Wizz Air Stumbles

After a bloody first half of 2022, followed by an underwhelming summer, Europe’s?Ryanair-wannabe,?Wizz Air, reported heavy underlying losses for calendar fourth quarter. Its operating margin? Negative 17 percent.

The label “Ryanair wannabe” is not an insult. Wizz in fact has an extraordinary record of Ryanair-like profit margins, using a Ryanair-like business model. Prior to the pandemic, its summer margins were routinely among the highest worldwide, reaching 32.9 percent in 2019. Ryanair’s third quarter, 2019 operating margin? 32.9 percent. Identical.

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AW Daily Headlines

EasyJet Financials Lifted by High Demand and Ancillary Revenues

Europe’s second largest airline, EasyJet, pulled off what is becoming the norm in the pandemic recovery: revenues that exceed pre-crisis numbers on significantly fewer passengers. But it was not high airfares that lifted UK-based EasyJet during the first quarter of its 2023 fiscal year, or the three months ending in December.

Budget Airlines See Half Their Market Share Evaporate on Transatlantic Routes

A new breed of long-haul budget airlines is rapidly adding new routes between the U.S. and Europe for the upcoming summer. But even with recent additions, the segment remains a fraction of the size it was four years ago — and that’s good for the airline industry’s major players.

Washington Reagan’s Traffic Exceeds 2019, That’s Not Necessarily Good for American Airlines

Travelers enjoying a pie from Washington, D.C.’s local favorite, Timber Pizza, while waiting for a flight to, say, Syracuse at Washington Reagan National Airport will enjoy one of America’s newest airport facilities.

Cathay Pacific Hopes China Travel Recovery Will Reverse 2022 Losses

Hong Kong’s decision to drop all travel restrictions during the year-end holidays came a little too late for Cathay Pacific Airways. The Hong Kong-based carrier forecast Friday a HK$6.4-7 billion ($817-894 million) net loss for 2022 despite what it described as a “marked improvement” in performance during the second half of the year.

U.S. Airlines Now Balancing Strong Ticket Sales With Escalating Costs

U.S. airlines are enjoying strong demand and ticket sales, a recent analysis by trade group Airlines for America (A4A) found. But they also face significant inflationary pressures across most key cost categories that could put a damper on earnings.

Airline Weekly Lounge Podcast

It was a busy earnings week with American, Southwest, Alaska, and JetBlue all reporting. Edward Russell and Jay Shabat previewed what they were listening for ahead of the airline calls. Plus, EasyJet’s strong December quarter revenues suggest their network shift to southern Europe is working. Listen to this week’s?episode?to find out. A full archive of the Lounge is?here.