UPDATE 2-Wizz Air sees travel recovery from spring after tough winter

* H1 loss 145 mln euros vs 369 mln euros profit last yr

* CEO sees capacity at 30% to 50% over the winter

* Shares down 2.5%
(Adds CEO comments, share price)

By Sarah Young

LONDON, Nov 5 (Reuters) - European budget airline Wizz Air
said on Thursday it was positioning itself for an
expected recovery in air travel in the spring, buoyed by its
cash-rich position which should see it through a tough winter.

Hungary-based Wizz Air, which in recent years has expanded
from eastern into western Europe, has so far withstood the
pandemic better than some larger airlines, continuing to add new
routes and take delivery of new aircraft.

The airline vies with Europe's biggest carrier Ryanair
for the title of lowest-cost player, and like Ryanair
sees some opportunity during the downturn for growth while
competitors such as easyJet, British Airways
and Lufthansa are planning to shrink.

Chief Executive Jozsef Varadi said that after months of
restrictions due to the pandemic, which pushed the carrier into
the red in the first half of this year, he saw "light at the end
of the tunnel" from spring when the second wave of the virus is
expected to ease and a vaccination could be available.

"People want to travel. The moment restrictions fall away,
demand explodes," he said, saying that his focus was on laying
the foundations for that recovery by adding new bases, routes
and keeping current headcount.

"I would be expecting a more positive movement on capacity
... once we are approaching spring and going into summer."

Wizz expects to fly 30% to 50% of last year's capacity over
the winter period, Varadi said, compared to Ryanair's plans to
fly 40% and easyJet on 25%.

With 1.6 billion euros ($1.9 billion) in cash, Wizz could
survive for two years even if it did not fly said Varadi, adding
that there were no plans to ground the fleet despite new
lockdowns across Europe.

That cash-rich position contrasts with the situation at some
competitor airlines. Air France and Air Europa have been rescued
by governments, while easyJet and British Airways-owner IAG have
raised new cash from shareholders.

For the six months to Sept. 30, Wizz reported an underlying
net loss of 145 million euros, on passenger numbers which
plunged 71% due to coronavirus travel restrictions.

That was a slightly bigger first-half loss than analysts had
forecast and shares in Wizz were down 2.5% at 3,403 pence at
0842 GMT. They have fallen 13% this year, holding up better than
other airline groups in Europe.
($1 = 0.8506 euros)
(Reporting by Sarah Young, Editing by Paul Sandle and Susan
Fenton)