Wizz Air Makes Huge Profit After Ryanair And EasyJet Suffer

Low-cost airline Wizz Air has delivered impressive full-year results that see profits up 4.5% while Ryanair and easyJet suffer.

Bucking a recent trend of bad news, Budapest Based on a 2019 issue.

New Livery Wizz Air A321. Photo: Wizz Air

Dodging the doom and gloom being reported by some of Europe's other budget airlines; The Hungarian carrier is predicting strong growth well into 2020.

In comparison, Irish low-cost airline Ryanair saw its pre-tax earnings plummet 41% despite still posting an impressive $ 1.1 trillion (948 €).

While easyJet chief executive, Johan Lundgren cited Brexit for the airline's downturn in profits, saying in the Guardian: "For the second half we are seeing softness in both the UK and Europe, which we believe comes from macroeconomic uncertainty and many unanswered issues surrounding Brexit, which are together driving weaker customer demand."

How is Wizz Air bucking the current trend?

While Wizz Air's strength is a changing couple of factors.

Firstly the airline consolidates its business around Central and Eastern Europe, predominantly in Hungary, Romania and Poland. This means that Brexit is not a player in their business plan despite having a hub at Luton Airport.

Secondly, they do not want to compete with the likes of Ryanair and easyJet who rely on holidaymakers and big-name destinations like Paris and Madrid for their main source of revenue.

Wizz Air is quite happy to meet people in Katowice and Cluj-Napoca where they face little competition.

"We remain very optimistic about the current financial year. These are the conditions for providing a lower bound on the market, "" CEO József Váradi said while being interviewed by CNBC.

According to Yahoo Finance, an badyst with Barclays Bank confirmed Váradi's optimism, saying: "Market conditions in the EEC continue to be encouraged, with continued strong growth and increased propensity to travel."

Ryanair's approach to revenue growth, Wizz Air is looking for more expensive things to get along with.

Wizz Air is eyeing up Thomas Cook

By now we are all acquainted with the financial problems that tour operator Thomas Cook is having after it for it in its attempt to salvage its business.

This Wizz Air may have been in the market for some of Thomas Cooks aircraft and lucrative landing slots at Gatwick Airport.

So far Wizz Air has not approached Thomas Cook with any offers but COE József Váradi has suggested that the Hungarian airline might be interested in acquiring some of Thomas Cooks badets.

While speaking with Bloomberg TV, Vára said, "Wizz is not interested in taking over the Thomas Cook Group Plc, but may be interested in some badets if they become available."