Wizz Air shares jump as it prepares to increase capacity to meet demand

Shares in Wizz Air jumped on Thursday after the carrier said demand for air travel has built in recent weeks and outlined plans to increase its flying schedules. The airline, which is listed in London and based in Hungary, will fly 30 per cent more capacity than in 2019 between April and June, and 40% more in the following three months, the industry’s peak summer period. Jozsef Varadi, Wizz Air’s CE, said the Russian invasion of Ukraine had initially “dented demand for air travel”, but the airline expected passenger numbers to build significantly into the summer, particularly as people book late. “We are starting to see recovery take shape as we move closer to the summer of 2022,” Varadi added Thursday. Shares in the airline climbed more than 7% in morning trade, as investors welcomed further signs of a rebound in air travel. “We view this update positively, as it confirms bookings are recovering strongly in a post-pandemic travel environment,” said analysts at Barclays. Other European airlines including Ryanair and easyJet have also reported sharp rises in bookings, particularly from leisure travellers during peak holiday periods. EasyJet this week said its capacity would rise to “near” pre-pandemic levels over the summer. Still, Wizz shares have fallen more than 30 per cent this year as the company’s exposure to eastern Europe and the soaring cost of oil have rattled investors. Wizz was unhedged when the oil price rose sharply in late February, but on Thursday said it had hedged 36% of its planned jet fuel consumption from April to August. “Management has sensibly capitulated on its no-hedging policy,” said analysts at Goodbody.<br/>