Wizz Air set to expand into Abu Dhabi

Wizz Air Holdings PLC (LON:WIZZ) have announced their intentions to launch operations in Abu Dhabi.

The FTSE 100 airline firm said that operations should commence this Autumn, following the completion of a partnership agreement.

The announcement to move into the Middle East was made a few months back, in December – and the firm said that it was looking to set up a deal with Abu Dhabi Development Holding Co PJSC.

Wizz Air noted that the agreement had now bee completed, and that this means it can operate  in Europe, the Middle East, Asia, and Africa from Abu Dhabi’s international airport.

József Váradi, CEO of Wizz Air Holdings, said: “Today marks an important milestone on the way to establishing our new airline in Abu Dhabi. The joint venture agreement with Abu Dhabi Developmental Holding Company to form Wizz Air Abu Dhabi underpins our long-term dedication to bringing an economically and operationally highly efficient as well as environmentally most sustainable airline business model to boost Abu Dhabi’s aviation development. Wizz Air’s mission feeds into Abu Dhabi’s diversified economic strategy as we aim to stimulate traffic by creating demand to the benefit of growing Abu Dhabi’s touristic and economic diversity. We look forward to welcoming passengers on board our young, green and ultra-efficient fleet.”

Mohamed Hassan Al Suwaidi, CEO of ADDH, added: “Tourism is a high priority in Abu Dhabi’s growth strategy. Significant investment is going not only into our airports but also the tourist infrastructure, including hotels, resorts and cultural attractions. Last year the emirate achieved a record high of 11.35 million visitors and a key driver for this is the connectivity that enables people to visit Abu Dhabi easily and affordably.  Our partnerships with Wizz Air and others will help elevate the UAE’s capital as a highly competitive regional and international destination for leisure and business travellers alike.”

Wizz Air boast strong third quarter

In January, Wizz Air reported a very strong third quarter performance – which led to shares in green.

In the three months to December 31, revenue was 25% higher year-on-year at €637.3 million from €511.3 million.

Ticket revenue alone was 16% higher at €336.3 million, which represents significant progress for the budget airline, in an industry which has seen hardship.

Notably, the firm also swung to a quarterly pretax profit of €22.4 million from a €21.2 million loss one year ago.

Passengers carried also climbed 23% year on year and totaled 10 million in the third quarter, whilst load factor edged 1.1 percentage points higher to 92.5%.

Shares in Wizz Air trade at 3,350p (-1.90%)/ 2/3/20 11:09BST.

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