LOW COST BASE, HIGH LOAD FACTORS

Wizz Air typically operates at “extremely” high load factors.

“These in turn generate significant non-ticket revenues - this combined with a low cost base, ensures high levels of profitability,” said said John Strickland, Director of JLS Consulting.

Aggressive pricing is a common strategy adopted by companies to steal market share from existing players. However, Wizz Air’s pricing strategy serves a different purpose, argues Strickland.

The airline “is more concerned with generating demand and stimulating traffic than with market share. If anything, it will stimulate market growth.”