Wizz Air Holdings PLC (AIM:WIZZ) said today it would cut flights this summer due to labour shortages and strikes at European airports.
Having earlier said that it was heading for a record summer, József Váradi, chief executive, confirmed it would cut capacity by 5% for the summer to reduce the impact of "ongoing external disruptions".
Other airlines have already reduced capacity though it seemed the central Europe-focused carrier was bucking the trend.
Earlier, it had reported a net loss of about €450mln (£381mln) in its first quarter to end June due to airport disruptions, lower utilization, a tougher pricing environment and a stronger dollar.
The dollar’s strength resulted in a foreign exchange loss of €136mln for the quarter.
The low-cost airline said unrealized foreign exchange losses, the cost of disruptions and the lower utilization in the quarter, combined with the pricing environment, especially in April and May, resulted in an operating loss of €285mln for the quarter.
Even so, it added it expects to report a “material operational profit” in the second quarter as revenue and pricing momentum improves, albeit not by as much as previously expected.
READ: Wizz Air losses widen as airline industry hit by 'volatile macro environment'
Revenue per available seat kilometre (RASK), a measure of passenger carrying capacity, was down 10% in the first quarter versus fiscal 2020, as a lower load factor reflected the airline’s efforts to pass on higher input costs to its passengers.
The airline said its liquidity remained strong, with its cash balance at the end of June improving to €1.5bn.
--adds flight cut news--