Hungarian low-cost airline Wizz Air warns of tougher times than expected in its financial statements. At the same time, CEO Joszef Varadi is entering the political fray with harsh criticism of EU governments' flight ban over Belarus.
"I don't think it's the right reaction. I don't think the flight should be used as a tool for political sanctions," says Joszef Varadi.
“These are political measures”
He adds that the incident on May 23 of this year – in which a Ryanair plane appears to have been forced to land in Minsk, where at least one Belarusian passenger was arrested – is a security policy issue that has nothing to do with aviation safety.
"I don't think anyone was in danger for a single second. These are political measures. These are not security measures," he says of the EU sanctions.
The EU is simultaneously preparing significantly more extensive sanctions against Belarus, including against the country's national airline and a dozen high-ranking executives within the country's aviation authority, according to government sources.
There may also be even more significant sanctions against Belarus, targeting the country's financing with bonds, or the country's oil sector, or an import ban on potassium carbonate from the country.
Meanwhile, Wizz Air reports a loss of 576 million euros for the financial year that ended in March.
"If we do not see an increased and permanent dismantling of restrictions, we expect to make a net loss even for the 2022 financial year," says Varadi.
Not directly affected
The Hungarian low-cost airline has increased the number of active and planned air bases to 43 during the pandemic, compared to the previous 25. And the company's aircraft fleet has also increased significantly – from 16 to 137 aircraft.
During the current quarter, Wizz Air expects to use approximately 30 percent of its capacity and full capacity utilization is not expected to occur until the financial year ending in March 2023.
According to CEO Varadi, operations are not directly affected by the flight ban over Belarus. Wizz Air's flights to and from Russia - which could have been affected - have already been cancelled due to COVID-19 restrictions.
Source: TT
