Wizz Air upgrades FY2016 profit guidance

Wizz Air Holdings confirmed (29-Sep-2015) the group has traded well in 1HFY2016 ending 30-Sep-2015 and is on target to deliver operating and net profit margins ahead of 1HFY2015. With the continued expansion of its network, Wizz Air estimates that it will grow capacity by around 18%, compared to previous estimate of 17%, in FY2016, split approximately 17% in 1H and 19% 2HFY2016. Wizz Air anticipates that the downward trend in unit revenues will continue in 2HFY2016. The carrier's FY2016 forecast are as follows:

• Capacity (ASK) growth: +18%, compared to previous guidance of 17%;
• Average stage length: Unchanged from previous guidance;
• Load factor: Modest improvement, unchanged from previous guidance;
• Fuel CASK: -6.0%, compared to previous guidance of -3.0%;
• Cost per ASK excl fuel: +1.0%, unchanged from previous guidance;
• Total CASK: -1.5%, compared to previous guidance of -0.5%;
• Revenue per ASK: Down low single digit, unchanged from previous guidance;
• Net profit: EUR190-200 million, compared to previous guidance of EUR175-185 million. [more - original PR]

Wizz Air: "We are very pleased with summer trading and anticipate that this will translate into another record quarter for Wizz Air. We have continued to grow our network and increase our passenger numbers throughout the period while maintaining an industry leading, ultra-low cost base. We are also very excited about the arrival of the A321s from November this year. These aircraft will underpin our growth plans for the next decade and further improve our cost competitiveness," József Váradi, CEO. Source: Company statement, 29-Sep-2015.