- Wizz Air and Ryanair report double-digit increases in passenger numbers for June
- Travel stocks pulled higher in their slipstream
- Post-Covid recovery was hit by delays and cancellations in 2022
After a 2022 when the post-Covid travel recovery stalled amid airport delays and flight cancellations, the latest passenger numbers from Wizz Air (WIZZ) and Ryanair (RYAAY:NASDAQ) suggest the sector is in better shape heading into the 2023 summer holiday season.
Their positive updates helped lift the likes of TUI (TUI), up 3.3% to 604.5p, and beach holiday specialist On The Beach (OTB), up 5% to 101.4p.
Wizz shares were up 1.7% to £28.40 as the Hungary-based budget carrier reported a 22.5% year-on-year increase in passenger numbers in June. The load factor (how full its planes are) was 92.2% up 6.1 percentage points. The company has been in expansion mode, building its fleet of planes and adding new routes.
Ryanair reported a 9.4% increase in passengers carried for June compared with the same month in 2022 and a month-on-month increase of 2.4%. The total of 17.4 million represents a new record level. Its own load factor was up from 94% in May to 95%.
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The strong figures came despite the airline having to cancel more than 900 flights last month thanks to industrial action in France.
AJ Bell investment director Russ Mould commented: ‘Low-cost airlines are having a whale of a time thanks to the sharp rebound in travel demand. The decision to expand fleet capacity during the cost-of-living crisis was a calculated risk and the move is now paying off.
‘Strike action remains the key hurdle to clear, particularly over the all-important summer period. There are additional airport and airline-related strikes threatened for the coming months which could see big delays or cancellations, causing further mayhem.
‘The frequent recurrence of these issues means a lot of travellers have become used to the problems that come with flying, but they still go ahead and book flights. Airlines will be thankful for that, although they would prefer a much smoother experience for the customer.’
DISCLAIMER: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Tom Sieber) and the editor of the article (James Crux) own shares in AJ Bell.
