Wizz Air Holdings PLC (AIM:WIZZ) shares rose 15.4% to 1,170p, rebounding from a recent decline, after the low-cost airline reported a sharp increase in profits for the first half of its financial year, while cautioning that the upcoming winter season will pose a short-term capacity challenge.
For the six months to 30 September 2025, total revenue increased 9% to €3.3 billion and EBITDA rose 18.8% to €981.3 million.
Passenger numbers increased 9.8% year-on-year to 36.5 million on 8.9% higher available seat kilometres (ASKs), with loads held steady at 92.4%.
Fuel cost per seat kilometre fell 10.4% to €1.38 cents, offsetting a modest 2.7% rise in ex-fuel costs.
At the end of the second quarter, 35 aircraft were grounded due to GTF engine-related inspections, an improvement from 41 over the summer.
Chief executive József Váradi said the results reflected increased capacity deployed over the summer season to a fleet of 243 aircraft, as well as "operational and commercial improvements" that are continuing.
This includes a "pivot away from high cost locations", with the Abu Dhabi base closed in September, with Vienna to follow by March, with openings of new bases at lower cost airports, including Bratislava, Tuzla, Podgorica, Yerevan and Warsaw (Modlin), "which will deliver operational cost savings going forward".
The airline ended the period with €1.98 billion in total cash, up 14%, and net debt down 2.5% to €4.83 billion.
Wizz Air has finalised changes to its Airbus order book, deferring 88 aircraft deliveries into the next decade and converting 36 A321XLR orders to A321neos.
Váradi said optimising the aircraft delivery stream was the most important development in the second half so far, "in order to target medium-term capacity growth at a more sustainable 10-12% per annum".
"We will see the most significant changes to our delivery profile in around 12 months time (given near-term orders and financing commitments)."
This winter season's capacity is being managed to deliver around mid-teens seat capacity growth in the second half, while unit revenue (RASK) is down a low single-digit percentage compared to last year, with load factor up by a similar level.
Analysts at Peel Hunt said results were a little better than the consensus forecast, but guidance for the second half is worse due to lower unit revenue expectations.