Wizz Air share price climbed by over 6% on Wednesday as the budget airline revealed a promising set of full-year results for the year ended March 31st 2020.
It revealed a 16% increase in passengers as it carried 40m – a near 5 million increase on 2019’s figure with revenue increasing 19.1% to 2.76 billion Euro.
Interestingly it claimed that ancillary revenue also grew at 31% to make-up 45% of total revenues, investors therefore will have question marks of how sustainable this revenue will be as items such as food and beverage sales will take a hit.
Little was also said on the performance of the business from April onwards – the airline did point to a very healthy balance sheet of 1.5bn Euro in cash and its focus on ‘ultra-low fares’ to re-stimulate demand and get people flying again:
“We have taken various initiatives during the COVID-19 pandemic to safeguard the Company’s cost position and excellent balance sheet with €1.5 billion of cash, one of the strongest in the airline industry. We remain focused on best servicing our markets, while protecting the health of customers and employees. Our new health and safety protocol is designed to ensure that our customers and crew can fly safely during this unprecedented time for the global aviation industry.
In addition, we are taking advantage of arising market opportunities and have recently announced the expansion of our network with new bases in Albania, Cyprus, Italy and Ukraine, with more exciting developments to come. We are confident that we can ramp up operations quickly, re-stimulate demand with our ultra-low fares and contribute to theJózsef Váradi, Wizz Air’s Chief Executive Officer
vital recovery of travel and tourism in our markets.”