The ultra-low-cost carrier Wizz Air expects 2021 to be a transition year out of the Covid-19 crisis. Despite a €116 million ($140.5 million) loss in Q3 FY2020, the airline continues to focus on digital platform investments and fleet renewal. despite having suffered
According to the airline’s latest financial report, Wizz Air suffered a €116 million ($140.5 million) quarterly loss in Q3 FY 2020. The company also reported a significant decrease in passenger demand, as it carried only 2.3 million travelers throughout the quarter. Compared to the same period in 2019, the passenger numbers fell by 77% from 10 million. As a result, its revenue fell by 76.5% to €149.9 million ($181.6 million).
Jozsef Varadi, the Chief Executive of the airline, said that during Q3 FY21, Wizz Air was focused on its market position and the main goal for the air carrier was to protect the liquidity while governmental restrictions worldwide severely obstructed air travel.
“Since the period end, we have further enhanced our liquidity position with a 500m EUR 3 year bond issued on 19 January 2021 on favorable terms and reflecting our investment-grade credit rating,” Varadi was quoted in the report.
Wizz Air expanded the network with 14 bases “without materially increasing overall cost base” to date. The airline has allocated 8 aircraft at its new bases in Norway, Italy, and the United Kingdom. In addition, having continued on its expansion plans, the company added one additional A320neo and four A321neo planes to its fleet. Meanwhile, the air carrier also launched more than 50 new routes in Q3 FY2020.
Furthermore, on January 15, 2021, Wizz Air Abu Dhabi, a joint venture of the state-owned Abu Dhabi Developmental Holding Company and Wizzz Air, finally managed to make its inaugural flight from its base in Abu Dhabi. According to the report, Wizz Air also added two additional planes, taking the newly launched base to four A321neo aircraft.
The low-cost carrier plans to base up to 50 aircraft at Abu Dhabi International Airport (AUH) in the next 10 years, which would create “significant shareholder value,” noted the airline’s report.
However, the company disclosed that it would not provide the financial guidance for FY2021 due to the ongoing uncertainty in the market. Wizz Air predicted that between January and March 2021 its capacity levels would still be “depressed.”
“With the increasing administration of the Covid-19 vaccine we expect 2021 to be a year of transition with Wizz Air ready to service underlying demand in a fast and agile way as it becomes increasingly unrestricted.”