Wizz Air Posts €114.5m Loss Over Last Three Months of 2020

Wizz Air Posts €114.5m Loss Over Last Three Months of 2020.

Low-cost carrier Wizz Air is confident it will emerge from the Covid-19 crisis as a ‘structural winner’ despite posting a €114.5 million loss in the final three months of 2020.

The budget carrier expects 2021 to be a “transition year” and plans to “fully restart operations as soon as travel restrictions reduce.” In its third quarter 2021 results, it carried almost 2.3 million passengers in the three months to December 31, 2020, a 77.3 per cent decrease compared to the same period in 2019 “as a direct result of widespread travel restrictions imposed by governments due to Covid-19”.

József Váradi, chief executive, said: “Wizz Air continued to focus on strengthening its market position and protecting liquidity during the third quarter of F21, where sustained government restrictions severely obstructed air travel. The company has relentless discipline on cost and cash management whilst maximising cash returns on the flights it operated. Revenue per available seat kilometre decreased less than the load factor impact as we optimised total revenue per passenger whilst delivering another strong ancillary revenue performance.”

Váradi noted that Wizz had secured a €500 million bond on “favourable terms” earlier this month, and said: “We remain focused on optimising our cost structure and cash burn.

Wizz Air has also updated its travel insurance option to include Covid-19 cover through its partner provider Chubb. The policy now covers medical-related expenses when travelling abroad if customers contract Covid-19 on their trip, or cancellations as a result of Covid, on top of lost, stolen or damaged baggage and missed departure.

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