Hungarian Wizz Air to increase ticket prices
The Hungarian low-cost airline always highlights that they are Europe’s fastest-growing company in the sector. Of course, the epidemic affected them, but the Hungarian government tried to help them out. Thus, they received a lot of transport assignments, during which they carried healthcare equipment and vaccines to Hungary. However, it seems that their Q4 numbers from 2021 will be so bad that increasing the ticket prices seems inevitable.
According to reuters.com, Wizz Air’s fourth-quarter loss will be more than in Q3 when it reached 213.6 million euros ($241.2 million). That is because of the Omicron variant, which affected their sales significantly in the second half of 2021. Furthermore, it will have an impact until March, causing travel uncertainties. Of course, other airlines suffer from the same factors. They had been on a rollercoaster ride in the last two years because the governments regularly changed travel rules in their efforts to contain the spread of the virus.
CEO József Váradi told the news website that Wizz Air “cut costs and acquired new landing slots”. Therefore, they are waiting for the recovery in a better position than their main competitors, Ryanair and EasyJet. They expect to exceed the 2019 capacity levels by 50 pc in August-September.
“We are expecting a very strong recovery path of demand in the next few months,”
he said.
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However, he also highlighted that costs are increasing. That means fuel, the increasing wages, and the financial demand of regulatory changes. As a result, he said that fare prices would go up in the short term. He added that he expects “overcapacity in the next three to six months as rivals return to the market.”
Mr Váradi said that all airlines would have to juggle with higher input costs while offering competitive fare prices. That will be the most important challenge of 2022.
He also said that, thanks to the recent decision of the British government, they experienced a significant rise in demand.
Iho.hu reported that Wizz Air has a 10-year-plan, during which it would like to expand its fleet to 500 aircraft and employ 4,600 pilots. To do so, they need new pilots, and that is why they inaugurated their new, full-flight simulator in Budapest. It enables the company to train 1,700 pilots per year.
The new simulator. Photo: https://www.facebook.com/wizzair/
Reuters reported that despite the losses, Wizz Air had liquidity of 1.4 billion euros at the end of December, making it one of the leaders in the market. Iho.hu says that one of the main factors contributing to the losses is that Wizz Air expanded its fleet and employee numbers even during the epidemic. That is because its CEO believes that recovery will be quick. Thus, they can conquer the market then.
Source: Reuters, IHO
1 Comment
Greed & Explotation.
Economic Rational – application, validity or reason(s) – Nil.
This decision by Wizz Air – adds to the growng list – that is “Festering” not just Hungary but the World, nor driven by Globally seen increases of Inflation – but by Human manipulation – those with invested interests to line there own pockets at the expense of vast millions/billions of Society – that is solely – Greed & Explotation.
Airline Operators- International/Domestic – within Europe & the United Kingdom – the “Broadshet” of operators have been BATTERED – through the arrival on-going of this Novel Virus.
They at present are Screeming out to get “Bums” on there seats – to fill there aircrafts with passengers – in the HOPE – they are able to SURVIVE.
Tourism – is distanced – in Europe & the United Kingdom and Globally – of returning to an inkling or resemblance of NORMALITY – pre February 2020.
We will witness further Airline operators – who will not SURVIVE – from differant tiers or size of operations – within the Aviation Industry.
Disposable income is a Major Factor – in airlines such as Wizz Air – Hungarians and people from other nationalities – why they travel.
Hungary – post February 2020 – have our pockets as a country – grown, that provides for us – millions of our 9.6 million – to affort a holiday – to travel ???
Answer : NO.
Human life – our Quality of Life – Hungary and Globally – has been SMASHED – post February 2020 – the arrival – ongoing – of this Novel Virus.
Hungary has been changed – the World has been changed – and the “ZENITH” of Change – in Hungary – Europe & the United Kingdom & Globally – is distanced in its returning to a degree of Normality.
Rapid swing changes – Economic & Financially – in Hungary & Globally – will be what we in Hungary are faced to live our lives for the net 2 – 5 years.
Normality – the broadness use of the word – Economics & Financial – Human life, will be a TIER or Stage Process – that will not be Possible to occurr within 2 to 5 years.
Globally – Hungary we have still un-chartered waters ahead – that will not be navigated through in a short period of time but take over 2 – 5 years.
What as we are witnessing in Hungary and this article relating to Wizz Air – there Greed & Explotation – what are we going to be Faced with – in the COST of Human Life – our mere existance – INCREASING ???
Humans – through Democracy – use it – as it gives US all a VERY VERY – Powerful Voice.
Governments – it is not there job to keep us in ORDER.
People/Citizens – its OUR Job – to keep Governments in ORDER.
NOTHING – is in Hungary – Europe, the United Kingdom & Globally – Get Cheaper – in the immediate of forseeablr FUTURE.
Humans/Citizens – we can OBJECT – if we continue to be exploted driven by GREED – that has NO – fundamentals that could be applied to Economics & Financial principals.
Wizz Air like Ikea – price RISING – blatant GREED.
The balance sheets of just these (2) two – can affort to BLEED deeper than we can overall as HUMANS – in these CHALLENGING times – and they DESERVE to be “SHAMED’ and Embarrassed – for there un-justified Price Increases.