Wizz Air's net profit dips but company upgrades outlook

An increase of 23% in passenger numbers during Wizz Air’s third quarter has seen the airline post a substantial rise in underlying net profit, and improved its guidance for the year.

In the three months to 31 December, underlying net profit rose to €17.2m (£13.0m) from €3.6m, however reported net profit including exceptional items and foreign exchange dropped to €15.6m from €19.7m.

Revenue rose 17.3% to €310.5m from €254.6m, with ticket revenue up 12.4% to €187m and ancillary revenue up 25.8% to €123m.

The company also added another 19 routes to its network in the quarter as well as expanding its fleet to 65 aircraft.

The company said with a favourable macro environment along with the strong financial performance in the year to date, it has raised its underlying net profit guidance for the full year.

Chief executive József Váradi said the quarter’s results have been ahead of expectations.

“We are reporting record underlying Q3 profitability while also delivering 23% growth in passenger numbers which re-affirms the opportunity we see in Central and Eastern Europe.”

Váradi said there were also a number of key milestones in the three months as the airline positions itself for further growth.

“We took delivery of our first two A321ceo aircraft and completed the order for 110 Airbus A321neo aircraft.

“We also signed our largest ever lease agreement for 11 Airbus A321ceo aircraft. These larger and more fuel efficient aircraft will underpin our growth plans for the next decade and ensure that we maintain our industry leading ultra-low cost base."

Shares in the airlines opened positively but plunged to 1,825.00 by 0824 GMT, down 36p (1.93%).