Wizz Air Holdings Plc (“Wizz Air” or “the Company”), the largest low-cost airline in Central and Eastern Europe, today provides a trading update for the first half of the financial year ending 31 March 2016 (“first half” or “H1”) ahead of its AGM.
Wizz Air confirms that the Group has traded well in the first half of the 2016 financial year and is on target to deliver operating and net profitmargins ahead of the same period last year.
With the continued expansion of its network, Wizz Air estimates that it will grow capacity by around 18% (previously 17%) in the 2016 financial year, split approximately 17% in H1 and 19% in the second half of the financial year. As previously indicated, lower fuel prices are feeding through to lower air 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.
Nonetheless the strong H1 financial performance, combined with robust bookings for the third quarter, are encouraging and the Company now expects to report a net profit for the full year (excluding unusual and exceptional items) in the range of €190 million to €200 million. Wizz Air’s current expectations for full year performance are summarised below.
Capacity growth (ASKs)
H1 2016: 17%, H2 2016: 19%
Average stage length
Load Factor (%)
Assumes spot price of $550/MT
Assumes $/€ rate of $1.10
Revenue per ASK
Down low single digit
Down low single digit
Pass through of lower fuel prices
Excluding unusual or exceptional items
József Váradi, Wizz Air Chief Executive 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 decadeand further improve our cost competitiveness.
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 CEE. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders”.