A Wizz Air Airbus A321-231 takes off from Barcelona Airport in Barcelona, Spain on February 23, 2024.
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European budget airline Wizz Air forecast higher annual profit on Thursday on account of a powerful summer and robust travel demand, after posting an annual profit for the primary time in three years.
Hungarian-based airline Wizz’s results come amid a sea of mixed results from other European airlines as costs rose. However, an expected record summer of travel is more likely to boost revenue as consumers have prioritized spending on vacations because the pandemic.
The airline is benefiting from sustained demand at the same time as it grapples with challenges corresponding to flight cancellations on account of the Middle East conflict, engine inspections that led to the retirement of a part of its fleet and air traffic control disruptions.
Wizz Air reported a net profit of 365.9 million euros ($395.90 million) for the fiscal 12 months ended March 31, compared with a net lack of 535 million euros a 12 months earlier. This compares to a consensus of 350.8 million euros determined by the corporate.
The airline expects a net profit within the range of 500 to 600 million euros for the present 12 months with a rise in revenue per seat kilometer offered within the high single-digit range.
“As we enter F25, demand for air travel remains robust and there are no signs of a near-term decline, supporting a higher earnings environment as capacity across the industry remains constrained,” CEO Jozsef Varadi said in a press release .
