Wizz Air: Central/Eastern Europe's largest airline turns 13; profit margin dip not auspicious

Wizz Air celebrated its 13th birthday on 19-May-2017. It has grown to be the biggest airline in Central & Eastern Europe (excluding Russia and Turkey), with a compound average growth rate in ASKs of 24%, and in passenger numbers of 23%, over the past 10 years.

In summer 2017, and across its financial year to Mar-2018, Wizz Air is accelerating its growth rate. It has 26 new routes and 117 new destinations this summer. In Jun-2017 it will open its first aircraft base in Western Europe at London Luton.

Alongside this impressive growth, Wizz Air has also established a track record of healthy profitability. After a patchy start, it has now spent three years as the second most profitable airline company in Europe, after Ryanair, as defined by operating margin.

Shortly after its 13th birthday Wizz Air reported its FY2017 financial results, which revealed a small decline in its (still very healthy) operating margin for the first time in five years, as unit revenue fell faster than unit cost. The airline has plenty to celebrate, but those of a superstitious mind will hope that this anniversary does not prove to be an unlucky 13.