Budapest-headquartered budget airline Wizz Air expects the wave of consolidation in the sector to continue. Fuel prices are exerting pressure on high-cost airlines, but Wizz Air is in a better position due to its lower cost levels, CEO Jozsef Varadi told local business daily Vilaggazdasag on May 25.

Wizz Air is the largest low-cost airline in Central and Eastern Europe, operating a fleet of 88 Airbus A320 and Airbus A321 aircraft serving more than 550 routes from 28 bases, connecting 145 destinations across 44 countries. 

Last week the company reported a 22% y/y rise in net profit to €275mn in the business year ended March 31, an earnings report showed. Revenue rose 24% to €1.9bn, lifted by higher passenger numbers and a 24% rise in ancillary revenues. 

Varadi said Wizz Air is not planning new acquisitions but will seek to exploit the market gaps with coming consolidation, such as when it purchased the landing rights of bankrupt Monarch Airlines last year. 

In April the UK subsidiary Wizz Air acquired an air operators certificate (AOC) and an operating license (OL) from local authorities and, at the same time, it announced the establishment of its UK subsidiary at London Luton. The move was widely seen as part of a contingency plan of the airline to preserve the existing flying rights in case of Brexit. 

The airline expects passenger traffic to rise 20% to 36mn this year and a 13-23% rise in net profit. On the Hungarian market, the company anticipates a 24% increase in revenue with the launch of new routes. 

Nearly 42% of revenues are attributed to revenues from related services. Wizz Air's guidance for the current business year shows net profit between €310mn and €340mn.