Wizz Air ‘trades well’ in H1 of financial year
Hungary’s low-cost airline Wizz Air “traded well” in the first half of its financial year ending on March 31 and “is on target to deliver operating and net profit margins ahead of the same period last year”, the airline confirmed today in an announcement, prior to their AGM.
Wizz Airʼs new livery being unveiled this May. (Photo: LaMography/Christian Keszthelyi)
Due to the continuous expansion of its network, Wizz Air expects to grow its capacity by approximately 18% in this financial year, split by approximately 17% in H1 and 19% in the second half of the financial 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 by approximately 17% in the first half and 19% in the second half. In line with previous estimates, lower fuel prices are feeding through to lower air fares.
Wizz Air foresees that the downward trend in unit revenues will continue in the second half of the financial year and reiterated that the firm has very limited visibility of demand in the final quarter of its financial year.
Nonetheless the strong financial performance in H1, 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. Wizz Air’s current expectations for full year performance are summarized below.
“We are very pleased with summer trading and anticipate that this will translate into another record quarter for Wizz Air. 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,” CEO József Váradi said.
“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, a proven management team, a best-in-class fleet and a leading market position in CEE. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders,” Váradi added.
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