Wizz Air reports €576 million loss in 2020, expects more
Wizz Air suffered losses during the fiscal year 2021 that spanned between March 31, 2020, and April 1, 2021. Chief Executive Officer József Váradii anticipates more in the year to come if flight restrictions remain in place.
In its annual financial report, the Hungarian low-cost carrier Wizz Air reported a net loss of €576 million over FY2020, compared to a €281 million profit the 12 months before. During this period, its passenger numbers dropped by 75% to just 10.2 million.
Wizz Air successfully reduced its total operating expenses by more than 50% to € 1.17 billion, with a reduction of its workforce by 19%. In April 2020, the airline received €347million (£300 million) under the UK government’s Covid Corporate Financing Facility (CCFF) to be repaid in 2022.
Wizz Air expects more losses in FY2021, “unless we see an accelerated and permanent lifting of restrictions we expect a reported net loss during FY22.”
“We are cautiously optimistic about the recovery of the business, which has started later than what we would have liked as COVID-19 restrictions have remained in place longer than anticipated,” Váradii commented. “We have prepared the company to be an even more formidable player and to take advantage of the next phase of market opportunities that await post-pandemic. The investments we have made in our fleet and in our network over the past 12 months will soon yield results.”
The carrier expects to fly 30% of its pre-crisis capacity in the current quarter, with full capacity to be achieved only in the fiscal year 2022-23.
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