By Scott Kanowsky
Investing.com -- Budget carriers Ryanair (IR: RYA ) and Wizz Air (LON: WIZZ ) reported an uptick in passenger traffic figures for June on Monday, in tentative signs that a post-pandemic recovery in customer demand is returning despite headwinds facing the broader air travel industry.
Ryanair said it carried a record monthly high of 15.9 million passengers during the period, more than the treble amount posted last year. The airline's load factor, which measures how much seating capacity has been filled by customers, also rose to 95% from 72%.
Elsewhere, Hungarian-based peer Wizz Air said it flew more than 4.30 million passengers in June, up by over 178% year-on-year. The carrier's load factor for the month also jumped to 86.1% from 64%.
The increases point to a potential comeback for demand for the airlines, particularly during the key summer travel season. However, issues still persist for the companies and the broader airline sector.
Ryanair is facing strikes from cabin crew unions across Europe, as they call for wage hikes and improved working conditions. The labor actions have recently led the low-cost carrier to delay and cancel flights.
Wizz Air has warned of rising costs stemming from axed flights and "operational hiccups" at airports, especially in the United Kingdom. It also said earlier this year that it expects to slump to an annual loss of between €632 million and €652 million, despite an expected pick-up in summer bookings.
Meanwhile, global airlines are battling to contain their losses as pandemic-era restrictions are lifted across the world. But industry leaders have flagged that labor shortages at carriers and airports may cause further travel disruptions and potentially weigh on future growth.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.