Wizz Air pins blame on air traffic disruption as Q1 profit drops 14%

Wizz Air shares hit turbulence on Wednesday after the low-cost carrier posted a 14% drop in first-quarter profit as it took a hit from air traffic disruptions and the timing of Easter.

In a trading update for the three months to 30 June, the company said pre-tax profit fell to €52.1m from €60.5m in the same period a year ago. Wizz pinned the blame on air traffic controller strikes and shortages. It said the unprecedented number of disruptions caused mainly by European air traffic control issues led to a 426% rise in cancellations to 145.

Total revenue during the period was up 17.9% to €553.4m, with ticket revenues up 24.5% to €330.4m and ancillary revenues 9.3% higher at €223m. Meanwhile, passenger numbers rose 19.7% in the quarter to 8.6 million.

Chief executive Jozsef Varadi said: "Wizz Air has once again delivered double-digit growth in passenger numbers and revenues, while also delivering ever higher load factors and net profit of €50m in the first quarter.

"This was a very solid performance given the absence of high yielding Easter traffic which fell into the end of the last financial year as well as a backdrop of significant challenges caused by European air traffic control issues. With these disruptions likely to continue into autumn and on the back of a continued rise in fuel prices in the first quarter the company took the decision to trim its full year growth target from 20% to 18%. "

The company said it was well positioned to deliver in 2019 and beyond and remains confident in its full-year guidance of €310m to €340m net profit for the year.

At 0915 BST, the shares were down 4.6% to 3,397p.