Wizz Air reports FY2016/17 Q3 results

Eleanor Steed
By Eleanor Steed February 2, 2017 11:41

Wizz Air reports FY2016/17 Q3 results

Wizz Air Holdings has reported that its total revenue increased 9.9% to €341.1 million: Ticket revenues increased 2.5% to €191.8 million; ancillary revenues grew 21.0% to €149.4 million. Reported net profit for the period (IFRS) was a record €32.5 million in Q3, a year on year increase of 107.8%. Underlying net profit for the period was €13.5 million in Q3, a year on year decrease of 21.5%. Total cash at the end of December 2016 was €892.0 million of which €746.8 million was free cash.

The airline reports that total unit revenue declined 9.4% to 3.31 euro cents per available seat kilometre (ASK). Total unit costs fell by 7.0% to 3.16 euro cents per ASK. Ex-fuel unit costs were unchanged at 2.29 euro cents per ASK. Fuel unit costs fell by 21.5% to 0.87 euro cents per ASK. Reported net profit margin increased 4.6ppt to 9.6%. Underlying net profit margin fell 1.6ppt to 4.0%.

József Váradi, Wizz Air Chief Executive said: “I’m pleased to report another quarter of profitable growth increasing passenger numbers by 20% year-on-year to 5.7 million in the third quarter.  Wizz Air remains on track to strengthen its position during 2017 financial year through continued growth in our core markets and expansion of our network.  We expect to grow capacity in terms of ASKs at 20% for the current financial year which is at the higher end of our previous guidance of 18% – 20%.  And the current environment of very low fares and increasing fuel prices presents excellent trading conditions for Wizz Air to continue securing its market leadership position while maintaining industry leading profitability.   Our ultra-low cost model is being reinforced with a delivery stream of brand new A321 aircraft which deliver double digit cost savings compared to A320 aircraft.  By March 2018 Wizz Air will be operating 26 A321 aircraft – representing a third of the airline’s seat capacity – which will give us a clear cost advantage versus most of our rivals.  This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders.

Although the current financial year is looking like a very good year for Wizz Air and we remain excited about our prospects for the next financial year, lower fuel prices continue to feed through to lower airfares, and this downward trend looks likely to continue well into 2017.  Also, our operations this winter have been disrupted by unusually severe weather conditions in CEE.  As a result, management believes it is prudent to trim the company’s guidance for net profit for the full year from the existing range of between €245 – €255 million to a range of between €225 – €235 million.”

Eleanor Steed
By Eleanor Steed February 2, 2017 11:41