Hungary Wizz Air passes Q2 with flying colours

Wizz Air has published impressive results for the quarter ended on 30 June on Wednesday (it is the company’s first financial quarter). The number of passengers carried leaped 25% to 7.2 million, its revenues grew by 28.5% yr/yr to EUR 469.3 mn; operating profit (EBITDAR) jumped 43.8% to EUR 155.9 mn, EBITDAR margin went up to 33.2% from 29.7%. After-tax profit soared by 50.4% to EUR 58.1 million, which sent the after-tax profit margin to 12.4% from 10.6%.

The major increase in passenger numbers and revenues was partly the result of a particularly strong performance from Easter traffic in Q2, but the fleet and the number of routes also expanded. At the end of June, Wizz Air had 83 aircraft in its fleet, up from 70 a year earlier, and the load factor also edged up to 91.2% from 89.5%. The airline further expanded its network. Wizz Air’s 28th operating base is London Luton. The route network was also expanded with 10 new routes announced in April-June, including to new airports in Russia, Kazakhstan and Morocco, taking the network to more than 500 routes to/from 42 countries.

Fleet growth will continue in the following years with the delivery of four additional brand new Airbus aircraft comprising of one A320ceo and three A321ceo aircraft bringing the total fleet to 83 aircraft, a mix of 64 A320ceos and 19 A321ceos. The company expects the delivery stream of brand new A321 aircraft to facilitate double digit cost savings compared to A320 aircraft.

Investors are happy about the report. Wizz Air’s share price rose 1.8% today, which means it went up 47% so far this year.

Wizz Air has also cancelled hand luggage fees as of 29 October this year.

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