The regulator stepped in following concerns over high volumes of complaints about the airline and its failure to meet passenger rights obligations.
The authority began action last year after a summer of disruption. It said the budget airline had failed to meet passenger rights obligations, particularly around providing alternative flights when the original was cancelled.
The carrier had numerous problems due to staffing levels and the CAA said passengers felt Wizz Air was not providing appropriate care when flights were significantly delayed. The airline has made undertakings to ensure it now complies with re-routing and care obligations.
Wizz Air was also required to review previously assessed claims for replacement flight costs, transfers when replacement flights were via different airports, and care and assistance - typically hotel costs - following disruption. This led to more than 25,000 claims being re-examined, and additional payments given in around 6,000 cases.
The regulator’s action covered claims made for flights from 18 March 2022.
Paul Smith, CAA consumer director, said: “While we welcome the steps taken by Wizz Air after falling short in its treatment of disrupted passengers, airlines should routinely look after passengers and uphold their rights when flights are delayed and cancelled.
“Passengers have every right to expect their claims to be resolved quickly, efficiently and in line with the regulations. These outcomes will now provide Wizz Air’s passengers with a better experience.”
Wizz Air said it had “fully complied” with the deed of undertaking signed with the CAA last year following the disruption. It added it had invested £90 million to improve its performance and operations in 2023, resulting in a flight completion rate of 99.24%.
“Furthermore, 90% of refunds are now processed within five days. The airline has also now identified and paid all known County Court Judgements,” it added.
’Unprecedented challenges’
Wizz Air UK managing director Marion Geoffroy said: “Like all airlines in Europe, we faced unprecedented operating challenges in the summer of 2022 but the improvements we put in place have led to a better customer experience and our performance in 2023 was among the strongest in the industry.”
Actions taken including adding stand-by aircraft, increased staffing and building more time into crew rosters and between flights to make schedules more resilient. The refund process has now been automated and four new contact centres opened for customer service.
The CAA crackdown last summer came as Wizz Air’s UK-based chief executive Jozsef Varadi negotiated an extension to a potential £100 million bonus target. Varadi will receive the cash in 2028 if the airline’s share price, currently below £20, reaches £120.
