Wizz Air expects annual loss of up to €590m

(Sharecast News) - Lost cost airline Wizz Air said on Thursday that it's set for a full-year loss of up to €590m and that it expects only a "gradual" traffic recovery into late summer.

In a post-close trading update for the year to the end of March 2021, the company said it's expecting a reported net loss of between €570m and €590m. Its full-year underlying loss is expected to be between €475m and €495m, including an estimated €95m in discontinued fuel hedges.

The airline insisted that it is maintaining its investment grade balance sheet and strong liquidity position, with a total of €1.62bn in cash at year-end. Total cash burn in the fourth quarter was €87m.

Wizz said the start of this financial year continues to be marked by travel restrictions across its region and it expects only a gradual traffic recovery into late summer 2021, "following what is expected to be a period of good progress of national vaccination plans across key markets".

Chief executive officer József Váradi said: "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.

"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 did not provide any guidance for the year to 31 March 2021 due to uncertainty around travel restrictions.