Wizz Air raises full year net profit guidance

Yesterday Wizz Air Holdings reported a positive first half of its financial year ending 31 March 2016 ahead of its annual general meeting (AGM). The airline said that it is on target to deliver operating and net profit margins ahead of the same period last year.

With the continued expansion of its network, Wizz Air estimates that it will grow capacity by around 18% (previously 17%) in the 2016 financial year, split approximately 17% in H1 and 19% in the second half of the financial year. The airline stated that lower fuel prices are feeding through to lower air fares and that it anticipates the downward trend in unit revenues to continue in the second half of the financial year and reiterates that the company has very limited visibility of demand in the final quarter of its financial year.

Nonetheless the strong H1 financial performance, combined with robust bookings for the third quarter, are encouraging and Wizz Air now expects to report a net profit for the full year (excluding unusual and exceptional items) in the range of €190 million to €200 million.

“We are very pleased with summer trading and anticipate that this will translate into another record quarter for Wizz Air,” said József Váradi, Wizz Air Chief Executive. “We have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra-low cost base.  We are also very excited about the arrival of the A321s from November this year. These aircraft will underpin our growth plans for the next decade and further improve our cost competitiveness.

We continue to deliver against our ambition to make safe, reliable, affordable air travel available to everyone in Central and Eastern Europe. Our ultra-low cost model gives us a clear cost advantage versus most of our rivals, including many other low cost airlines, and as a result we are able to offer our passengers low fares and sustain a relatively high growth rate compared to other carriers. We have a strong balance sheet, proven management team, best-in-class fleet and leading market position in CEE. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders”.