Wizz Air lifts profit forecast after strong summer

Wizz Air lifts profit forecast after strong summer

Wizz Air is on target to deliver improved operating and net profit margins ahead over last year after a strong summer.

Net profit for the full year is now forecast to come in the range of €190 million to €200 million against €175 million-€185 million previously estimated in July.

The message came in a trading update for the first half of the financial year ending at March 2016.

The eastern and central European low-cost carrier estimates that capacity by around 18% in the 2016 financial year.

Lower fuel prices are also feeding through to lower fares.

“Wizz Air anticipates that the downward trend in unit revenues will continue in the second half of the financial year and reiterates that the company has very limited visibility of demand in the final quarter of its financial year,” the airline said.

“Nonetheless the strong H1 financial performance, combined with robust bookings for the third quarter, are encouraging.”

Chief executive, József Váradi, said: “We are very pleased with summer trading and anticipate that this will translate into another record quarter for Wizz Air.

“We have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra-low cost base.

“We are also very excited about the arrival of the A321s from November this year. These aircraft will underpin our growth plans for the next decade and further improve our cost competitiveness.”

He added: “We continue to deliver against our ambition to make safe, reliable, affordable air travel available to everyone in central and eastern Europe.

“Our ultra-low-cost model gives us a clear cost advantage versus most of our rivals, including many other low-cost airlines, and as a result we are able to offer our passengers low fares and sustain a relatively high growth rate compared to other carriers.

“We have a strong balance sheet, proven management team, best-in-class fleet and leading market position in central and eastern Europe. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders.”

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