Proactive Investors - Wizz Air Holdings PLC (LON:WIZZ) rounded the six months to 30 September 2023 off with total revenues of €3 million, marking a 39% year-on-year increase and a return to profit for the Hungarian budget carrier.
The London-listed group carried just shy of 33 million passengers in the period, a 27% increase compared to the same period in 2022.
As a result, last year’s interim operating losses flipped into profit to the tune of €523 million.
The second quarter was particularly lucrative for the airline, with post-tax profit closing five times higher on a yearly comparative.
Average seat kilometres (ASK), which is an indicator of capacity management, increased 27% year on year, with unit costs per ASK falling more than 12%.
Surging staff, maintenance and marketing costs were offset by cheaper, well-hedged fuel prices.
Net debt ticked €300 million higher to €3.89 billion in the period, but given Wizz Air’s underlying profit, leverage has rolled off significantly, with the debt-to-EBITDA ratio falling to 4.9 times, from over 115 times in the first half of 2022.
"This summer we delivered significantly improved operational performance compared to last year,” stated chief executive József Váradi, adding: “There were fewer flight cancellations, and overall fleet utilisation and productivity increased year on year.
“Our revenue and profit results reflect the higher volumes we now operate and the enormous amount of work and investment over the past three years.”
Looking forward, Váradi estimated overall second-half ASK capacity to be around 20% higher year on year, despite the number of GTF engines needing off-wing inspection in the period.
This figure still represents industry-leading capacity growth and is a further testament to the company's ability to overcome adverse external factors.
However, management has narrowed its full-year income guidance to the €350 million to €400 million range, down from €350 million to €450 million, due to “the ongoing macro environment uncertainty and continuing difficult operating conditions, from an infrastructure and security perspective”.
The airline has suspended Israel flights until the end of November.
Wizz Air expects to take delivery of 21 Airbus 321neo aircraft by the end of the second half of the current financial period.