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Wizz Air profits edge up; guidance lowered on higher fuel prices

After-tax profit of Hungarian low-cost airline Wizz Air edged up 1.2% to EUR 292.2 million in the first half of its business year starting April 1, an earnings report published Wednesday shows, as reported by national news agency MTI.   

(Photo: LaMography)

Revenues climbed 20.0% to EUR 1.379 bln, but total operating costs rose even faster, increasing 27.9% to EUR 1.080 bln, lifted by higher fuel and payroll expenses.

CEO József Váradi said the higher fuel costs would have an impact of about EUR 80 mln on full-year earnings, although the "encouraging revenue environment, robust demand and an improved operational performance, combined with our relentless focus on costs" could offset around half of that amount.

Váradi also noted the effect of summer disruption on Wizz Airʼs business and lowered guidance for net profit to a range between EUR 270 mln and EUR 300 mln. Earlier, Wizz Air had put full-year net profit at EUR 310-340 mln. 

Wizz Airʼs passenger numbers increased 20.0% to 18.8 mln in H1. Load factor rose 0.8 of a percentage point to 93.6%.

In an interview earlier this week, the Wizz Air CEO was strikingly bullish about the companyʼs longer-term prospects, saying that Wizz Air aims to triple the scale of its business over the next decade.