EU budget flyer Wizz Air eyes summer rally pushing share price up 7%
European low cost airline Wizz Air (WIZZ) forecast a lower-than-expected loss for its fourth quarter as a recovery in the airline industry begins to “take shape”.
In a trading update on Thursday, the company also said demand trends have been encouraging over the past few weeks and summer bookings should improve significantly after Easter, sending its shares more than 7% higher.
The shares, which had lost a third of their value this year, hit £30.96, a six-week high.
The low-cost airline forecasts an operating loss of between 210 and 190 million euros for the quarter. This exceeds the loss of 213.6 million euros estimated when the third quarter results were published in January. However, Wizz Air anticipates a net loss of between 652 and 632 million euros for the financial year ended March 31, 2022.
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“During 2022, the aviation industry continued to be affected by Covid-19. The latest virus variant, Omicron, was found to be mild in nature, which helped ease government travel restrictions on the majority of our network,” Wizz Air said.
“Unfortunately, the war in Ukraine has weighed on demand for air travel and destabilized commodity prices around the world,” said József Váradi, Managing Director of Wizz Air. But the airline boss added that “we are starting to see the recovery taking shape as we get closer to the summer of 2022”.
“Looking at the full year of March 2023 from a financial perspective, the release notes that the focus will be on maximizing revenue and returning to pre-Covid productivity, which will result in improved profitability,” said broker Davy.
Wizz Air will publish its annual results on June 8, 2022.
Issue date: April 14, 2022