Wizz Air: the departure tax is not our biggest problem

Wizz Air carries a third more passengers today than before the pandemic. However, the weakening forint, the strengthening dollar and the plunge in oil prices are weakening the airline’s position. The Hungarian low-cost airline has not incorporated the departure tax into its ticket prices, József Váradi, the company’s CEO, told HVG.

HVG asked József Váradi, CEO of Wizz Air, about the cost of the departure tax for the company and how they are trying to recover it, whether they are planning domestic flights, and how the investigation into the summer flight cancellations is progressing.

On cost increases and the departure tax

The CEO pointed out that the general trend in the industry is for prices to rise as costs increase. Wizz Air is also negatively affected by the weak euro and the rising price of kerosene, while technological improvements and fleet renewal are driving prices down. However, Váradi added that the upward price effect is expected to be stronger in the next 1-2 years.

As for the special tax, Váradi said that it would mean a 3-4 percent increase in costs for the company. This is relatively low compared to the fact that the weight of kerosene in costs has increased from 30 percent to 50 percent before the pandemic and the euro has weakened 20 percent against the dollar, Portfolio. As for the fuel hedging, Váradi said that from April 2023, the company’s hedging scope will revert to the pre-pandemic period. However, the truth is that the company is not well funded in the current period, he added.