Wizz Air’s Q3 loss swells on MidEast flight disruptions
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By Joanna Plucinska
LONDON, Jan 25 (Reuters) – Wizz Air reported a bigger third-quarter operating loss than expected on Thursday, as the budget carrier grapples with engine inspections that have grounded parts of its fleet and the suspension of flights due to the Middle East conflict.
The airline, however, maintained its fiscal 2024 net income expectations after a positive start to its fourth quarter ending March. Its shares were down 8% in early trading.
European airlines have continued to report strong results on the back of unrelenting travel demand, but the outlook is murky due to geopolitical instability, rising jet fuel costs and economic uncertainty.
Wizz Air was also one of the main airlines hit by issues with RTX engines and had said it would face a capacity reduction as a result.
The 180 million euros ($196 million) operating loss in Wizz Air’s third quarter, which ended on Dec. 31, was larger than last year’s third quarter loss of 155 million euros, driven by flight cancellations.
Analysts had forecast a loss of 93 million euros, according to an LSEG poll.
“While financial performance in the last quarter was materially affected by the suspension and reallocation of Israel capacity, we maintain our expectations for F24 net income,” Chief Executive Jozsef Varadi said in a statement.
The budget carrier will restart routes to Israel in March, it said in the statement.
There were no changes in expected aircraft groundings over the engine inspections, with 40 set to be grounded by the end of the 2023-24 financial year and capacity set to remain flat into the 2024-25 financial year.
Bookings for March and the Easter holidays in particular were strong, the company added in the statement, and results for the fourth quarter were set to be positive.
