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Wizz Air tipped for full year loss but service issues should improve

Published 01/06/2023, 15:45
© Reuters.  Wizz Air tipped for full year loss but service issues should improve
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Proactive Investors - Wizz Air Holdings PLC (LON:WIZZ) has already anticipated a net loss for the full year, though next Thursday, 8 June’s results should shed light on the budget airline’s recovery from a spate of service issues.

Wizz is still exposed to some £5mln of unpaid refunds due to delays and cancellations, which saw it dubbed the latest airline from UK airports in April, according to Hargreaves Lansdown (LON:HRGV) analyst Aarin Chiekrie.

Regardless of the title, Wizz scored a near-60% rise in passengers to 12.4mln people during the third quarter, prompting revenue to more than double year-on-year to €911.7mln.

“It’ll be interesting to see if low costs continue to trump poor service,” Chiekrie commented, “especially as consumers’ disposable incomes remain stretched by the cost-of-living crisis”.

Wizz has somewhat managed to improve its service in recent months, Chiekrie acknowledged, which should lead to fewer disruption costs than previous quarters.

FTSE 250-listed Wizz already predicted a net loss for the year in a third-quarter update but reassured this summer should see a return to pre-pandemic trading levels, paving the way to a profitable 2024.

Read more on Proactive Investors UK

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