Jozsef Varadi, chief executive of Wizz Air, has pointed to a lowering of consumer confidence for the fall in profits for the airline as well as added costs from higher fuel prices and expansion.
Pre-tax profits fell by 90% to €1.8million in the three months to December compared to €14.6million in the prior-year period. Revenue rose by 21% to €512.7million, with revenue per available seat kilometre up by 5.6%. Cost per available seat kilometre rose by 9.3% including fuel, and 4.3% without fuel. There was a 22% increase in staff costs. Although the full year profit guidance remained at €270 million to €300 million, Varadi said this would depend on the outcome of Brexit.
“We just don’t know how Brexit is going to play out and how it’s going to affect the revenue lines. What we’ve started seeing is a lowering of consumer confidence,” said Wizz Air boss Jozsef Varadi.