Wizz Air’s financial performance has resulted in a profit in the first quarter of its financial year. As we know, a financial year is the 12-month period a company uses for accounting purposes. In the case of Wizz Air’s finances, the year starts on 1st April 2023 to 31st March 2024. Wizz Air’s financial performance in this quarter is good news for the company, given that it made a loss at its year-end.
Many airlines have been struggling since the pandemic. During this time, governments around the world imposed restrictions on foreign travel. As a result, demand for air travel slumped, and like many other airlines, Wizz Air’s financial performance suffered. To make matters worse, when pandemic restrictions were lifted, the surge in flight demand caused congestion at airports and mass flight delays and cancellations. This was because there were staff shortages, as many had been laid off when demand was less during the pandemic. Other problems also ensued. The war in Ukraine and the resulting sanctions against Russia have also created issues as flight paths have had to be restricted or re-routed, and fuel prices have surged. Wizz Air has, however, been helpful in the conflict as it assisted in providing emergency evacuations to people trapped in Ukraine in the early stages of the Russian invasion.
Wizz Air’s Financial Performance
It does appear now that in terms of Wizz Air’s finances, the company is starting to reap the rewards of its earlier benevolence. In the three months up to 30th June 2023, Wizz Air’s financial performance resulted in a profit of 61.1 million euros. This is significantly higher than the 452.5 million euros loss in the three months ending 30th June 2022. Wizz Air’s finances have improved from a several hundred-million-euro loss to a multi-million euro profit, which bodes well for the company.
In terms of Wizz Air’s revenue (total money received), the company made a figure of 1.2366 billion euros in the three months up to 30th June 2023. This was 52.9% higher than the 808.8 million euros made at the same time in the previous year. This marked improvement in revenue shows that Wizz Air is attracting more customers. However, the increase in Wizz Air’s revenue is less marked than the increase in profit. This shows that Wizz Air’s financial performance has also resulted from a greatly improved ability to control costs.
The Company’s Response
Jozsef Varadi, Chief Executive Officer, said the company has done well operationally. This means that it has performed well in terms of delivering its services (for example, providing flights and ensuring smooth customer service). In addition, he comments positively on Wizz Air’s revenue. He also adds that Wizz Air continues expanding its reach and has been named by World Finance Magazine as the most sustainable low-cost airline for the third year running. By saying that Wizz Air’s financial performance is most sustainable, the magazine suggests that the airline can maintain its low cost and still survive and grow positively. It also appears that Wizz Air, which has adopted the use of SAF (Sustainable Aviation Fuel), has taken the opportunity in this quarter to secure its supply for years to come.
As one can see, Wizz Air’s financial performance this quarter is good news for the company, as it has turned over a profit compared to a year-end loss for its last financial year. The company also continues to expand, with its Chief Executive giving positive messages.
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