Budget airline Wizz Air says it is defying higher fuel costs as it increased its profit forecast.
The airline had forecast a net profit for the financial year of £275m to £300m. But today it upgraded that lower estimate to £287m.
Over the period, the average cost of jet fuel rose 1.8%. Wizz Air said the growth in passenger and flight numbers, with the former leaping 18%, meant the company spent 25% more on fuel overall than predicted.
But despite that £374m difference, the company's net profit margin lifted by 2.5 percentage points, to 30.5%.
Chief executive Jozsef Varadi said: "We are particularly pleased to report expanding net profit margin while delivering industry-leading growth rates in an operating environment of higher fuel prices."
He added: "Wizz Air is the lowest cost producer in the industry in Europe and the largest airline in the growing CEE market, making us a long-term structural winner in the aviation sector."
Wizz Air, whose UK head office is in Luton , focuses on Eastern and Central European destinations. The carrier serves airports including Gatwick, London Southend, Bristol, Cardiff, Birmingham, Doncaster/Sheffield, Liverpool John Lennon Airport, Edinburgh, Glasgow, Aberdeen and Belfast.
