Wizz Air has raised its profit guidance after an exceptional quarter saw underlying profit soar 365 per cent.
Total revenue for the budget airline increased 17.3 per cent in the three months to 31 December, rising to €310m (£234m).
Ticket revenues were up 12.4 per cent to €187m, while ancillary revenue climbed 25.8 per cent to €123m.
Reported net profit under IFRS was €15.6m, a decrease of 20.9 per cent, however underlying net profit was a record €17.2m, an increase of 376.5 per cent.
As a result, underlying net profit for the full year is now expected to be in the range of €200m to €210m.
Why it's interesting
Revenues at EasyJet might have been damaged by the terrorist attacks last autumn, but Wizz Air is very clearly ascending through the turbulence, to post record profits for the last three months of 2015.
It has been able to increase both the number of passengers (up 23.2 per cent) and the load factor (to 85.7 per cent), while costs dropped, and it looks as though there is still plenty of room for further growth ahead.
Wizz Air grew its network by 19 routes in the third quarter to more than 400 including new routes to Hungary, Lithuania, Macedonia, Poland, Romania and Serbia.
The company opened its 22nd base in Debrecen in Hungary and announced it will open its 23rd operating base in Iasi in Romania in July 2016.
What Wizz Air said
József Váradi, Wizz Air chief executive said: "Our results in the third quarter have been ahead of expectations with robust trading across all of our markets. In light of this performance and encouraging forward bookings in the fourth quarter the company today raised its underlying net profit guidance for the full year to a range of between €200m to €210m. We are reporting record underlying third quarter profitability while also delivering 23 per cent growth in passenger numbers which re-affirms the opportunity we see in Central and Eastern Europe.
"The third quarter also saw a number of key milestones for Wizz Air as we position ourselves for further growth. We took delivery of our first two A321ceo aircraft and completed the order for 110 Airbus A321neo aircraft. We also signed our largest ever lease agreement for 11 Airbus A321ceo aircraft. These larger and more fuel efficient aircraft will underpin our growth plans for the next decade and ensure that we maintain our industry leading ultra-low cost base."
This budget airline is still very much in growth phase.