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The Markets
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Transport

Wizz Air's net losses widen despite improved second quarter

The budget airline operator reported increased net losses at the half-way stage despite an improvement in the second quarter

Budget airline operator, Wizz Air Holdings PLC (AIM:WIZZ), reported a strong rise in revenue at the half-way stage with growth of 149.2% to €2,193.8mln boosted by a healthy rebound in the second quarter.

EBITDA for the second quarter swung back into profit with a figure of €374mln, bringing the first half total to €218mln, up 32.5% against the same period last year and despite the headwinds from supply chain disruptions and higher commodity prices.

But net losses for the six months to 30 September 2022 widened to €384.3mln up from €120.9mln last year.

The group said second quarter revenue was up 41% against pre-Covid levels while revenue per available seat kilometre (ASK) improved from -10% in quarter one to +11% in the second, ahead of guidance, driven by load factors recovering and improved yields, no longer held back by COVID-19 or the war in Ukraine.

Passenger ticket revenues increased by 185.7% to €1,182.1mln, ancillary revenues jumped 116.8% to €1,011.7mln with total unit revenues up 32.4% to €4.48 per ASK and ticket revenue per passenger up by 34.7% to €44.6.

But this was offset as total operating costs also soared by 142.2% to €2,257.6mln.

Fuel unit costs jumped by 113.6% to €2.11 per ASK.

József Váradi, Wizz Air's chief executive, said: "Wizz Air delivered strong results in the second quarter of the fiscal year, after a difficult first quarter operationally.”

He said the focus continued “to be the combined approach of delivering growth while pricing for cost inflation”.

Shares slumped in early trading, down nearly 10%. On Monday, they rose sharply on rumours of consolidation within the industry.

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