Wizz Air Shares Jump After Returning to Profit in 2024 – Demand ‘Remains Robust’

Wizz Air Holdings (LON: WIZZ) shares jumped more than 6% Thursday after announcing a return to profitability for the fiscal year ending March 31, 2024.

The low-cost airline reported a net profit of €365.9 million compared to a loss of €535.1 million in the previous year. Wizz carried a record 62 million passengers, a 21.4% increase from last year, demonstrating strong recovery and growth.

Total revenue surged by 30.2% to €5.07 billion, driven by higher load factors and increased ticket prices. The load factor improved to 90.1%, up from 87.8% the previous year. The airline's EBITDA reached €1.2 billion, reflecting strong pre-pandemic performance levels.

CEO József Váradi attributed the positive results to sustained demand for air travel and effective cost management. He highlighted the airline's strategic focus on improving utilization and lowering unit costs, both fuel and non-fuel, which contributed to the robust financial performance.

Wizz Air's operational metrics also improved significantly, with fleet utilization rising to 12:25 hours and on-time performance increasing to 65.3%. 

Despite challenges such as geopolitical instability and supply chain disruptions due to GTF engine inspection, Váradi said the airline has proven its “model is agile, highly resilient and well positioned to mitigate the impact of these ongoing issues.”

Looking ahead, Váradi expressed confidence in the continued strong demand for air travel, noting positive booking momentum for the summer. He stated that “demand for air travel remains robust, with no sign of abating in the near term.”

Wizz Air expects its FY25 load factors to be 92% and its FY25 net income to be between €500 and €600 million.