Hungarian authority probes Wizz Air for concealing information from passengers
Wizz Air Hungary might find itself in a challenging situation, as the Hungarian Competition Authority has initiated proceedings against the corporation, according to the Hungarian News Agency (MTI). The reason behind the proceedings is that the airline is suspected of concealing crucial information regarding its free online check-in services, potentially causing avoidable costs for passengers.
The accusation is based on information discovered by the office of the Hungarian Competition Authority. Wizz Air Hungary Plc. is accused of concealing important information on its website between December 2022 and May 2023. Specifically, passengers with return tickets were unable to check in online for free from their mobile phone browsers due to the specificities of the website’s mobile view. The consumers affected by this later had to pay an airport check-in fee of around EUR 40.
A clear warning
In October 2022, the Hungarian Competition Authority had already announced that, in justified cases, it would be examining the enforcement of fair competition rules within the framework of competition supervision procedures in the market after conducting a sweep analysis of the flight companies available in Hungary. The goal of the analysis was to examine whether the airlines employ so-called dark patterns in their ticket sales and advertising practices on their websites and popular ticket-price comparison pages.
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Other troubles
Wizz Air not only has to face the consequences of their actions if the authorities find them guily of hiding imformation, but the company also closed their previous quarter with a loss of EUR 180 million, despite the increase in their passenger numbers, according to AIRportal.hu. Wizz Air carried a record of 15.1 million passengers between October and December in 2023, an increase of almost 22% compared to the 12.4 million in the same period a year prior.
At the end of December, 13 aircraft had been grounded due to issues with Pratt & Whitney engines, for which the company received a penalty from the manufacturer. There are different reasons why the company may find itself in a troublesome situation regarding its finances. The conflict in the Middle East, along with a decrease in revenue per passenger-kilometre (8%), ticket revenue (6,1%) and revenue from additional services (10%), has impacted the company. The operating result showed a loss of EUR 180 million, which analsyts expected to be significantly lower. However, the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) level was a positive at EUR 18.7 million.
Coming horizons
In the next financial year, Wizz Air’s fleet will be bolstered by 30 new A321neo aircraft, and the leases for 13 existing aircraft have been extended. Additionally, three more dry-lease aircraft will be added and there are plans to increase the utilisation of the operational fleet and the number of daily flights. These measures are expected to contribute to resolving Wizz Air’s financial problems.
In relation to the proceedings, the initiation of competition proceedings does not automatically imply that the undertaking has committed the infringement. The purpose of the procedure is to clarify the facts and verify the alleged infringement. The assigned time for the procedure is three months, with the potential for two extensions, each lasting a maximum of two months if deemed justified.
Wizz Air’s reaction
The official reaction from Wizz Air which was issued later on Wednesday stated that they had already “resolved” the issue long ago and would provide every necessary information to the Hungarian Competition Authority. The airline emphasized : “Wizz Air does everyhing possible in t he interest of keeping its passengers informed in a transparent manned and continuously upgrading its services.”