Wizz Air Holdings PLC (AIM:WIZZ) reported an increased loss in 2022, predicted more losses in the first quarter of next year and said it will not provide further financial guidance due to the "volatile macro environment".
The low-cost carrier reported a net loss of €642.5mln for fiscal year 2022, compared with €66.4mln previously, as net financial expenses increased, exacerbated by net foreign exchange losses. Underlying loss per share was €6.37, up from €5.64 in 2021.
Revenue increased 125% to €1.66bn, a year after the pandemic ground most flights, as it boosted passenger throughput 166% to 27mln in 2022, by diversifying its flight network amid changing travel restrictions.
The airline industry is currently suffering from supply-chain issues across a number of airports and a shortage of air traffic control capability since the pandemic and disruptions associated with the Ukraine war, the Hungarian airline’s chief executive József Váradi said in its earnings statement today.
“Whereas F22 passenger numbers and asset utilization remained well below pre-Covid levels resulting in a reported net loss of €642.5mln for F22, the reported loss in the fourth quarter was ahead of our guidance driven by an improving trading environment," he said.
"Rising energy costs and inflation across Europe will continue to favour ultra low-cost carriers as consumers reconsider spending choices. We are partially hedged over the summer providing partial protection against fuel price surges and we continue to look at opportunities to extend these insurance coverages for the full fiscal year at the right conditions.”
While unit costs in the industry fell 18% this year due to better fleet utilisation, Wizz Air said its operational expenses grew 68%.
Váradi said the airline plans to grow its capacity by 30% and 40% in the first two financial quarters of fiscal 2023, by increasing its fleet, predicting passenger loads of 85% in the first quarter but also warning of a fare increase by the second quarter.
Shares slumped 6% to 2,594p in early deals.