Malév Hungarian Airlines, which reported a pre-tax loss of EUR94.4 million in 2009, stated the carrier will need fresh capital of between EUR37.7 million to EUR56.6 million to continue operations, according to Nepszabadsag (Reuters, 02-Apr-2010). The carrier will hold its AGM in May-2010.
Malév Hungarian Airlines reports re-tax loss in 2009, will need fresh capital
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Wizz Air: city pair overlap with Ryanair on one third of seats. Opportunities for both; CASK crucial
Wizz Air and Ryanair are Europe's two lowest cost airlines, and most profitable airlines by operating margin. Together with Pegasus they form a small group of European ultra-LCCs. Unlike Pegasus, whose business concentrates on Turkey-Europe and domestic Turkey, both Wizz Air and Ryanair have bases in several countries.
However, while Ryanair is Europe's largest airline by seats, with a pan-European network and 84 bases, Wizz Air focuses on the niche between Central/Eastern Europe and Western Europe. All of Wizz Air's 25 bases are in Central/Eastern Europe, where it is the largest airline and Ryanair is number two. This superiority in CEE is based on Wizz Air's greater share of capacity in most of the larger country markets in the region (but not Poland), while in fact Ryanair is bigger in more (mainly smaller) countries.
In Jul-2016 Wizz Air faces Ryanair competition on 14% of its city pairs, covering 30% of its seats. Moreover, Ryanair is expanding rapidly in CEE, with five new bases this winter, increasing this overlap to around one third of Wizz Air's capacity. For Ryanair, the overlap represents a higher proportion of its CEE capacity, but only a very small share of its total seat numbers.
CAPA global airline financial outlook
Operating margin to reach new high in 2016, but this may signal a subsequent downturn. CAPA’s global airline operating margin model indicates that the industry was more profitable in 2015 than it has been for almost five decades. Moreover, the model predicts that world airline operating margins will rise further above previous historic peak levels in 2016. These new levels of profitability are mainly thanks to the low oil price environment, coupled with strong demand growth in spite of global economic growth rates that are far from exceptional.
Much of the industry is also benefiting from a period of relative capacity discipline. New revenue sources may also be helping, although their role in airline profitability is still emerging.
The macroeconomic and geopolitical backdrops provide the main risks to this forecast. Beyond that, the biggest challenge for the industry will then be to try to sustain margin levels, rather than to allow a peak to be followed by a rapid downturn, as has always happened in the past. But downturns can play a positive role in industry development, possibly even stimulating consolidation.