Hungary Airlines suffers brutal losses: is the future of its flights in danger?

According to HVG, Hungary Airlines, often referred to as Hungary’s new flag carrier, made a huge loss last year. However, it still has more than HUF 2 billion (EUR 5 million) in its bank deposits.

Hungary Airlines operates at a loss

Although the press regularly refers to Hungary Airlines as Hungary’s new flag carrier, it is not Hungarian-owned but has a Chinese background. It started in 2021, so it’s not new; however, it does not serve passengers and transports only cargo between Hong Kong and Budapest.

Based on its 2024 financial report, Hungary Airlines increased its income sevenfold. However, it made a HUF 200 million loss. In 2023, the business was profitable with HUF 421,000 (EUR 1,042). They have HUF 2 billion in bank deposits, and the company has a liability balance of HUF 3.6 billion, HVG wrote.

Hungary Airlines operates the state-owned Airbus A330 cargo plane, which Wizz Air operated previously. They have been serving the Hong Kong-Budapest cargo route with that plane since February.

Chinese owners

51% of the airline’s shares are owned by Wu Jiang, a Chinese businessman who has been living in Hungary for 30 years and has Hungarian citizenship. He had at least one joint business with Orbán’s son-in-law, István Tiborcz. Furthermore, during the COVID pandemic, CECZ Central European Ltd., in which he also owns shares, received HUF 1.18 billion from the ventilator purchase business.

Last October, another Chinese transport company, UTL Digital Logistics Co. Ltd., acquired 49% of the shares. Last November, Air Hungary Ltd. bought half of this company’s shares, acquiring 24.5% of Hungary Airlines. Air Hungary Ltd. operates under Hungary’s foreign ministry.

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