Wizz Air on Course to Become First European Airline to Recover to Pre-COVID-19 Traffic Levels

No-moat Wizz Air expects a return to prepandemic capacity levels over the 2021 summer period as the group released a good set of results for the first quarter of fiscal 2022. Free cash generation was positive during the quarter, supported by cash inflows from advanced bookings for the summer period ahead, while liquidity remains robust at EUR 1.5 billion. The company reported an underlying loss of EUR 119 million, compared with a loss of EUR 57 million in the prior year comparable period. Management is hesitant to provide financial guidance for the full year and maintains a cautious tone regarding the outlook for the second half amidst the rise of new variants. We believe the group is taking a conservative stance and if the current trajectory remains on course, we might well see a surprise to the upside and break-even profits for fiscal year 2022.