Wizz Air H1 profits slide on rising fuel costs, Middle East disruption

(Sharecast News) - Wizz Air posted a drop in first-half profit on Thursday as the budget airline was hit by rising fuel costs and disruption in the Middle East.

In the six months to September end, net profit fell 66% from the same period a year earlier to �108.1m, with fuel costs up 33.7% to �1.24bn.

Total revenue rose 13.8% to �3.8bn, while revenue per available seat kilometre fell 2.9% during the period to �4.84 and average revenue per passenger declined 9.9% to �82.5.

Passenger numbers increased 26.2% to 46.1 million and the load factor - which gauges how full the planes are - ticked up to 92.5% from 92.4%.

Chief executive József Váradi said: "H1 F27 demonstrated the resilience of the Wizz Air business model. We saw strong passenger and capacity growth as planned. Demand remained healthy across our network despite continued external challenges. Although profitability in the period was impacted by elevated fuel costs, Middle East disruptions at the start of Q1, and fleet availability constraints, revenue trends strengthened through the summer, supported by solid load factors and improving unit revenue performance.

"Trading momentum has continued into the third quarter. In October, revenue per available seat kilometre was up around 5% year-on-year, with ticket revenue per passenger up 7%, even as our average sector became 5% shorter. For November and December, with around 70% and 40% of seats sold respectively, unit revenue on hand is in line with last year at the same point on around 18% more capacity, with higher average fares offset by lower load factors as we grow through the winter. Fuel remains the main headwind, and our hedging, covering 82% of second-half requirements, is doing what it was designed to do."

At 1025 GMT, the shares were down 1% at 1,135p.

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