Wizz Air reports record profit, sees no impact from Brexit

Central and Eastern European-focused low-cost airline Wizz Air reported record profit for the year to the end of March despite "challenging" conditions including low fares and increasing fuel prices.

Full-year profit rose 28% to €246m on revenue of €1.57bn, up 10% from the year before, as passenger numbers jumped 19% to 23.8m. Meanwhile, the load factor - which gauges how full the planes are - pushed up to 90.1% from 88.2%.

Wizz said there are no signs of demand weakness on routes to and from the UK despite Brexit, adding that the negative translation effect on British pound revenues due to Brexit in full-year 2017 is estimated at €17m, which was absorbed by the rest of Wizz Air's route network.

Chief executive officer József Váradi said: "The resilience of our ultra-low cost business model combined with our growing, diversified network and our ever stronger balance sheet places Wizz Air in a unique position to exploit the significant market opportunity that exists in the CEE market of over 300 million people. We will continue to expand our route network, drive efficiency in our operating model, grow our ancillary revenue streams and enhance our compelling customer proposition. This winning formula leaves Wizz Air well placed to continue to deliver significant returns for our shareholders."

Net profit for the financial year 2018 is expected to be in a range between €250m and €270m, but the company pointed out that this guidance is "heavily caveated" by the revenue performance for the all-important summer period and the second half, for which it currently has limited visibility.

At 0817 BST, the shares were up 3.5% to 2,014.28p.