29th Jul 2015 07:26
LONDON (Alliance News) - Wizz Air Holdings PLC Wednesday said it has raised its profit guidance for the full year after making a record profit in the first quarter of its financial year.
The low-cost airline which operates in Central and Eastern Europe, said that its pretax profit in the three months to June 30 rose 11% to EUR34.4 million from EUR31 million in the same period the year before, as revenue grew 12.7% to EUR332.5 million from EUR295.2 million.
The number of passengers carried also increased by 20.3% to 4.9 million from 4.1 million in the period, although revenue per available seat declined by 4%.
Wizz Air said that forward bookings indicate robust demand for the important peak summer period and as a result underlying net profit for the full year is now expected to be in the range of EUR175 million to EUR185 million, which is EUR10 million higher than its previous guidance.
"With the continued expansion of our network, Wizz Air expects to grow capacity by around 17% in the 2016 financial year, spread evenly across the year. We continue to believe that there will be no earnings benefit from the decline in fuel prices over the last 12 months as the US dollar has strengthened against the euro over the same period and, as expected, lower fuel prices are feeding through to lower unit revenues. We expect the downward trend in unit revenues to continue for the foreseeable future," Wizz Air said in a statement.
Shares in Wizz Air were up 2.7% at 1,695.00 pence early Wednesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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