REG - Wizz Air Holdings - Final Results
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RNS Number : 5160L Wizz Air Holdings PLC 05 June 2025
WIZZ AIR HOLDINGS PLC - RESULTS FOR THE 12 MONTHS TO 31 MARCH 2025
F25 IMPACTED BY GTF GROUNDINGS. IMPROVEMENT EXPECTED FROM F26 WITH A RETURN
TO GROWTH AND REDUCED OPERATIONAL DISRUPTION
LSE: WIZZ
Geneva, 5 June 2025: Wizz Air Holdings Plc ("Wizz Air" or "the Company") one
of the most sustainable European airlines, today announces its results for the
full year ended 31 March 2025 ("F25").
Full year to 31 March 2025 2024 Change
Period-end fleet size (1) 231 208 11.1%
ASKs (million km) 121,671 121,750 (0.1)%
Load factor (%) 91.2 90.1 1.0ppt
Passengers carried (million) 63.4 62.0 2.2%
Total revenue (€ million) 5,267.6 5,073.1 3.8%
EBITDA (€ million) (2) 1,134.3 1,193.2 (4.9)%
EBITDA Margin (%) (2) 21.5 23.5 (2.0)ppt
Operating profit for the period (€ million) 167.5 437.9 (61.7)%
Net profit for the period (€ million) 213.9 365.9 (41.5)%
RASK (€ cent) 4.33 4.17 3.9%
Total CASK (€ cent) 4.33 3.90 10.9%
Fuel CASK (€ cent) 1.48 1.52 (3.1)%
Ex-fuel CASK (€ cent) 2.85 2.38 19.9%
Total cash (€ million) (2,3) 1,736.0 1,588.9 9.3%
Net debt (€ million) (2) 4,956.3 4,790.2 3.5%
(1 )Aircraft at end of period includes 3 aircraft in Ukraine, but
excludes wet-leased aircraft.
(2 )For further definition of measures presented refer to "Alternative
performance measures (APMs)" section of this document. In addition to marked
APMs, other measures presented above incorporate certain non-financial
information that management believes is useful when assessing the performance
of the Group. For further details refer to "Glossary of terms" section of this
document.
(3 )Total cash comprises cash and cash equivalents (31 March 2025:
€597.5 million; 31 March 2024: €728.4 million), short-term cash
deposits (31 March 2025:
€1,060.2 million; 31 March 2024: €751.1 million) and total current
and non-current restricted cash (31 March 2025:
€78.3 million; 31 March 2024: €109.4 million).
HIGHLIGHTS
▶Record traffic of 63.4 million passengers in F25 (vs 62.0 million
last year) despite ASK capacity being 0.1 per cent lower year-on-year.
▶Traffic growth reflected in 1.0ppt increase in F25 load factor
to 91.2%.
▶Unit revenue (RASK) up 3.9 per cent year-on-year, with ticket RASK
+4.1 per cent and ancillary +3.7 per cent.
▶Total unit cost (CASK) up by 10.9 per cent year-on-year, with fuel CASK
down 3.1 per cent and ex-fuel CASK up 19.9 per cent.
▶Further improvement in operational metrics with operating fleet utilization
at 12:28 hours vs 12:25 hours last year and with 67.5 per cent on-time
performance, up from 65.3 per cent.
▶Maturing network with lower share of capacity operated on routes younger
than three years (-14 ppts vs last year).
▶Navigating GTF engine disruption: 42 aircraft-on-ground at the end
of F25; 37x as of 9 May 2025; Expect circa 34x aircraft grounded by end
of H1 F26.
▶Received delivery of 26 new A321neos and 14 GTF spare engines
in F25 to mitigate some of the impact of the GTF groundings.
▶Maintained CO2 emissions at 52.2 grams per passenger/km for the rolling
12 months to 31 March 2025 (vs 52.0 grams for F24).
▶EBITDA at €1.1 billion, a slight decrease vs last year
▶Total cash balance at €1.74 billion, 9.3% up vs last year.
József Váradi, Wizz Air Chief Executive Officer commented on the results:
"I describe our fiscal year F25 with two words: resilience and transformation.
In an environment where rare challenges have become recurrent, Wizz Air has
evolved structurally, embedding increased flexibility into our standard
operating model. While often dismissed as 'easier said than done,' the past
year's events tested both our company and management. We emerged stronger,
wiser, and better prepared."
Commenting on the outlook and current trading for the Company, József Váradi
added:
"Wizz Air is a more resilient business today. Despite the unproductivity of a
grounded fleet, we successfully delivered a second consecutive year of
profitability. We have the benefit of more than a year of experience operating
under these unique circumstances - conditions airlines would never experience
when demand exceeds supply. Our unit revenue is 4% higher than last year,
supported by the combination of our ability to generate higher fares and drive
a higher load factor. Our on time performance and completion rates are
steadily improving and our employee satisfaction consistently improves.
The number of grounded aircraft will start reducing in both absolute and
relative terms and this is why we have reached an transformation point. ASK
capacity is back to growing due to this and due to the increase in the
delivery volume of new aircraft from Airbus. The percentage of grounded
aircraft relative to total fleet continues to improve, allowing us to focus on
the key elements of our strategy, winning market share, driving leadership
positions and deploying our expertise to mitigate challenges in our sector. We
will not relent on defending the ultra-low cost business model, delivering
profitable growth and ultimately stakeholder value."
NEAR TERM AND FULL YEAR OUTLOOK
We are not giving guidance for F26 at this time of the year given the lack of
visibility across our trading seasons. With that said, we look to operate
within the following parameters, barring any unforeseen developments that
could impact our operations:
▶Capacity (ASKs): H1 F26 low to mid-teens growth YoY; F26 circa +20% YoY;
▶Load factor: Driving >2 ppt YoY;
▶Revenue: Higher than F25 (supported by current bookings);
▶Cost: Better fuel CASK; slightly higher ex-fuel CASK due to grounding
pressure on fixed costs, cost of retiring CEO fleet and airport cost
improvement lag time;
▶Summer trading: Current run rate showing positive RASK YoY in all forward
months, driven by load factor >2 ppts but fares down low single digits to
drive traffic and leverage higher summer close-in booking yields.
SUMMARY OF F25 FINANCIAL RESULTS
▶Total revenue increased by 3.8 per cent to €5,267.6 million,
compared to €5,073.1 million in F24.
▶Fuel expenses decreased by 3.1 per cent to €1,797.6 million,
compared to €1,855.7 million in F24.
▶Operating expenses (excluding fuel) increased by 18.8 per cent to
€3,302.5 million, compared to €2,779.5 million in F24.
▶EBITDA declined to €1,134.3 million, a decrease of €58.9 million
vs F24.
▶Operating profit was €167.5 million compared to an
operating profit of €437.9 million in F24.
▶Net financing expenses increased by 52.7 per cent to €147.8 million,
compared to €96.8 million recorded in F24, out of which net foreign
exchange gain for F25 was €26.0 million, compared to a gain of
€19.4 million in F24.
▶The Company recorded an income tax credit of €194.2 million
in F25 compared to the €24.8 million credit in F24. Further details on
the income tax credit can be found under "Taxation" in the Operating Expenses
section.
▶Wizz Air reported a net profit of €213.9 million
(F24: profit €365.9 million).
▶At 31 March 2025, the Group held total cash of €1,736.0 million
(including cash and cash equivalents of €597.5 million, €1,060.2 million
in short-term cash deposits and €78.3 million of restricted cash), compared
to €1,588.9 million in F24.
REVENUE AND COST HIGHLIGHTS
Total revenue increased by 3.8% YoY, mainly driven by load factor and
better pricing:
▶Passenger ticket revenue increased by 4.0 per cent to
€2,917.0 million.
▶Ancillary revenue increased by 3.6 per cent to €2,350.6 million.
▶Total unit revenue increased by 3.9 per cent to 4.33 euro cents per
available seat kilometre (ASK).
▶Ticket RASK increased by 4.1 per cent to 2.40 euro cents, driven by
a stronger YoY performance in H2, especially in Q3, which is also reflected in
a load factor improvement versus last year.
▶Ancillary RASK increased by 3.7 per cent to 1.93 euro cents, mainly
driven by the new Bundle proposition (the launch of Smart bundle) and the
price optimization of checked-in bags.
Total operating expenses increased by 10.0 per cent to €5,100.1 million
in F25 from €4,635.2 million in F24:
▶Total CASK increased to 4.33 euro cents in F25 from 3.90 euro cents
in F24.
▶Ex-fuel CASK increased by 19.9 per cent to 2.85 euro cents
in F25 from 2.38 euro cents in F24 driven by the GTF engine issue
related aircraft groundings adding to lease payments and depreciation costs,
while not contributing to capacity. Additionally, we've seen the European ATC
increasing charges starting from January 2025 and also general inflation
across our key cost items including Airports & Handling, Maintenance and
Crew costs.
▶Fuel CASK decreased by 3.1 per cent to 1.48 euro cents in F25,
driven mainly by the lower average fuel price, despite entering into SAF
purchases in F25. FX hedges also contributed to this improvement given the
weaker EUR throughout F25, mitigating the fuel FX risk.
FLEET UPDATE
▶During F25 Wizz Air took delivery of 26 new A321neo aircraft and also
secured three former Wizz Air aircraft on dry leases, while 6 A320ceo
aircraft were redelivered, ending the fiscal year with a total fleet
of 231 aircraft: 37x A320ceo, 41x A321ceo, 6x A320neo and 147x A321neo.
▶Wizz Air also added eight wet-leased aircraft for summer 2024 operations,
providing additional capacity in F25. The last wet-leased aircraft were
returned in October 2024.
▶New aircraft delivered in F25 were financed through 16 sale and
leaseback arrangements, 4 Japanese Operating Leases with Call Options (JOLCOs)
and 6 financial lease structures.
▶The average age of the fleet currently stands at 4.7 years, the youngest
fleet among major European airlines, while the average number of seats per
aircraft climbed to 227 as at March 2025 from 224 as
at 31 March 2024.
▶The share of new "neo" technology aircraft within Wizz Air's fleet
increased to 66 per cent by the end of F25 from 62 per cent at the end
of F24.
▶During F26 we expect 42 new A321neo and 8 XLR deliveries,
while 17 A320ceo and 1 A321ceo aircraft will be returned to lessors and
will exit the fleet.
▶As at 31 March 2025, Wizz Air's delivery backlog comprises a firm order
for 253x A321neo and 47x A321XLR aircraft, a total of 300 aircraft.
▶The table below provides the fleet composition for the past, present and
coming fiscal year, including effected lease extensions. The figures reflect
amended contractual delivery timelines agreed with Airbus.
March 2025 March 2026 March 2027
Actual Planned Planned
A320ceo (180/186 seats) 37 20 12
A320neo (186 seats) 6 6 6
A321ceo (230 seats) 41 40 29
A321neo (239 seats) 147 189 222
A321neo XLR (239 seats) - 8 12
Fleet size 231 263 281
GTF ENGINE UPDATE
As of 9 May 2025, Wizz Air had 37 aircraft on the ground as a result of
GTF engine-related matters. The Company is expecting roughly 34 aircraft to
be grounded by the end of the first half of F26. We still assume that the
average expected shop-visit time needed to return engines back to service is
approximately 300 days.
The new commercial support agreement with Pratt & Whitney was agreed at
the end of 2024, covering the two-year period for the calendar years 2025 and
2026. The compensation package, which covers Wizz's direct costs associated
with the aircraft that have been and those expected to be grounded, is similar
to the levels of the previous agreement in place during 2024.
In terms of its ongoing management, important considerations relating to
increased access to spare engines and additional engineering shop visit slots
are part of an ongoing tender regarding the selection of engines for 177
A321neos. Management expects these negotiations to conclude by the end of Q1
F26.
GEOPOLITICAL CRISES IN OUR REGIONS
While our operations continued to be negatively impacted by the ongoing
conflicts in Ukraine and Israel, sentiment did improve in terms of the former
given multi-lateral discussions over the possibility of a ceasefire in Ukraine
and a way forward to bringing the war to an end. In that regard, Wizz Air
has developed a comprehensive plan on how services can be reintroduced to
Ukraine starting circa six-weeks from a regulatory green light. This is seen
as a 5m passenger opportunity by the end of year one and 15m by year three.
With regards to Israel, we operated an intermittent service
through F25 based on security considerations, however, we remain committed
to providing a full service to this market once it is deemed safe to do so.
FINANCIAL UPDATE
▶During F25 Wizz Air continued to apply its jet fuel and foreign currency
hedging policy. As of 30 May 2025, using jet fuel zero-cost collars and jet
fuel swaps, Wizz Air has a hedge coverage of 71 per cent for its jet fuel
needs for F26 at a price of 701.0/776.0 $/mT. For F27, the coverage
is 19 per cent at the price of 666.0/733.0 $/mT. The jet fuel-related
EUR/USD FX coverage stands at 70 per cent for F26 at 1.0827/1.1259, while
the coverage for F27 stands at 20 per cent at 1.0747/1.1166 rates.
▶Wizz Air was downgraded by Fitch Ratings to 'BB+' with a 'Stable Outlook'
due to the slower capacity growth caused by the Pratt & Whitney engine
issues, leading to higher leverage, above the 2.0x threshold for a 'BBB-'
rating; and increased costs impacting profitability. Fitch indicated that the
'Stable Outlook' reflects expectations of a Fitch-defined EBITDAR margin at an
average of 26%, which remains high compared to airline peers, and Fitch's
assessment of the Company's deleveraging potential expected from F26. The
Group's credit rating stands at 'Ba1' 'Negative' by Moody's Investor Services.
▶The Airbus delivery schedule was amended in January 2025, for 138 A321s
due for delivery over the next three years ending F28. Given lease returns,
the fleet is now forecast to grow from 231 aircraft as at the end of March
2025 to 305 aircraft as at end March 2028; this compares to the previous
forecast of 380 aircraft at that end date.
▶With the reset of the delivery order book, delivery positions were adjusted
to a later delivery date along with their PDP payment schedules. This
resulted in a PDP overpayment with Airbus and an agreed 6 months period
without cash outflow for PDPs to reduce this overpayment, leading to an
improvement of Wizz Air's cash position.
▶The outstanding balance on the PDP facility was repaid entirely on 4
November 2024.
▶The Company signed a repurchase agreement for its inventory of EU emissions
trading scheme credits, receiving €264.5 million. The inventory must be
repurchased from the counterparty by March 2026.
▶During the year, Wizz Air secured further EUR currency leases. It has
signed more finance-type leases (in addition to JOLCO). Like JOLCO, these
leases offer the option to purchase the aircraft during the lease, are
recognized as aircraft assets on balance sheet and depreciate over
the aircraft's useful life, as opposed to its lease term.
▶The Company received OEM compensation from Pratt & Whitney related to
the GTF engine issues. The compensation relates to costs incurred in the
period ended 31 March 2025 and is presented within other income in the
consolidated statement of comprehensive income.
▶Wizz Air received 14x GTF spare engines in F25 to limit the grounding
of the NEO aircraft fleet.
▶Net debt(1) at the end of 31 March 2025 was €4,956.3 million vs
€4,790.2 million at the end of 31 March 2024, while the Company's
leverage ratio(1) (net debt to EBITDA) increased from 4.0 at F25 year
end to 4.4. Over the same period, liquidity(1) increased to 31.5 per cent
from 29.2 per cent.
