Wizz Air profit down 14% on disruption costs

Australian dollars in Sydney, Friday, Jan. 15, 2016. (AAP Image/Joel Carrett) NO ARCHIVING

Wizz Air Holdings PLC (WIZZ.LN) said Wednesday that its first-quarter net profit declined 14% on year, citing higher-than-expected disruption costs, but reiterated its guidance for the full fiscal 2019.

The budget airline made a net profit for the quarter ended June 30 of 50 million euros ($58.4 million) compared with EUR58.1 million in the same period in fiscal 2018.

Revenue rose 18% to EUR553.4 million as ticket sales climbed 25% to EUR330.4 million and ancillary revenue increased 9.3% to EUR223 million, the company said.

Wizz Air carried 8.6 million passengers during the period, 20% more than in the year-earlier quarter.

The company said that disruptions caused mainly by industrial action by air-traffic controllers led to 145 flight cancellations, compared with 34 cancellations in the same period in fiscal 2018.

Consequently, compensation costs incurred by the company increased 203% to EUR9.1 million, it said.

The company said it remains confident in its full-year guidance of a net profit between EUR310 million and EUR340 million for the year.

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