25th Jul 2019 09:11
(Alliance News) - Wizz Air Holdings PLC on Thursday confirmed its annual guidance following double-digit revenue and profit growth in the first quarter of its current financial year.
The low-cost airline said its revenue in the three months to the end of June grew by 25% to EUR691.2 million from EUR551.0 million a year earlier, as it carried 20% more passengers, 10.4 million. Load factor also increased to 93.7% from 92.1% year-on-year.
Ticket revenue increased 15% to EUR379.3 million, while ancillary revenue increased 41% to EUR311.9 million. Ancillary revenue is generated from non-ticket sources, such as baggage fees and on-board food and services.
Earnings before interest, taxes, depreciation, and amortization in the first quarter totalled EUR187.2 million, up 22% from EUR153.6 million. Net profit for the period stood at EUR72.4 million, up 42% on prior year.
Total cost increased 26% to EUR598.6 million, with fuel unit costs up 9.1% to 1.12 euro cents per available seat kilometre. The increase was driven primarily by the growth of the business and also higher average fuel prices, the FTSE 250-listed company explained.
The average fuel price, including hedging impact and excluding into-plane premium, paid by Wizz Air during the first quarter was USD639 per tonne, an increase of 6.7% from USD599 the same period in 2018.
"Wizz Air again reports a record first quarter as our ultra-low fares delivered a 20% increase in passengers numbers to 10.4 million and net profit of EUR72.4 million. This performance was achieved in the face of higher fuel prices through our continued and rigorous cost management and strength in both Easter trading and ancillary revenue generation," said Chief Executive Jozsef Varadi.
He added: "We remain optimistic for the current financial year. Higher fuel prices are supporting a stronger fare environment as weaker carriers withdraw unprofitable capacity and as a consequence, Wizz Air raised its full year capacity growth rate from 16% to 20%. Notwithstanding this faster pace of growth, we are confident to reconfirm our full year guidance of EUR320 to EUR350 million net profit for the year."
Wizz Air shares were trading 4.6% higher on Thursday in London at 3,769.00 pence each.
Related Shares:
Wizz Air