(1) For further definition of non-financial measures presented refer to
"Glossary of terms" and "Alternative performance measures (APMS)" sections of
this document.
ESG UPDATE
Environment
In F25 Wizz Air achieved further progress on the sustainability agenda:
▶Maintained its industry-leading CO2 emissions per passenger
kilometre(1) at 52.2 grams in F25, compared to 52.0 grams in F24,
despite the challenging environment caused by A321neo aircraft groundings due
to GTF engine issues.
▶In collaboration with Airbus, Moeve, and Charleroi Airport have
successfully conducted operational trials using sustainable aviation fuel
(SAF), representing a significant milestone in aviation decarbonization
following the ReFuel EU Aviation legislation. Wizz Air emphasized the need to
better inform passengers about SAF's benefits and challenges, while also
advocating for greater industry collaboration and policy support to enhance
its adoption and reduce costs.
▶Embraced the chance for collaboration and dialogue during Transport Day at
COP29, reaffirming its dedication to decarbonizing aviation. The airline
underscored the essential role of international cooperation and robust policy
support in achieving net-zero emissions.
▶Initiated the second term of its Sustainability Ambassador Programme,
following the successful completion of the inaugural term over the summer.
(1 )Received "EMEA's Environmental Sustainability Airline Group of the Year"
by the CAPA-Centre for Aviation Awards for Excellence 2024.
Wizz Air's efforts have been acknowledged with several industry awards for
outstanding performance:
▶Most Sustainable Low-Cost Airline title for the fourth consecutive year at
the World Finance Sustainability Awards 2024.
▶Best Airline for Carbon Reduction at the 2024 Carbon Awards, hosted by
World Finance.
▶EMEA Environmental Sustainability Airline Group of the Year by the
CAPA-Centre for Aviation Awards for Excellence 2024.
▶Earned a 'B' score in the 2024 climate ranking by CDP, reaching 'management
level', while maintaining its commitment to environmental transparency by
disclosing its impact through CDP.
People
▶Wizz Air is a diverse and inclusive professional organization, with over
112 nationalities represented among its employees: 89 in cabin crew, 62 in
flight crew, and 68 in office roles.
▶In F25, Wizz Air conducted its eighth employee engagement survey,
achieving a company-wide engagement score of 7.0, consistent with the previous
year.
Governance
On 4 September 2024, Wizz Air Holdings Plc announced Barry Eccleston's
temporary leave of absence for personal reasons, leading to several interim
committee appointments. As of 14 March 2025, Barry Eccleston returned,
prompting the following Board changes:
▶Barry Eccleston was appointed Chair of the Remuneration Committee, with
Stephen Johnson stepping down as interim Chair to remain as Observer.
▶Barry Eccleston was appointed to the Nomination and Governance Committee.
▶Enrique Dupuy de Lome Chavarri was appointed to the Nomination and
Governance Committee on a permanent basis.
▶Charlotte Pedersen was appointed as Senior Independent Non-Executive
Director on a permanent basis.
▶The Company welcomed four executives during the year, Michael Berlouis as
Financial Operations Officer, Krzysztof Krolak as Central Operations Officer,
Mauro Peneda as Managing Director Wizz Air Malta, and Piotr Trawka as Network
Officer.
ABOUT WIZZ AIR
Wizz Air operates a fleet of 231 Airbus A320 and A321 aircraft. A team of
dedicated aviation professionals delivers superior service and very low fares,
making Wizz Air the preferred choice of 63.4 million passengers in F25.
Wizz Air is listed on the London Stock Exchange under the ticker WIZZ. The
company was named one of the world's top ten safest airlines for 2025 by
airlineratings.com, the world's only safety and product rating agency, and
named Airline of the Year by Air Transport Awards in 2019 and in 2023. Wizz
Air has also been recognised as the "Most Sustainable Low-Cost Airline"
between 2021-2024 and "Best Airline for Carbon Reduction" by World Finance
Sustainability Awards in 2024. Wizz Air also received "EMEA's Environmental
Sustainability Airline Group of the Year" by the CAPA-Centre for Aviation
Awards for Excellence 2024.
For more information:
Investors:
Mark Simpson, Wizz Air
Beata Szanto, Wizz
Air investor.relations@wizzair.com
Media:
Andras Rado, Wizz Air
communications@wizzair.com
James McFarlane / Eleni Menikou / Charles Hirst, MHP
Group wizz@mhpgroup.com
Certain information provided in this Press Release pertains to
forward-looking statements and is subject to significant risks and
uncertainties that may cause actual results to differ materially. It is not
feasible to enumerate all the factors and specific events that could impact
the outlook and performance of an airline group operating across Europe, the
Middle East and beyond, as Wizz Air does. Some of the factors that are
susceptible to change and could notably influence Wizz Air's anticipated
results include demand for aviation transport services, fuel costs,
competition from both new and established carriers, availability of Pratt
& Whitney GTF engines, turnaround times at Engine Shops, expenses related
to environmental, safety and security measures, the availability of suitable
insurance coverage, actions taken by governments and regulatory agencies,
disruptions caused by weather conditions, air traffic control strikes, revenue
performance and staffing issues, delivery delays of contracted aircraft,
fluctuations in exchange and interest rates, airport access and fees, labour
relations, the economic climate within the industry, passengers' inclination
to travel, social and political factors, including global pandemics, and
unforeseen security incidents.
FINANCIAL REVIEW
In F25, Wizz Air reported a net profit of €213.9 million as it carried a
record 63.4 million passengers (F24: 62.0 million). It was a year of
significant challenges given an average of 44 aircraft were parked during
the year owing to issues with the GTF engine, equivalent to almost 20% of the
fleet being grounded. However, with an improved daily utilisation of the
operating fleet and the use of wet leased aircraft, Wizz Air maintained flat
capacity year-on-year, protecting markets and revenue.
Total revenue increased by 3.8 per cent year-on-year, and unit revenue grew
by 3.9 per cent to 4.33 euro cents per available seat kilometre (ASK),
helped by a 1.2ppt lift in load factor to 91.2%. Additionally, a maturing
network also helped, with the share of capacity operated on routes younger
than three years of age down some 14 percentage points over the year to 22%.
Ticket and ancillary RASK evolved in a similar manner over the year, with
ticket RASK up 4.1 per cent year-on-year and ancillary RASK up 3.7 per
cent (equivalent to an increase of 49 euro cents per pax in F25 vs F24).
The grounding of the neo aircraft contributed to a significant increase in our
ex-fuel unit costs, up 19.9 per cent year-on-year, with the compensation
package from the OEM mitigating some, but not all, of the operational and
financial impacts on the business. Depreciation and maintenance unit costs
rose sharply given the growth in the overall fleet and increased engine events
in the year, but this is set against the lack of capacity growth seen.
Furthermore, the wet-leases weighed on the group, adding some €113 million
of lease costs in the year, with the majority seen in the first-half period;
these were all then cancelled in October of last year.
The structural advantages of operating a young fuel-efficient fleet (average
age 4.7 years) with high-density seating (227 average seat count) remains a
core part of our operating philosophy. 26 A321neo were delivered in the year,
while 6 A320ceos exited the fleet. As a result, the share of neos rose to
66.2% of our total fleet, up roughly 5ppts on last year.
Total fuel costs, including the cost of carbon and the impact of hedging,
were 3.1 per cent lower year on year, while fuel CASK decreased by 3.1 per
cent, as market prices came down compared to the previous year. Our policy of
hedging jet fuel and related foreign currency continued to protect the
business well during the year. Conversely, we saw some significant distortion
of our quarterly reported net profits given the need to mark-to-market our US$
aircraft leases. Consequently, we initiated a programme to economically hedge
this exposure in March 2025, with such hedging expected to be substantially in
place during the current summer season.
Our fuel and FX rates that impacted our F25 performance are shown below:
F25 F24 Change
Average jet fuel price ($/metric tonne, including SAF, into-plane premium and 919 1,000 (8.2)%
impact of effective hedges)
Average EUR/USD rate (including impact of effective hedges) 1.08 1.08 -%
Year-end EUR/USD rate 1.08 1.08 -
Financial overview
Summary consolidated statement of comprehensive income
€ million F25 F24 Change
Total revenue 5,267.6 5,073.1 3.8%
Fuel costs (1,797.6) (1,855.7) (3.1)%
Operating expenses less other income and excluding fuel costs (3,302.5) (2,779.5) 18.8%
Total operating expenses (5,100.1) (4,635.2) 10.0%
Operating profit 167.5 437.9 (61.7)%
Operating margin 3.2% 8.6% (5.5)ppt
Net financing expense (147.8) (96.8) 52.7%
Profit before income tax 19.7 341.1 (94.2)%
Income tax credit 194.2 24.8 683.1%
Profit for the year 213.9 365.9 (41.5)%
Earnings per share
Earnings per share, € (Note 7) F25 F24 Change
Basic earnings per share, € 2.18 3.64 (1.46)
Diluted earnings per share, € 1.78 2.96 (1.18)
Financial performance
Revenue
The following table sets out an overview of revenue streams
for F25 and F24 and the percentage change in those items:
F25 F24
Total Percentage of total revenue Total Percentage of total revenue Percentage change
(€ million) (€ million)
Passenger ticket revenue(1) 2,917.0 55.4% 2,804.2 55.3% 4.0%
Ancillary revenue(1) 2,350.6 44.6% 2,268.9 44.7% 3.6%
Total revenue 5,267.6 100.0% 5,073.1 100.0% 3.8%
1.For further definitions of non-financial measures presented, refer to the
Glossary of terms and Alternative performance measures (APMs) sections of
this document.
Total revenue increased by 3.8 per cent to €5,267.6 million
in F25 from €5,073.1 million in F24, driven mainly by the
capacity increase year on year and a stronger load factor, supported by
sustained customer demand and increased maturity mainly in our most resilient
markets (Poland, Italy and Hungary). Passenger ticket
revenue increased by 4.0 per cent to €2,917.0 million in F25 from
€2,804.2 million in F24, and ancillary revenue increased by 3.6 per
cent to €2,350.6 million in F25 from €2,268.9 million in F24.
RASK increased by 3.9 per cent to 4.33 euro cents
in F25 from 4.17 euro cents in F24. Ticket RASK increased by 4.1 per
cent to 2.40 euro cents in F25, reflecting an improved load factor year on
year and a favourable pricing environment, specifically during peak periods.
Ancillary RASK increased by 3.7 per cent to 1.93 euro cents driven by
market maturity in Poland, Italy and Hungary. In Poland and Italy load factor
also contributed to the higher Ancillary revenue. Besides these conditions
commercial initiatives and process improvements ensured higher revenue in F25.
Operating expenses
Total operating expenses increased by 10.0 per cent to €5,100.1 million
in F25 from €4,635.2 million in F24. Total
CASK increased to 4.33 euro cents in F25 from 3.90 euro cents in F24,
out of which the ex-fuel CASK increase is 0.47 euro cents, to 2.85 euro
cents in F25 from 2.38 euro cents in F24. This increase is driven mainly
by the aircraft parked in relation to the Pratt & Whitney powder metal
issue, which increased the right-of-use asset depreciation unit cost as this
includes leased aircraft that are not producing any capacity. In relation to
the same issue, structural wet-lease capacity had been contracted to manage
certain key markets and routes, costing a premium compared to our own
capacity. Besides the parked aircraft, F25 CASK reflects generic price
inflation on Airport, Handling and Navigation costs, alongside an uptrend of
the maintenance fees and Crew salary increase between the two fiscals.
For F25 and F24 the following table sets out the expenses relevant for the
CASK measure and the percentage changes in those expenses:
F25 F24
Total Percentage Unit cost (€cts/ASK) Total Percentage of total operating expenses Unit cost (€cts/ASK) Percentage change of total cost
(€ million) of total operating expenses (€ million) (restated)* (restated)*
(restated)*
Staff costs 564.9 11.1% 0.46 507.8 11.0% 0.42 11.2%
Fuel costs 1,797.6 35.2% 1.48 1,855.7 40.0% 1.52 (3.1)%
Distribution and marketing 117.8 2.3% 0.10 117.1 2.5% 0.10 0.6%
Maintenance, materials and repairs 330.4 6.5% 0.27 285.0 6.1% 0.23 15.9%
Airport, handling and en-route charges 1,351.8 26.5% 1.11 1,210.1 26.1% 0.99 11.7%
Depreciation and amortisation 966.8 19.0% 0.79 755.3 16.3% 0.62 28.0%
Other expenses* 466.6 9.1% 0.38 370.0 8.0% 0.30 26.1%
Other income* (495.8) (9.7%) (0.41) (465.8) (10.0%) (0.38) 6.4%
Total operating expenses 5,100.1 100.0% 4.19 4,635.2 100.0% 3.81 10.0%
Net cost from financial income and expense** 167.4 0.14 116.2 0.10 44.1%
Total 5,267.5 4.33 4,751.4 3.90 10.9%
Total ex-fuel cost 3,469.9 68.0% 2.85 2,895.7 62.5% 2.38 19.8%
* The Group previously presented net other income for F24 of €95.8 million.
To enhance the presentation this has been split to show other expenses of
€370.0 million and other income of €465.8 million separately on the
condensed consolidated statement of comprehensive income. The composition of
other income and expenses is explained in Note 2. There was no impact on net
income as a result of this change in presentation.
Staff costs were €564.9 million in F25, up by 11.2 per cent from
€507.8 million in F24, reflecting a 2.7 per cent increase in staff
numbers, higher aircraft utilisation and cost-of-living adjustments to
salaries year on year.
Fuel costs decreased by 3.1 per cent to €1,797.6 million in F25 from
€1,855.7 million in F24 and fuel CASK decreased by 3.1 per cent
to 1.48 euro cents in F25 from 1.52 euro cents in F24. The average fuel
price, including sustainable aviation fuel, hedging impact and into-plane
premium, decreased by 8.2 per cent to $919 per metric tonne in F25 from
$1,000 per metric tonne in F24. In addition to the fuel price impact, fuel
consumption (metric tonnes per ASKs) increased by 1.2 per cent year on
year, due to the increased number of less-fuel-efficient wet-leased aircraft
combined with a higher load factor and a slightly lower average flight stage
length.
Distribution and marketing costs increased by 0.6 per cent to
€117.8 million in F25 from €117.1 million in F24, tracking in line
with the revenue increase during the period.
Maintenance, materials and repair costs increased by 15.9 per cent to
€330.4 million in F25 from €285.0 million in F24, due to
a larger fleet, inflation and inefficiencies due to the parking fleet, e.g.
short-term engine leases, older CEO aircraft being utilised, despite the fact
that there was a €62.3m one-off release on lessor compensation costs for
LLP3 stack exchange and a €21.1m release on C8 structural airframe check for
aircraft with 9 years lease term, due to a decision to perform the
maintenance rather than pay lessor compensation.
Airport, handling and en-route charges increased by 11.7 per cent to
€1,351.8 million in F25 from €1,210.1 million in F24, reflecting
the increase in price inflation versus last year.
Depreciation and amortisation charges increased by 28.0 per cent to
€966.8 million in F25, up from €755.3 million in F24, driven mainly by
the increased fleet size, growing maintenance fees contributing to
depreciation, and the increased aircraft utilisation in the active fleet
(operational utilisation in F25 was 12:28 hours versus 12:25 hours
in F24).
