Wizz Air had a rather good year in 2023. Passenger traffic for the Hungarian-born airline reached more than 60 million passengers in the fiscal year. And this trend is continuing, with the average aircraft load factor expected to reach 90% for the current year. Wizz Air was a speciality of Central and Eastern Europe. The airline serves 194 airports in 54 countries in Europe, the Middle East and North Africa. This includes 32 bases, the largest of which are Budapest, Warsaw, Bucharest, Vienna and Sofia. Wizz Air serves 12 airports in Poland and Romania, 11 airports in the former Yugoslavia and 4 airports in Bulgaria...
According to Robert Carey, Chairman of Wizz Air, interviewed during the forum CLJ Aviation Event In mid-March, geopolitical factors were probably the most disruptive to a growth trajectory. " While we were focusing on the evolution of traffic and demand, the conflict Israeli-Palestinian had a negative impact on the last two quarters of our financial year. For example, with the cancellation of flights to Tel Aviv, but also a noticeable slowdown in Egypt and Jordan. I think that over the coming year we can only hope for more stability. If we are able to concentrate on being a very good airline and being able to continue to meet the challenges" he explains.
Unforeseen events due to the geopolitical situation and Airbus A320 engines
The company has shown flexibility. The drop in capacity in the Middle East has been offset by more flights since December to Italy and Spain, as well as the resumption of regular services to Moldova. In fact, it seems that the pandemic has not altered Wizz Air's growth trajectory too much either. " Before the pandemic, we had 115 aircraft. Last summer, we had 174." says the Chairman of Wizz Air.
According to Robert Carey, Wizz Air recorded much stronger growth than its main European low-cost competitors. " Over the last two or three years, our capacity has increased by more than 60%." he assures us. The company has invested in its growth, which is, according to its management, the best answer for its future and for its investors and partners.
By the end of the fiscal year, the Wizz Air fleet had grown to 207 aircraft, all from the Airbus A320 and A321 families. However, problems with the Pratt & Whitney GTF engines fitted to the Airbus A320s clouded this virtually uninterrupted progress. " Some 40 aircraft are now grounded for inspection and will not be available before the end of the year. This has of course forced us to review our summer schedule, with a number of temporary flight suspensions at all our airports." explains Robert Carey.
Growth on all fronts
Responding to a question about growth being THE source of profits, the Chairman of Wizz Air was unequivocal. " Absolutely. On average, it takes three years to develop a new market and reach a good level of profitability, enabling you to generate profits. But once that level of profitability has been reached, very rapid growth. If you look at our history, we have been able to grow at a rate of around 15 % and generate double-digit margins." he says.
The rise in air fares due to higher operating costs, inflation and the added value to be paid for greener air transport should not affect demand in the short term. " For the moment, customers are still there, passengers still want to travel. The destabilising factors have little influence, since we have load factors of over 90 %. And we're not seeing a drop in passenger numbers, far from it. Travel has in fact become a consumer product like any other for many people." says Robert Carey.
