Hungary's Wizz Air expects profitable summer 2023 season

Published: June 12 2023

Wizz Air, the Hungary-based low-fare carrier, has forecasted a profitable summer season due to strong bookings, higher fares, and a big investment in its operations to avoid the chaos experienced last year.

Wizz Air is hopeful that it will be able to swing to a profit this year after reporting a loss of €535.1 million for the business year ended 31 March. The airline is expecting a net profit between €350 million to €450 million for the year ending March 2022, provided there aren't any major negative events like the Ukraine War. Their growing fleet, strong bookings, and higher fares for the summer season are expected to contribute to their success.

Wizz Air experienced significant losses last year due to Russia's invasion, which impacted the airline's performance as well as other airlines, leading to the suspension of operations. With the rebound in air travel, labor shortages, and chaos at airports arising last summer, the airline also had to cancel flights.

As summer is the most profitable period for European airlines, the airline is better prepared this year by having more spare aircraft, spare parts, and extra pilots and cabin crew available. Despite Wizz Air's forecast, investors' trust seems to be yet to be won as the airline's shares have seen a decline since May 17th on a one-month basis.

Wizz Air is seeing strong bookings and higher fares for summer, which is in line with what their competitors are experiencing.

What is Wizz Air? Wizz Air is a low-cost airline based in Hungary.

Is Wizz Air profitable? Wizz Air reported a loss for its business year that ended on 31 March 2021, but it is expecting to swing to a net profit of 350 million to 450 million euros for the 12 months to the end of next March 2022, dependent on no major negative events occurring.

What factors contributed to Wizz Air's loss for the business year ended 31 March 2021? The main contributing factor was Russia's invasion, which significantly impacted Wizz Air's performance, forcing it to suspend operations there. Additionally, Wizz Air was forced to cancel flights last summer after chaos at airports emerged due to a faster-than-expected rebound in air travel, coupled with labor shortages.

Why is summer the most profitable period for European airlines? Summer is the most profitable period for European airlines because it is the peak season for travel and tourism.

Is Wizz Air expecting a profitable summer season? Yes, Wizz Air is expecting a profitable summer season due to strong bookings, higher fares, and a big investment in its operations to avoid last year's summer travel snags.

How has the stock market reacted to Wizz Air's profit forecast? Wizz Air's profit forecast resulted in the airline's shares lifting by 3% on Thursday. However, since then, they have seen a decrease, continuing the negative tendency witnessed since its May 17th peak, on a one-month basis.

Is Wizz Air prepared for this summer season? According to József Váradi, Wizz Air's CEO, the airline is better prepared this summer with more spare aircraft, spare parts, extra pilots, and cabin crew available.