Other expenses amounted to €466.6 million in F25, compared to
€370.0 million in F24. Among the key drivers, flight disruption cost,
including compensation paid to customers, was €166.5 million in F25, flat
vs. F24, wet lease expenses including costs from one-off wet leases increased
to €113.0 million in F25 from €17.2 million in F24, non-direct
administrative costs increased to €97.2 million in F25 from
€83.0 million in F24 and crew-related expenses decreased to
€61.3 million in F25 from €66.4 million in F24.
Other income amounted to €495.8 million in F25, compared to
€465.8 million in F24. It included gains on sale and leaseback
transactions of €121.3 million in F25 compared to €244.8 million
in F24, and credits and compensation received from suppliers of
€353.6 million in F25 including credits from Pratt & Whitney received
for the full year, compared to €198.6 million in F24 where the Pratt
& Whitney credit covered only partial year.
Net financing income and expense
The following table sets out an overview of net financing expense
for F25 and F24 and the percentage change in those items:
€ million F25 F24 Change
Net financial expense (167.4) (116.2) 44.1%
Net loss on derivative financial instruments (6.4) - n.m.*
Net foreign exchange gains 26.0 19.4 34.0%
Net financing expense (147.8) (96.8) 52.7%
(* )n.m.: not meaningful as a variance is more than (-)100 per cent.
Net financing expense increased by 52.7 per cent to €147.8 million
in F25 from €96.8 million in F24, of which:
▶Financial income represents an increase of 2.0 per cent on the back of
an increase in short-term cash deposits and the higher interest rate
environment in F25.
▶Financial expenses increased by 26.8 per cent driven by the interest
charges related to lease liabilities under IFRS 16 connected to the increased
fleet size and the stronger US dollar against the euro.
▶Net foreign exchange gains increased by 34.0 per cent due to a more
favourable EUR/USD exchange environment during F25. The unrealised portion of
the foreign exchange gain, mainly driven by a revaluation of US
dollar-denominated lease liabilities, amounted to a
€30.6 million gain in F25, compared to a
€34.2 million gain in F24.
Taxation
The Group recorded an income tax credit of €194.2 million in F25 compared
to the €24.8 million credit in F24. The effective rate for the Group
in F25 was negative 985.8 per cent compared to 7.3 per cent in F24. The
current tax expense decreased compared to the prior year due to the decrease
in the profit before tax of the Group. The increase in deferred tax assets
more than offsets current taxes and turned the total tax charge of the Group
into a total tax credit. The majority of the increase in deferred tax assets
relate to an intra-group transfer of aircraft purchase rights and the change
in the tax rates applicable for the subsidiaries in Malta and timing
differences, which could be subject to a tax reclaim under current
legislation.
Profit for the year
The Group earned a net profit of €213.9 million in F25, compared to the
net profit of €365.9 million in F24.
Other comprehensive income and expenses
In F25 the Group had other comprehensive expense of €54.0 million
compared to income of €129.4 million in F24. The change is mainly
attributable to the unfavourable impact of fair value movements on the Group's
open hedge positions in F25.
Return on capital employed and capital structure
Return on capital employed (ROCE)(1,2) is a non-statutory performance measure
commonly used to measure the financial returns that a business achieves on the
capital it uses. ROCE for F25 was 3.3 per cent, compared to 10.3 per
cent for the previous year.
In October 2024, Wizz Air was downgraded by Fitch Ratings to 'BB+' with a
'Stable Outlook' due to the slower capacity growth caused by the Pratt &
Whitney engine issues, leading to higher leverage, above the 2.0x threshold
for a 'BBB-' rating; and increased costs impacting profitability. Fitch
indicated that the 'Stable Outlook' reflects expectations of a Fitch-defined
EBITDAR margin at an average of 26%, which remains high compared to airline
peers, and Fitch's assessment of the Company's deleveraging potential expected
from F26. The Group's credit rating stands at 'Ba1' 'Negative' by Moody's
Investor Services.
The Company's leverage ratio(1) is 4.4 at the end of the 2025 financial
year, while liquidity(1) increased to 31.5 per cent from 29.2 per cent
at the end of the 2025 financial year.
F25 F24 Change
ROCE 3.3% 10.3% (7.1) ppt
Leverage ratio 4.4 4.0 0.4
Liquidity 31.5% 29.2% 2.3 ppt
(1 )For definitions of non-financial measures presented, refer to the
Glossary of terms and Alternative performance measures (APMs) sections of this
document.
(2 )The Group previously calculated ROCE using operating profit after
tax. This has been changed to pre-tax operating profit. With the new
calculation method, the F24 ROCE changed to 10.3% from 11.1% presented
previously.
Cash flows and financial position
Summary statement of cash flows
The following table sets out selected cash flow data and the Group's cash and
cash equivalents for F25 and F24:
€ million F25 F24 (restated) Change
Net cash generated by operating activities* 1,065.6 664.5 60%
Net cash used in investing activities* (263.4) (347.7) (24)%
Net cash used in financing activities (938.7) (1,016.1) (8)%
Net decrease in cash and cash equivalents (136.5) (699.3) (80)%
Cash and cash equivalents at the beginning of the year 716.4 1,402.6 (49)%
Effect of exchange rate fluctuations on cash and cash equivalents 17.0 13.1 30%
Cash and cash equivalents at the end of the year 596.9 716.4 (17)%
(* )Whilst not material, the Group reclassified the net movement in
restricted cash balances of €12.3 million in F24 from operating activities
to investing.
Cash flows from operating activities
The majority of Wizz Air's cash inflows from operating activities are derived
from the sale of passenger tickets and ancillary services. Net cash flows from
operating activities are also affected by movements in working capital items.
Cash generated by operating activities increased from €664.5 million
in F24 to €1,065.6 million in F25 primarily driven by the following
factors:
▶Operating cash flows before adjusting for changes in working capital
improved by €70.6 million year on year driven by the market recovery and
increase in demand.
▶Changes in working capital resulted in higher cash inflow by
€352.2 million, primarily due to the cash inflow from unearned revenue
(tickets paid by passengers for future flights) of €191.2 million.
Cash flows from investing activities
Investing activities resulted in €263.4 million net cash used in F25,
compared to €347.7 million net cash used in F24, due to the following:
▶The net cash flows from advances paid and refunded in relation to aircraft
deliveries decreased by €168.6 million from a €109.7 million cash inflow
in F24 to a €58.9 million cash outflow in F25.
▶Cash outflows from placing short-term cash deposits was €1,466.0 million
in F25 compared to the cash outflow of €1,503.9 million in F24. Cash
inflows from maturing short-term cash deposits was €1,136.3 million
in F25 compared to the cash inflow from short-term cash deposits of
€755.4 million in F24.
▶Net cash flows from the purchase and sale of tangible and intangible assets
including sale and leaseback transactions decreased by €187.4 million from
a €208.3 million cash inflow in F24 to a €20.9 million cash inflow
in F25.
Cash flows from financing activities
Net cash outflow from financing activities decreased from €1,016.1 million
(F24) to €938.7 million in F25. The principal elements of
the F25 outflow were as follows:
▶Repayments of loans and other types of financing and interest on them
amounting to €1,184.3 million (F24: €1,499.0 million) which only
includes the interest payment on the bond of €5.0 million (whereas
in F24 the bond repayment of €511.8 million included both the principal
repayment (€500 million) and the interest payment (€11.8 million)).
Proceeds from new loans and other types of financing of €245.6 million
(F24: €482.9 million) comprise aircraft and engine financing of
€245.6 million (F24: €228.9 million) and a borrowing secured with
emission trading scheme (ETS) units of €nil (F24: €254.0).
Summary consolidated statement of financial position
The following table sets out summary statements of the financial position of
the Group for F25 and F24:
€ million F25 F24 Change
ASSETS
Property, plant and equipment 6,493.0 5,815.0 678.0
Restricted cash(1) 78.3 109.4 (31.1)
Derivative financial instruments(1) 12.1 36.9 (24.8)
Trade and other receivables(1) 676.2 706.7 (30.5)
Short-term cash deposits 1,060.2 751.1 309.1
Cash and cash equivalents 597.5 728.4 (130.9)
Other assets(1) 718.1 547.4 170.7
Total assets 9,635.4 8,694.9 940.5
EQUITY AND LIABILITIES
EQUITY
Equity 317.1 145.7 171.4
LIABILITIES
Trade and other payables(1) 1,108.3 1,022.4 85.9
Borrowings (incl. convertible debt)(1) 6,614.0 6,269.7 344.3
Deferred income(1) 1,179.8 944.6 235.2
Derivative financial instruments(1) 42.6 0.7 41.9
Provisions(1) 355.1 274.3 80.8
Other liabilities(1) 18.6 37.5 (18.9)
Total liabilities 9,318.3 8,549.2 769.1
Total equity and liabilities 9,635.4 8,694.9 940.5
(1) Including both current and non-current asset and liability
balances, respectively.
Property, plant and equipment increased by €678.0 million as
at 31 March 2025 compared to 31 March 2024, primarily driven by the
investment made in JOLCO-financed aircraft and the sale-and-leaseback financed
aircraft right-of-use assets (see also Note 8).
Restricted cash (current and non-current) decreased by €31.1 million as
at 31 March 2025 compared to the year before. The majority of this balance
is linked to Wizz Air's aircraft lease contracts, being cash deposits behind
letters of credit issued by Wizz Air's banks related primarily to lease
security deposits and maintenance reserves.
Derivative financial assets (current and non-current) decreased by
€24.8 million as at 31 March 2025 compared to 31 March 2024 (see
also Notes 2 and 9). These balances are related to fuel and FX hedge
instruments and cross currency interest rate swap contracts.
Trade and other receivables decreased by €30.5 million as
at 31 March 2025 compared to 31 March 2024.
Cash and cash equivalents amounted to €597.5 million as
at 31 March 2025 (2024: €728.4 million), and short-term cash deposits
to €1,060.2 million as at 31 March 2025 (2024: € 751.1 million).
Borrowings (including convertible debt) increased by €344.3 million as
at 31 March 2025 compared to 31 March 2024. The increase was primarily
driven by liabilities related to JOLCO, FTL and FL contracts recognised during
the fiscal year (see Note 10).
Deferred income increased by €235.2 million as
at 31 March 2025 compared to 31 March 2024 (see Note 11). This was
primarily driven by an increase in unearned revenue and in deferred supplier
credits.
Derivative financial liabilities (current and non-current) increased by
€41.9 million as at 31 March 2025 compared to 31 March 2024 (see
Notes 2 and 9). These balances are related to fuel and FX hedge instruments
and cross currency interest rate swap contracts.
Provisions increased by €80.8 million as at 31 March 2025 compared
to 31 March 2024, in line with the planned aircraft maintenance schedule
(see Note 12).
Hedging strategy
Wizz Air operates under a clear set of treasury policies approved by the Board
and supervised by the Audit and Risk Committee. The hedging policy's objective
is to establish a framework to identify, report and manage foreign currency
and fuel exposures aiming to provide greater certainty and protection to the
value of the Group's net income, net equity and related cash flows that are
exposed to possible adverse movements in foreign currency exchange rates and
jet fuel prices. This is achieved through disciplined programmatic and
discretionary layering for a set time horizon (18 months) with regular
rollover maintaining hedge coverage levels.
The hedges under the hedging policy will be rolled forward quarterly, 18
months out, with coverage levels over time indicatively totalling 65 to 85 per
cent for the first quarter of the hedging horizon and 15 to 35 per cent for
the last quarter of the hedging horizon. Hedging instruments are zero-cost
collars mostly, but jet fuel swaps are also used for shorter dated exposures.
In line with the hedging policy, Wizz Air also hedges its fuel
consumption-related US dollar exposure in a similar fashion. Hedge coverages
as of 30 May 2025 are set out below:
Fuel hedge coverage
Period covered F26 F27
10 months 8 months
Exposure in metric tonnes ('000) 1,977.7 2,158.2
Coverage in metric tonnes ('000) 1,407.5 413.5
Hedge coverage for the period 71% 19%
Blended capped rate $776.0 $733.0
Blended floor rate $701.0 $666.0
Foreign exchange hedge coverage
Period covered F26 F27
10 months 8 months
Exposure (million) $1,264.1 $1,309.5
Coverage (million) $891.0 $260.0
Hedge coverage for the period 70% 20%
Weighted average ceiling $1.1259 $1.1166
Weighted average floor $1.0827 $1.0747
KEY STATISTICS
F25 F24 Change
Capacity
Number of aircraft at end of period* 231 208 11.1%
Number of operating aircraft at end of period** 186 160 16.3%
Equivalent aircraft 225.7 190.8 18.3%
Equivalent operating aircraft** 178.5 176.4 1.2%
Utilisation (block hours per aircraft per day) 9:51 11:29 (14.3)%
Utilisation (block hours per operating aircraft per day)** 12:28 12:25 0.4%
Total block hours 812,673 802,346 1.3%
Total flight hours 705,720 699,837 0.8%
Revenue departures 314,448 309,594 1.6%
Average departures per day per aircraft 3.82 4.43 (13.8)%
Average departures per day per operating aircraft** 4.83 4.79 0.8%
Seat capacity 69,546,340 68,813,271 1.1%
Average aircraft stage length (km) 1,749 1,769 (1.1)%
Total ASKs ('000 km) 121,670,679 121,749,697 (0.1)%
Operating data
RPKs (revenue passenger kilometres) ('000 km) 111,143,998 109,962,210 1.1%
Load factor (%) 91.2 90.1 1.2%
Number of passenger segments 63,403,320 62,015,792 2.2%
Fuel price (average $ per tonne, including SAF, hedging impact and into-plane 919 1,000 (8.2)%
premium)
Foreign exchange rate (USD/EUR including hedging impact) 1.08 1.09 (0.9)%
* Aircraft at end of period includes 3 aircraft in Ukraine, but
excludes wet-leased aircraft.
