Wizz Air Reports Q3 Loss, Expects Positive Performance in Q4

Wizz Air, the London-listed budget airline focused on Eastern Europe, has announced a pretax loss of €118.4 million ($128.9 million) for the third quarter ending on December 31. This is in stark contrast to the €36.4 million pretax profit reported for the same period the previous year. Despite this setback, the company remains optimistic and has affirmed its fiscal-year guidance following a positive start to the fourth quarter.

During the three-month period, Wizz Air's revenue climbed to €1.06 billion from €911.7 million. Ancillary revenue saw an impressive 14% increase, reaching €510.9 million, while passenger ticket revenue also experienced growth of 19% to reach €553.9 million.

The airline reported an increase in passenger numbers, with 15.1 million passengers compared to 12.4 million the previous year. However, average revenue per passenger dropped by 4.3% to €70.38, and average ticket revenue per passenger decreased from €37.5 to €36.6 in comparison to the same period last year.

Wizz Air's load factor, a measure of plane occupancy, showed a slight improvement at 87.6%, up from 87.3% previously.

As of December 31, the airline had 13 grounded aircraft, which increased to 33 by January 24. By the end of fiscal year 2024, Wizz Air expects approximately 40 aircraft to be grounded due to mandatory inspections of Pratt & Whitney engines. However, the company has already received compensation for the third quarter from the engine manufacturer.

Looking ahead, Wizz Air has projected a net income between €350 million and €400 million.