Wizz Air ups FY capacity growth rate as it swings to Q1 profit
Budget airline Wizz Air lifted its full-year capacity growth rate on Thursday as it said it swung to a profit in the first quarter.
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In the three months to 30 June, the group swung to a net profit of €72.4m from a loss of €29.3m in the same period a year ago, with revenue up 25.4% to €691.2m.
The central and Eastern Europe-focused airline saw passenger numbers rise 20.1% to 10.4m, with ticket revenues up 14.8% to €379.3m. Ancillary revenues increased 41.4% to €311.9m and total costs pushed up 25.5% to €598.6m.
Chief executive Jozsef Varadi said: "We remain optimistic for the current financial year. Higher fuel prices are supporting a stronger fare environment as weaker carriers withdraw unprofitable capacity and as a consequence, Wizz Air raised its full year capacity growth rate from 16% to 20%. Notwithstanding this faster pace of growth, we are confident to reconfirm our full year guidance of €320 to €350 million net profit for the year.
"As usual, this guidance is dependent on the revenue performance for the remainder of the all-important summer period as well as the second half of FY 2020, a period for which the company, like most airlines, currently has limited visibility."
At 0910 BST, the shares were up 4.8% at 3,778.52p.