Geneva, 19 July 2017: Wizz Air Holdings Plc ("Wizz Air" or "the Company"), the largest low-cost airline in Central and Eastern Europe ("CEE"), today issues unaudited results for the three months to 30 June 2017 ("first quarter" or "Q1") for the Company as a whole, and separately for its airline ("Airline") and tour operator ("Wizz Tours") business units1.
RECORD Q1 PROFITABILITY AND STRONG CASH GENERATION CONTINUES
- Total revenue increased 28.6% to €469.3 million:
- Ticket revenues increased 25.1% to €265.3 million.
- Ancillary revenues grew 33.4% to €204.0 million.
- Net profit for the period was a record €58.1 million in Q1, a year on year increase of 50.4%.
- Total cash at the end of June 2017 was €1,064.3 million of which €911.7 million was free cash.
AIRLINE AND WIZZ TOURS
The segmented reporting details the financial performance of the Airline and Wizz Tours business units separately:
- Airline: Q1 performance:
- Total unit revenue increased by 3.4% to 3.72 euro cents per available seat kilometre (ASK).
- Total unit costs increased by 2.1% to 3.23 euro cents per ASK.
- Ex-fuel unit costs increased by 2.9% to 2.29 euro cents per ASK.
- Fuel unit costs were unchanged at 0.93 euro cents per ASK.
- Net profit margin increased 1.8ppt to 12.5%.
- Ancillary revenues per passenger increased by €1.8 to €28.2 per passenger.
- Wizz Tours: Q1 package holiday revenues were €4.9 million.
Q1 BUSINESS HIGHLIGHTS
- Passengers carried increased 25.2% to 7.2 million securing Wizz Air's position as CEE's leading low cost carrier.
- Operational expansion continued with the opening of the Company's 28th operating base in London Luton.
- Route network expansion with 10 new routes announced in Q1 including to new airports in Russia, Kazakhstan and Morocco, taking the network to more than 500 routes to/from 42 countries.
- Fleet growth with the delivery of four additional brand new Airbus aircraft comprising of one A320ceo and three A321ceo aircraft bringing the total fleet to 83 aircraft, a mix of 64 A320ceos and 19 A321ceos.
- Secured an additional 10 A321ceo aircraft to be delivered in the next three years supporting the Company's growth plans.
- Continuous improvements to our customer offering by removing our "paid for" large cabin bag policy.
József Váradi, Wizz Air Chief Executive said:
"I'm pleased to report a record first quarter performance which saw net profit increase by 50% to €58m and passenger numbers grow by 25% to 7.2 million passengers. The Company experienced a particularly strong performance from Easter traffic in the first quarter. Our ultra-low cost base allows us to offer the lowest fares and that continues to stimulate the market for air travel in Central and Eastern Europe and, as economic growth in the region continues to push ahead of Western Europe, ever more customers take the opportunity to fly with Wizz Air.
This first quarter performance together with encouraging summer bookings and the favourable fuel price environment are setting the Company up for a strong year. However, as we have seen in recent history, airlines tend to compete away the benefit of lower fuel prices with extra capacity and therefore we remain cautious on the prevailing yield environment in the second half of this financial year, a period in which the Company has very limited visibility. Therefore the Company is today guiding towards the higher end of a full year net profit guidance range of between €250m and €270m.
We continue to drive our ultra-low cost base even lower with a delivery stream of brand new A321 aircraft which deliver double digit cost savings compared to A320 aircraft. By March 2018 Wizz Air will be operating 26 A321 aircraft - representing a third of the airline's planned seat capacity - which will give us a clear cost advantage versus most of our rivals. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders.
Our new cabin luggage policy announced today underlines our commitment to continuously provide excellent consumer experience every step of the customer journey. Wizz Air prides itself on its user-friendly software solutions reflected in our website and new mobile app, state-of-the-art technology and efficiency of our fleet as well as the outstanding on-board service and professionalism of staff. We are working hard on ensuring that the WIZZ experience is as smooth and hassle free as it can get, thus no more fees for hand luggage on all Wizz Air flights from 29 October will further underline our commitment to this mission."
FULL YEAR OUTLOOK
The table below sets out the components of the Company's full year outlook.