For the 12 months to 2020, Wizz posted a net loss of €482m
Wizz Air (LON:WIZZ) said it will lose money next year as the effects of the pandemic on the airline industry could be prolonged as travel restrictions remain across the continent.
The budget airline said on Wednesday that restrictions had remained longer than expected. Between April and June, Wizz expects to fly around 30% of its normal schedule.
Wizz Air chief executive Jozsef Varadi said the company is cautiously optimistic about the businesses’ recovery, adding that it has “started later than what we would have liked”.
Varadi expects to record a net loss for the 12 months to March 2022, unless restrictions are lifted in a “permanent” and “accelerated” way.
For the 12 months to 2020, Wizz posted a net loss of €482m, as flyer numbers fell by 75% to 10m.
Liquidity stands at €1.617bn as of March 31. The Hungarian airline went through €84m during the last quarter.
Susannah Streeter, senior investment and markets analyst at Hargreaves and Lansdown, commented on the outlook of the travel sector and Wizz’s prospects.
“High hopes that brighter skies were in sight for the airlines have been clouded by fresh strains of Covid emerging in parts of the world. It has meant that the lights have been stuck on amber for many travel destinations for longer than expected, throwing holiday plans into disarray.”
“The Hungarian carrier flies routes mainly to and from Eastern European countries, which have been far from speedy in vaccine roll outs, although lighter travel restrictions compared to the UK do put it in a slightly more resilient position. It’s also been flexible in its reaction to ever changing rules, by nimbly ramping up to 80% capacity last summer before reducing back down to 20% only weeks later.”
Down to its low-cost base and expansion into different areas during the pandemic, Wizz could yet emerge as a winner from the pandemic.
During the morning session, the Wizz Air share price is down by 1.56% to 4,800p per share.
