Wizz Air Group CEO updates guidance, forecasts profitability in FY2024

Wizz Air Group CEO József Váradi provided (26-Jan-2023) the following outlook:

• Continued cost management is driving ex-fuel CASK towards earlier guidance. Wizz Air caught up with peers in terms of systematic jet fuel hedging impact through FY2024. Ex-fuel CASK is expected to return to pre-COVID-19 levels in FY2024;
• Continued evidence of a solid fare environment as average fares are trading above 2019 and 2022 levels. Mr Váradi added booking volumes are ahead of 2022 levels towards the end of Jan-2023. Mr Váradi said: "We remain optimistic and maintain our RASK guidance for H2 F23 at mid-single digits above the same period in 2019";
• On track to operate 35% higher capacity compared to H2FY2020. For H1FY2024, the planned ASK growth is 30% compared to 2023 and 65% compared to 2019. As with the Q3FY2023, the company expects slightly more ASK contribution from longer routes connecting locations in the Middle East and Near East, as this region continues to attract a higher volume of passengers;
• Load factors improving. The load factor gap is expected to continue to close compared to 2019 in the coming quarters as recent network investments start to mature;
• Overall net loss expected in FY2023, however profitability is forecast for FY2024, subject to no adverse pandemic or geopolitical events. [more - original PR]