Wizz Air aims to register higher profits as Brexit effect have not materialized
As Brexit effect failed to materialise, low-cost airline company Wizz Air, which is specialised in flights to and from central and eastern Europe, aims to register high profits.
Brexit referendum has not decreased demand for flights to and from the UK, therefore Wizz Air wants to increase its capacity by 23pc over the next year, in order to carry almost 30 million passengers annually, The Telegraph reports.
In the year to March 31, the Budapest-based airline had 23.8 million passengers, up from 20 million in 2015. During 2016, the company opened 113 new routes, including 10 outside its core region.
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The group’s pre-tax profits also increased last year, up to €255.8m, 27pc higher than the previous year, while revenues were up 9.9pc to €1.57bn.
The results are an advantage for the carrier, which warned in February that profits were likely to be €20m lower due to severe winter weather and rising costs.
Ryanair: UK could run out with no flights to or from Europe due to Brexit
During the winter, delayed flights and cancellations amid extreme weather in its core markets in Poland, Hungary and the Baltic states, where airports shut down due to storms, brought Wizz Air an unexpected €5m cost, but a boom in activity in the rest of the year pushed the company’s profits to record levels for the 12 month period.
Wizz Air announced also that there were “no signs of demand weakness” on routes to or from the UK, despite fears that the UK’s vote to leave the European Union would decrease the number of travellers. Moreover, despite the weakness in sterling, which hit its revenues by €17m, the loss was absorbed by “the rest of Wizz Air’s large and diversified route network”.
Wizz Air will open a new base at London’s Luton Airport next month with three new routes to Tel Aviv in Israel, Prishtina in Kosovo and Kutaisi in Georgia.
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