** Operating aircraft excludes grounded aircraft. At end of F25,
there were 42 grounded aircraft due to GTF engine inspections and 3 grounded
aircraft in Ukraine. Operating utilisation is calculated based on the
Equivalent operating aircraft and Block hours including wet-lease flights.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
Note 2025 2024 (restated)*
€ million € million
Passenger ticket revenue 4 2,917.0 2,804.2
Ancillary revenue 4 2,350.6 2,268.9
Total revenue 4 5,267.6 5,073.1
Staff costs (564.9) (507.8)
Fuel costs (1,797.6) (1,855.7)
Distribution and marketing (117.8) (117.1)
Maintenance, materials and repairs (330.4) (285.0)
Airport, handling and en-route charges (1,351.8) (1,210.1)
Depreciation and amortisation (966.8) (755.3)
Other expenses* (466.6) (370.0)
Other income* 495.8 465.8
Total operating expenses (5,100.1) (4,635.2)
Operating profit 167.5 437.9
Financial income 5 82.1 80.5
Financial expenses 5 (249.5) (196.7)
Net loss on derivative financial instruments 5 (6.4) -
Net foreign exchange gains 5 26.0 19.4
Net financing expense 5 (147.8) (96.8)
Share of net profit of associates - -
Profit before income tax 19.7 341.1
Income tax credit 6 194.2 24.8
Profit for the year 213.9 365.9
Profit for the year attributable to:
Non-controlling interests (11.9) (10.7)
Owners of Wizz Air Holdings Plc 225.8 376.6
Other comprehensive (expense)/income - items that may be subsequently
reclassified to profit or loss:
Change in fair value of cash flow hedging reserve, net of tax (35.4) 64.6
Cash flow hedging reserve recycled to profit or loss 13.6 22.4
Cost of hedging (32.8) 43.0
Currency translation differences 0.6 (0.6)
Share in other comprehensive income from investments - -
Other comprehensive (expense)/income for the year, net of tax (54.0) 129.4
Total comprehensive income for the year 159.9 495.3
Total comprehensive income for the year attributable to:
Non-controlling interests (11.8) (10.8)
Owners of Wizz Air Holdings Plc 171.7 506.1
Basic earnings per share (€/share) 7 2.18 3.64
Diluted earnings per share (€/share) 7 1.78 2.96
* The Group previously presented net other income for FY24
of €95.8 million. To enhance the presentation this has been split to show
other expenses of €370.0 million and other income of €465.8 million
separately on the consolidated statement of comprehensive income. The
composition of other income and expenses is explained in Note 1. There was no
impact on net income as a result of this change in classification.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 MARCH 2025
Note 31 March 2025 31 March 2024
€ million € million
ASSETS
Non-current assets
Property, plant and equipment 8 6,493.0 5,815.0
Intangible assets 98.9 92.7
Restricted cash 2 36.3 54.0
Deferred tax assets 334.7 109.1
Derivative financial instruments 9 1.8 3.9
Trade and other receivables 13 45.7 37.1
Investments in associates 5.7 5.7
Investments in other entities 2 3.7 1.6
Total non-current assets 7,019.9 6,119.1
Current assets
Inventories 271.9 333.6
Trade and other receivables 13 630.4 669.6
Current tax assets 3.2 4.7
Derivative financial instruments 9 10.3 33.0
Restricted cash 2 42.0 55.4
Short-term cash deposits 2 1,060.2 751.1
Cash and cash equivalents 2 597.5 728.4
Total current assets 2,615.5 2,575.8
Total assets 9,635.4 8,694.9
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital - -
Share premium 381.2 381.2
Reorganisation reserve (193.0) (193.0)
Equity part of convertible debt 8.3 8.3
Cash flow hedging reserve (8.0) 13.8
Cost of hedging reserve (13.8) 19.0
Cumulative translation adjustments 3.3 2.8
Retained earnings/(Accumulated losses) 188.6 (48.7)
Capital and reserves attributable to the owners of Wizz Air Holdings Plc 366.6 183.4
Non-controlling interests (49.5) (37.7)
Total equity 317.1 145.7
Non-current liabilities
Borrowings 10 5,070.6 5,159.7
Convertible debt 2,16 25.2 25.4
Deferred income 11 166.5 147.2
Derivative financial instruments 9 13.4 -
Trade and other payables 13 69.5 97.2
Provisions for other liabilities and charges 12 201.2 144.3
Total non-current liabilities 5,546.3 5,573.8
Current liabilities
Trade and other payables 13 1,038.8 925.2
Current tax liabilities 18.6 37.5
Borrowings 10 1,517.9 1,084.3
Convertible debt 2,16 0.3 0.3
Derivative financial instruments 9 29.2 0.7
Deferred income 11 1,013.3 797.4
Provisions for other liabilities and charges 12 153.9 130.0
Total current liabilities 3,772.0 2,975.4
Total liabilities 9,318.3 8,549.2
Total equity and liabilities 9,635.4 8,694.9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Share capital Share premium Reorganisation reserve Equity part of convertible debt Cash flow hedging reserve Cost of hedging reserve Cumulative translation adjustments (Accumulated losses)/Retained earnings Total Non-controlling interest Total
equity
€ million € million € million € million € million € million € million € million € million € million € million
Balance at 1 April 2024 - 381.2 (193.0) 8.3 13.8 19.0 2.8 (48.7) 183.4 (37.7) 145.7
Comprehensive income/(expense):
Profit/(loss) for the year - - - - - - - 225.8 225.8 (11.9) 213.9
Other comprehensive income/(expense) - - - - (21.8) (32.8) 0.5 - (54.1) 0.1 (54.0)
Total comprehensive income/(expense) for the year - - - - (21.8) (32.8) 0.5 225.8 171.7 (11.8) 159.9
Transactions with owners in their capacity as owners:
Share-based payment charge - - - - - - - 11.5 11.5 - 11.5
Total transactions - - - - - - - 11.5 11.5 - 11.5
with owners in their capacity as owners:
Balance at 31 March 2025 - 381.2 (193.0) 8.3 (8.0) (13.8) 3.3 188.6 366.6 (49.5) 317.1
FOR THE YEAR ENDED 31 MARCH 2024
Share Share Reorganisation reserve Equity part of convertible debt Cash flow hedging reserve Cost of hedging reserve Cumulative translation adjustment Retained earnings/(Accumulated losses) Total Non-controlling interest Total
capital premium equity
€ million € million € million € million € million € million € million € million € million € million € million
Balance at 1 April 2023 - 381.2 (193.0) 8.3 (73.2) (24.0) 3.3 (433.6) (331.0) (26.9) (357.9)
Comprehensive income/(expense):
Profit for the year - - - - - - - 376.6 376.6 (10.7) 365.9
Other comprehensive income/(expense) - - - - 87.0 43.0 (0.5) - 129.5 (0.1) 129.4
Total comprehensive income/(expense) for the year - - - - 87.0 43.0 (0.5) 376.6 506.1 (10.8) 495.3
Transactions with owners in their capacity as owners:
Share-based payment charge - - - - - - - 8.3 8.3 - 8.3
Total transactions - - - - - - - 8.3 8.3 - 8.3
with owners in their capacity as owners:
Balance at 31 March 2024 - 381.2 (193.0) 8.3 13.8 19.0 2.8 (48.7) 183.4 (37.7) 145.7
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
2025 2024
(restated)
Note € million € million
Cash flows from operating activities
Profit before income tax 19.7 341.1
Adjustments for:
Depreciation 8 939.9 736.1
Amortisation 26.9 19.2
Financial income 5 (82.1) (80.5)
Financial expenses 5 249.5 196.7
Unrealised fair value losses/(gains) on derivative financial instruments 11.6 (8.9)
Unrealised foreign currency gains (31.5) (34.2)
Realised non-operating foreign currency (gains)/losses (6.5) 7.2
Gain on sale of property, plant and equipment (121.3) (244.8)
Share-based payment charges 11.5 8.3
Other non-cash operating income (19.1) (12.2)
998.6 928.0
Changes in working capital
Decrease/(increase) in trade and other receivables 17.8 (301.5)
Decrease/(increase) in inventory 67.8 (35.9)
Increase/(decrease) in provisions 3.4 (2.8)
(Decrease)/increase in trade and other payables (198.0) 70.2
Increase in deferred income 11 215.1 23.9
106.1 (246.1)
Cash generated by operating activities before tax 1,104.7 681.9
Income taxes paid (39.1) (17.4)
Net cash generated by operating activities 1,065.6 664.5
Cash flows from investing activities
Purchase of aircraft maintenance assets (23.9) (107.6)
Purchase of tangible and intangible assets (258.8) (230.6)
Proceeds from the sale of tangible assets 303.6 546.5
Advances paid for aircraft 8 (362.8) (370.7)
Refund of advances paid for aircraft 8 303.9 480.4
Interest received 75.9 77.8
Release of restricted cash*** 37.7 27.7
Increase in restricted cash*** (7.2) (15.4)
Release of short-term cash deposits*** 1,136.3 755.4
Increase in short-term cash deposits*** (1,466.0) (1,503.9)
Payment for acquisition of investments (2.1) (7.3)
Net cash used in investing activities (263.4) (347.7)
Cash flows from financing activities
Proceeds from new loans* 245.6 67.9
Repayment of loans* (720.0) (580.4)
Interest paid - loans - IFRS 16 lease liability (156.5) (124.4)
Interest paid - loans - JOLCO, FTL and FL (50.6) (15.7)
Repayment of unsecured debt - (500.0)
Proceeds from secured debt - 415.0
Repayment of secured debt (240.8) (248.4)
Interest paid - unsecured debt (5.0) (11.8)
Interest paid - secured debt (9.5) (14.5)
Interest paid - other (1.9) (3.8)
Net cash used in financing activities (938.7) (1,016.1)
Net decrease in cash and cash equivalents (136.5) (699.3)
Cash and cash equivalents at the beginning of the financial year** 716.4 1,402.6
Effect of exchange rate fluctuations on cash and cash equivalents 17.0 13.1
Cash and cash equivalents at the end of the year** 596.9 716.4
* Mostly JOLCO, FTL, FL and IFRS 16, 'Leases' repayments. See
Note 10 for cash payments for lease.
** Cash and cash equivalents at 31 March 2025 include
€525.3 million (31 March 2024: €359.4 million ; 31 March 2023:
€197.3 million) of cash at bank and €72.2 million (31 March 2024:
€145.6 million; 31 March 2023: €1,211.3 million) of cash deposits
maturing within three months of inception, €nil million money market funds
(31 March 2024: €223.4 million; 31 March 2023: €nil) and overdrafts
(repayable on demand) of €0.6 million (31 March 2024:
€12.0 million; 31 March 2023: €6.0 million), which are an integral part
of cash management activities.
*** The Group previously presented the net change as increase in short term
cash deposits for FY24 of €748.5 million. To enhance the presentation this
has been appropriately split to show amounts placed on short-term cash
deposits of €1,503.9 million and release of short-term cash deposits of
€755.4 million separately. Whilst not material, the Group also reclassified
the net movement in restricted cash balances of €12.3 million in F24 from
operating activities and presented this in investing as cash flows from the
increase and release of such balances separately. There was no impact on cash
and cash equivalents from these changes.
NOTES FORMING PART OF THE CONDENSED FINANCIAL STATEMENTS
1. Material accounting policies and basis of preparation
The material accounting policies applied in the presentation of these
condensed consolidated financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise
stated.
Basis of preparation
These condensed consolidated financial statements combine the financial
information of the Company and its subsidiaries. The condensed consolidated
financial statements have been prepared and approved by the Directors in
accordance with International Financial Reporting Standards as adopted by the
EU ("Adopted IFRSs") and IFRS Interpretations Committee guidance.
The condensed consolidated financial statements are presented in Euro (EUR or
€).
The Company has a policy of rounding each amount and percentage individually
from the fully accurate number to the figure disclosed in the condensed
consolidated financial statements. As a result, some amounts and percentages
do not total - though such differences are all trivial.
The accounting policies applied are consistent with those adopted and
disclosed in the Group's most recently published consolidated financial
statements for the year ended 31 March 2025.
The condensed consolidated financial statements have been prepared under the
historical cost convention, as modified by the revaluation of financial assets
and financial liabilities (including derivative instruments) at fair value
through profit or loss.
The preparation of the condensed consolidated financial statements in
conformity with adopted IFRS legislates the use of certain critical accounting
estimates and requires management to exercise judgments in the process of
applying the Group's accounting policies. The areas involving a high degree of
judgment or complexity or areas where assumptions and estimates involving
significant uncertainty that have a risk of causing material adjustment to
the carrying value of assets and liabilities in the coming year are disclosed
in Note 3.
The condensed consolidated financial statements do not constitute the Group's
full financial statements for the year ended 31 March 2025.
Going concern
Basis of Preparation and Assessment Period
Wizz Air's business activities, financial performance and financial position,
together with factors likely to affect its future development and performance,
are described in the Strategic Report section of the Annual Report and
Accounts on pages 4 to 34. Emerging and principal risks and uncertainties
facing the Group are described on pages 21 to 28. Note 2 sets out the
Group's objectives, policies and procedures for managing its capital and
liquidity and provides details of the risks related to financial instruments
held by the Group.
The Directors have reviewed the Group's latest financial forecasts for a
period of 18 months from the date of approval of the financial statements.
This includes considering the Group's available committed financing for
aircraft and its plans to finance committed future aircraft deliveries (see
Note 32 in our Annual Report and Accounts) due within this period that are
currently unfinanced and takes into account forecast aircraft groundings
given our GTF engine related supply chain issues and associated compensation
to mitigate these issues.
Financial Position and Liquidity
At 31 March 2025, the Group held total cash of €1,736.0 million
(including cash and cash equivalents of €597.5 million, €1,060.2 million
in short-term cash deposits and €78.3 million in restricted cash), while
net current liabilities totalled €1156.5 million (including deferred
income of €1,013.3 million) and net assets amounted to €317.1 million.
The Group's contractual undiscounted external borrowings comprise: bonds of
€500.0 million maturing in January 2026; €284.7 million in ETS financing
from Standard Chartered Bank repayable in March 2026; and convertible debt
with a balance of €25.5 million. In addition, borrowings include a carrying
amount of €5,801.8 million from lease contracts accounted for under IFRS 16
and liabilities related to JOLCO, FTL and Finance Lease contracts (see
Note 10). None of these borrowings contain any financial covenants. Two
ratings agencies, Fitch and Moody's, issued updates during the third quarter
with Fitch updating Wizz Air's credit rating to BB+ with a stable outlook,
while Moody's issued a Ba1 rating with a negative outlook.
Aircraft Financing and Planning Horizon
The Group operates using a three-year planning cycle. Aircraft deliveries
represent the Group's primary capital expenditure over the going concern
period, which the Group intends to finance through various forms of sale and
leaseback or other fleet financing arrangements, consistent with its past
practices. While such financing remains partially uncommitted, the vendor
additionally offers committed backstop financing. This backstop financing
would cover a substantial portion, though not all, of the expenditure if the
Group chooses to utilise it.
Forecasting Approach
The Directors' enquiries and testing included the review of a base case model
projecting the Group's cash flows. The base case model is derived from our
contracted fleet plan. This was adjusted to reflect aircraft availability
constraints from GTF engine supply chain issues, based on forecasts prepared
by the operations team.
The resulting available fleet was overlaid with a utilisation assumption
consistent with actual levels observed in FY25. A network plan was then
applied to which revenue, cost, compensation, working capital and financing
assumptions were layered to develop the base case cash flows.
Downside Scenario
This base case was then flexed to produce a downside forecast that assumes
lower demand leading to a 5 per cent reduction in RASK and a 10 per cent
higher fuel cost per metric tonne. These assumptions were modelled
cumulatively across the full going concern period. The downside case also
excludes any assumed financing for our currently unfinanced aircraft
deliveries (see Note 14). Mitigating actions in relation to the unfinanced
aircraft were also considered in preparation of the downside case.
Key Risk Considerations
In preparing both base and downside forecasts, the Directors considered the
emerging and principal risks identified including:
▶Card acquirer risk: The Group receives payment for ticket and ancillary
revenue in advance through arrangements with various card acquirers which are
subject to typical capacity and security limits. These limits were
considered in the forecast models.
▶Geopolitical and operational disruption: The impact of conflicts in Ukraine
and Israel was considered, including the three stranded aircraft in Ukraine
(see Note 8). Whilst the Group's plans include continued operations to
Israel, the potential for reallocating capacity to other routes was assessed
and considered manageable.
▶Climate and regulatory risk: The Directors considered the impact of higher
pricing for ETS levied in Europe and the UK, as well as CORSIA implementation
costs. These were reflected in forecast assumptions through higher carbon and
fuel pricing. The use of sustainable aviation fuel (SAF) was also considered
as part of increased average jet fuel cost assumptions.
