29th Jan 2020 08:58
(Alliance News) - Wizz Air Holdings PLC on Wednesday said raised its full-year profit guidance after earnings and passenger numbers climbed in its financial third quarter.
In the three months to December 31, revenue was 25% higher year-on-year at EUR637.3 million from EUR511.3 million. Ticket revenue alone was 16% higher at EUR336.3 million.
The budget airline swung to a quarterly pretax profit of EUR22.4 million from a EUR21.2 million loss the year prior.
Net profit was EUR21.4 million, a third-quarter record and swung from a EUR21.0 million loss a year before.
Passengers carried was 23% higher year-on-year at 10.0 million in the third quarter and load factor edged 1.1 percentage points higher to 92.5%.
Chief Executive Jozsef Varadi said: "Wizz Air also confirms that the current trading conditions continue to be favourable with a relatively benign competitive environment, stable fuel prices and a positive yield environment.
"Despite our additional investment in growth in the fourth quarter, the company is today raising its net profits guidance to a range of between EUR350 million to EUR355 milliion for the full year."
The company previously had guided net profit between EUR335 million and EUR350 million for the current financial year.
Net profit for the 12 months to March 31, 2019, came in at EUR291.6 million so the latest guidance would mean an increase of as much as 20%.
During the quarter, the carrier announced plans to set up operations in the Middle East.
The airline, to be called Wizz Air Abu Dhabi, will be the first time the Eastern European-focused company has ventured outside Europe. It will be set up in a joint venture with Abu Dhabi Development Holding Co PJSC, which looks after the emirate's state-owned companies.
Wizz expects operations to launch during the second half of 2020, flying on routes from Abu Dhabi to destinations where Wizz already has established business, namely central, western and eastern Europe.
"Wizz Air Abu Dhabi will be an incremental path of growth for Wizz Air, built on our successful ultra-low cost business model, bringing affordable travel to ever more customers," Varadi added.
Shares were 0.8% higher at 4,142.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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