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Wizz Air sees gradual recovery this summer as losses mount

Wizz Air Holdings PLC (LON:WIZZ) said it expects only a gradual recovery in  air travel this summer as losses for the year to end-March 2021 rose to almost €600mln

The Central Europe-based carrier said renewed travel restrictions due to the new wave of coronavirus in Europe had affected the start of this financial year, though it expects a pick-up as vaccination programmes are rolled out.

In the short term, Wizz Air said it was adjusting capacity to the travel conditions in any country and would adjust flights on a market-by-market basis as opportunities arise. 

Losses for the year just ended are expected to be in a range of €570-590mln including a €95mln fuel hedge write-down but József Váradi, chief executive, said it was well-financed to continue to weather the storm.  

“Despite the continued impact of the pandemic, we are well-prepared with one of the strongest balance sheets in the airline industry,” he said.

Wizz Air had total cash/cash equivalents of €1.62bn at the March year-end, with a cash burn of €87mln in the fourth quarter of the year.

There was no guidance for the year to March 2022 because of the uncertainties around travel restrictions.

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