Wizz Air smashes passenger records as CEO predicts further summer growth
Wizz Air said it carried a record 15.3 million passengers in the three months to 30 June, up 25.5 per cent on 2022, as the ultra-low cost airline swung into profit on the back of soaring demand for travel.
The historic traffic figures helped the carrier report a €79m (£68m) profit, up from a €284.5m (£245m) loss the year prior.
EBITDA also swung to the green at €236m (£203.3m) up from a previous loss of €154m (£132.6m) and propped up by a 52 per cent jump in revenues to €1.2bn (£1.03bn).
Load factor – which measures the proportion of seats an airline has been able to sell – rose from 84.7 per cent to 91 per cent year-on-year.
József Váradi, Wizz Air’s Chief Executive, said: “Summer is going well operationally and from a revenue perspective… The security of our Airbus orderbook and prior operational adjustments helped us deliver a markedly improved performance for our customers, our people, and our shareholders.
He added: “We have continued our fleet allocation program and have announced further expansion in Poland, Italy, UK, North Macedonia, Georgia and Albania. At Abu Dhabi airport, Wizz Air is already the second largest airline in terms of seats. Its fleet is growing to 10 aircraft by the end of this summer.”
Extraordinary travel demand has swept across the aviation sector this summer, with numerous records broken and bumper profits for British Airways owner IAG, EasyJet and Ryanair.
Wizz Air itself said yesterday it had carried 6 million passengers in July, representing a 26.6 per cent increase year-on-year. It also announced the confirmation of an order of 75 Airbus A321neo aircrafts late in the day.
Today’s results, however, come after a week of turbulence for the ultra-low cost carrier, which has struggled under the weight of repeat scandals and turmoil over the last six months.
Just last week the Civil Aviation Authority (CAA) watchdog ordered Wizz Air to review over a years worth of compensation claims, many of which appear to have been incorrectly rejected and will now see it subject to millions of pounds worth of additional charges.
That had followed a Sunday Times investigation earlier in the year which found that Wizz Air still owed the British public nearly £5m in unpaid refunds for compensation claims, with 881 county court judgments still outstanding.
Yesterday, boss Varadi also scraped through a shareholder rebellion over plans for him to receive a bonus of up to £100 million – should he hit share price targets by 2028.
Ruth Griffin, leisure partner at Gowling WLG, said of today’s results: “The past year has been challenging for the aviation sector and Wizz Air has been no exception, but the start of summer has seen the airline reach new heights with a significant increase in passenger numbers over June.
She noted: “Demand has been extremely strong since the end of the pandemic but the airline still faces strong headwinds with the millions in refunds it needs to pay-out to its passengers as well as the ongoing cost of living crisis meaning it has to contend with competitors to offer the best value for money on flights.”