Wizz Air reports record profit in first half

Eastern Europe-focused airline Wizz Air Holdings issued unaudited results for the six months to 30 September on Wednesday, as total revenue increased 10.1% to €921.2m.

The FTSE 250 low-cost-carrier said ticket revenues increased 4.1% to €567.2m, while ancillary revenues grew 21.3% to €354.0m.

Profit for the period on an IFRS basis was a record €253.3m, a year-on-year increase of 39.1% compared to the first half of last year.

Underlying profit after tax was also a record at €231.6m, rising 12.5% year-on-year.

Total cash at the end of September was €935.3m, of which €805.5m was free cash, according to the airline’s board.

“I'm pleased to report another strong all-round performance by Wizz Air during the first six months of our financial year ended 31 March 2017, which has seen passenger numbers increase 17% to 12.5 million passengers and profit margins grow,” said chief executive József Váradi.

“In the same period, we announced 70 new routes to/from 28 different countries, highlighting not only the significant opportunities available to us in Central and Eastern Europe but also the diversity of our network growth.”

Váradi said the airline remained highly committed to the UK market and continued to deliver double-digit growth on its UK network.

“Nevertheless our highly diversified network enabled us to quickly absorb capacity we reallocated in reaction to the weak sterling following the Brexit vote.”

Looking forward, Váradi said while the board expected fares to continue falling across the sector over the full year on the back of low fuel prices, its ability to continue to reduce ex-fuel costs means it can reconfirm its previously stated full year guidance for underlying net profit of between €245 to €255m.

“Our ultra-low cost model, reinforced with a delivery stream of brand new A321 aircraft, gives us a clear cost advantage versus most of our rivals.

“We have a strong balance sheet, proven management team, best-in-class fleet and the leading market position in CEE,” Váradi said.

“This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders.”