DALLAS – Record passenger numbers and high yields have led Wizz Air (W6) to operating and net profits during the April to June period.
The carrier reported its fiscal first quarter results today, saying its summer performance in operational and revenue terms had so far been “according to plan.” Total quarterly revenue was €1.2 billion (US$1.3 billion), representing a 53% rise year on year and “prior operational adjustments” improving its resilience.
During the quarter, W6 flew 15,268,235 passengers, a +25.3% increase over 2022’s number. The load factor was up 6.5%, and the fleet size increased by nearly 16% to 182 aircraft. Total cash on hand was €1.8 billion (US$1.97 billion).
“Summer is going well operationally and from a revenue perspective. We have made significant progress against our main objectives of reinstating best-in-class profitability” by delivering high-capacity growth and improving operational metrics during the quarter. “The security of our Airbus order book and prior operational adjustments helped us deliver a markedly improved performance for our customers, our people, and our shareholders.”
“We have continued our fleet allocation program and have announced further expansion in Poland, Italy, the UK, North Macedonia, Georgia, and Albania. At Abu Dhabi Airport, Wizz Air is already the second-largest airline in terms of seats. Its fleet will grow to 10 aircraft by the end of this summer.”
“During the quarter we made direct investments in new start-ups and signed several off-take agreements with SAF producers, securing our supply in the years to come. For the third year in a row, Wizz Air was named the Most Sustainable Low-Cost Airline by World Finance magazine.”
W6 says that “more resilient operations and improving productivity are expected to continue to reduce our ex-fuel unit cost.” This will help W6 maintain its full-year guidance for a profit in the range of €350-450 million (US$382-491 million).
The airline anticipates that the positive first-quarter performance will continue into the current quarter. First-half capacity growth, though, will be moderated from a forecast of 30% down to 25%, amid “continued infrastructure and supply-chain limitations facing the industry” and recently announced Pratt & Whitney GTF engine inspections.
The airline sees this moderated growth as “an opportunity to drive better yield given the ongoing market constraints on capacity.”
Regarding the engine issues, W6 says that 12 of its A320neo-family aircraft have been identified for inspection by the end of September. A full look at the quarterly results is available on the airline’s website.
For an in-depth analysis of W6. be sure to check out episode 3 of the Airways Podcast coming out this weekend.
Featured image: Wizz Air HA-LTA Airbus A321-231. Photo: Alberto Cucini/Airways