Wizz Air remains hopeful about its chances of recovery after stating that it could be back to full capacity in just 12 months. The Hungarian low-cost airline has said that it is confident in its financials and strategy, which will put it ahead of the competition.
Wizz Air back up and running in one year
Over the past few months, it’s seemed that Wizz Air has been nothing but hopeful about its chances of weathering the coronavirus. Not only has the airline been able to maintain a high level of ticket sales and launch its Abu Dhabi airline, but it’s also been eyeing expansion. Expansion is something that few airlines can say they have had the luxury of over the past months. While the pandemic has seemed to decimate travel demand and revenues for so many, Wizz Air feels somewhat separate.
What distinguishes Wizz Air from its competition is the fact that it remains optimistic about the recovery of its demand. Many airlines, like United, have been cautious about putting a date on recovery. In such an uncertain time, no one can know exactly when things will return to the way they used to be.
“…by design and by financial strengths, we are much better positioned than the rest of the industry to recover. While it may take two to three years for some, we think we’re going to get back into it within a year.”
Wizz Air’s strategy
So, just how can Wizz Air be so confident when the rest of the industry is hellbent on a more tentative approach?
Well, Wizz Air says that its focus on short-haul point-to-point business will give it the edge. It believes that this market will be one of the first to recover, putting the low-cost carrier in the prime position to receive returning custom.
What’s more, Wizz Air is also leading the way for European airline financials. It’s the European operator with the most substantial amount of liquidity to see it through the pandemic with some €1.5bn back in March. It’s no wonder it’s feeling confident.
Even looking back at what it’s achieved this month alone, Wizz is on a promising trajectory. It also managed to end Q1 of 2020 with record profits.
What are others in the industry saying?
Despite Wizz Air’s confidence, the International Air Transport Association (IATA) does not expect travel demand to return for another four years. It says that growth within the industry will only be seen after 2024. It will take until 2023 for levels of demand to be on par with last year’s.
However, those figures are for the industry as a whole. Providing a second wave of coronavirus does not close down the world’s borders again, Wizz Air will likely continue with its positive growth. Of course, every airline is different and cannot guarantee the same levels of liquidity that Wizz Air has. Do you think Wizz is too naive in its forecast?
Let us know your thoughts in the comments.