Wizz Air returned to the black with a profit of €400 million in the six months to September after carrying record 33 million passengers.
Profits in the summer quarter were five times higher year-on-year, helped by improved operations despite air traffic control disruption and geopolitical issues.
The eastern and central European budget carrier, which faced enforcement action by the Civil Aviation Authority in July over refunds for delayed or cancelled flights, saw six month revenues rise by 39% to €3 billion.
The half year profit compared to a loss of €384 million in the same period in 2022 amid “sustained robust demand” as capacity rose by a quarter.
However, the airline’s Israel flights remain suspended until the end of November “while observing security situation and maintaining a plan to redeploy capacity should things improve”.
The airline’s full year profit guidance has been narrowed to a range of €350-€400 million ahead of the winter period.
“This guidance reflects our expectations for H2 in the context of the ongoing macro environment uncertainty and continuing difficult operating conditions, from an infrastructure and security perspective,” chief executive Jozsef Varadi said.
“We remain well protected against volatile fuel costs and foreign exchange movements via a systematic hedging programme, and our strengthened operations and a renewing fleet continue to deliver efficiencies for the business while reducing unit costs.
“Our continued ability to manage the impact of complicated issues gives us the confidence that Wizz Air has the strategy and expertise to achieve our profitable growth ambitions.”
Reviewing the first half, Varadi said: “This summer we delivered significantly improved operational performance compared to last year. There were fewer flight cancellations, and overall fleet utilisation and productivity increased year on year.
“Our revenue and profit results reflect the higher volumes we now operate and the enormous amount of work and investment over the past three years.”
He added: “In the first half, we saw very strong load factor recovery, as demand remained robust, including in new markets that are maturing steadily and where we continue to add frequencies and improve our schedule.
“We continue to see positive bookings in Q3, with selling load factors exceeding last year’s levels by single digit percentage points.
“Our plans to grow capacity next year are based on combination of new aircraft deliveries, existing fleet lease extensions, securing additional aircraft capacity from the market and delivering improved utilisation.”
Capacity for the 2024-25 financial year is expected to be at similar levels too the current period “based on current best knowledge,” Varadi said.
Commenting the interim results, Elizabeth Williams, aviation partner at international law firm Gowling WLG, said: “The return of strong demand for travel has greatly benefitted the aviation sector which had been struggling after the turbulent pandemic period and the soaring cost of fuel. But despite Wizz Air’s positive performance, CEO Jozsef Varadi will be wary of potential headwinds on the horizon.
“The ongoing conflict in Israel and Gaza is causing some concern for investors who fear this may impact certain routes in the Middle East, while problems with the Pratt & Whitney GTF engines which power the budget airline’s A320neo jets may mean they have to receive maintenance, causing some disruption to capacity.
“However, the company remains confident in its profitability as passenger numbers continue to soar and previous investment in additional spare engines will help to mitigate aircrafts being grounded.
“Despite some of the uncertainty, shareholders will be assured with the business’ position as the cost of living crisis continues and encourages passengers to look for affordable travel options and the opening of new global routes furthers the airline’s scope and reach.”