Pre-Close Trading Statement

RNS Number : 5142A

Wizz Air Holdings PLC

29 September 2015

 

AGM AND H1 2016 PRE-CLOSE TRADING STATEMENT

FULL YEAR NET PROFIT⁽¹⁾ GUIDANCE RAISED

LSE: WIZZ.L

Geneva, 29 September 2015: Wizz Air Holdings Plc ("Wizz Air" or "the Company"), the largest low-cost airline in Central and Eastern Europe, today provides a trading update for the first half of the financial year ending 31 March 2016 ("first half" or "H1") ahead of its AGM.

Wizz Air confirms that the Group 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 the same period last year.

With the continued expansion of its network, Wizz Air estimates that it will grow capacity by around 18% (previously 17%) in the 2016 financial year, split approximately 17% in H1 and 19% in the second half of the financial year.  As previously indicated, lower fuel prices are feeding through to lower air fares. Wizz Air anticipates that the downward trend in unit revenues will continue in the second half of the financial year and reiterates that the Company has very limited visibility of demand in the final quarter of its financial year.

Nonetheless the strong H1 financial performance, combined with robust bookings for the third quarter, are encouraging and the Company now expects to report a net profit for the full year (excluding unusual and exceptional items) in the range of €190 million to €200 million. Wizz Air's current expectations for full year performance are summarised below.

	September 2015	July 2015	Comment
	Guidance	Guidance
Capacity growth (ASKs)	18%	17%	H1 2016: 17%, H2 2016: 19%
Average stage length	Unchanged	Unchanged	-
Load Factor (%)	Modest improvement	Modest improvement	-
Fuel CASK	- 6.0%	-3.0%	Assumes spot price of $550/MT
Ex-fuel CASK	+1.0%	+1.0%	-
Total CASK	- 1.5%	- 0.5%	Assumes $/€ rate of $1.10
Revenue per ASK	Down low single digit	Down low single digit	Pass through of lower fuel prices
Tax rate	6%	6%	-
Net profit	€190-200 million	€175-185 million	(1) Excluding unusual or exceptional items

József Váradi, Wizz Air Chief Executive 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. 

We continue to deliver against our ambition to make safe, reliable, affordable air travel available to everyone in Central and Eastern Europe. Our ultra-low cost model gives us a clear cost advantage versus most of our rivals, including many other low cost airlines, and as a result we are able to offer our passengers low fares and sustain a relatively high growth rate compared to other carriers. We have a strong balance sheet, proven management team, best-in-class fleet and leading market position in CEE. This winning formula leaves Wizz Air well placed to continue to deliver significant growth and returns for our shareholders".

- Ends-

ABOUT WIZZ AIR

Wizz Air is the largest low-cost airline in Central and Eastern Europe, operates a fleet of 63 Airbus A320 aircraft and offers more than 390 routes from 22 bases, connecting 112 destinations across 38 countries. At Wizz Air, a team of approximately 2,300 aviation professionals delivers superior service and very low ticket prices making Wizz Air the preferred choice of 16.5 million passengers in the financial year ended 31 March 2015. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ.L and is included in the FTSE 250 and FTSE All-Share Indices.

For more information:
Investors:	Iain Wetherall, Wizz Air:	[phone]
Media:	Doug Oliver, Wizz Air:	[phone]
	Edward Bridges / Jonathan Neilan, FTI Consulting LLP:	[phone]

 

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