Wizz Air (LON:WIZZ) announced plans to initiate the development of at new base in London Luton, signalling a reaffirmed commitment to the UK in the wake of Brexit.
The low-cost airline revealed that the new base will be completed on the 18th of June of this year, showcasing an additional new Airbus A320 aircraft. Alongside the development, it intends to increase its presence at the London airport with supplementary routes. These new routes are to include locations such as Tel Aviv and Prishtina, as well as Kosovo.
The announcement comes amidst an increasingly difficult climate for airlines in Europe, particularly in the aftermath of various terrorist attacks and continued Brexit uncertainty. Competitors such as Easyjet (LON:EZJ) and Ryanair (LON:RYA) have already felt the impact on revenue, posting disappointing quarterly results. Similarly, Wizz Air warned in July that result projections would have to be reassessed in the wake of UK’s decision to leave the EU, halving growth expectations.
Chief executive Jozsef Varadi acknowledged the fall in pound value had affected profits, but noted that the airline remained committed to the UK:
“By establishing base operations at London Luton, where Wizz is already the second largest operator and an important supporter of local jobs with our business partners, we are also creating direct local jobs with one of Europe’s fastest-growing airlines for the first time,” he commented.
Despite initial concerns regarding profit margins, the airline remains positive in its outlook for 2017. Wizz Air said it expects to offer approximately 6.3 million seats on its London Luton routes, which makes up 13 percent of growth year on year.
Wizz Air is currently the second largest air carrier operator at London Luton Airport, having transported over 5 million passengers in 2016. Luton itself is London’s fourth largest airport, with over 12.2 million passengers passing through the airport in 2015.
Shares in the Hungarian airline operator are currently up 0.36 percent as of 11.20AM (GMT)