1st Sep 2020 10:09
(Alliance News) -Â Wizz Air Holdings PLC on Tuesday warned capacity may stall at 60% in the third quarter as it noted renewed travel restrictions imposed across Europe and in Hungary.
Shares in Wizz Air were down 6.7% at 3,626.00 pence in London on Tuesday.
The central and eastern Europe-focused airline said it expects capacity for the second quarter of the financial year at around 60%. If "mobility restrictions" across the network persist, capacity is likely to remain at around 60% in the third quarter, as opposed to 80% as previously anticipated.
"Further capacity reductions remain a possibility and as a result, Wizz Air may park parts of its fleet throughout the winter season to protect its cash balance. The company remains focused on safeguarding its strong balance sheet and excellent liquidity position," said Wizz Air.
It added that its low cost business model is a "significant competitive advantage" against the current backdrop for airlines, and it is confident of emerging as a "structural winner" from the Covid-19 crisis.
By Lucy Heming;Â [email protected]
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