Wizz Air (WIZZ) reported a narrower operating loss in the last three months of 2022, as revenue more than doubled on the same period a year earlier. But higher costs will stop a swift return to profitability by the low-cost airline.
The company’s operating loss reduced by 27 per cent to €156mn (£137mn) as revenue rose to €912mn, up from €408mn a year earlier. It carried almost 60 per cent more passengers than in the same period a year earlier, when travel was disrupted by the Omicron coronavirus variant.
The company returned to profit on a statutory level, earning €33.5mn, compared with a loss of €267.5mn in the same period last year. This was due to an unrealised foreign exchange gain of €224mn on its debt as the euro gained against the dollar. However, chief executive József Váradi said the company still expects to record a full-year net loss, before returning to profit in by its March 2024 year-end. Fuel costs alone climbed over 60 per cent in the three months to 31 December, compared to the same quarter in 2021.
Wizz had total cash of €1.37bn at the end of the year, which was around the same as a year earlier. However, it did not provide any details on the scale of its debt, which stood at around €5bn at the end of November. In November, Moody’s downgraded Wizz Air’s credit rating to junk status.
Wizz shares fell by 7 per cent in early trading.
