Wizz Air flies higher as first quarter profits jump

Wizz Air shares flew higher on Wednesday after reporting a 52.2% jump in first quarter pre-tax profit to €52.3m.

The low-cost European airline achieved a 9.8% increase in revenue to €364.9m in the three months to 30 June as the number of passengers carried grew 17.9% to 5.8m.

The load factor, which measures the number of passengers carried against the number of seats available, rose 0.7 percentage points to 89.5%.

“While Wizz Air is not immune to the recent challenges in our industry we believe our ultra-low cost base, diversified point-to-point network and ability to adjust capacity quickly when needed enables us to better respond to these challenges than many other European airlines and also means we are well placed to exploit market opportunities as they arise,” said chief executive Jozsef Varadi.

During the period the company expanded its fleet to 70 aircraft with three A321 planes.

The group confirmed its full year guidance for underlying net profit of €245-€255m. Wizz Air said the forecast was “heavily dependent on summer trading and also the second half revenue performance, a period for which the company currently has limited visibility”.

However, the company said it has halved its target for second half growth as a direct result of the Brexit vote.

Britain’s decision to leave the European Union on 24 June has led to a notable weakness in fares in euro terms on routes to and from the UK, mainly as a result of a weaker pound, Wizz Air explained.

Meanwhile, in the second quarter the group won a $2.5bn contract with Pratt & Whitney to supply next generation engines for Wizz Air’s A321 neo aircraft.

Shares rose 3.49% to 1,596.80p at 0909 BST.