Wizz Air cuts profit forecast as fuel bill soars

Wizz Air cut its full-year profit forecast by as much as 21% Wednesday, blaming an E80m (US$92m) hit from higher fuel prices. However, the fast-growing carrier said it was better placed to cope with rising fuel prices than many rivals. It pointed to its ultra-low cost model and expansion plans based on the arrival of new, more fuel-efficient planes next year. "I don't think that the high fuel price environment is necessarily a structurally bad thing for Wizz Air," CE Jozsef Varadi said. "It helps the market consolidate and makes the stronger airlines even stronger." Jet fuel prices are around 23% higher than a year ago. In the short term, Wizz said it would mitigate higher fuel prices by reining in costs and reducing second-half capacity growth to 14% from a previously planned 18%, helping to boost ticket prices. <br/>