The travel boom has not been lost on Wizz Air, which enjoyed soaring passenger numbers and a massive revenue increase in its 2024 full year.
Wizz Air has joined the ranks of travel companies enjoying surging demand for their services as consumers choose to plough their discretionary spending into travel amid the cost of living crisis.
Passenger numbers increased 21% to 62m, and revenue soared 30% to €5.1bn. The airline successfully turned higher revenues into higher profits, with operating profit jumping to €437m from a €466m loss last year.
Investors were evidently encouraged by the swing back to profitability and shares soared 7% on Thursday.
“Wizz Air has soared back into profit after what’s been three gruelling years for the airline and their shareholders. The Hungary-based airline reported net profits of 366 million euros, compared with a net loss of 535 million euros a year earlier,” said Mark Crouch, analyst at investment platform eToro.
“Record passenger numbers amid surging demand, improving load factors and lowering unit costs have all played their part in propelling the airline back to profitability.
“There is though, an air of what might have been. Disruption caused by the conflicts in Ukraine and the Middle East has significantly impacted the company’s bottom line with thousands of flights cancelled. And the ongoing problems of production hiccups with their Pratt and Whitney engines is another headwind the low-cost carrier could do without.
“With the summer season just around the corner, Wizz Air would have wanted all their ducks in a row heading into such a crucial period. Yet despite receiving significant compensation for the disruption, many of their planes will be grounded with 20% of the fleet affected by the engine troubles.”
