Joseph Vardy criticized the decision-making process in the European Union after failing to develop standardized and coordinated procedures to deal with the situation. European consumers are eager to travel, but ever-changing quarantine rules and testing commitments may discourage some travel planners. There is no problem with people wanting to travel, Joseph Faraday said, the problems are the restrictive measures of governments.
France and Germany recently imposed restrictions on travelers from the UK (non-essential travel) after the Indian variant began to spread among the British. However, some see that there are political reasons behind this due to the controversy surrounding the delivery of Covid vaccines, CNBC mentions. According to József Váradi, the restrictions on British travelers are one example of how the policy affects travel rules, as vaccination is higher in the UK than in the EU, so it would be appropriate in this regard to allow Britain free travel in Europe.
According to the head of Wizz Air, the main problem is that European regulations are variable and unpredictable.
EU countries have already discussed how they will be open to tourists in the summer, but when, how and under what circumstances, each country will make a decision at the national level and will not be obligated to follow what the European institutions suggest. For example, travelers from outside the European Union are expected to come 14 days after receiving the last required vaccination, but may be required to quarantine, depending on the epidemiological situation in the country from which they are traveling. EU citizens can travel to another EU country if they can prove they have been vaccinated or submit a negative test, which can also be demonstrated with an EU digital passport. Of course, countries may still require arrivals to quarantine, but the EU’s recommendation is to suspend quarantine obligations within the EU, CNBC writes.
Wizz Air is warning investors of more losses in its announcement today for the current fiscal year after the recovery from the pandemic is slower than expected, which travel restrictions may cause. Unless the restrictions are lifted quickly and permanently, Wizz Air will be able to post a loss of net income again in the fiscal year beginning in early April. The airline ended the financial year at the end of March with a loss of €482 million, and its revenue was down 73 percent compared to the previous year. At the end of March, Wizz Air had cash holdings of 1.6 billion euros. It could operate at 30 percent of its pre-pandemic capacity in the current quarter, and the airline’s pre-crisis flight numbers could return to only the 2022/2023 fiscal year, management expects.
Wizz Air shares have already reached pre-pandemic levels, with the newspaper hitting a historic high in March of this year. The stock is up 5.5 percent since the start of the year, putting it slightly underperformed by the FTSE-100, which is up nearly 10 percent, and is down 1.1 percent today.
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