2nd Nov 2022 09:41
(Alliance News) - Wizz Air Holdings PLC on Wednesday said its half-year pretax loss widened, despite revenue more than doubling, as fuel costs soared.
Pretax loss in the six months to September 30 widened to EUR389.7 million from EUR119.6 million, the Budapest-based budget airline said. Revenue jumped to EUR2.19 billion from EUR880.4 million a year before.
The total operating expense widened to EUR2.26 billion from EUR932.3 million. Fuel costs quadrupled to EUR1.03 billion from EUR256.9 million.
Wizz Air shares fell 4.6% to 1,655.68 pence each on Wednesday morning in London.
Meanwhile, passenger numbers in October grew 52% to 4.5 million from 3.0 million a year ago. Over the 12 months to October 31, the airline booked 42.6 million passengers, more than doubled from 18.0 million the year before.
Seat capacity increased 38% in October to 5.2 million from 3.7 million a year ago. Over 12 months to October 31, it doubled to 50.0 million from 24.4 million. Load factor increased to 88% from 80% in October compared to October 2021, and over 12 months to October 31 to 85% from 74%.
Meanwhile, Wizz Air said it emitted 12% fewer CO2 grams per passenger per kilometre in October than a year ago at 54.1 grams compared to 61.5 grams in October 2021. As it carried more passengers however, total emissions widened by 41% to 415,889 tonnes from 295,066 tonnes in October 2021.
"Revenue in the first half of the fiscal year was materially higher than it was in the same period last year, and up 31% versus the same period pre-Covid-19...Revenue per available seat kilometre improved from minus 10% during the first quarter to plus 11% during the second quarter, ahead of guidance, all measured versus the pre-Covid-19 quarters. This was driven by load factors recovering and improved yields, no longer held back by Covid-19 or the war," Wizz Air explained.
As it moves into the winter, the budget carrier is gearing up to operate at a 35% higher capacity in the second half, compared to pre-pandemic 2019. Average fares are also above 2019 levels. Wizz said it is taking measures to mitigate the impact of inflation on its costs.
By Tom Budszus; [email protected]
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