Wizz Air today raised it annual profits guidance on the back of a strong autumn performance.
The eastern and central European budget airline expects net profits for the year to the end of March to reached between €350 million and €355 million.
The forecast came as the carrier reported a €42.4 million rise in profits to €21.4 million in the three months to December 31 on the back if a 23.2% year-on-year increase in passenger carryings to ten million.
Chief executive Jozsef Varadi said: “Wizz Air again reports a record financial performance in the third quarter as our low-fare, low-cost business model delivered a net profit of €21.4 million compared to a broadly breakeven operational outcome in the same period last year.
“We have delivered unit cost reduction ahead of expectations. Whilst growing passenger volumes by an industry leading 23% in the third quarter, we have achieved both higher load factors and improved yields.
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“In short, it has been another quarter of significant achievement.”
He described Wizz Air’s plan to create a subsidiary in Abu Dhabi later this year as “an incremental path of growth” built on its ultra-low cost business model.
“We believe the new airline, which is expected to be operational in the second half of 2020, has the potential to be a significant player in the region operating over 50 aircraft within ten years,” Varadi added.
Looking forward, he said: “Wizz Air also confirms that the current trading conditions continue to be favourable with a relatively benign competitive environment, stable fuel prices and a positive yield environment.
“Despite our additional investment in growth in the fourth quarter, the company is today raising its net profits guidance to a range of between €350 million to €355 million for the full year.”