29th Sep 2015 08:26
LONDON (Alliance News) - Wizz Air Holdings PLC on Tuesday said it now expects to post a higher net profit in its full financial year following a strong first half, although it warned that air fares will continue to fall due to lower fuel prices.
The low-cost airline said that it traded well in the first half of its 2016 financial year and as a result will deliver operating and net profit margins ahead of the same period last year.
This, combined with robust bookings for the third quarter, mean that net profit for the full year which excludes exceptional items, should be in the range of EUR190 million and EUR200 million, up from the EUR175 million to EUR185 million it had previously forecast.
Wizz Air said that it now also expects to grow capacity by 18%, having previously estimated growth of 17%, while load factor will achieve a "modest improvement".
Revenue, however, will continue to spiral downwards due to lower fuel prices leading to lower air fares, amid fierce competition for customers.
"We are very pleased with summer trading and anticipate that this will translate into another record quarter for Wizz Air. We have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra-low cost base. We are also very excited about the arrival of the A321s from November this year. These aircraft will underpin our growth plans for the next decade and further improve our cost competitiveness," Chief Executive József Váradi told the company's annual general meeting Tuesday.
Shares in Wizz Air were trading up 2.3% at 1,935.00 pence Tuesday morning following the announcement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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