Wizz Air Holdings Plc (“Wizz Air” or “the Company”), the largest low-cost airline in Central and Eastern Europe (“CEE”), today issues its unaudited results for the six months to 30 September 2015 (“first half” or “H1”).
Six months to 30 September | 2015 (million) | 2014 (million) | Change |
Passengers carried | 10.65 | 8.85 | +20.4% |
Revenue (€) | 836.4 | 727.3 | +15.0% |
Profit before income tax (€) | 190.9 | 164.0 | +16.4% |
Reported Net Profit (IFRS) (€) | 182.1 | 158.1 | +15.2% |
Underlying Net Profit* (€) | 205.9 | 153.4 | +34.2% |
Record H1 profitability from strong summer performance
- Total revenue increased 15.0% to €836.4 million.
- Ticket revenues increased 11.6% to €544.6 million and ancillary income grew 21.9% to €291.8 million.
- Ancillary revenue per passenger increased 1.3% to €27.4 for the first half.
- Total unit revenue declined 1.7% to 4.64 euro cents per available seat kilometre (ASK) in H1.
- Reported (IFRS) net profit was €182.1 million, an increase of 15.2%.
- Underlying net profit was a record €205.9 million, an increase of 34.2%.
- Management’s expectation of an underlying net profit for the year ending 31 March 2016 (“F16”) in the range of €190 million to €200 million remains unchanged. This implies an underlying loss of between €6 million and €16 million in the second half (“H2”) of F16, broadly in line with the H2 F15 loss of €7m.
Increasing our cost advantage
- Total unit costs fell by 5.1% to 3.46 euro cents per ASK in H1.
- Ex-fuel unit costs declined 1.0% to 2.19 euro cents. Fuel unit costs fell by 11.3% to 1.27 euro cents.
- Fleet expansion continues, with eight aircraft added during H1, increasing the fleet to 63 Airbus A320s.
- Average aircraft age of 3.8 years, one of the youngest fleets of any major European airline.
- Load factor increased 1.6 percentage points to 90.7 per cent in H1, one of the highest in the industry.
Building on our strong market position in Central and Eastern Europe
- Passengers carried increased 20.4% to 10.7 million consolidating Wizz Air’s position as CEE’s leading low cost carrier.
- Route network has continued to grow with the opening of two new bases and 38 new routes. Wizz Air now offers more than 390 routes to 39 countries from 22 bases.
- 110 A321 neo aircraft (plus purchase rights for an additional 90) order with Airbus finalised providing growth capacity until the end of 2024.
Enhancing our customer offering and experience
- Brand refresh launched in Q1 as Wizz Air embarks on its second decade of growth.
- Seamless roll-out of fully allocated seating on all services and yield management phase now underway.
- Wizz Discount Club membership now exceeds 650,000, year-on-year growth of 21%.
- Digital investments and new languages on wizzair.com ensure user friendly access and hassle free travel experience.
Strong balance sheet and cash flow
- Total cash at the end of September was €710 million of which €617 million is classified as free cash.
- Shareholders’ equity reached €656 million, an increase of €328 million versus September 2014 and €196 million since March 2015.
- Adjusted net debt to EBITDAR declined to a ratio of 1.2 at the end of September 2015 from 2.0 a year earlier.
* A reconciliation of Reported Net Profit as reported under IFRS and Underlying Net Profit is set out on page 4.
József Váradi, Wizz Air Chief Executive said:
“We are very pleased with summer trading and to report record profitability for the first half of F16. 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 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.
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”.
FULL YEAR OUTLOOK
Wizz Air today reiterates the guidance provided to the market in its trading update on 29 September 2015. With the continued expansion of its network, Wizz Air estimates that it will grow capacity by around 18% 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 expects to report an underlying net profit for the full year (excluding unusual and exceptional i
