1st Aug 2024 10:15
(Alliance News) - Budget carrier Wizz Air Holdings PLC on Thursday reported first-quarter revenue growth, though a swing to loss amid a rise in financing expenses and a foreign exchange hit.
Shares in the Budapest-based, airline were down 13% to 1,670.00 pence each in London on Thursday morning.
In the first-quarter ended June 30, total revenue improved 1.8% to EUR1.26 billion from EUR1.24 billion a year prior.
It reported a EUR4.5 million pretax loss, however, swinging from profit of EUR67.1 million.
Its total operating expense was 5.0% higher at EUR1.21 billion from EUR1.16 billion. It reported a net foreign exchange loss of EUR10.1 million, compared to a gain of EUR17.1 million a year prior. In addition, net financing expenses climbed to EUR49.0 million from EUR12.8 million.
"Our performance this quarter demonstrates the resilience of Wizz Air's ultra-low-cost business model. Despite the competitive landscape and ongoing supply chain challenges, our strategic focus on delivering the lowest fares, improving our route network, and maintaining high operational efficiency has yielded results," Chief Executive Jozsef Varadi said.
"Looking ahead, capacity is stabilizing and we are focusing on further optimizing our operations, with an emphasis on improving our most profitable bases and enhancing efficiency. We remain optimistic about the demand outlook, with both ticket and ancillary [revenue per available seat kilometres] expected to be up year-on-year while load factor is maintained above 90%."
By Sophie Rose, Alliance News senior reporter
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