loss in full-year 2022,” Varadi admitted. Currently, the Hungarian-based carrier expects to fly around 30% of its pre-crisis capacity during the first quarter, only expecting to return to full capacity during the 2022-23 financial year.
Unlike Wizz Air, low-cost UK-based rival Ryanair managed to engineer new avenues for generating income during the pandemic. This included the addition of new routes to the company’s existing flight schedule.
Despite lagging behind the competition, Wizz Air remains in a strong position to continue acquiring more efficient jets. Wizz Air expects to incur an underlying full-year loss of 482 million euros. Its year-on-year revenue is expected to decline by 73% to 739 million euros.
