Wizz Air ups full-year net profit guidance on robust bookings

29th Sep 2015 08:57

(ShareCast News) - Low-cost airline Wizz Air Holdings raised its full-year net profit guidance as it said it has traded well in the first half of the 2016 financial year and is on target to deliver operating and net profit margins ahead of last year.In a trading update for the first half of 2016, the company said that with the continued expansion of its network, it estimates it will grow capacity by around 18% versus previous expectations of 17%.Wizz said that as previously indicated, lower fuel prices are feeding through to lower air fares and the company expects the downward trend in unit revenues to continue in the second half of the financial year. It reiterated that it has very limited visibility on demand in the final quarter of its financial year.Nonetheless, it said the strong first-half financial performance, combined with robust bookings for the third quarter are encouraging and it now expects to report a net profit for the full year in the range of €190m to €200m, up from previous guidance of €175m to €185m in July.Chief executive Jozsef Varadi said: "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."At 0911 BST, Wizz shares were up 0.7% at 1,905p.