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(Alliance News) - Wizz Air Holdings PLC is bracing itself for a net loss of as much as EUR590 million for the financial year just ended, it said on Thursday.
The Hungarian low cost airline said it expects to report a net loss of between EUR570 and EUR590 million for the year that ended March 31, swung from a EUR281.1 million net profit the year before.
Underlying loss is expected to be between EUR475 million and EUR495 million, swung from the EUR344.8 million underlying net loss it made in 2020. Wizz Air said the only exceptional cost it expects to take is EUR95 million for discontinued fuel hedges.
However Wizz Air said it remained in a strong cash position with EUR1.62 billion in cash at year end, after taking steps to shore up its finances. This is a 4.7% decline from the EUR1.70 billion cash balance it had at the end of the third quarter in December, after a EUR87 million cash burn in the final quarter.
With uncertainty regarding summer travel opportunities across the continent, Wizz Air said it expected "only a gradual traffic recovery into late summer 2021" before what it expects to be a period of good progress of national vaccination plans.
"Despite the continued impact of the pandemic, we are well prepared with one of the strongest balance sheets in the airline industry, flying one of the youngest and most efficient fleets and having a well-defined, proven business model," said Wizz Air Chief Executive József Váradi.
"Our agility and relentless focus on costs and cash are significant competitive advantages. Our network expansion and the investments we have made in our fleet over the past 12 months ensures we are well placed for a return to normal operations, and we are convinced we are now even better positioned to be a structural winner in the European aviation sector."
Wizz Air will release its full year results on June 2.
Shares were trading up 0.4% at 4,882.00 pence in London on Thursday morning.
By Will Paige; willpaige@alliancenews.com
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