The Wizz Air Holdings PLC (LON: WIZZ) share price plunged 7.33% after the budget airline released the half-year earnings results (six months) ended 30 September 2023. The company reported a profit of €400.7 million for the period, showcasing a staggering five-fold increase in Q2 compared to the previous year.
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The budget airline also recorded a surge in passenger numbers during the first half of its financial year after carrying 33 million passengers, compared to 26.5 million passengers in H1 2022 and 22.1 million people in H1 2020.
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The company reported that its Average Seat Kilometres (ASK) capacity saw a substantial 27.0% increase in H1 compared to H1 F23, marking an impressive 63% growth compared to H1 F20. Unit revenue (RASK) surged by 9.6% year-on-year, with ticket RASK showing an even more substantial increase of 17.4%.
The load factor made a remarkable recovery, averaging 92.6% in H1, compared to 86.9% in H1 F23 and 95% in H1 F20. Unit cost (CASK) witnessed a notable 12.3% year-on-year reduction, with ex-fuel CASK declining by 0.8%. The cost reduction was primarily driven by ongoing efforts to mitigate airport delays, address increased disruption claims, and manage crew costs.
The company maintained a robust total cash balance of €1.8 billion, reflecting effective selling strategies and cash management practices. The airline continued to operate in a robust demand environment throughout the period.
Investments in operational strength yielded significant results, with an improved flight completion rate of 99.2% (compared to 98.1% in F23) and increased aircraft utilisation, reaching 12:18 hours in H1 (compared to 11:49 in H1 F23).
József Váradi, Wizz Air Chief Executive, commented: “This summer, we delivered significantly improved operational performance compared to last year. 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. In the first half, we saw very strong load factor recovery, as demand remained robust, including in new markets that are maturing steadily and where we continue to add frequencies and improve our schedule.”
Wizz Air share price.
The Wizz Air share price fell 7.33% to trade at 1694.8p from Wednesday’s closing price of 1828.8p.
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