The air travel chaos has become an everyday problem. While every third Ryanair flight is delayed, WizzAir has got some issues with punctuality, too. On 19 July, for example, 22 percent of Hungarian WizzAir’s flights did not arrive on time.
Thousands of late and cancelled flights, capacity problems and skyrocketing prices await travellers this summer. According to Forbes, we are lucky if we reach our destination on time this summer. Although tourism specialists were expecting a big comeback in the spring, their calculations were not right. On Monday, 18 July, more than 25,000 flights around the world were delayed, and 3,000 did not even take off, reports Forbes.hu.
Almost every third Ryanair plane (29 percent) is late, and 22 percent of Wizz’s planes did not reach their destination on time on 19 July. It is no wonder that, in addition to rapidly increasing ticket prices, this causes dissatisfaction among tourists. According to experts, the time of cancellations and delays is not over. Unfortunately, this “new normal” can be part of our lives for at least another year.
As we have written before, labour shortages at airports is one of the main issues. Among others, Budapest Airport suffered from the lack of workforce, too. Due to the pandemic, airports began to introduce downsizing. However, now more than ever, labour force is needed again. They simply cannot lure back people who moved to sectors that also provide a guaranteed livelihood during COVID.
Moreover, the mass retirement of the baby boomer generation of pilots creates problems. As veterans make up a fairly large part of the total workforce, airports cannot allow the retirement avalanche. In addition, professionals can get a license for single-pilot flights for 60 years, and for multi-pilot flights for 65 years.
Last but not least, spare parts orders and repairs also fell victim to the supply chain chaos. Due to the technical problems, many planes cannot take off.
Despite the structural problems and the excess profit tax, Wizz Air’s shares are worth buying according to the recommendation of Concorde’s analysts. At the beginning of July, they calculated a 61 percent appreciation potential in their analysis. Since their downgrade on 29 April, Wizz shares have fallen by more than 40 percent. Despite short-term risks, the share price, which has remained largely unchanged since the beginning of July, looks extremely cheap. “We expect that the dominant paradigm will change and the financing of national airlines will be cut off from the government coffers. As a result, Wizz’s strategy may prevail in the future,” says the analysis.
Source: forbes.com, forbes.hu