Wizz Air (OTCPK:WZZAF) is eyeing a return to profits as European travel demand remains resilient, the company said in an annual report released on Thursday.
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The European low-cost airline notched record yearly traffic at 51.1M passengers and an over 134% jump in revenue from the Omicron-impacted 2022 to €3.895B. Operating losses widened by 1%, however, as fuel costs rose over 200%.
“F23 was a year of significant growth for the business, with our key operational and financial performance metrics moving in the right direction as we transition into the post-COVID era. During the year Wizz Air delivered industry-leading capacity increases by operating 76% more ASKs versus last year,” CEO József Váradi said. “The effects of fuel price increases and structural capacity issues at airports remained features throughout the year, but we are mitigating these through decisive actions which helped to improve ex-fuel cost performance.”
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He added that the company remains optimistic on the path ahead as demand remains strong across the network and cost-savings programs begin to bear more fruit. Váradi said he expects the company to notch a net profit in a range between €350M and €450M in fiscal 2024, up from a €535M loss in 2023.
“We are now well placed to continue to drive profitable growth through the rest of the decade and beyond,” he concluded. “The airline industry remains exposed to externalities such as air traffic control disruptions and continuing operational issues within the airports sector, but today we are a more resilient business and expect this year to deliver a new set of record operational and strong financial results.”