The Directors concluded that no material adverse impact on future cash flows
is likely to result from these items. Furthermore, it was assumed that there
will be no further significant disruption of the magnitude experienced in
recent financial years.
Conclusion
In this downside scenario, whilst there was a significant reduction in
liquidity, headroom on the security levels of the card acquirer contracts was
maintained. After making enquiries and testing the assumptions against
different forecast scenarios, including a severe but plausible downside case,
the Directors have satisfied themselves that the Group is expected to be able
to meet its commitments and obligations as they fall due for a period of at
least the next twelve months from the date the Annual Report and Accounts are
approved. Accordingly, the Directors consider it appropriate to adopt the
going concern basis of accounting in preparing the financial statements.
2. Financial risk management
Financial risk factors
The Group is exposed to market risks relating to fluctuations in commodity
prices, interest rates and currency exchange rates. The objective of financial
risk management at Wizz Air is to minimise the impact of commodity price,
interest rate and foreign exchange rate fluctuations on the Group's earnings,
cash flows and equity. To manage commodity and foreign exchange risks, Wizz
Air uses foreign currency and jet fuel zero-cost collar contracts, jet fuel
swaps and Cross Currency Interest Rate Swaps.
Risk management is carried out by the treasury department under policies
approved by the Board of Directors. The Board provides written principles for
overall risk management, as well as written policies covering specific areas,
such as foreign exchange risk, fuel price risk, credit risk, use of derivative
financial instruments, adherence to hedge accounting, and hedge coverage
levels. The Board has mandated the Audit and Risk Committee of the Board to
supervise the hedging activity of the Group and compliance with the policies
approved by the Board.
Risk analysis
Market risks
Wizz Air operates under a clear set of treasury policies approved by the Board
and supervised by the Audit and Risk Committee.
Given the sustained and ongoing volatility in commodity prices, Wizz Air kept
its systematic jet fuel hedging policy and maintained hedge coverage in line
with the policy and its peers. The hedges under the hedge policy will be
rolled forward quarterly, 18 months out, with coverage levels over time
indicatively reaching between 65 to 85 per cent for the first quarter of the
hedging horizon and 15 to 35 per cent for the last quarter of the hedging
horizon. In line with the hedging policy, Wizz Air also hedges its fuel
consumption-related US dollar exposure in a similar fashion.
Foreign currency risk
The Group is exposed to foreign currency risk on sales, purchases and
commitments that are denominated in a currency other than the functional
currency of its operating entities. The foreign currency exposure of the Group
is predominantly attributable to the following: (i) only a small portion of
the Group's revenues are denominated in, or linked to, the US dollar, while a
significant portion of the Group's expenses are USD-denominated, including
fuel and aircraft leases; and (ii) there are various currencies in which the
Group has significantly more revenues than expenses, primarily the British
pound (GBP) and - to a lesser extent - the Polish zloty (PLN) and the Romanian
leu (RON).
The EUR/USD foreign currency rate is the most significant underlying foreign
currency exposure for the Group. In October 2024, the Wizz Air Board approved
a USD Lease Liabilities Economic Hedging Policy covering a large portion of
foreign exchange risks related to aircraft lease financing denominated in US
dollars. The Group maintains a significant cash reserve in US dollars as a
natural hedge, and builds a coverage ratio of 50-85% entering into Cross
Currency Interest Rate Swap (CCS) contracts. These CCS contracts have 3-year
contract break clauses and are executed with fixed US dollar and fixed euro
legs. At the end of the 2025 financial year, out of our net USD exposure (USD
lease liabilities - USD cash & cash deposits), c.38% were covered.
The table below analyses the financial instruments by the currency of future
receipts and payments:
EUR USD Other Total
At 31 March 2025 € million € million € million € million
Financial assets
Trade and other receivables 323.2 134.4 110.3 567.9
Investments in other entities - 3.7 - 3.7
Derivative financial assets 0.5 11.6 - 12.1
Cash and cash equivalents 254.4 236.8 106.3 597.5
Short-term cash deposits 215.0 845.2 - 1,060.2
Restricted cash 1.3 73.8 3.2 78.3
Total financial assets 794.4 1,305.5 219.8 2,319.7
Financial liabilities
Unsecured debt* 500.9 - - 500.9
Secured debt 271.9 - - 271.9
IFRS 16 aircraft and engine lease liability 775.0 2,866.6 - 3,641.6
IFRS 16 other lease liability 19.6 - 9.9 29.5
JOLCO, FTL and FL liability 1,520.1 488.6 122.0 2,130.7
Loans from non-controlling interests - 13.9 - 13.9
Convertible debt 25.5 - - 25.5
Trade and other payables 463.4 114.6 236.5 814.5
Derivative financial liabilities 7.1 35.5 - 42.6
Deferred income 2.8 - 2.7 5.5
Total financial liabilities 3,586.3 3,519.2 371.1 7,476.6
Net financial liabilities (2,791.9) (2,213.7) (151.3) (5,156.9)
EUR USD Other Total
At 31 March 2024 € million € million € million € million
Financial assets
Trade and other receivables 315.3 156.7 99.2 571.2
Investments in other entities - 1.6 - 1.6
Derivative financial assets - 36.8 - 36.8
Cash and cash equivalents 138.4 523.8 66.2 728.4
Short-term cash deposits 154.0 597.1 - 751.1
Restricted cash 3.1 103.4 2.9 109.4
Total financial assets 610.8 1,419.4 168.3 2,198.5
Financial liabilities
Unsecured debt* 511.6 - - 511.6
Secured debt 257.5 205.7 - 463.2
IFRS 16 aircraft and engine lease liability 637.4 2,947.4 - 3,584.8
IFRS 16 other lease liability 16.8 - 10.3 27.1
JOLCO and FTL lease liability 1,122.4 401.9 119.1 1,643.4
Loans from non-controlling interests - 13.9 - 13.9
Convertible debt 25.7 - - 25.7
Trade and other payables 461.4 93.7 197.2 752.3
Derivative financial liabilities - 0.7 - 0.7
Deferred income 4.8 - - 4.8
Total financial liabilities 3,037.6 3,663.3 326.6 7,027.5
Net financial liabilities (2,426.8) (2,243.9) (158.3) (4,828.9)
* Unsecured debt represents the European Mid Term Note and bank
overdrafts.
Trade and other receivables in this table, and also in the other disclosures
in this Note, exclude balances that are not financial instruments, such as
prepayments, deferred expenses and part of other receivables. Similarly,
trade and other payables and deferred income in this table, and also in the
other disclosures in this Note, exclude balances that are not financial
instruments, such as part of accruals and other payables.
Commodity risks
One of the most significant costs for the Group is jet fuel. The price of jet
fuel can be volatile and can directly impact the Group's financial
performance. See further details regarding jet fuel at market risks and hedge
transactions within this Note.
The Group is also exposed to price risks related to Emissions Trading System
(ETS) schemes. To comply with regulations, ETS allowances must be purchased
and surrendered on a yearly basis. To reduce the exposure to price volatility
and inflation, the Group enters into spot and forward purchase transactions.
As at 31 March 2025, all requirements for the calendar year 2024 and 100
per cent of the total forecast requirements for the calendar year 2025 were
covered. This coverage includes forward purchase agreements to the value of
€259.7 million. These forward purchase agreements qualify for the own use
exemption, and therefore are not accounted for as a financial instrument under
IFRS 9.
Interest rate risk
The Group's objective is to reduce cash flow risk arising from the fluctuation
of interest rates on financing.
The Group has a small portion of future commitments under certain lease
contracts that are based on floating interest rates. The PDP refinancing
credit facility (See Note 10) is a variable rate loan, which was fully
repaid during the financial year. The floating nature of these interest
charges exposes the Group to interest rate risk. Interest rates charged on
Eurobond, convertible debt liabilities and on the majority of the leases to
finance the aircraft are not sensitive to interest rate movements as they are
fixed until maturity.
The Group did not use financial derivatives to hedge its interest rate risk
during the year.
The Group has floating rate instruments within restricted cash, but given
their short-term maturity (within three months), the interest rates are not
expected to move significantly during this short period.
Hedge transactions during the year
The Group uses zero-cost collar instruments and swaps to hedge its jet
fuel-related foreign exchange exposures and jet fuel price exposures. To
ensure economic relationship, the Group enters into hedge relationships where
the critical terms of the hedging instrument match exactly those of the hedged
item.
The gains and losses arising from hedge transactions during the year were as
follows:
Foreign exchange hedge:
2025 2024
€ million € million
Gain recognised within fuel costs
Effective cash flow hedge 12.7 1.9
Total gain recognised within fuel costs 12.7 1.9
Fuel hedge:
2025 2024
€ million € million
(Loss)/gain recognised within fuel costs
Effective hedge (26.2) (24.3)
Cost of hedging recycled to profit or loss - -
Total loss recognised within fuel costs (26.2) (24.3)
Year-end open hedge positions
The Group measures its derivative financial instruments at fair value, as
calculated by management using an independent derivative valuation platform.
Such fair values might change materially within the near future, yet these
changes would not arise from assumptions made by management or other sources
of estimation uncertainty at the end of the period, but from movements in
market prices. The fair value calculation is most sensitive to movements in
the jet fuel and foreign currency spot prices, their implied volatility and
respective yields.
At the end of the year, the Group had the following open hedge positions:
Foreign exchange hedges with derivatives:
Derivative financial instruments
At 31 March 2025 Notional Non-current Current Non-current Current Net
amount assets assets liabilities liabilities asset
US$ million € million € million € million € million € million
Effective cash flow hedge positions 1,147.0 0.1 8.1 (3.6) (4.2) 0.4
Total foreign exchange hedges 1,147.0 0.1 8.1 (3.6) (4.2) 0.4
Derivative financial instruments
At 31 March 2024 Notional Non-current Current Non-current Current Net
amount assets assets liabilities liabilities asset
US$ million € million € million € million € million € million
Effective cash flow hedge positions 801.0 0.7 7.9 - (0.5) 8.1
Total foreign exchange hedges 801.0 0.7 7.9 - (0.5) 8.1
For the movements in other comprehensive income, please refer to the
consolidated statement of changes in equity.
The open foreign currency cash flow hedge positions at year end can be
analysed according to the maturity periods and price ranges of the underlying
hedge instruments as follows:
EUR/USD foreign exchange hedge:
F26 F27
At 31 March 2025 12 months 6 months
Maturity profile of notional amount (million) $931.0 $216.0
Weighted average ceiling $1.1224 $1.1016
Weighted average floor $1.0792 $1.0591
F25 F26
At 31 March 2024 12 months 6 months
Maturity profile of notional amount (million) $686.0 115.0
Weighted average ceiling $1.1303 1.1
Weighted average floor $1.0867 1.1
Foreign exchange hedge with non-derivatives:
Non-derivatives, such as cash, are existing financial assets or liabilities
that hedge highly probable foreign currency cash flows in the future and
therefore act as a natural hedge.
Fuel hedge with derivatives:
Derivative financial instruments
At 31 March 2025 '000 Non-current Current Non-current Current Net
metric tonnes assets assets liabilities liabilities liability
€ million € million € million € million € million
Effective cash flow hedge positions 1,753.0 1.1 2.3 (2.7) (25.1) (24.3)
Total fuel hedge 1,753.0 1.1 2.3 (2.7) (25.1) (24.3)
Derivative financial instruments
At 31 March 2024 '000 Non-current Current Non-current Current Net
metric tonnes assets assets liabilities liabilities asset
€ million € million € million € million € million
Effective cash flow hedge positions 987.0 3.1 25.1 - (0.3) 28.0
Total fuel hedge 987.0 3.1 25.1 - (0.3) 28.0
For the movements in other comprehensive income, please refer to the
consolidated statement of changes in equity.
The fuel hedge positions at year end can be analysed according to the maturity
periods and price ranges of the underlying hedge instruments as follows:
F26 F27
At 31 March 2025 12 months 6 months
Maturity profile ('000 metric tonnes) 1,420.0 333.0
Blended capped rate $786.0 745
Blended floor rate $709.0 677
F25 F26
At 31 March 2024 12 months 6 months
Maturity profile ('000 metric tonnes) 841.0 146.0
Blended capped rate $860.0 $844.0
Blended floor rate $751.0 $732.0
Effects of hedge accounting on financial position and performance
The effects of the foreign exchange hedges on the Group's financial position
and performance are as follows:
2025 2024
Zero-cost collars
Carrying amount net asset (€ million) 0.4 8.1
Notional amount (US$ million) 1,147.0 801.0
Maturity date April 2025- August 2026 April 2024- August 2025
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging instruments (€ million) (1.6) 4.6
Change in value of hedged item used to determine hedge effectiveness (€ 1.6 (4.6)
million)
The effects of the fuel hedges on the Group's financial position and
performance are as follows:
2025 2024
Zero-cost collars
Carrying amount net (liability)/asset (€ million) (24.5) 28.0
Notional amount ('000 metric tonnes) 1,726.5 987.0
Maturity date April 2025- August 2026 April 2024- August 2025
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging instruments (€ million) (8.7) 12.4
Change in value of hedged item used to determine hedge effectiveness (€ 8.7 (12.4)
million)
Swaps
Carrying amount net asset (€ million) 0.2 -
Notional amount ('000 metric tonnes) 26.5 -
Maturity date April 2025- May 2025 -
Hedge ratio 1:1 -
Change in fair value of outstanding hedging instruments (€ million) 0.2 -
Change in value of hedged item used to determine hedge effectiveness (€ (0.2) -
million)
Hedge effectiveness
The effectiveness of hedges is tested prospectively to determine the
appropriate accounting treatment of open positions. Prospective testing of
open hedges requires making certain estimates, the most significant one being
for the future expected level of the business activity (primarily the
utilisation of fleet capacity) of the Group. Building on these estimations of
the future, management makes a judgment on the accounting treatment of open
hedging instruments. Hedge accounting for jet fuel and foreign currency cash
flow hedges is discontinued where the "highly probable" forecast criterion is
not met in accordance with the requirements of IFRS 9.
There was no discontinued hedging relationship during the financial year
ending on 31 March 2025 or during the financial year ending
on 31 March 2024.
None of the hedge counterparties had a material change in their credit status
that would have influenced the effectiveness of the hedging transactions.
Sensitivity analysis
The table below shows the sensitivity of the Group's profits to various market
risks for the current and the prior year, excluding any hedge impacts.
2025 2024
Difference in profit after tax Difference in profit after tax
€ million € million
Fuel price sensitivity
Fuel price $100 higher per metric tonne -171.1 -167.1
Fuel price $100 lower per metric tonne +171.1 +167.1
FX rate sensitivity (USD/EUR)
FX rate 0.05 higher (meaning EUR stronger) 214.3 +204.0
FX rate 0.05 lower -235.3 -221.3
FX rate sensitivity (GBP/EUR)
FX rate 0.03 higher (meaning EUR stronger) -17.0 -16.8
FX rate 0.03 lower 18.3 +18.0
Interest rate sensitivity (EUR)
Interest rate is higher by 100 bps 17.6 +16.4
Interest rate is lower by 100 bps -17.7 -16.7
The Group is primarily exposed to changes in the EUR/USD foreign exchange
rate. The sensitivity of profit or loss to changes in the exchange rates
arises mainly from US dollar lease liabilities and jet fuel-related US dollar
exposure.
