Shares of Wizz Air Holdings PLC (LON: WIZZ) rose 6% to a 7-week high after the European low-cost carrier said it operates at around 70% of capacity at the end of June, better than expected.
Still, the Hungarian airline swung to a loss as the COVID-19 outbreak created havoc in the international travel industry. Wizz Air reported a pretax loss of 107.4 million euros for the 2021 first fiscal quarter that ended June 30.
The firm earned 75.5 million euros in the same period last year. Revenue crashed 86% to 90.8 million EUR compared with 691.2 million EUR a year ago.
Despite a huge quarterly loss, the Chief Executive Jozsef Varadi is optimistic.
“I believe Wizz Air will emerge as a structural winner post-Covid-19,” he said.
“We used to be debating the recovery of the pandemic is ‘V’ shape or ‘U’ shape… I think we should expect a rollercoaster effect. The world is living in a very complicated situation and in every country, there are clusters or outbreaks,” Varadi told CNBC.
Wizz Air share price gained 6% to trade at 3598p, which is a new 7-week high for the stock.