Wizz Air swings to Q1 profit on soaring demand; Cuts H1 ASK guidance

(Sharecast News) - Low-cost carrier Wizz Air swung to a first-quarter profit on the back of soaring demand for travel and record passenger numbers. The company on Thursday reported an operating profit of €79.9m, compared with a loss of €284.5m. Revenue climbed 53% to €1.2bn, while passenger numbers were up by a quarter to 15.3 million.

"We continue to observe positive trading in the second quarter with revenue per available seat kilometres (RASK) trending higher year-on-year on the back of low double digit percentage increased ticket revenue and a higher load factor, compared to the same period last year, expected to build up to 94%," said chief executive Jozsef Varadi.

However, he downgraded first-half seat kilometre growth to 25% versus previously guided 30% due to continued infrastructure, supply chain limitations facing the industry and engine inspections.

"At this time we have limited information as to the scope of engine inspections in H2 and highlight that our guidance of +30% higher ASK vs last year remains subject to further communication from original equipment manufacturers on this matter," Varadi added.

Reporting by Frank Prenesti for Sharecast.com