Wizz Air sees modest operating profit on strong summer demand

Adds details on results and background

July 11 (Reuters) – Hungarian budget airline Wizz Air WIZZ.L on Monday forecast a “material” quarterly operating profit on strong summer demand, but may reduce its aircraft usage in peak summer period to hedge for labour shortages and strikes at European airports.

After a blip caused by the Omicron coronavirus variant, travel demand has roared back, with airlines betting on summer holiday travel in July-September to boost their bottom-line.

Airlines have raised fares to offset higher fuel costs, with pilots and cabin crews making a case for higher pay due to inflation.

The company reported an operating loss of 285 million euros ($288.99 million) in the first quarter amid rising fuel costs and a strengthening dollar.

($1 = 0.9862 euros)

(Reporting by Eva Mathews in Bengaluru; Editing by Uttaresh.V and Sherry Jacob-Phillips)

((Eva.Mathews@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.