Wizz Air on track for flying revenues as airline gets Brexit-ready

 
Rebecca Smith
Investors have been impressed with Wizz Air's plans
Investors have been impressed with Wizz Air's plans (Source: Getty)

Despite troubles for several airlines of late, Hungarian low-cost carrier Wizz Air is expected to fly to rising revenues and profit this year.

The airline reports half-year results on Wednesday, and at present, analysts are forecasting revenue for the year to rise to nearly €2bn from this year's €1.57bn, up by around a quarter.

Underlying net profit after tax is expected to come in at €277.3m for the year, up from €225m, with analysts eyeing significant growth opportunity for the airline.

Read more: Ryanair reports soaring traffic for September despite cancellation woes

The aviation sector has suffered a few blows of late, with the collapse of Monarch Airlines last month, while Air Berlin filed for insolvency in August, and Alitalia entering administration in May.

The boss of British Airways owner IAG said last week he felt a few more airlines could be in for a difficult period. Willie Walsh said a handful of airlines "will face a challenge this winter".

Expansion plans at Wizz Air though, have continued to take off, as the firm focuses on less mature markets. Last month, it reported traffic rising by more than a quarter, with capacity rising by nearly as much. Its load factor, assessing how efficient an airline is at filling seats, was also on the up.

It has announced plans to set up a UK subsidiary to ensure it will be able to keep operating flights in the UK after Brexit.

The London-listed airline said it had filed an application for the grant of an air operator's certificate and operating licence from the Civil Aviation Authority.

Once it gets the go-ahead the airline plans to kick off UK operations in March next year with several UK-registered aircraft.

Wizz Air chief executive, József Váradi said the move was a "natural next step in the development of our UK business and will bring additional investment and jobs to our UK base at London Luton".

Read more: Now another airline has applied for a new licence to get 'Brexit-ready'

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