TOP NEWS: Wizz Air Earnings Soar Amid Fleet And Geographical Expansion

(Alliance News) - Wizz Air Holdings PLC on Wednesday reported a rise in its earnings for ...

Alliance News 3 June, 2020 | 8:59AM
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(Alliance News) - Wizz Air Holdings PLC on Wednesday reported a rise in its earnings for financial 2020 due to expansion of operations and an "industry-leading passenger growth rate of 16%".

Shares in the Central & Eastern Europe-focused budget airline were trading 1.2% higher at 3,466.00 pence each in London.

For the year to March 31, Wizz Air posted revenue of EUR2.76 billion, a 19% rise from EUR2.32 billion reported for financial 2019. Pretax profit was EUR294.1 million, up from EUR128.9 million.

The Budapest, Hungary-based company said it carried 40.0 million passengers in the recent financial year, a 16% increase from 34.6 million the year before. Ticket revenue per passenger fell by 4.6% to EUR37.7, Wizz Air noted, but it said ancillary revenue per passenger increased by 14% to EUR31.3 per passenger. Total ancillary revenue was up 32% year-on-year at EUR1.25 billion.

"During the 2020 financial year, Wizz Air once again outperformed the market with an industry-leading passenger growth rate of 16%, and delivered an underlying net profit of EUR 345 million on 94% load factor. We continued to stimulate demand with our ultra-low fares across our growing network which drove a revenue increase of 19%. Our ancillary revenue growth of 31% was outstanding and now makes up 45% of total revenues," said Chief Executive Jozsef Varadi.

Wizz Air said that during the year, it expanded its fleet by nine aircraft to 121 aircraft, with over 47% of seats now served by the more cost-effective A321 type aircraft. The current average aircraft age of Wizz Air is 5.4 years. It also noted its recently-announced expansion of its network with new bases in Albania, Cyprus, Italy and Ukraine and added that it is in the process of establishing its new airline, Wizz Air Abu Dhabi which is expected to launch later in 2020.

Looking ahead, the company said it is not in a position to give guidance on net profit at this point due to the continued uncertainty regarding coronavirus, but it remains confident in its ability to thrive through the Covid-19 pandemic.

"We have taken various initiatives during the Covid-19 pandemic to safeguard the company's cost position and excellent balance sheet with EUR1.5 billion of cash, one of the strongest in the airline industry. It is too early to provide a detailed outlook for financial 2021 due to the ongoing uncertainty caused by Covid-19. However, Wizz Air's market positioning and our ever-disciplined attitude to cost mean that we will emerge from this crisis as an even more formidable business and will continue to deliver significant shareholder value, environmental benefits and employment opportunities for years to come," Varadi added.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Wizz Air Holdings PLC 4,490.00 GBX 0.90

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