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Wizz Air Holdings PLC on Thursday offered reassurance that pricing remained strong and costs constrained as it reiterated full-year guidance. Shares in Wizz Air rose 5.5% to 2,230.00 pence each in London on Thursday. The Budapest-based budget airline expects to report net income in the range of €350 to €370 million for the full year to March 31, in line with guidance. In a trading update, Wizz Air said total revenue is expected to be in the range of €5.05 billion to €5.10 billion, reflecting stronger ticket revenue and pricing, partially offset by softer ancillaries in the second half. Full year revenue per available seat is expected to be mid-single digit per cent higher compared to last year, as guided. The comments on pricing offered reassurance after shares in industry rival Jet2 PLC fell on Wednesday after it suggested the pricing environment was getting more competitive. Wizz Air said that supported by higher utilisation and on-time performance, operating expenses grew slower than flown capacity, resulting in lower unit costs for the year. Fuel cost per available seat, including the cost of carbon and fuel hedging, is expected to be 23% to 24% lower compared to last year. Ex-fuel cost per available seat is also expected to be 7% to 8% lower. Wizz Air said results had been underpinned by ‘sustained demand for air travel and active management of ongoing external issues, including the [geared turbofan] engine recall and the Israel-Hamas war.’ Wizz Air said at March 31, it had 45 neo aircraft grounded due to issues related to the GTF engine recall, with 40 GTF spare engines supporting the removal program. Assumptions relating to GTF engine removals shared previously remain unchanged. Wizz Air expects roughly flat year-on-year capacity growth for financial 2025. ‘It is trading positively into the summer of 2024 with selling load factors and pricing trending higher year-on-year in the first two fiscal quarters,’ the company added. Wizz Air said it expects to expand operating margins, increase operational cash and further reduce net debt in the new financial year. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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