13th Nov 2019 09:17
(Alliance News) - Hungarian low-cost airline Wizz Air Holdings PLC on Wednesday reported strong interim profit and revenue growth, despite fuel costs continuing to rise.
Pretax profit for the half-year to September nearly doubled, surging 91% to GBP387.9 million. This was helped by revenue growth of 22% to GBP1.67 billion as passenger numbers rose 18% to 22.1 million.
Geneva-based Wizz Air's also profit was helped by a sharp reduction in its foreign exchange loss, which was just EUR2.8 million in the recent six months from EUR87.4 million a year before.
The company reported a 21% rise in costs, with fuel unit costs climbing 5.3%. The load factor for the year was 94.6%, improved from 93.6% the year prior.
"Wizz Air again reports all-time high financial results for the first half of our current financial year as our low fare-low cost business model delivered an 18% increase in passenger numbers, higher load factors, strong cost and yield performance with ex-fuel unit cost down 3% and unit revenue up 3% year-on-year," said Chief Executive Jozsef Varadi.
"These outcomes delivered a record net profit of EUR372 million. We are particularly pleased to report expanding net profit margin while delivering industry leading growth rates in an operating environment of higher fuel prices."
Looking ahead to its year ending September 2020, Wizz Air sees capacity increasing by 20% and the load factor rising by 100 basis points. Net profit guidance has been narrowed to between EUR335 million to EUR350 million, from EUR320 million to EUR350 million prior.
"Notwithstanding this faster pace of growth and the genuine macro-economic challenges which always exist, the more recent supporting market conditions mean we are seeing our business tracking towards the top end of our current net profit guidance range which gives us confidence to tighten the range to between EUR335 million and EUR350 million for the full year," added Varadi.
Shares were 2.3% lower on Wednesday morning in London at a price of 3,782.03 pence each.
By George Collard; [email protected]
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