LONDON — European Low-Cost Carrier, Wizz Air, presented its 2018 financial results for last year’s run.
The airline details a 22.1% increase in profit to a record €275 million.
Revenue also increased by nearly a quarter to €1,948 million, with ticket revenues rising to 23.7% to €1,132 million.
Ancillary revenue—like seating selection, baggage fees, and other extras—also improved by nearly a quarter up to €816 million, representing 42% of the group’s total revenue.
FY2018 @wizzair: net profit +22,1% to €275mln on a 24% revenue increase to €1,9bln. Pax numbers up 24,7% to 29,6mln, 95 new routes opened.
Despite higher fuel costs optimistic outlook for FY19 on reduced costs + 20% more pax + €310-340mln profit forecast. pic.twitter.com/OMazPq8cbI
— Richard_on_aviation (@rschuur_aero) May 24, 2018
“The 2018 financial year was another year of investment and driving efficiencies in Wizz Air’s operations as we continue to our mission to become Europe’s undisputed airline cost leader,” said the airline’s CEO, József Váradi.
“This relentless focus on cost means we continue to stimulate the market through the lowest fares, resulting in record passenger numbers of almost 30 million – up 25 percent year on year,” he said.
READ MORE: WizzAir to Add 70 New Flights Around Europe
New Planes, More Seats
Such rapid growth can be attributed to the airline’s ability to offer more seats on routes that were performing well.
The airline, in fact, is offering up to 35% more seats since its new A321ceo planes joined the fleet.
WizzAir’s fleet also expanded to a total of 93 aircraft, consisting of 67 A320ceos and 26 A321ceos.
Váradi noted that brand-new A320neos will become one of the airline’s strongest foundations, as the plane will allow them to increase their focus on costs.
This plane will allow Wizz Air “to continue to drive profitable growth and achieve one of the best profit margins of all European airlines,” stressed the CEO.
The LCC has ordered 146 additional Airbus A320neo family aircraft over the course of this year, securing the airline’s growth, at least until 2026.
Taking care of Brexit
Foreseeing potential hiccups with Brexit, WizzAir has established a UK AOC to ensure that they can continue to operate in and out of the country.
Váradi remains optimistic for the year ahead even though the political landscape and higher fuel prices might continue to work as a headwind.
READ MORE: Wizz Air to Upgrade Tel Aviv-London Flights
“Our ability to drive cost advantage further and offer lower fares across our ever-expanding network will lead to an expected 20% increase in passenger numbers to 36 million in 2019,” stressed the CEO.
Wizz Air seems to be well on its way to becoming a leading player in the European landscape.
With more aircraft joining the fleet, as well as the opening of new routes, WizzAir is continuing with its low-cost model. The airline strives to provide a service comparable to Ryanair’s, but with a little more convenience, at an affordable price.