Wizz Air quarterly profit slumps 87% as higher fuel costs weigh

Hungarian low-cost carrier Wizz Air reported a sharp fall in third-quarter revenue after it was hit by higher fuel costs.

Net profit for the three months through December slumped to 87% to €1.7m, down from €14.0m on-year despite higher passenger volumes boosting revenue 21%.

Profit margins slumped by three full percentage points to 0.3%.

Wizz Air nevertheless maintained its full-year profit guidance of €270m-to-€300m.

'Where we will be within this range will depend on the extent of March yield pressures, which will be affected year-on-year given Easter falls after the financial year-end in April, and external factors such as Brexit uncertainty,' chief executive Jozsef Varadi said.

In the third quarter, operating costs jumped 26%, driven by a 22% rise in fuel unit costs.