Wizz Air Holdings PLC (PLC:WIZZ) said operating expenses for the quarter to June 30, 2020, shrank by 67% to €197mln as it ended the period with a €1.5bn cash pile.
The budget airline halved staff costs to €29mln with redundancies and salary cuts, while fuel costs were 66% lower at €68mln. Maintenance and airport charges were also significantly reduced as most flights were grounded during lockdowns.
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Quarterly revenue slumped by 87% to €90mln, while last year’s €75mln profit before tax swung to a €107mln loss.
The eastern Europe-focused company carried only 7% of last year’s passenger, just over 707,000.
At the end of June, 2020, Wizz Air was operating at around 70% of its capacity, compared to an average of 11.5% in the first quarter.
“Wizz Air is well capitalised to withstand the current challenges and has a highly competitive cost structure to enable it to take market share in future months,” analysts at Peel Hunt commented in a note to clients.
Shares added 3% to 3,506p on Wednesday at the opening bell.