Wizz Air readjusting flights to UK

Hungary-based budget airline Wizz Air reports a jump in profits for the first quarter of 2016. The airline also saw halving of its intended second half growth to the UK and re-deploying this capacity to other non-UK routes due to the outcome of the Brexit vote, portfolio.hu reports.

Hungary-based budget airline Wizz Air has published its earnings report for the first quarter of 2016, which shows a jump in profits as a result of dynamically rising passenger numbers, improving load factor and low fuel prices. The carrier’s management confirmed their growth estimates for this year, but also warned that the favorable impact from the fuel price decrease is temporary and that the second half of the year has "limited visibility." Fares could drop, according to the company’s CEO, József Váradi who expects a decline of about 5% for this year.

Wizz Air had a strong run in the second quarter of 2016. The airline carried a total of 5.8 million passengers, a 17.9% increase compared to the first quarter, and generated revenues of EUR 364.9 million, a growth of 9.8% compared to the previous quarter. The carrier’s after-tax profit jumped to EUR 38.6 bn from EUR 33.9 bn a year earlier.

According to analysis by the financial website portfolio.hu, the growth outlook in the region remains favorable. Wizz Air is no longer just the largest low-cost / low-fare airline here, but the largest airline. The carrier will announce 60 new routes and open three new bases in 2017, seeing growth potential on all of its markets.

The United Kingdom’s decision to leave the European Union has led to a notable weakness in fares (in euro terms) on routes to/from the UK mainly due to the much weaker British pound which is currently 19% lower than the same period last year versus the euro, the company said. Wizz Air has already started re-adjusting its network due to this weakness and halving its intended second half growth to the UK and re-deploying this capacity to other non-UK routes.