Wizz Air Holdings PLC Operational Update (2395H)
March 23 2020 - 9:06AM
UK Regulatory
TIDMWIZZ
RNS Number : 2395H
Wizz Air Holdings PLC
23 March 2020
Wizz Air Holdings Plc
Operational Update
Ticker: WIZZ
Geneva, 23 March 2020: Wizz Air Holdings Plc ("Wizz Air" or the
"Company"), the largest low-cost airline in Central and Eastern
Europe, today provides an operational update in light of the
current unprecedented travel restrictions introduced by governments
across Europe to cope with the COVID-19 pandemic and the subsequent
decline in demand for air travel.
On average, Wizz Air's capacity is reduced by 30% year-on-year
for the month of March. As of this week, Wizz Air has grounded
around 85% of its fleet. The company continues to operate 15% of
its capacity and remains operational in Romania, Hungary and
Bulgaria, but the grounding of the entire fleet remains a distinct
possibility over the next period, as potential additional travel
restrictions and social distancing policies issued by authorities
may make international flying for commercial purposes either
untenable or impossible. The health and safety of crew and
passengers remains Wizz Air's top priority. We continue to partner
with the relevant authorities and follow their guidelines.
For the avoidance of doubt, Wizz Air will resume all flights as
soon as reduced travel restrictions and governmental policies allow
commercial operations. Whilst difficult to predict the duration of
the pandemic, given the significant balance sheet strength and
liquidity, as well as the company's ultra-low cost business model,
Wizz Air is confident in its ability to survive even a potential
prolonged grounding substantially beyond the current estimates for
the impact of COVID-19 in Europe.
To further secure our strong financial position during the
reduction in capacity, the company has implemented additional
cost-reduction measures in third-party spending, overhead spending,
discretionary spending and non-essential capital expenditure. In
addition, we have implemented measures to secure our strong cash
position working with vendors, suppliers and authorities.
We have rolled out a series of voluntary working hour reduction
options and leave options with our employees. The Board and
Executive Leadership Team of the company will be foregoing their
salaries for 5 weeks including the month of April. Through all of
these extraordinary and unparalleled events, we have had tremendous
support of our people across all countries we operate in to put
these interventions in place and to be ready to restart full
operations as soon as travel restrictions allow for this.
As announced previously, the Company will provide an F20 trading
statement ahead of the Company's full year F20 results which will
be released on 21 May.
József Váradi, Wizz Air Chief Executive commented:
"Our ever-disciplined attitude to cost and cash enables Wizz Air
to take decisions that are right for crew, passengers and
communities even in the context of demand and travel restrictions
due to the COVID-19 pandemic in Europe.
Wizz Air's ultra-low cost business model and our strong balance
sheet provide a solid foundation and a significant competitive
advantage in the current challenging environment for airlines,
while also making us a long-term structural winner in the aviation
sector.
However, this situation is posing a significant threat on the
aviation industry and we call on governments to take
non-discriminatory steps which will benefit all airlines. This will
enable an industry and environment that is healthy, efficient and
more environmentally sustainable and will serve passengers through
enhancing the mobility of people."
ABOUT WIZZ AIR
Wizz Air, the largest low-cost airline in Central and Eastern
Europe, offers more than 710 routes from 25 bases, connecting 154
destinations across 45 countries. A team of more than 5,000
aviation professionals delivers superior service and very low fares
making Wizz Air the preferred choice of 40 million passengers in
the past 12 months. WIZZ operates an all-Airbus fleet of 121
aircraft. Its A320s are equipped with 180 seats, its A321s with 230
seats and its A321neo aircraft with 239 seats. According to the
latest data of the Swiss airline intelligence provider CH-Aviation,
Wizz Air has one of the youngest airline fleets in the world. Wizz
Air is listed on the London Stock Exchange under the ticker WIZZ
and is included in the FTSE 250 and FTSE All-Share Indices. Wizz
Air is registered under the International Air Transport Association
(IATA), Operational Safety Audit (IOSA), the global benchmark in
airline safety recognition. The company was recently named one of
the world's top ten safest airlines by airlineratings.com, the
world's only safety and product rating agency, and 2019 - Airline
of the Year by Air Transport Awards the only international awards
that recognizes the year's most outstanding performers in the
aerospace industry in the most important categories.
- Ends -
For more information:
Investors: Evelin Horvath, Wizz Air +41 22 555 9863
Media: Tamara Vallois, Wizz Air: +36 1 777 9324
Edward Bridges / Jonathan Neilan, FTI Consulting
LLP: +44 20 3727 1017
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END
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