Posted on: 29 September 2015 by Mark Howells
Wizz Air Holdings has released a trading update for the first half of its financial year ending 31 March 2016 (1H16) ahead of its AGM.
The Group reported that it has traded well in 1H16 year and is on target to report operating and net profit margins ahead of the same period last year.
With the continued expansion of its network, Wizz Air estimates that it will grow capacity by around 18% (previously 17%) in the 2016 financial year, split approximately 17% in 1H16 and 19% in the 2H16. With lower fuel prices feeding through to lower air fares, Wizz Air believes the downward trend in unit revenues will continue in the second half of the financial year and noted that the company has very limited demand visibility in the final quarter of this financial year.
The strong 1H16 financial performance, combined with robust bookings for the third quarter, are described by Wizz Air as encouraging, and the company now expects to report a net profit for the full year (excluding unusual and exceptional items) in the range of €190-200 million compared with the original guidance of €175-185 million.
Wizz Air CEO József Váradi commented, “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.
“We continue to deliver against our ambition to make safe, reliable, affordable air travel available to everyone in Central and Eastern Europe,” Váradi continued. “Our ultra-low cost model gives us a clear cost advantage versus most of our rivals, including many other low-cost airlines, and as a result we are able to offer our passengers low fares and sustain a relatively high growth rate compared to other carriers.”