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Highlights
- FTSE250 listed passenger airline company WIZZ Air Holdings reported improved operational performance, carrying more than 2.6 million passengers in December.
- The airline company also announced that it had acquired 15 daily slot pairs from the Norwegian Air Shuttle at Gatwick Airport.
FTSE 250 listed passenger airline company Wizz Air Holdings Plc (LON: WIZZ) reported improved operational performance, carrying more than 2.6 million passengers in December 2021. Despite the rapid rise in Omicron variant cases, passengers continued to book flights during the festive season. As a result, the passenger traffic increased by 296% in December 2021 compared to the same period last year. The airline carried 21.7 million passengers, a rise of 30% in total in 2021.
The airline company also announced that it acquired 15 daily slot pairs from the Norwegian Air Shuttle at Gatwick Airport. The company’s total aircraft base at Gatwick has increased to five after the deal, which will help the company to operate on 14 new destinations from March 2022 onwards.
WIZZ’s half-yearly business performance
For the six months ended 30 September 2021, the company reported a revenue of €880.4 million, a rise of 86.8% driven by the growth in passenger tickets and ancillary revenue. The company’s business reported an EBITDA of €164.3 million. However, due to the lockdown and travel restrictions, the airline reported a loss of €120.9 million. Nevertheless, the company narrowed down its loss to €6.5 million in the second quarter.
The management has a positive outlook on the company’s future growth prospects. As a result, the company has signed an agreement with Airbus S.A.S to supply 102 Airbus A321 series aircraft, which is expected to be delivered between 2025 and 2027. The new aircraft order indicates expansion in the company’s business, including flights to new destinations and routes, which are likely to impact revenue and profitability positively.
Is it a good time to invest in a company’s stock?
The recent rise of Omicron variant cases might hurt the company’s operations. However, the management has a positive long-term outlook towards the company’s business, and once coronavirus cases come down, there is likely to be a big boost in the travel demand leading to a rise in passenger traffic and revenue growth for the business.
Investors looking to take risky bets and go contra despite the rise in the Coronavirus cases can opt for the stock from a long-term perspective. However, the investors need to do further research on the company before taking a risky bet against the prevailing market trend.
Recent Stock Performance
(Image Source: EODHD/Others)
After today’s announcement, the company’s stock saw a lot of buying interest from investors, with the share price moving up by over 10%, with a day’s high of GBX 4,649. Overall, the stock continues to be in recovery mode after the Covid-19 pandemic and is available below its lifetime high of GBX 5,595. The market cap of the company stands at £4,316 million.