The interest rate sensitivity calculation above considers the effects of
varying interest rates on the interest income on bank deposits and floating
rate leases.
The table below shows the sensitivity of the Group's other comprehensive
income to various market risks for the current and the prior year. These
sensitivities relate to the impact of market risks on the balance of the cash
flow hedging reserve (which includes gains and losses related to open cash
flow hedges both for foreign exchange rates and the jet fuel price).
2025 2024
Difference Difference
€ million € million
Fuel price sensitivity
Fuel price $100 higher per metric tonne 163.3 -91.0
Fuel price $100 lower per metric tonne -163.3 +91.0
FX rate sensitivity (USD/EUR)
FX rate 0.05 higher (meaning EUR stronger) -1.1 +1.6
FX rate 0.05 lower 1.1 -1.6
Fuel volume sensitivity (metric tonnes)
100,000 metric tonnes reduction in forecast fuel purchases -0.8 +3.7
100,000 metric tonnes increase in forecast fuel purchases 0.8 -3.7
The sensitivity analyses above for 2025 were performed with reference to the
following market rates, as the base case:
▶for profits, annual average rates: jet fuel price $762 per metric tonne;
EUR/USD FX rate 1.07; EUR/GBP FX rate 0.84; and
▶for other comprehensive income, year-end spot rates: jet fuel price $732.0
per metric tonne; EUR/USD FX rate 1.08.
Liquidity risks
Prudent liquidity risk management implies maintaining sufficient cash and the
availability of funding. The financial year 2025 had an extremely challenging
environment with significant price fluctuations, influenced by geopolitical
tensions, changes in interest rates and economic uncertainties. These
challenges impacted our supply chain, operational capacity and the liquidity
position of the Group. In response, a number of actions are being taken to
improve costs and liquidity, the most important ones being:
▶continuing to ensure that operated flights deliver positive cash
contributions;
▶securing nearly all lease financing for aircraft delivery positions until
March 2026;
▶working with suppliers to reduce contracted rates and improve payment
terms;
▶reducing discretionary spending and suspending non-essential capital
expenditures;
▶extending the EMTN programme in January 2025, keeping the liability to a
four-year €500 million bond that was issued in January 2022;
▶PDP financing from the credit facility contracted in February 2023 for a
maximum of three years. This facility was fully repaid in November 2024 (see
Note 10);
▶rolling over the ETS sale and repurchase agreement with a balance of
€264.5 million;
▶working with acquiring banks to expand our ticket sales capacity. These
banks will share a portion of the credit risk for paid tickets that have not
been flown, without needing to provide collateral.
As a result of these measures, the Group is confident in its ability to
maintain sufficient liquidity in the case of further unexpected events or
increases in commodity prices. For further notes, please refer to the going
concern assessment under Note 1.
The Group invested excess cash primarily in US dollar- and euro-denominated
short-term time deposits with high-quality bank counterparties.
See table in Note 10 that analyses the carrying amount of the Group's
borrowings into relevant maturity groupings based on the remaining period at
the statement of financial position date.
The Group has obligations under financial guarantee contracts. The most
significant financial guarantee contracts relate to aircraft leases, hedging,
EMTN notes and Convertible Notes. For these items, the respective underlying
liabilities are reflected in the appropriate line of the financial liabilities
part of the table above (for leases, the liability is presented under
borrowings). Since the liability itself is already reflected in the table, it
would not be appropriate to include the financial guarantee provided by
another Group entity for the same obligation as well.
Management does not expect that any payment under these guarantee contracts
will be required by the Company.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. The Group's exposure to credit risk from individual customers is
limited as most of the payments for flight tickets are collected before the
service is provided.
However, the Group has significant banking, hedging, aircraft manufacturer and
card-acquiring relationships that represent counterparty credit risk. The
Group analysed the creditworthiness of the relevant business partners to
assess the likelihood of non-performance of liabilities and therefore assets
due to the Group. The credit quality of the Group's financial assets is
assessed by reference to external credit ratings (published by Standard &
Poor's or similar institutions) of the counterparties as follows:
A A- Other Unrated Total
At 31 March 2025 € million € million € million € million € million
Financial assets
Cash and cash equivalents 516.0 47.5 30.9 3.0 597.5
Short-term cash deposits 954.1 106.2 - - 1,060.3
Restricted cash 78.3 - - - 78.3
Trade and other receivables 4.1 3.3 5.8 554.7 567.9
Derivative financial assets 8.3 3.8 - - 12.1
Investments in other entities - - - 3.7 3.7
Total financial assets 1,560.8 160.8 36.7 561.4 2,319.8
A A- Other Unrated Total
At 31 March 2024 € million € million € million € million € million
Financial assets
Cash and cash equivalents 449.0 1.2 265.5 12.8 728.4
Restricted cash 109.4 - - - 109.4
Trade and other receivables 5.1 5.8 3.8 556.4 571.1
Derivative financial assets 21.0 12.1 3.8 - 36.9
Investments in other entities - - - 1.6 1.6
Total financial assets 1,335.5 19.0 273.1 570.9 2,198.5
Within the unrated category of trade and other receivables, the Group has
€25.1 million (2024: €25.8 million) in receivables from different
aircraft lessors in respect of maintenance reserves and lease security
deposits paid. However, given that the Group physically possesses the
aircraft owned by the lessors and the Group has significant future lease
payment obligations towards the same lessors, management does not consider the
credit risk on maintenance reserve receivables to be material. Most of the
remaining balance in this category in both years relates to ticket sales
receivables from customers and non-ticket revenue receivables from business
partners. These balances are spread between a significant number of
counterparties and the credit performance in these channels has historically
been good.
Based on the information above, management does not consider the counterparty
risk of any of the counterparties to be material, and therefore no fair value
adjustment was applied to the respective cash or receivable balances.
Fair value estimation
The Group classifies its financial instruments based on the technique used for
determining fair value into the following categories:
Level 1: Fair value is determined based on quoted prices (unadjusted) in
active markets for identical assets or liabilities.
Level 2: Fair value is determined based on inputs other than quoted prices
that are observable for the asset or liability, either directly or indirectly.
Level 3: Fair value is determined based on inputs that are not based on
observable market data (that is, on unobservable inputs).
The following table presents the Group's financial assets and liabilities
measured at fair value as at 31 March 2025:
Level 1 Level 2 Level 3 Total
€ million € million € million € million
Assets
Investments in other entities - - 3.7 3.7
Derivative financial instruments - 12.1 - 12.1
- 12.1 3.7 15.8
Liabilities
Derivative financial instruments - 42.6 - 42.6
The following table presents the Group's financial assets and liabilities
measured at fair value as at 31 March 2024:
Level 1 Level 2 Level 3 Total
€ million € million € million € million
Assets
Investments in other entities - - 1.6 1.6
Derivative financial instruments - 36.9 - 36.9
Cash and cash equivalents 223.4 - - 223.4
Liabilities
Derivative financial instruments - 0.7 - 0.7
The Group measures its derivative financial instruments at fair value,
calculated by a third-party front office system or determined by the financial
institutions issuing the respective derivative that falls into the Level 2
category. The front office platform provides comprehensive risk management
capabilities, using generally accepted valuation techniques, principally the
Black-Scholes model and discounted cash flow models. The fair value of
investments in other entities is estimated using Level 3 methodology.
All the other financial assets and financial liabilities are measured at
amortised cost.
Capital management
The Group's objectives when managing capital are: (i) to safeguard the Group's
ability to continue as a going concern in order to provide returns for
Shareholders and benefits for other stakeholders; (ii) to secure funds at
competitive rates for its future aircraft acquisition commitments (see
Note 14); and (iii) to maintain an optimal capital structure to reduce the
overall cost of capital.
The current sources of capital for the Group are equity as presented in the
statement of financial position, bonds and other borrowings (see Note 10),
as well as, to a lesser extent, convertible debt.
Wizz Air's strategy is to hold significant cash and liquid funds to mitigate
the impact of potential business disruption events and to invest in
opportunities as they come along in an increasingly volatile market
environment. Accordingly, the Group has so far retained all profits and paid
no dividends and financed all its aircraft and most of its spare engine
acquisitions through sale and leaseback agreements. The Group furthered its
financing options through the establishment in January 2021 of a €3.0
billion European Mid Term Note (EMTN) programme and issuance of its debut bond
by Wizz Air Finance Company B.V., unconditionally and irrevocably guaranteed
by Wizz Air Holdings Plc. Following the 2024 bond repayment, Wizz Air renewed
the EMTN programme without a new issuance. A single bond remains maturing in
January 2026. In addition, the Group entered into a repurchasing agreement
utilising its large inventory of ETS units.
The existing aircraft orders of the Group create a need for raising
significant amounts of capital in the coming years. The strategy of the Group
is to ensure that it has access to various forms of long-term financing, which
in turn allows the Group to further reduce its cost of capital and the cost of
ownership of its aircraft fleet.
3. Critical accounting estimates and judgements made in applying the Group's
accounting policies
a.Maintenance policy
The estimations and judgments applied in the context of the maintenance
accounting policy of the Group impact the balance of: (i) property, plant and
equipment (and, within that, aircraft maintenance assets, as detailed in
Note 8); and (ii) aircraft maintenance provisions (as detailed in Note 12).
Estimate: For aircraft held under lease agreements, provision is made for the
minimum unavoidable costs of specific future maintenance obligations required
by the lease at the time when such obligation becomes certain. The amount of
the provision involves making estimates of the cost of the heavy maintenance
work required to discharge the obligation, including any end-of-lease costs. A
5 per cent increase in the planned costs of heavy maintenance works at
the 31 March 2025 year end would increase the balance of both aircraft
maintenance assets and aircraft maintenance provisions by €17.0 million.
Estimate: The cost of heavy maintenance is capitalised and recognised as a
tangible fixed asset (and classified as an "aircraft maintenance asset") at
the earlier of: (a) the time the lease re-delivery condition is no longer
met; or (b) when maintenance, including enhancement, is carried out. The
calculation of the depreciation charge on such assets involves making
estimates primarily for the future utilisation of the aircraft. A 4 per cent
change in the F26 forecast aircraft utilisation would result in the same
average utilisation as in F25. This would cause a €0.9 million decrease in
the balance of aircraft maintenance assets.
The basis for these estimates is reviewed annually at least, and also when
information becomes available that is capable of causing a material change to
an estimate, such as the renegotiation of end-of-lease return conditions,
increased or decreased utilisation of the assets, or changes in the cost of
heavy maintenance services.
Judgment: On a lease-by-lease basis, the Group makes a judgment on whether or
not it would perform future maintenance that would impact the condition of the
respective aircraft or spare engine asset in a way that eliminates the need
for paying compensation to the lessor on the re-delivery of the leased asset.
When such maintenance is not expected to be performed, then an accrual is made
for the compensation due to the lessor in line with the terms of the
respective lease contract. The change in the balance of accrued expenses
includes a release of €83.4 million (31 March 2024: €17.1 million) based
on the judgment that the Group will perform future maintenance that eliminates
the need to pay compensation to the lessor on the re-delivery of the leased
asset. The related credit is recognised in the statement of comprehensive
income within maintenance, materials and repairs.
Judgment: The policy adopted by the Group, as summarised above, is only one of
the policies available under IFRS in accounting for heavy maintenance for
aircraft held under lease agreements. A principal alternative policy involves
recognising provisions for future maintenance obligations in accordance with
hours flown or similar measures, and not only when lease re-delivery
conditions are not met. In the judgment of the Directors, the policy adopted
by the Group, whereby provisions for maintenance are recognised only when
lease re-delivery conditions are not met, provides the most reliable and
relevant information about the Company's obligations to incur major
maintenance expenditure on leased aircraft, and at the same time it best
reflects the fact that an aircraft has lower maintenance requirements in the
early years of its operation. The average age of the Group's aircraft
fleet at 31 March 2025 was 4.5 years (31 March 2024: 4.3 years).
Given the adopted policy, we currently do not consider that climate change has
a material impact on the maintenance provision.
b.Hedge and derivative accounting
Estimate: The asset and liability balances at year end related to open hedge
instruments can be material. The fair value of derivatives is estimated by a
third-party front office system as per industry practice. As required, the
fair values ascribed to those instruments are also verified by management
using high-level models. Such fair values might change materially within the
next financial year but these changes would not stem from assumptions made by
management or other sources of estimation uncertainty at the end of the year,
but from the movement of market prices. The fair value calculation is most
sensitive to movements in the jet fuel and foreign currency spot prices, their
implied volatility and respective yields. A sensitivity analysis for the jet
fuel price and for the FX rate on most relevant currency pairs is included in
Note 2.
Estimate and judgment: The effectiveness of hedges is evaluated prospectively
to ascertain the suitable accounting treatment for hedge gains and losses.
Additionally, designated hedging relationships undergo retrospective
assessment for ineffectiveness, with any ineffective portion subsequently
recognised in the Statement of comprehensive income. Prospective testing of
open hedges requires making certain estimates, the most significant one being
for the future expected level of the business activity (primarily the
utilisation of fleet capacity) of the Group, which is supported by the models
used to prepare going concern assessments.
Building on these estimations of the future, management exercises judgment on
the appropriate accounting treatment, considering the alignment of hedge
instruments with the Group's risk management objectives and strategies. Hedge
accounting for jet fuel and foreign currency cash flow hedges is discontinued
where the "highly probable" forecast criterion was not met in accordance with
the requirements of IFRS 9.
None of the hedge counterparties had a material change in their credit status
that would have influenced the effectiveness of the hedging transactions.
c.Net presentation of government taxes and other similar levies
The Group's accounting policy stipulates that where charges levied by airports
or government authorities on a per passenger basis represent a government tax,
in fact or in substance, then such amounts are presented on a net basis in the
statement of comprehensive income (netted against revenue).
Judgment: Management reviews all passenger-based charges levied by airports
and government authorities to ensure that any amounts recovered from
passengers in respect of these charges are appropriately classified within the
statement of comprehensive income. Given the variability of these charges and
the number of airports and jurisdictions within which the Group operates, the
assessment of whether these items constitute taxes in nature is an inherently
complex area for some airports, requiring a level of judgment.
d.Accounting for aircraft and spare engine assets
Judgment: When the Group acquires new aircraft and spare engines, it applies
the following critical judgments in determining the acquisition cost of these
assets:
▶engine contracts typically include the selection of an engine type to be
installed on future new aircraft, a commitment to purchase a certain number of
spare engines, and lump-sum (i.e. not per engine) concessions from the
manufacturer. Management recalculates the unit cost of engines by allocating
lump-sum credits over all engines ordered and by adjusting costs between
installed and spare engines in a way that ensures that identical physical
assets have an equal acquisition cost; and
▶aircraft acquisition costs are recalculated to reflect the impacts of: (i)
any adjustment to the cost of installed engines (as above); and (ii)
concessions received from the manufacturers of other aircraft components under
selection agreements. Such acquisition cost also has relevance for leased
aircraft when calculating the amount of total gain or loss on the respective
sale and leaseback agreement.
e.Accounting for leases
Judgment: Some of the Group's lease contracts contain options to extend the
lease term for a period of one to two years. The extension option is taken
into account in the measurement of the lease liability only when the Group is
reasonably certain that it would later exercise the option. Such judgment is
made lease by lease, and is relevant both at inception, for the initial
measurement of the lease liability, and also for a subsequent remeasurement of
the lease liability if the initial judgment is revised at a later date.
