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Wizz Air swings to loss as passenger numbers slump
5th Nov 2020 10:44
(Sharecast News) - Budget airline Wizz Air said on Thursday that it swung to a loss in the first half as passenger numbers slid due to coronavirus restrictions.
In the six months to 30 September, the company swung to a statutory net loss of €243.1m from a profit of €368.8m in the same period a year ago, with passenger numbers down 70.7% to 6.5 million. Revenue slumped 71.8% to €471.2m.
Passenger ticket revenue fell 78.9% to €201.8m and ancillary income, or non-ticket revenue, was down 62.3% to €269.4m.
Wizz said the drop in ticket revenue was driven by the passenger demand environment "which was strongly impacted by the travel restrictions due to Covid-19".
Chief executive officer József Váradi said: "During the winter period, we expect conditions to be particularly challenging with ongoing travel restrictions due to Covid-19 as well as the seasonal drop in demand for travel. We will continue to focus on cost management and strive to maintain cash-positive flying with a disciplined approach towards capacity.
"Notwithstanding the challenges that lie ahead of us during the remainder of this fiscal year, we have laid the foundation for a swift recovery: in addition to expanding into new markets, we intend to retain all our current staff base and thereby generate a head start for when demand returns."
Wizz said that due to the ongoing uncertainty caused by the pandemic, it is not in a position to provide guidance on net profit for the financial year 2021.
In the six months to 30 September, the company swung to a statutory net loss of €243.1m from a profit of €368.8m in the same period a year ago, with passenger numbers down 70.7% to 6.5 million. Revenue slumped 71.8% to €471.2m.
Passenger ticket revenue fell 78.9% to €201.8m and ancillary income, or non-ticket revenue, was down 62.3% to €269.4m.
Wizz said the drop in ticket revenue was driven by the passenger demand environment "which was strongly impacted by the travel restrictions due to Covid-19".
Chief executive officer József Váradi said: "During the winter period, we expect conditions to be particularly challenging with ongoing travel restrictions due to Covid-19 as well as the seasonal drop in demand for travel. We will continue to focus on cost management and strive to maintain cash-positive flying with a disciplined approach towards capacity.
"Notwithstanding the challenges that lie ahead of us during the remainder of this fiscal year, we have laid the foundation for a swift recovery: in addition to expanding into new markets, we intend to retain all our current staff base and thereby generate a head start for when demand returns."
Wizz said that due to the ongoing uncertainty caused by the pandemic, it is not in a position to provide guidance on net profit for the financial year 2021.