BUDGET airline Wizz Air hailed a sunnier outlook for the coming summer holiday season as it unveiled an annual profit for the first time in three years, lifting its share price and predicting a strong summer on the back of record passenger numbers and continuing consumer appetite for holidays post-pandemic.
The Hungarian carrier, which this year marks 20 years since its first flight, said that trading in the year ending March 31 has been “encouraging, with sustained demand and positive booking momentum for the summer”.
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Wizz Air, listed in London, reported a net profit of 365.9 million euros compared to a loss of 535.1m euros the previous year, returning to a full fiscal year of profitable operations. The low-cost airline, which in 2023 was hit with enforcement action by the UK’s Civil Aviation Authority after “unacceptable” treatment of passengers including rejecting expense claims for missed flights, said it expects current year net income in the range of 500-600m euros.
Total revenue increased by 30.2% to 5,073.1m, compared to 3,895.7m the previous year. Ebitda (earnings before interest, taxes, depreciation, and amortisation) increased to 1.2 billion euros, “in line with strong pre-pandemic performance”, Wizz Air noted.
The airline, which last year moved its flights to Budapest and Bucharest to Glasgow Airport from Edinburgh, took delivery of 39 new A321neo aircraft during the year. Wizz Air claims to be one of the most sustainable European ultra-low-cost airlines and operates a fleet of 210 Airbus A320 and A321 aircraft.
Pointing to robust demand amid flight cancellations last year due to the conflict in the Middle East, air traffic control disruption and engine inspections that have grounded parts of its fleet, Wizz Air carried a record 62 million passengers during the year, up 21.4, while its load factor rose to 90.1% from 87.8% the year before.
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Chief executive József Váradi said: “Sustained healthy demand for air travel across our markets was a defining feature of F24, signalling that the surge witnessed post-pandemic has evolved into a longer-term trend in consumer behaviour. Wizz Air has been strongly positioned for this trend as reflected in our performance for the year.”
Mr Váradi noted that Wizz Air had placed a “sharp focus” on increasing utilisation, improving load factors and lowering unit costs (fuel and ex-fuel), and continued to invest in its operations. “Our efforts saw us carry a record number of passengers during the year, return to profitability and reduce financial leverage while maintaining our total cash position,” he added.
“We responded rapidly to challenges during the year by flexing resources and commercial arrangements, and quickly redeploying capacity where needed, as renewed geopolitical instability emerged. We also faced unprecedented supply chain disruption due to mandatory engine material inspections affecting our neo aircraft fleet.
“Despite these challenges, our 8,000-strong workforce delivered an exceptional service, reflected across operational, financial and people metrics.”
Admitting that turbulence was expect to persist in the coming year because of engine inspections and geopolitical instability, Mr Váradi pointed to the airline’s “agile and highly resilient” business model, noting: “We are well-positioned to mitigate the impact of these ongoing issues.
“This includes the current scale and diversity of our network, which means we are incredibly well placed to react quickly to issues as they arise. While our capacity expectations for the year have been moderated in response to these changes in the operating environment, new aircraft deliveries persist, and our efforts to drive productivity and utilisation continue to deliver results.
“As we enter F25, demand for air travel remains robust, with no sign of abating in the near term, supporting a higher yield environment as capacity across the whole industry remains constrained.”
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During the past quarter, Wizz Air moved to new headquarters in Budapest with an option to add further space in the coming years as the company pursues a fleet of 500 aircraft by the end of the decade. It has also announced the opening of its second training centre in Rome, with three full-flight simulators with capacity to train over 4,800 pilots per annum.
Wizz Air’s shares climbed to 2,096p and were up 4.9% to 2,060p yesterday morning.
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