Wizz Air Holdings Plc said it will return to profit this year as the peak summer travel season gets underway.
Net income in the coming fiscal year will reach €350 million ($375 million) to €450 million, the Hungarian low-cost carrier said in a statement. That compares with a net loss of €535.1 million. The so-called load factor, which indicates cabin occupancy, will be above 90% this year, Wizz said.
“We are now well placed to continue to drive profitable growth through the rest of the decade and beyond,” Wizz said in the release. The carrier said it will “continue to be disciplined and focused on cost management,” and that it will adjust operations “in the face of airport and airspace interruptions impacting all European operators.”
Wizz Air has benefited from a surge in sun-starved travelers wanting to jet abroad this summer after being cooped up during the Covid-19 pandemic. But the budget airline has not profited as much as other airlines such as Ryanair Holdings Plc and British Airways which have raised their full-year earnings outlook this year amid pent-up demand.
Wizz Air plans to have 500 aircraft in operation by 2030, but some analysts say they’re skeptical about whether the airline will be able to fill the new planes when load factor has been below that of competitors.
The fleet expansion comes as the Budapest-based carrier grows its network further into eastern Europe, opening up more routes from countries such as Poland, Albania, and North Macedonia. More than 5 million passengers flew with Wizz Air in May, a 22.1% jump compared to the same month last year, showing the airline is continuing to recover from the strict travel restrictions imposed during the pandemic.
The carrier has gained around 46% this year, compared with a 50% advance at EasyJet and a 37% advance at Ryanair.
