Wizz Air forecasts higher earnings after swinging to annual profit after 3 years

Wizz Air's aircraft is parked on the tarmac at Ferenc Liszt International Airport in Budapest, Hungary, August 18, 2022. REUTERS/Bernadett Szabo/Files

(Reuters) -European low-cost airline Wizz Air forecast a higher annual profit on Thursday on the back of a strong summer and robust travel demand, after swinging to an annual net profit after three years.

Hungary-based Wizz's results come amid a flurry of mixed results from European airlines as costs rose but an expected record summer of travel is likely to boost revenues as consumers prioritised spending on holidays since the pandemic.

The airline has benefitted from sustained demand even as it navigates challenges including flight cancellations due to the Middle East conflict, engine inspections that have grounded parts of its fleet, and air traffic control disruption.

Wizz Air reported a net profit of 365.9 million euros ($395.90 million) for the year ended March 31, compared with a net loss of 535 million euros a year earlier. That compares with a company-compiled consensus of a 350.8 million euros.

The airline expects current year net income in the range of 500 million euros-600 million euros with revenue on each available seat kilometre up in high-single digits.

"As we enter F25, demand for air travel remains robust, with no sign of abating in the near term, supporting a higher yield environment as capacity across the whole industry remains constrained," CEO Jozsef Varadi said in a statement.

($1 = 0.9242 euros)

(Reporting by Eva Mathews in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)