Low-cost carrier Wizz Air reported revenue of €911.7 million and operating costs of €1,067.2 million for the third quarter of the 2023 financial year (Q3 FY2023).
The Q3 results mean the Hungary-based airline expects to report a full-year loss, but with ticket revenues up 186.3%, a return to profit is expected for the FY2024 as traffic reverts to pre-pandemic levels.
A breakdown of the quarterly results showed ticket revenues reaching €464.7 million, ancillary revenues up 81.7% to €447 million, ticket revenue per passenger increasing by 79.9% to €37.50. Wizz carried around 12.3 million passengers over the three months, for a load factor a shade over 87%.
However, Wizz said its total operating costs increased by 71.6%, topping the billion-euros mark, with fuel costs up 61.6%.
In turn, total cash fell 2.4% to €1,367.1 million, with net foreign exchange gains of €224.1 million as the euro strengthened versus the US dollar and as greenback liabilities were revalued at the end of period.
"Revenue in the quarter grew significantly at +123% versus same period last year, while revenue per ASK [available seat kilometre] was 50% higher versus the same period last year and +4% versus 2019," chief executive József Váradi said.
"On the cost side, operational adjustments contributed to a significantly lower flight disruption cost compared to prior quarters. The strengthening euro currency helped to reduce overall fuel and certain maintenance costs; however, its biggest impact was on revaluation of US dollar leasing liabilities, reversing most of the prior two quarters’ losses and helping to deliver a net profit of €33.5 million for the quarter," Varadi said, adding that the carrier's management "continue to expect an overall net loss in F23, but remains confident that F24 will be profitable."
Among the operational highlights mentioned by the carrier were the opening of a new base in Suceava in Romania and the addition of 11 aircraft spread between Albania, Austria, Cyprus, Georgia, Italy, Poland and Serbia. Also announced over the period were expansions taking in routes to Turkey and Saudi Arabia, as well as additions of aircraft in Abu Dhabi and Israel.
The carrier said it took delivery of nine new A321neo aircraft over the time, leaving it with a fleet of 177, with the delivered aircraft financed through sale and leaseback transactions.
Wizz won the Airline Economics “European Capital Markets Deal of the Year” for its 500-million-euros bond issued in 2022, an award it acknowledged in its results report.