23rd Mar 2020 14:49
(Alliance News) - Wizz Air Holdings PLC on Monday said it will implement further cost-cutting measures as it called on governments to help the aviation industry.
The budget airline said capacity for March reduced by 30% compared to the same period in 2019. For March 2019, Wizz Air reported capacity at 2.9 million.
The FTSE 250-listed company has grounded 85% of its fleet. It warned although it continues to operate at 15% capacity and remains operational in Romania, Hungary and Bulgaria, potential additional travel restrictions and social distancing policies could result in all flights being halted.
Wizz added it has implemented additional cost-cutting measures which include introducing voluntary working hour reduction options and leave options with employees, as well as the suspension of salaries for the board and executive leadership for the next five weeks including for the month of April.
The company will reduce third-party spending, overhead spending, discretionary spending and non-essential capital expenditure.
"Our ever-disciplined attitude to cost and cash enables Wizz Air to take decisions that are right for crew, passengers and communities even in the context of demand and travel restrictions due to the Covid-19 pandemic in Europe," said Chief Executive Jozsef Varadi.
"However, this situation is posing a significant threat to the aviation industry and we call on governments to take non-discriminatory steps which will benefit all airlines. This will enable an industry and environment that is healthy, efficient and more environmentally sustainable and will serve passengers through enhancing the mobility of people," he added.
The stock was trading 8.8% lower at 2,078.00 pence each on Monday afternoon in London.
By Ife Taiwo; [email protected]
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