3rd Jun 2020 11:13
(Alliance News) - Wizz Air Holdings PLC on Wednesday reported a rise in its earnings for financial 2020 due to expansion of operations and an "industry-leading passenger growth rate of 16%".
It also said it has hired Charlotte Pedersen as a non-executive director and that Susan Hooper will retire as a director effective immediately.
Shares in the Central & Eastern Europe-focused budget airline were trading 2.3% higher at 3,502.40 pence each in London.
For the year to March 31, Wizz Air posted revenue of EUR2.76 billion, a 19% rise from EUR2.32 billion reported for financial 2019. Pretax profit was EUR294.1 million, up from EUR128.9 million.
The Budapest, Hungary-based company said it carried 40.0 million passengers in the recent financial year, a 16% increase from 34.6 million the year before. Ticket revenue per passenger fell by 4.6% to EUR37.7, Wizz Air noted, but it said ancillary revenue per passenger increased by 14% to EUR31.3 per passenger. Total ancillary revenue was up 32% year-on-year at EUR1.25 billion.
"During the 2020 financial year, Wizz Air once again outperformed the market with an industry-leading passenger growth rate of 16%, and delivered an underlying net profit of EUR 345 million on 94% load factor. We continued to stimulate demand with our ultra-low fares across our growing network which drove a revenue increase of 19%. Our ancillary revenue growth of 31% was outstanding and now makes up 45% of total revenues," said Chief Executive Jozsef Varadi.
Wizz Air said that during the year, it expanded its fleet by nine aircraft to 121 aircraft, with over 47% of seats now served by the more cost-effective A321 type aircraft. The current average aircraft age of Wizz Air is 5.4 years. It also noted its recently-announced expansion of its network with new bases in Albania, Cyprus, Italy and Ukraine and added that it is in the process of establishing its new airline, Wizz Air Abu Dhabi which is expected to launch later in 2020.
Looking ahead, the company said it is not in a position to give guidance on net profit at this point due to the continued uncertainty regarding coronavirus, but it remains confident in its ability to thrive through the Covid-19 pandemic.
"We have taken various initiatives during the Covid-19 pandemic to safeguard the company's cost position and excellent balance sheet with EUR1.5 billion of cash, one of the strongest in the airline industry. It is too early to provide a detailed outlook for financial 2021 due to the ongoing uncertainty caused by Covid-19. However, Wizz Air's market positioning and our ever-disciplined attitude to cost mean that we will emerge from this crisis as an even more formidable business and will continue to deliver significant shareholder value, environmental benefits and employment opportunities for years to come," Varadi added.
Separately, Wizz Air said it has appointed Pederson as a non-executive director. She is currently chief executive of helicopter organisation Luxaviation Helicopters.
The company added that Hooper has retired from her role as director effective immediately. The former British Gas Services managing director commenced in the role of director at Wizz Air in 2016.
"I am delighted to welcome Charlotte Pedersen to the board of Wizz Air. Her extensive experience in aviation will be a key asset for Wizz Air as the Company moves into the next phase of its expansion and continues to take advantage of market opportunities which present themselves in this dynamic industry. At the same time, we thank Susan Hooper, who is retiring from the board after four years as a valued non-executive director, for her contributions not only as a director but also as a member of the Audit and Sustainability Committee and the Remuneration Committee," said Chair William Franke.
By Ife Taiwo; [email protected]
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