Wizz Air sees full-year revenue fall despite jump in H1 profits
Budget airline Wizz Air Holdings Plc on Thursday said full-year revenues would fall, despite a forecast-busting increase in interim profits.
The Hungary-based airline forecast a revenue decline in the low-single-digits, citing short-term challenges in winter capacity. Operating profit jumped 25.8% to €439.2m, smashing estimates of €367m.
"We will see the most significant changes to our delivery profile in around 12 months time (given near-term orders and financing commitments)," said chief executive Jozsef Varadi.
"As such, we are actively managing this winter season's capacity to deliver circa mid-teens H2 seat capacity growth year on year. In terms of pricing, looking at the current ninety-day booking curve, we are seeing unit revenue approximately down low single digits percentage-wise year on year while the load factor, conversely, is up by a similar level in terms of a percentage points gain."
The company last week delayed delivery of 88 Airbus jets to 2033 from 2030 as it looked to cut costs. Wizz has been hit by an issue with Pratt and Whitney engines with repairs taking longer than expected, and political turmoil the Middle East and Eastern Europe.
Reporting by Frank Prenesti for Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
