Airline Post

WizzAir, the next low cost airline failure?

by Roman on 27/11/09 at 1:41 pm

It seems that East European low cost airlines are now living very hard times. After SkyEurope’s last September failure and Seagle Air in Slovakia, is it now Wizz Air’s turn?

Indeed, according to The Budapest Business Journal “The low-cost Budapest-based airline company WizzAir recorded group-level losses of 9.5m in the business year ended in March 2009”.

SkyEurope’s remake?

According to the Czech online paper Napi Gazdaság, the company never managed to post profits over the five years of its operation, and has now accumulated losses of €78 million.

The article adds that“at the same time, WizzAir has spectacularly increased the number of its passengers.” Here I think this is not a very good indicator to understand Wizzair situation. Indeed, SkyEurope was also increasing its passenger traffic several months before its end.

More strange, Wizzair manager has always declared that his company is profitable. More information will come soon I think, for now this is quite surprising.

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