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Wizz Air narrows losses as bookings, fares rise

By Frank Prenesti

Date: Thursday 26 Jan 2023

Wizz Air narrows losses as bookings, fares rise

(Sharecast News) - Hungary-based budget airline Wizz Air narrowed losses in the third quarter on the back of fare increases and higher booking volumes.
The carrier on Thursday posted a core loss of €2.8m for the three months to December 31, compared with a loss of €87.5m a year earlier. Wizz still expects a loss for the full year but held guidance for a return to profits in 2024.

Revenue for the period soared 132% to €911m.

"We continue to see evidence of solid fare environment as average fares (combined ticket and ancillaries) are trading above 2019 and 2022 levels," said chief executive Jozsef Varadi.

"As we reach the end of January, we are seeing booking volumes coming in ahead of 2022, which is in line with expectations."

Wizz said it would benefit from hedging and new capacity in the new year and forecast year-on-year growth of 25-30% this summer.

Victoria Scholar, analyst at Interactive Investor said shares in Wizz had surged almost 50% since the start of January, even though the stock slumped 8% in early Thursday trade.

"Some analyst price target upgrades and a broader pick-up in market sentiment. However the stock is trading lower today as profitability remains a challenge in the near-term," she said.

Reporting by Frank Prenesti for Sharecast.com

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