Wizz Air reports financial loss but says it is trying to minimise travel disruption | Business News

Wizz Air has posted a reported net loss of €642.5m (£546.5m) for the year but has promised extra resources to minimise the disruption seen across the aviation industry in recent weeks.

Airlines in the UK and across Europe have been struggling to keep up with demand as travel returns to normal for many holiday destinations for the first time since the beginning of the COVID-19 pandemic.

Group chief executive József Váradi said: “The industry is witnessing supply-chain issues across airports, including in our network.

“Shortages of staff in air traffic control, security and other parts of the supply-chain are impacting airlines, our employees and our customers directly.

“We are deploying extra resources to minimise disruptions and urge all other stakeholders to do the same, having customers’ best interests always in mind.”

Wizz Air carried more than 27 million passengers in the year to 31 March – up by 166% on the previous year, which was marred by COVID-related travel restrictions.

Mr Váradi said he believes the virus is now endemic.

He also said that the company has “managed” the trading impact from the war in Ukraine, which began when Russia invaded the country in late February.

Wizz Air said it was planning to grow capacity by over 30% and 40% in the first two quarters of this financial year and is confident it can return to pre-COVID productivity during the year.

But Mr Váradi said that, despite strong consumer demand for summer, an operating loss is expected from the first quarter of this financial year.

“The airline industry remains exposed to externalities such as air traffic control disruption and continuing operational issues within the airports sector, adding to a volatile macro environment.”

He added: “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.”