Summary: Wizz Air’s shares climbed as much as 16% on Thursday after the budget airline posted a near 26% rise in first-half operating profit. Despite the strong performance, the carrier warned of a slight decline in full-year revenue and flagged winter capacity as a short-term challenge.
Wizz Air Holdings PLC reported a first-half operating profit of €439.2 million, up almost 26% year-on-year, significantly beating analyst expectations of €367 million RTÉ Ireland. The upbeat results sent the airline’s shares soaring, making it one of the day’s strongest performers on the FTSE 250 index.
The Hungary-based carrier attributed the profit surge to expanded summer capacity and operational improvements, which boosted passenger numbers and revenue. First-half revenue rose 9% to €3.34 billion, reflecting strong demand across European markets London South East.
However, the airline tempered investor optimism by forecasting a low-single-digit decline in full-year revenue, citing weaker unit revenues and seasonal pressures. Chief Executive József Váradi acknowledged that winter capacity remains a “short-term challenge”, as the airline adjusts schedules to manage demand fluctuations RTÉ Ireland.
Wizz Air also confirmed it has delayed delivery of 88 Airbus aircraft from 2030 to 2033, part of a broader cost-cutting strategy aimed at stabilizing long-term profitability RTÉ Ireland. The company continues to face external headwinds, including ongoing issues with Pratt & Whitney engines, which have slowed repairs and impacted fleet availability.
Despite these challenges, analysts view the strong interim results as a sign of resilience. The airline’s ability to deliver higher-than-expected profits while navigating operational hurdles underscores its position as one of Europe’s fastest-growing low-cost carriers.
Wizz Air’s soaring profits and share price highlight investor confidence, but the airline’s cautious outlook on revenue and winter capacity signals that turbulence may still lie ahead.
References:
RTÉ IrelandRTÉ News – Wizz Air forecasts fall in annual revenue despite H1 operating profit beat
London South EastAlliance News – Wizz Air half-year profit jumps but sees winter capacity challenge
