The Budapest-based ultra-low-cost air carrier Wizz Air announced it expected to face a net loss of up to €495 million for the full financial year of 2021. The company revealed that during the last quarter of FY2021 it burned €87 million in cash. Despite the significant loss, the airline still bets on a gradual traffic recovery in late summer 2021.
Although the pandemic continued to affect the financial stability of Wizz Air, Chief Executive Officer Jozsef Varadi said that the airline managed to save its positions in the market and was “well-prepared with one of the strongest balance sheets“.
“Our network expansion and the investments we have made in our fleet over the past 12 months ensures we are well placed for a return to normal operations and we are convinced we are now even better positioned to be a structural winner in the European aviation sector,” the CEO was quoted in the Wizz Air statement calling the airline as a well-positioned to be “a structural winner” in the European aviation sector.
Even though the beginning of the new financial year of 2022 is still marked by air travel restrictions, the airline forecasted that recovery signs might appear in the summer season of 2021, where the company bet on the progress of the national vaccination plans across its key markets. In the short term prospects, Wizz Air revealed plans to review aircraft allocation on a market-by-market basis while focusing on a cost base to minimize the cash burn rates.
“We expect only a gradual traffic recovery into late summer 2021,” read the statement.
The low-cost airline forecasted that the full-year underlying loss could reach between €475 million and €495 million while its balance sheet is expected to preserve total cash of more than €1,6 million.
However, due to the uncertainties around air travel restrictions, Wizz Air rejected to provide guidance for the next financial year ending on March 31, 2022.