Judgment: The Group takes the view that, as a lessee, it is not able to
readily determine the interest rate implicit in its lease contracts.
Therefore, it applies its incremental borrowing rate for discounting future
lease payments.
The estimations made by management in accounting for leases do not materially
impact the asset and liability balances of the Group. The majority of aircraft
and spare engine assets are leased, and as such their period of depreciation
is the shorter of their useful economic lives and lease duration. As these
assets are new at the inception of the lease and typically have a useful
economic life of at least twice the duration of the lease, no further
estimation has been required.
f.Revenue from contracts with other partners
Revenue from contracts with other partners relates to commissions on the sale
of on-board catering, accommodation, car rental, travel insurance, bus
transfers, premium calls and co-branded cards.
Judgment: The Group considers that it is an agent (as opposed to a principal)
in relation to all its contracts with other partners. Accordingly, Wizz Air
recognises revenue from these contracts on a net (commission) basis.
The provision of onboard catering services is the most significant in value of
these contracts, and it is also the most complex from the perspective of
making the "agent versus principal" assessment/judgment. The Company's
judgment that it is an agent is based on the fact that it is the partner that:
(i) enters into contracts with the passengers/customers and bears the
liability towards them for delivering the products and services; (ii) defines
the majority of the product portfolio, manages the inventory, is responsible
for product availability/outage, has title to the inventory and bears the risk
of loss; and (iii) has discretion in establishing prices. The difference on
this contract between gross sales and net commission revenue (as recognised in
the statement of comprehensive income) was €57.1 million (2024: €55.9
million).
g. Recoverability of deferred tax assets
Estimate: The change in the Group's deferred tax assets and the resulting
deferred tax income amounts to €219.9 million (2024: €74.7 million). The
main components of such changes are detailed in Note 15 to the Annual
Reports and Accounts. Management prepared an estimation of future taxable
profits against which the deductible temporary differences and tax loss
carryforwards giving rise to deferred tax assets can be utilised based on
mid-term business plans. Based on its estimates, management considered that
all deferred tax assets presented in the Group's consolidated statement of
financial position as at 31 March 2025 are recoverable.
4. Revenue
The split of total revenue presented in the consolidated statement of
comprehensive income, being passenger ticket revenue and ancillary revenue, is
a non-IFRS measure (or alternative performance measure). The existing revenue
presentation is considered relevant for users of the financial statements
because: (i) it mirrors disclosures presented outside of the financial
statements; and (ii) it is regularly reviewed by the Chief Operating Decision
Maker for evaluating financial performance of the (now only one) operating
segment.
Revenue from contracts with customers can be disaggregated as follows based on
IFRS 15:
2025 2024
€ million € million
Revenue from contracts with passengers 5,197.6 4,994.6
Revenue from contracts with other partners 70.0 78.5
Total revenue from contracts with customers 5,267.6 5,073.1
These two categories represent revenues that are distinct from a nature,
timing and risk point of view. Revenue from contracts with other partners
relates to commissions on the sale of onboard catering, accommodation, car
rental, travel insurance, bus transfers, premium calls and co-branded cards,
where the Group acts as an agent.
The contract costs reported at 31 March 2025 as part of trade and other
receivables amounted to €8.9 million (31 March 2024: €6.4 million) and
the contract liabilities (unearned revenues) reported as part of deferred
income were €1,003.5 million (31 March 2024: €790.3 million). Out of
the €5,197.6 million revenue from contracts with passengers recognised
in F25 (2024: €4,994.6 million), €790.3 million (2024:
€761.1 million) was included in the contract liability balance at the
beginning of the year (see unearned revenue in Note 11).
5. Net financing income and expense
2025 2024
€ million € million
Interest income 82.1 80.5
Financial income 82.1 80.5
Interest expenses on:
Convertible debt (1.9) (1.8)
IFRS 16 lease liability (156.7) (123.8)
JOLCO, FTL and FL liability (59.6) (34.3)
Unsecured debt (5.8) (11.8)
Secured debt (25.0) (22.3)
Other (0.5) (2.7)
Financial expenses (249.5) (196.7)
Net loss on derivative financial instruments (6.4) -
Net foreign exchange gains 26.0 19.4
Net financing expense (147.8) (96.8)
Interest income and expenses include interest on financial instruments.
Interest income is earned on cash and cash equivalents, short-term deposits
and restricted cash.
Net loss on derivative financial instruments includes the realised and
unrealised result on the cross currency interest rate swap contracts.
6. Income tax credit
Recognised in the consolidated statement of comprehensive income:
2025 2024
€ million € million
Current tax on profit for the year 30.8 39.8
Adjustment for current tax of prior years (13.8) 0.7
Other income-based taxes for the year 9.1 7.9
Adjustment for income-based taxes of prior years (0.4) 1.5
Total current tax expense 25.7 49.9
Decrease in deferred tax liabilities - (3.2)
Increase in deferred tax assets (219.9) (71.5)
Total deferred tax credit (219.9) (74.7)
Total tax credit (194.2) (24.8)
The Company, that is Wizz Air Holdings Plc, has a local corporate tax rate of
14.7 per cent (2024: 13.97 per cent). The tax rate relates to Switzerland,
where the Company is tax resident, but does not have any commercial
operations. The current tax expense decreased compared to the prior year due
to the decrease in the profit before tax of the Group. The increase in
deferred tax assets more than offsets current taxes and turned the total tax
charge of the Group into a total tax credit. The increase in deferred tax
assets was mainly attributable to an intra-group restructuring of aircraft
purchase rights, the dissolution of a fiscal unity in Malta, and the
recognition of new deferred tax assets as explained in the tax reconciliation
table below.
Reconciliation of effective tax rate
The tax credit for the year (including both current and deferred tax charges
and credits) is different to the Company's standard rate of corporation tax of
14.7 per cent (2024: 13.97 per cent). The difference is explained below.
2025 2024
€ million € million
Profit before income tax 19.7 341.0
Tax at the corporation tax rate of 14.7 per cent (2024: 13.97 per cent) 2.9 47.6
Adjustment for current tax of prior years (13.8) 0.7
Adjustment for income-based taxes of prior years (0.4) 1.5
Adjustment for deferred tax of prior years 22.5 -
Effect of different tax rates of subsidiaries versus the parent company (207.7) (25.4)
Non-deductible expense (0.7) -
Effect of newly recognised deferred tax assets (6.1) (44.0)
Tax losses utilised for which no previous deferred tax was recognised - (13.1)
Other income-based foreign tax 9.1 7.9
Total tax credit (194.2) (24.8)
Effective tax rate n/a* (7.3)%
The Group paid €39.1 million of tax in the year (2024: €17.4 million).
Other income-based foreign tax represents the local business tax and the
"innovation contribution" payable in Hungary in F25 and F24 by the
Hungarian subsidiaries of the Group, primarily Wizz Air Hungary Ltd. Hungarian
local business tax and innovation contribution are levied on an adjusted
profit basis.
An intra-group sale of aircraft purchase rights between two subsidiaries of
the Group significantly affected the deferred tax assets of the Group. These
rights have no carrying amount in the statement of financial position of the
Group but had a carrying amount (in the form of an intangible asset) in the
books of the seller subsidiary in its local GAAP financial statements. The
profit from the intra-group sale was recognised by the seller subsidiary and
is subject to tax in F25. In the books of the buyer subsidiary, a carrying
amount (in the form of an intangible asset) is recognised in the local GAAP
financial statements, which will be amortised in future years. The buyer
subsidiary will recognise most of the corresponding expenses (from the
intangible asset) in future years, including deductions for tax purposes, that
will reduce the current tax charge of the Group in those years. The increase
in the deferred tax assets of the Group stemmed from the increase in the value
of aircraft purchase rights and the difference between the tax rates
applicable to the seller and buyer subsidiaries of the Group.
The deferred tax asset position of the Group was affected by the decision to
dissolve the fiscal unity of Wizz Air Malta Ltd. and WAM Ventures Ltd.,
effective as of FY26, which changes the tax rates from 5% to 35% applicable to
these subsidiaries. Consequently, future profits generated by the Maltese
subsidiaries will be subject to a 35% tax rate unless a dividend is declared
to the holding entity, which, under current legislation, permits a tax credit
reclaim, achieving an effective tax rate of 5%.
The effect of different tax rates on subsidiaries is a composition of impacts
primarily in Hungary, the UK, Malta and the UAE, relating to the
subsidiaries of the Group.
Global minimum tax
Switzerland, Hungary, the UK and the Netherlands have implemented the OECD's
Pillar Two rules, ensuring a minimum effective tax rate of 15% for large
multinational enterprises with global revenues over €750 million. The Group
was subject to minimum tax in these jurisdictions in F25. The UAE has
introduced a Domestic Minimum Top-up Tax aligned with the OECD's GloBE Model
Rules only as of financial years starting in 2025. Malta has transposed the
EU's Global Minimum Tax Directive without a set date for future introduction.
As a result, in F25 the income of the Malta and Abu Dhabi subsidiaries of the
Group were not subject to global minimum tax (although Abu Dhabi has
introduced corporate income tax at 9 per cent, which applies from F25). The
income of the Hungarian, UK and Dutch subsidiaries are subject to minimum tax
but this did not result in an increased tax burden since the subsidiaries in
all these affected jurisdictions met Pillar Two transitional safe harbour
conditions, and were thus exempted from minimum tax obligations in FY25.
The assessment by management of the detailed and continuously developing
minimum tax interpretations is ongoing. Considering that Switzerland has
introduced Income Inclusion Rules as of tax years starting in 2025, it is
expected that from F26 substantially all profits of the Group will be
subject to the global minimum tax and the effective tax rate of the Group will
be approximately 15 per cent.
In line with the exception introduced by a 2023 amendment of IAS 12, 'Income
Taxes', the Group does not account for deferred taxes on "Pillar Two income
taxes" but will account for such taxes as a current tax when incurred in the
future. Therefore, the minimum tax rules had no impact on the recognition and
measurement of deferred tax balances as at 31 March 2025, and hence on the
total tax credit in the year.
Recognised in the statement of other comprehensive income
2025 2024
€ million € million
Deferred tax related to movements in cash flow hedging reserve 5.4 (13.2)
Total tax credit/(charge) 5.4 (13.2)
Interpretation 23, 'Uncertainty over Income Tax Treatments' (IFRIC 23)
The Group has open tax periods in a number of jurisdictions involving
uncertainties of a different nature and materiality. The Group assessed the
impact of uncertainty of each of its open tax positions in line with the
requirements of IFRIC 23. The outcome of this assessment was that the Group
has not identified any material uncertain tax positions for F25. The Group
concluded it was probable that the tax authority would accept the uncertain
tax treatment that has been taken or is expected to be taken in those tax
returns, and therefore accounted for income taxes consistently with that tax
treatment. The final liabilities, as later assessed by the tax authorities,
are not expected to vary materially from the amounts recognised by the Group.
7. Earnings per share
Basic earnings per share
Basic earnings or loss per share is calculated by dividing the profit or loss
attributable to equity holders of the Company by the weighted average number
of Ordinary Shares in issue during each year.
2025 2024
Profit for the year attributable to equity holders of the Company, € million 225.8 376.6
Weighted average number of Ordinary Shares in issue 103,379,218 103,329,836
Basic earnings per share, € 2.18 3.64
There were no Convertible Shares in issue at 31 March 2025 (2024: nill).
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the weighted average
number of Ordinary Shares in issue with the weighted average number of
Ordinary Shares that could have been issued in the respective period as a
result of the conversion of the following convertible instruments of the
Group:
▶ Convertible Shares;
▶ Convertible Notes; and
▶ Employee share options (vested share options are included in the
calculation).
The profit for the year was adjusted for the purposes of calculating diluted
earnings per share in respect of the interest charge relating to the debt
which could have been converted into shares.
Diluted earnings per share, € 2025 2024
Profit for the year attributable to equity holders of the Company, € million 225.8 376.6
Interest expense on convertible debt (net of tax), € million 1.9 1.8
Profit used to determine diluted earnings per share, € million 227.7 378.4
Weighted average number of Ordinary Shares in issue 103,379,218 103,329,836
Adjustment for assumed conversion on convertible instruments 24,345,392 24,379,850
Weighted average number of Ordinary Shares for diluted earnings per share 127,724,610 127,709,686
Diluted earnings per share, € 1.78 2.96
8. Property, plant and equipment
Land and buildings Aircraft maintenance assets Aircraft assets and parts Fixtures and Advances Advances paid RoU assets - aircraft and spares RoU assets - other Total
€ million € million € million fittings paid for aircraft maintenance assets € million € million € million
€ million for aircraft* € million
€ million
Cost
At 1 April 2023 25.9 428.6 1,298.3 12.2 810.0 208.2 3,920.6 27.3 6,731.1
Additions 12.3 202.0 576.9 1.1 512.7 68.7 1,048.1 11.9 2,433.7
Disposals (0.7) (172.1) (72.7) (0.1) (480.4) - (315.8) (5.4) (1,047.2)
Transfers - 127.0 - - - (127.0) - - -
FX translation effect - (3.9) 3.6 - - - 8.8 - 8.5
At 31 March 2024 37.5 581.6 1,806.1 13.2 842.3 149.9 4,661.7 33.8 8,126.1
Additions 10.0 249.1 806.1 2.4 426.8 71.4 536.2 9.6 2,111.6
Disposals - (102.8) (213.3) (0.2) (303.9) - (277.7) (3.0) (900.9)
Transfers - 110.1 39.0 - (39.0) (110.1) - - -
FX translation effect - (2.9) 3.9 - - 1.2 6.0 0.8 9.0
At 31 March 2025 47.5 835.1 2,441.8 15.4 926.2 112.4 4,926.2 41.2 9,345.8
Accumulated depreciation
At 1 April 2023 6.0 242.4 128.6 8.4 - - 1,669.8 9.9 2,065.1
Depreciation charge for the year 1.7 156.7 92.9 1.9 - - 479.8 2.9 735.9
Disposals (0.3) (166.1) (4.3) (0.1) - - (311.0) (4.0) (485.8)
FX translation effect - (6.1) (0.5) - - - 2.5 - (4.1)
At 31 March 2024 7.4 226.9 216.7 10.2 - - 1,841.1 8.8 2,311.1
Depreciation charge for the year 2.2 238.7 109.9 1.8 - - 583.0 4.3 939.9
Disposals - (101.9) (17.1) (0.3) - - (276.3) (1.5) (397.1)
FX translation effect - (3.1) 0.4 - - - 1.4 0.2 (1.1)
At 31 March 2025 9.6 360.6 309.9 11.7 - - 2,149.2 11.8 2,852.8
Net carrying amount
At 31 March 2025 37.9 474.5 2,131.9 3.7 926.2 112.4 2,777.0 29.4 6,493.0
At 31 March 2024 30.1 354.7 1,589.4 3.0 842.3 149.9 2,820.6 25.0 5,815.0
* Disposals represent the refunds upon delivery of aircraft advances
previously paid.
The Group entered into various financing arrangements to finance aircraft,
including sale and leaseback, Japanese Operating Lease with Call Option
(JOLCO), French Tax Lease (FTL) structures and Finance Lease (FL) structures.
