Wizz Air Expected to Regain Profitability

Budget airline Wizz Air expects heavy passenger traffic and higher fares this summer. The airliner is also expecting higher revenues in the 2023-2024 financial year, after posting a loss of EUR 535 million last year, according to the company's annual report.

The business news website napi.hu reports that Wizz Air's net profit for the 2023-2024 financial year could be between EUR 350 and 450 million, following a loss of EUR 535 million in the previous year.

According to the annual report, the company's loss narrowed from 642.5 million in 2021/2022 to 642.5 million last year due to record-breaking revenue and passenger traffic.

Revenue rose by 134% to EUR 3.896 billion in the year to March 31 this year, while passenger traffic increased by 88% to 51.072 million.

Earnings before interest, tax, depreciation and amortization (EBITDA) reached EUR 134.3 million, compared to a loss of EUR 23.3 million in the base period. The airline ended the financial year with a free cash position of EUR 1.529 billion.

József Váradi, CEO of Wizz Air, said the airline was better prepared for this summer, which is already the most profitable period for European airlines. "We have essentially invested EUR hundreds of millions to make our operating model much more resilient," he said in an interview.

Specifically, this could mean more spare aircraft, spare parts, pilots and flight attendants.

Wizz Air is also expecting a high number of bookings this summer and correspondingly higher fares, in line with the trends dictated by its competitors.