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Photo: Wizz Air

Wizz Air forecasts €300m full-year profit

The low-cost carrier says its profits will be at the upper end of expectations this year, thanks to rising demand.

Wizz Air appears to be soaring above the past winter’s aviation gloom, issuing an upbeat profit and passenger forecast for the year to March 31.

The fast-growing Hungarian low-cost carrier is forecasting full-year net profit of between €270 million and €300 million.

It says in a trading update issued on April 2 that it ended the year “in line with expectations” and expects to post a net profit that is “in the upper half of its guidance”.

Passenger numbers were up by almost 10% in March year-on-year to more than 2.7 million, taking the total number it carried over the last 12 months to 34.6 million.

March capacity grew 6.9% to just under 2.9 million seats, while load factor for the month stood at 94.1%, up from 91.5% the previous March.

Full-year capacity is up by almost 15% with a full-year load factor of 92.8%, up 1.4% on the previous year.

Wizz also hailed an “excellent” operational performance in March with only a single cancelled flight compared to 68 last year, and an on-time performance of 85%, up ten percentage points.

Rival woes
The news comes a day after Wizz’s budget rival easyJet blamed Brexit for falling Easter and summer bookings this year while also admitting that rising fuel costs are hitting its bottom line.

Wizz Air will be posting its preliminary results for the year on May 31, also providing full-year guidance for 2019-20 and an outlook for summer 2019.

It is forecasting 4% growth in revenue per seat per kilometre during the first quarter of its new financial year, driven by ancillary revenues and the timing of Easter.

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