25th Sep 2020 07:56
(Alliance News) - Wizz Air Holdings PLC on Friday said it will operate just 50% of last year's capacity in October in light of ongoing government-led travel restrictions as a result of the Covid-19 pandemic and a subsequent drop in demand for travel during the winter period.
The FTSE 250-listed European airline also warned that it will not to operate at a higher level of capacity during winter months than its projection for October should the virus restrictions remain at current levels.
"The protection of its solid balance sheet and excellent liquidity position as well as minimising cost across all areas of the business remain Wizz Air's top priority. While conditions continue to be challenging, the relentless focus on creating a competitive advantage and strong liquidity will allow Wizz Air to emerge from this crisis as a structural winner," the Budapest, Hungary-based company noted.
Earlier in September, rival Ryanair Holdings PLC also cut its capacity for October beyond a reduction already announced in mid-August.
The Irish low-cost carrier last week said that it will slash its October capacity by 20%, on top of the 20% cut that was announced earlier. The capacity reduction was also blamed upon changes in government travel restrictions and policies.
Ryanair predicted its capacity for October would fall to 40% of levels seen the same month the year before from 50%. It expects to maintain a load factor of more than 70%.
By Tapan Panchal; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Wizz AirRYA.L