Low-cost airline Wizz Air said it expected to make a first-quarter loss despite strong summer demand as it deployed extra resources to minimise disruption due to staff shortages and supply chain issues.
The airline reported a loss of €642.5m for the year to March 31, compared with a loss of €576m a year earlier. Core losses were almost at break even at €19m, compared to a €182.8m loss a year earlier.
Planned capacity growth for the first two quarters of the current fiscal year is more than 30% and 40% respectively.
The industry has seen widespread chaos in recent weeks as bookings have surged, leaving short-staffed airlines unable to cope resulting in hundreds of flight cancellations.
“The industry is witnessing supply-chain issues across airports, including in our network. Shortages of staff in air traffic control, security and other parts of the supply-chain are impacting airlines, our employees and our customers directly,” said Wizz chief executive József Varadi.
“We are deploying extra resources to minimise disruptions and urge all other stakeholders to do the same, having customers’ best interests always in mind.”
Varadi said that the sector remained exposed to externalities such as air traffic control disruption and continuing operational issues within the airports sector, “adding to a volatile macro environment”. As a result it was pulling full-year financial guidance.
