Wizz Air toasts strong Easter performance as profits take off

A strong performance over the Easter holiday period saw budget airline Wizz Air post a sharp increase in first quarter profits and revenue.

In the three months to 30 June, the FTSE 250-listed company reported a 15.6% year-on-year increase in profits before tax to €60.5m (£53.5m, $69.7m), while revenue jumped 28.6% to €469.3m.

As a result, the airline said it expects annual profits to be at the upper range of its €250m-270m guidance.

"This first quarter performance together with encouraging summer bookings and the favourable fuel price environment are setting the company up for a strong year," said group chief executive József Váradi.

"However, as we have seen in recent history, airlines tend to compete away the benefit of lower fuel prices with extra capacity and therefore we remain cautious on the prevailing yield environment in the second half of this financial year, a period in which the company has very limited visibility."

Wizz Air added passenger numbers in the first quarter rose by 25% year-on-year to 7.2 million, after the airline added 10 new routes, including new destinations in Russia, Kazakhstan and Morocco.

The carrier also announced the appointment of Stephen Jones as its executive vice president and deputy chief executive officer, adding Jones will take up his appointment in the latter part of this year.