Wizz Air chief executive sells down

The Hungarian airline’s disclosure of the disposal preceded news that it had operated at 80 per cent capacity in August. Wizz warned, however, that it expects this to drop to 60 per cent for its second financial quarter, as travel restrictions return in Europe amid a spike in coronavirus cases in some countries. 

The International Air Transport Association (IATA) has lambasted government measures to restrict border access and impose quarantines. “Too many governments are fighting a global pandemic in isolation with a view that closing borders is the only solution,” IATA director general and chief executive Alexandre de Juniac said.

Capacity may remain at around 60 per cent for Wizz’s third quarter if current travel restrictions persist, the airline observed, which is lower than the 80 per cent level it previously expected. Wizz’s August load factor, which shows the percentage of available seating that is occupied by passengers, sat at 71 per cent, which was just shy of Ryanair’s (RYA) August level of 73 per cent. 

The airline cautioned that capacity may come down even further and that it may ground part of its fleet as winter sets in as it bids to protect its cash levels. Wizz had €1.59bn (£1.41bn) in cash at the end of June, which was only 3 per cent beneath its cash position at the end of June 2019. The self-proclaimed “fastest-growing European airline” added two new UK bases, a host of routes and four new Airbus aircraft last month, taking its fleet to 130 jets.

Wizz’s latest annual report indicates that Mr Váradi had a stake of 2 per cent in the company in the year ending 31 March 2020. The airline did not respond to requests for comment.