LCC Wizz Air continues to build on its position in Central and Eastern Europe, reporting record first-half profit for FY2020.
The Budapest-based airline posted a net profit of €371.5 million ($408.8 million) for the period ended Sept. 30, up 26.2% from €294.3 million in the year-ago timeframe. Revenue rose 21.7% to €1.67 billion.
The company’s ancillary revenue was notably positive, jumping nearly 39% to €714.2 million, compared to ticket revenue of €956.6 million, up 11.4% on a year ago.
Costs rose almost in line with the increase in revenue, climbing 21.1% to €1.26 billion. Fuel unit costs were up 5.3%, while ex-fuel costs dropped 2.8% year-over-year.
First-half passenger numbers increased 17.9%, to 22.1 million. Wizz Air carried more than 4 million passengers for the first time in August 2019.
Half-year developments included shareholder approval for the acquisition of 20 Airbus A321XLR long-haul, single-aisle aircraft, which will be delivered from 2023 onward.
“We are particularly pleased to report expanding net profit margin while delivering industry-leading growth rates in an operating environment of higher fuel prices,” CEO József Váradi said.
“We will continue to enhance our market-leading position with the rollout of the game-changing, attractively priced and financed A321neo aircraft, which will enable Wizz Air to continue widening our cost advantage over our competitors,” he said.
“The stronger yield environment, along with the company’s ever-disciplined attitude to costs, will enable Wizz Air to accelerate growth profitably during the second half. As a result, the company’s full-year net profits guidance is tightened to €335 to €350 million.”