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Although it has been a challenging year for airlines, Wizz Air has increased its cash balance.
As of March 31st, 2020, it reported a balance of €1,496.3 million. On March 31st, 2021, a year later, it was €1,616.6 million, which is an impressive 8% improvement. It evidences the operator’s ability to tackle any long-term difficulties.
There are a couple of reasons why the growth has occurred. First, it issued a €500 million three-year bond In January 2021. Also, it raised money through refunds on advances for aircraft and sales of assets.
However, not all of the statistics are positive. Revenue for the 2020 financial year is down 73.2%, resulting in a loss of €482 million.
József Váradi, Wizz Air Chief Executive, commented on the results: “Wizz Air continued to focus on strengthening its market position and protecting liquidity during the third quarter of F21, where sustained government restrictions severely obstructed air travel. At the end of the quarter total cash balance stood at €1.2bn. The Company has relentless discipline on cost and cash management whilst maximizing cash returns on the flights it operated. We carried over 2.2 million passengers with a load factor of 63.1%. Revenue per available seat kilometre decreased less than the load factor impact as we optimized total revenue per passenger whilst delivering another strong ancillary revenue performance.”