Budget carrier Wizz Air Holdings PLC on Thursday reported first-quarter revenue growth, though a swing to loss amid a rise in financing expenses and a foreign exchange hit.

Shares in the Budapest-based, airline were down 13% to 1,670.00 pence each in London on Thursday morning.

In the first-quarter ended June 30, total revenue improved 1.8% to €1.26 billion from €1.24 billion a year prior.

It reported a €4.5 million pretax loss, however, swinging from profit of €67.1 million.

Its total operating expense was 5.0% higher at €1.21 billion from €1.16 billion. It reported a net foreign exchange loss of €10.1 million, compared to a gain of €17.1 million a year prior. In addition, net financing expenses climbed to €49.0 million from €12.8 million.

‘Our performance this quarter demonstrates the resilience of Wizz Air’s ultra-low-cost business model. Despite the competitive landscape and ongoing supply chain challenges, our strategic focus on delivering the lowest fares, improving our route network, and maintaining high operational efficiency has yielded results,’ Chief Executive Jozsef Varadi said.

‘Looking ahead, capacity is stabilizing and we are focusing on further optimizing our operations, with an emphasis on improving our most profitable bases and enhancing efficiency. We remain optimistic about the demand outlook, with both ticket and ancillary [revenue per available seat kilometres] expected to be up year-on-year while load factor is maintained above 90%.’

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