Wizz Air increases guidance for FY2016 net profit

Wizz Air Holdings increased (28-Jul-2015) its guidance for FY2016 net profit by EUR10 million, from EUR165-175 million to a new range of EUR175 million to EUR185 million. The company however said it currently has "limited visibility on the second half of the year." Wizz Air Holdings stated: "With the continued expansion of our network, Wizz Air expects to grow capacity by around 17% in the 2016 financial year, spread evenly across the year. We continue to believe that there will be no earnings benefit from the decline in fuel prices over the last 12 months as the US dollar has strengthened against the euro over the same period and, as expected, lower fuel prices are feeding through to lower unit revenues. We expect the downward trend in unit revenues to continue for the foreseeable future." Wizz Air Holdings added: "Nonetheless, our forward bookings indicate robust demand for the peak summer period. Increased visibility over this important trading period means we now expect to deliver an improved outcome for the full year. Our current expectation is for Group post tax profit (excluding unusual and exceptional items) to be in the range of EUR175 million and EUR185 million." [more - original PR]