Last checked at 
* Raises bottom end of FY net profit range
* No big hole in system after MAX grounding- CEO
* UK subsidiary performing well
* Growth in tourism in and out of Britain- CEO
(Adds CEO, analyst comments, details)
By Noor Zainab Hussain
Nov 13 (Reuters) - Wizz Air lifted the bottom end
of its annual profit forecast and further raised its capacity
growth outlook, as the budget airline flew more passengers and
curbed costs in the first-half, while struggling rivals cut
expansion plans.
Wizz, which mainly flies to central and eastern Europe, said
on Wednesday net profit for the financial year 2020 would be
between 335 million euros to 350 million euros ($369.17 million
to $385.70 million). It had an earlier range of 320 million
euros to 350 million euros.
Chief Executive Officer József Váradi said the airline was
increasing its capacity growth rate to 22%, from 20% promised in
July, while net profit for the six months ended Sept. 30 rose
87.1% to 371.5 million euros.
Fuel unit costs, however, increased 5.3% year-on-year.
Wizz, which competes with Lufthansa's Eurowings
brand at European airports such as Vienna, is performing well in
an industry plagued by weaker demand, rising fuel costs,
competition, strikes, bankruptcies and the grounding of Boeing's
737 MAX fleet.
British Airways parent IAG has warned that its
full-year profit will be hit by a pilots' strike at the UK
carrier, while Lufthansa is ready to go into
arbitration to resolve a long-running staff dispute.
Ryanair also expects further delays to its 737 MAX
deliveries.
SMART AND CREATIVE
Váradi, however, said Wizz - powered by Airbus
planes - had not really benefited from the groundings.
"Airlines were smart and created ways of replacing capacity
in 85% of the cases," he said.
Wizz's central and eastern European focus has sheltered it
from some of the fierce price competition that has dominated
Western Europe's aviation market in recent years.
"Despite rapidly rising fuel costs, Brexit uncertainty and
chronic overcapacity in the sector, Wizz Air was still able to
report record financial results for the first half of the year,"
eToro analyst Adam Vettese, said.
"Wizz ... is leaving the rest of its low-cost rivals
behind," he said.
Shares in the Budapest-based company were, however, 2% down
in a weaker wider market, with analysts saying most of the good
news was already in the price after the stock hit a record high
earlier this month.
Váradi said Wizz's British subsidiary, created 18 months ago
with a fleet of 10 aircraft to ensure full market access to
Britain after Brexit, was performing well.
He added that Wizz, which operates 70 routes flying out of
Britain, had seen a lot of inbound tourism to the country
despite Brexit jitters, with Britons travelling to Hungary,
Poland, Tel Aviv and Cyprus.
Wizz also got some of collapsed travel firm Thomas Cook's
airport slots, he said.
($1 = 0.9074 euros)
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by
Bernard Orr and Emelia Sithole-Matarise)
