(Reuters) – European budget airline Wizz Air said on Thursday it was reinstating a jet fuel hedging policy, to be executed over the next few weeks, and placing additional fuel price caps for the second half of fiscal 2023, as it battles soaring fuel prices.
The London-listed airline’s return to fuel hedging comes as the Russia-Ukraine crisis has sent fuel prices higher amid a gradual return to travel. Severe losses during the COVID-19 pandemic prompted Wizz to pause its programme.
Aviation firms across the globe, including Air France, Europe’s easyJet and Britain’s IAG use oil hedges to counter high oil prices.
“This (hedging) will allow us to focus on what we are best at – attracting consumers into our franchise at the lowest fares versus competition, enabled by lowest cost, operated by the youngest fleet in a fast growing region,” said Chief Executive József Váradi.
The revised policy comes a week after Wizz forecast quarterly operating loss as it suffered significant costs from cancellations and “operational hiccups” at airports, especially in the United Kingdom.
(Reporting by Amna Karimi in Bengaluru; Editing by Shailesh Kuber)