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Wizz Air revenue
Sherwood News

Airlines are exploring the “all you can fly” deal

More carriers are trying out the subscription model

In recent years, one of the ways that convenience has been redefined for consumers, often unprompted, is the ubiquity of subscriptions.

Indeed, while streaming services and digital publications have long touted membership models, today, everything from pet food, to mattresses, to (briefly) heated car seats, to even a bimonthly box of doomsday supplies are peddled through an increasingly present “subscribe” button at checkout.

Now, airlines are continuing to explore the idea. Wizz Air, the Hungarian low-cost carrier, is the latest to offer an “all you can fly” deal, with an annual charge of €499 ($549) for a limited time — following a similar deal from US-based Frontier Airlines announced last year, which was met with criticism.

Perhaps for Wizz Air, though, this kind of offering will put some wind beneath its wings, as the company grapples with some disappointing results. Despite total revenue crossing more than $5 billion in FY24 — with passenger ticket revenues recovering from a post-pandemic downturn — its most recent quarter saw a 44% decline in operating profit and the stock is down more than 40% so far in 2024.

Wizz Air makes nearly 45% of its revenue from what it calls “ancillary revenue”, which is a fairly long list of add-ons that people don’t usually enjoy paying for, including baggage charges, check-in fees, convenience services (e.g. priority boarding, reserved seats), booking charges, and more.

Interestingly, demand seems to be there for the deal... but it seems that people are already having issues trying to secure Wizz Air's new service, per the BBC.

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eBay stock slumps on gloomy Q4 outlook despite solid Q3 earnings

Shares of eBay fell as much as 10.5% in premarket trading on Thursday morning after the company gave a lower-than-expected profit forecast for the important holiday shopping season.

The e-commerce giant reported solid numbers for the third quarter on Wednesday, with revenue up 9% as reported to $2.8 billion and gross merchandise volume rising 10% to $20.1 billion, topping the average analyst forecast of $19.4 billion, per Bloomberg.

However, concerns about the future somewhat overshadowed these results.

eBay outlined its profit outlook for the period ending in December to $1.31 to $1.36 a share, with revenue at $2.83 billion to $2.89 billion. According to Bloomberg-compiled data, this broadly matches Wall Street’s estimates for the top line, but misses on the bottom line, with analysts forecasting EPS to come in at $1.39 — suggesting the company expects some further margin pressure.

The company has been facing macroeconomic challenges since the US ended the de minimis tariff exemption in late August, with the online marketplace reliant on shipments. One small silver lining? CFO Peggy Alford highlighted a “less durable trend” on a post-earnings call: that as commodity prices for precious metals boomed, demand for bullion and collectible coins on eBay spiked.

However, concerns about the future somewhat overshadowed these results.

eBay outlined its profit outlook for the period ending in December to $1.31 to $1.36 a share, with revenue at $2.83 billion to $2.89 billion. According to Bloomberg-compiled data, this broadly matches Wall Street’s estimates for the top line, but misses on the bottom line, with analysts forecasting EPS to come in at $1.39 — suggesting the company expects some further margin pressure.

The company has been facing macroeconomic challenges since the US ended the de minimis tariff exemption in late August, with the online marketplace reliant on shipments. One small silver lining? CFO Peggy Alford highlighted a “less durable trend” on a post-earnings call: that as commodity prices for precious metals boomed, demand for bullion and collectible coins on eBay spiked.

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