The unexpected exit of Wizz Air 's (WIZZ) finance chief Mike Powell may have been the reason why its shares slumped 5 per cent in morning trading. There was little to fault in the low-cost carrier's maiden half-year figures as a listed group. Passenger numbers rose 20 per cent to 10.65m, helping the load factor - the key measure of how full its aircraft are - reach 90.7 per cent, which management claimed to be "one of the highest in the industry". The low fuel price also proved a boon, as the unit cost of operating its planes fell 5.1 per cent to €3.46 (£2.45) per available seat kilometre.
Chief executive József Váradi, who signed a new five-year contract, said rising capacity in the industry meant ticket prices were dropping. But he stressed that this environment was "good" for his company, given its low-price stance. Meanwhile, ancillary revenues - which amount to a third of turnover at Wizz Air - are growing thanks to baggage charges and initiatives such as priority boarding. They reached €27.4 per passenger - the "highest in Europe", Mr Váradi boasted.
The larger A321 planes are due to start arriving this year as part of an order of 110 by 2024. These planes have 50 more seats than those in the current fleet, but roughly similar maintenance costs, meaning unit costs should fall.
Analysts at Barclays expect pre-tax profit of €207m for the full year, leading to EPS of 157¢, compared with €155m and 119¢ in FY2015.
| WIZZ AIR (WIZZ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,820p | MARKET VALUE: | £954m | |
| TOUCH: | 1,820-1,823p | 12-MONTH HIGH: | 2,066p | LOW: 1,150p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1,252¢ | NET CASH: | €676m | |
| Half-year to 30 Sep | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 727 | 164 | 18.1 | nil |
| 2015 | 836 | 191 | 3.5 | nil |
| % change | +15 | +16 | -81 | - |
