4th Nov 2021 10:43
(Alliance News) - Budget airline Wizz Air Holdings PLC on Thursday said it expects its operating loss to widen in the third quarter of its current financial year, "based on current market conditions".
The Budapest, Hungary-based company reported revenue growth of 87% year-on-year to EUR880.4 million in the six months to September 30 as it carried 12.5 million passengers, up from 6.5 million a year prior.
Passenger ticket revenue more than doubled year-on-yer to EUR413.8 million, while ancillary revenue - derived from goods or services other than ticket sales - increased by 73% to EUR466.6 million.
Pretax loss narrowed to EUR119.6 million from EUR237.4 million in the first half of financial 2021.
In the six months to September 30, Wizz Air has taken delivery of 13 new A321neo aircraft, while redelivering six A320ceo aircraft, ending the second quarter with a total fleet of 144 aircraft. Fleet average age stands at 5.2 years.
"The second quarter of this fiscal year marks Wizz Air's return towards 2019 traffic levels as we continue to transition to operational normality and see more people return to flying despite lingering restrictions," said Chief Executive Jozsef Varadi.
Looking ahead, Varadi added: "We are stimulating demand with pricing given the continued impact of Covid-19. Additionally, FX and commodity markets continue to be volatile and are impacting our financial performance."
Wizz Air said, based on current market conditions, it anticipates an operating loss in the third quarter of around EUR200 million. This compared to an operating loss of EUR51.9 million posted for the first half of its current financial year.
FTSE 250-listed Wizz Air shares were trading 0.3% lower in London on Thursday at 4,805.00 pence each.
In addition, the company said it appointed of Anna Gatti as independent non-executive director with immediate effect. She currently serves as independent non-executive director at Intesa Sanpaolo Bank, Fiera Milano, and WiZink Bank in Spain.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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