By Guy Taylor
Analysts expect Wizz Air to report a net loss of nearly half a billion pounds this week as soaring jet fuel costs weigh the budget airline down.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said while a strengthening Euro offered some relief to rising fuel costs, “these still rose by north of 60 per cent last quarter, leading the group to expect an overall net loss in next week’s results”.
But analysts said it was not all doom and gloom for Wizz Air.
Many airlines have seen a surge in traffic and bookings in recent months, as customers opt for more trips abroad despite the ongoing cost of living crisis.
Last week, the carrier reported a 22.1 per cent year-on-year rise in passenger numbers in its May 2023 traffic figures, with its rival Ryanair also hitting similar numbers.
Conroy Gaynor, an aviation analyst at Bloomberg Intelligence, said that although “heavy losses” are expected, Wizz Air may have reached a “turning point.”
“Peers are showing strong bookings and a decline in jet fuel prices renders costs more manageable,” Gaynor said.
Wizz Air, however, has come under heavy scrutiny for its consistently poor performance recently, after a Sunday Times investigation revealed that the carrier owed Brits £5m in unpaid refunds and is yet to pay out across 881 separate court judgements.
“It’ll be interesting to see if low costs continue to trump poor service, especially as consumers’ disposable incomes remain stretched by the cost-of-living crisis,” Chiekrie added.
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