Some of these arrangements include Special Purpose Vehicles (SPV) in the
financing structure, and in accordance with IFRS 10, where the Group has
control of these entities, these are consolidated in the Group balance sheet.
Aircraft assets and parts leased under JOLCO as part of sale and leaseback
arrangements are not classified as leases under IFRS 16 and are treated as
aircraft assets and parts (as if there were no sale at all).
Other right-of-use (RoU) assets include leased buildings and simulator
equipment. Please refer to Note 10 for details on lease liabilities.
Additions to aircraft maintenance assets
(31 March 2025: €249.1 million; 31 March 2024: €202.0 million)
were fixed assets created primarily against provisions for maintenance, as the
Group's aircraft or their main components no longer met the relevant return
conditions under lease contracts.
Additions to "advances paid to aircraft maintenance assets" reflect primarily
the advance payments made by the Group to the engine maintenance service
provider under power-by-the-hour agreements.
Additions to "advances paid for aircraft" represent PDPs made in the year,
while disposals in the same category represent PDP refunds received from the
manufacturer where the respective aircraft or spare engine was delivered to
the Group. During F25 in the statement of cash flows the cash inflow was a
€303.9 million "refund of advances paid for aircraft" and the cash outflow
was €362.8 million in "advances paid for aircraft" In F23, the Group
entered into a PDP financing loan agreement denominated in US dollars ($),
according to which PDPs of $260.0 million were pledged as collateral as
of 31 March 2024. The facility was fully repaid in November 2024.
The Group reviewed the expected useful lives attributed to its leased aircraft
fleet financed through operating leases, and notes that the duration of its
leases is significantly less than the current expected economic life of an
aircraft. The useful economic life estimates for aircraft financed under
JOLCO, FTL or FL are aligned to the manufacturer or EASA certificates. No
climate risk that may impact these assets during their expected useful
economic lives has been identified. Given this, no change to the expected
useful life is considered necessary as a result of climate change.
The Group recognised €121.3 million as a gain on sale and leaseback
transactions in the period (31 March 2024: €244.8 million).
Short-term wet-lease expenses of €113.0 million were recognised in the
period (31 March 2024: €17.2 million).
Impairment assessment
An impairment assessment was performed for the Group's aircraft fleet which
comprises a single cash generating unit (CGU) that includes virtually all
property, plant, equipment, and also the intangible assets of the Group. The
recoverable amount of that CGU was estimated by value in use calculations
based on cash flow projections in the plan approved by the Board for the
following three financial years up to and including March 2028.
Management's assessment of future trends includes trading and other
assumptions - such as fleet size, passenger numbers, load factors, commodity
prices, foreign exchange rates - based on external and internal inputs, as
well as climate change risks and opportunities outlined in the TCFD
disclosure.
Key assumptions for the jet fuel price and USD exchange rate were the
following:
2026 2027 2028
Jet fuel price (USD per metric tonne) 863.1 876.4 880.3
EUR/USD exchange rate 1.1 1.1 1.1
Cash flow projections of the approved plan were extrapolated beyond March 2028
for a period of 12 years in total to cover all lease terms in the existing
aircraft fleet. A pre-tax discount rate of 9.6% was derived from the weighted
average cost of capital of the Group. The risk of significant adverse changes
in cash flows were taken into account by calculating and weighting
management's base case approved plan with a downside scenario that is
consistent with that used in the Group's going concern assessment. Sensitivity
analysis was performed by management to assess the impact of changes in its
trading assumptions and the key assumptions detailed above. Management did not
identify any reasonable possible changes in assumptions that would cause an
impairment.
Aircraft in Ukraine
In February 2022, the airspace of Ukraine, Russia and Moldova was closed until
further notice as a result of the war in Ukraine. Four of Wizz Air's aircraft
were stranded in Ukrainian territory, one in Lviv and three in Kyiv.
The aircraft in Lviv, and all six engines of the aircraft in Kyiv were
successfully repatriated. After attending airframe structural checks and
engine inspections the aircraft and the engines returned to service with no
significant extra repair work required.
The airframes remaining in Kyiv are in good condition and with no damage, as
evidenced by photographic images and local employee information. Maintenance
work has been performed to put parking and storage procedures in place. The
total net carrying amount of the assets is €13.7 million. Since these
stranded assets are not generating cash inflows, an impairment assessment was
performed.
Management evaluated various scenarios, including successful repatriation to
the fleet, the feasibility of commencing operations in Ukraine in case of
peace, the prospect of recovery under insurance arrangements, selling the
assets in full or in part to third parties, and continued grounding with no
recovery prospects. In the case of successful repatriation, it is assumed that
the aircraft may return to the fleet by the late autumn or winter season 2025
and can continue to generate cash inflows. The other scenarios considered
range between full recovery and complete loss of the asset values. Based on
the weighted probability assessment, management considers the carrying amount
of the aircraft to be recoverable from the cash flows generated through the
various scenarios assessed.
9. Derivative financial instruments
2025 2024
€ million € million
Assets
Non-current derivatives
Cash flow hedges 1.3 3.9
Cross-currency interest rate swaps 0.5 -
Current derivatives
Cash flow hedges 10.3 33.0
Total derivative financial assets 12.1 36.9
Liabilities
Non-current derivatives
Cash flow hedges (6.3) -
Cross-currency interest rate swaps (7.1) -
Current derivatives
Cash flow hedges (29.2) (0.7)
Total derivative financial liabilities (42.6) (0.7)
Derivative financial instruments represent cash flow hedges and cross-currency
interest rate swaps (see Note 2). In the case of cash flow hedges, the full
value of a hedging derivative is classified as a current asset or liability if
the remaining maturity of the hedged item is less than a year. In the case of
cross-currency interest rate swaps, the full value of the derivative is
classified as a current asset or liability if the remaining maturity of the
deal is less than a year.
The changes in the net position of assets and liabilities in respect of open
cash flow hedges are detailed in the consolidated statement of changes in
equity.
The mark-to-market gains (cash flow hedges) were generated on gains on call
options bought (as part of zero-cost collar instruments) that were in the
money at year end.
The mark-to-market losses (cash flow hedges) were generated on losses on put
options sold (as part of zero-cost collar instruments) that were out of the
money at year end.
10. Borrowings
2025 2024
€ million € million
Lease liability under IFRS 16 605.7 563.2
Unsecured debt 500.9 12.0
Secured debt 271.9 409.4
Liability related to JOLCO, FTL and FL contracts 139.4 99.7
Total current borrowings 1,517.9 1,084.3
Lease liability under IFRS 16 3,065.4 3,048.8
Unsecured debt - 499.6
Secured debt - 53.8
Loans from non-controlling interests 13.9 13.9
Liability related to JOLCO, FTL and FL contracts 1,991.3 1,543.6
Total non-current borrowings 5,070.6 5,159.7
Total borrowings 6,588.5 6,244.0
Unsecured debt
On 19 January 2022, Wizz Air Finance Company B.V., a wholly owned subsidiary
of Wizz Air Holdings Plc, issued a €500.0 million, 1.00 per cent Eurobond,
fully and irrevocably guaranteed by the Company, under the €3,000.0 million
EMTN programme, maturing in January 2026. This Eurobond does not contain any
financial covenants. The EMTN programme was renewed in January 2025.
Bank overdrafts which are repayable on demand and are an integral part of cash
management activities are included within unsecured debt in the amount of
€0.6 million (31 March 2024: €12.0 million).
Secured debt
In February 2023, the Group entered into a PDP financing loan agreement,
according to which some of the PDPs made have been financed, and at the same
time pledged as collateral, through the novation of the PDPs and the
associated aircraft purchase rights to an orphan SPV. In October 2023, the
loan facility was extended by an additional $270.0 million, keeping the total
drawdown limit at $280.6 million. The facility was fully repaid in November
2024. After settlement, the aircraft purchase rights and the PDPs were
automatically re-novated to Wizz Air. The PDP refinancing credit facility did
not contain any financial covenants.
In December 2023, the Group entered into an ETS sale and repurchase agreement
according to which EU allowances were sold for €253.6 million with a
commitment to repurchase them in September 2024. In September 2024, the
parties decided to extend the repurchase date to March 2026. The consideration
received is recognised as a financial liability within secured debt. The
difference between the sale price and the repurchase price is recognised as
interest expense over the period between the sale date and the repurchase
date. The facility does not contain any financial covenants.
Short-term and variable lease payments
The Group recognised a €3.0 million expense relating to short-term leases
(31 March 2024: €3.5 million) and a €nil expense relating to variable
lease payments in the period (31 March 2024: €0.6 million).
The maturity profile of borrowings as at 31 March 2025 is as follows:
IFRS 16 aircraft and engine lease liability IFRS 16 other lease liability JOLCO, FTL and FL liability Unsecured debt Secured debt Loans from non-controlling interests Total
€ million € million € million € million € million € million € million
Payments due:
Within one month 42.8 0.3 11.4 0.6 - - 55.1
Between one and three months 95.7 0.6 26.3 - - - 122.6
Between three months and one year 463.7 2.6 101.7 500.3 271.9 - 1,340.2
Between one and two years 558.5 3.1 143.9 - - - 705.5
Between two and three years 480.0 3.3 148.1 - - - 631.4
Between three and four years 433.8 3.3 152.6 - - - 589.7
Between four and five years 426.5 3.3 281.9 - - - 711.7
More than five years 1,140.6 13.0 1,264.8 - - 13.9 2,432.3
Total borrowings 3,641.6 29.5 2,130.7 500.9 271.9 13.9 6,588.5
The maturity profile of borrowings as at 31 March 2024 is as follows:
IFRS 16 aircraft and engine lease liability IFRS 16 other lease liability JOLCO and FTL lease liability Unsecured debt Secured debt Loans from non-controlling interests Total
€ million € million € million € million € million € million € million
Payments due:
Within one month 35.8 0.2 9.6 12.0 - - 57.6
Between one and three months 70.2 0.4 18.5 - 35.3 - 124.4
Between three months and one year 454.7 1.9 71.5 - 374.1 - 902.2
Between one and two years 535.3 2.8 107.0 499.6 53.8 - 1,198.5
Between two and three years 488.0 2.9 110.0 - - - 600.9
Between three and four years 409.0 3.1 113.0 - - - 525.1
Between four and five years 365.0 3.1 116.4 - - - 484.5
More than five years 1,226.8 12.7 1,097.4 - - 13.9 2,350.8
Total borrowings 3,584.8 27.1 1,643.4 511.6 463.2 13.9 6,244.0
The total cash outflow for leases during F25 was €761.3 million (2024:
€613.7 million) and €165.8 million (2024: €106.8 million) for JOLCO,
FTL and FL.
See details on right-of-use assets in Note 8.
11. Deferred income
2025 2024
€ million € million
Non-current liabilities
Deferred income 166.5 147.2
Current liabilities
Unearned revenue 1,003.5 790.3
Other 9.8 7.1
1,013.3 797.4
Total deferred income 1,179.8 944.6
Non-current deferred income represents the value of the benefit for the Group
derived from credits and free aircraft components received from manufacturers
and component suppliers, which will be recognised as a credit (a decrease to
aircraft-related expenses) over the useful life of the respective asset.
Current deferred income represents the value of tickets paid by passengers for
which the flight service is yet to be performed ("unearned revenue"), the
value of membership fees paid but not yet recognised, the current part of the
value of supplier credits received and credits provided to passengers with no
cash conversion option in the amount of €32.5 million (31 March 2024:
€17.1 million). Unearned revenue increased due to higher demand and ticket
booking made further in advance.
The contract liabilities (unearned revenue) of €1,003.5 million as
at 31 March 2025 (31 March 2024: €790.3 million) will become revenue
during F26 (subject to further cancellations that might happen after the
year end).
12. Provisions for other liabilities and charges
Aircraft maintenance Other Total
€ million € million € million
At 1 April 2023 148.7 7.4 156.1
Non-current provisions 76.2 0.1 76.3
Current provisions 72.5 7.2 79.8
Capitalised within property, plant and equipment 195.8 - 195.8
Charged to profit or loss - 5.3 5.3
Used during the year (81.8) (2.0) (83.8)
FX translation effect 0.9 - 0.9
At 31 March 2024 263.6 10.7 274.3
Non-current provisions 144.2 0.1 144.3
Current provisions 119.4 10.6 130.0
Capitalised within property, plant and equipment 231.2 - 231.2
Charged to profit or loss - 19.7 19.7
Used during the year (153.5) (14.5) (168.0)
FX translation effect (2.1) - (2.1)
At 31 March 2025 339.2 15.9 355.1
Non-current provisions 186.1 15.1 201.2
Current provisions 153.1 0.8 153.9
Non-current provisions mainly relate to future aircraft maintenance
obligations of the Group on leased aircraft and spare engines, falling due
typically between one and five years from the reporting date. Current aircraft
maintenance provisions relate to heavy maintenance obligations expected to be
fulfilled in the coming financial year. The provision amount reflects
management's estimates of the cost of heavy maintenance work that will be
required in the future to discharge obligations under the Group's lease
agreements (see Note 3). Maintenance provisions in relation to engines and
APUs covered by power-by-the-hour agreements are netted off with the
prepayments made to the maintenance service provider under such agreements in
respect of the same group of engines and APUs.
13. Financial instruments
Fair values
The fair values of the financial instruments of the Group together with their
carrying amounts shown in the statement of financial position are as follows:
Carrying amount Fair value Carrying amount Fair value
31 March 2025 31 March 2025 31 March 2024 31 March 2024
€ million € million € million € million
Financial asset at fair value through other comprehensive income 3.7 3.7 1.6 1.6
Trade and other receivables due after more than one year 45.7 45.7 37.1 37.1
Restricted cash 78.3 78.3 109.4 109.4
Derivative financial assets 12.1 12.1 36.9 36.9
Trade and other receivables due within one year 522.2 522.2 534.0 534.0
Cash and cash equivalents 597.5 597.5 728.4 728.4
Short-term cash deposits 1,060.2 1,060.2 751.1 751.1
Trade and other payables due after more than one year (16.0) (16.0) (55.0) (55.0)
Trade and other payables due within one year (798.5) (798.5) (697.4) (697.4)
Derivative financial liabilities (42.6) (42.6) (0.7) (0.7)
Convertible debt (25.5) (25.5) (25.7) (25.7)
Borrowings (5,815.7) (5,674.4) (5,269.2) (5,071.0)
Secured debt (271.9) (261.8) (463.2) (458.4)
Unsecured debt (500.9) (489.7) (511.6) (482.3)
Deferred income (5.5) (5.5) (4.8) (4.8)
Net balance of financial instruments (liability) (5,156.9) (4,994.3) (4,829.1) (4,596.7)
The fair value of the Eurobonds is estimated using quoted prices (Level 1),
derivatives (Note 2) and lease liabilities are valued using Level 2
methodology, and the fair value of all other financial assets and financial
liabilities is estimated using Level 3 in the fair value hierarchy.
14. Capital commitments
At 31 March 2025 the Group had the following contracted capital commitments:
▶A commitment to purchase 300 Airbus aircraft of the A320 family in the
period 2025-2030. The total commitment is valued at $46.2 billion (€42.6
billion) based on list prices last published in 2018 and escalated annually
until the reporting date based on contract terms (2024: $48.7 billion (€45.2
billion) to purchase 326 Airbus aircraft of the A320 family in the period
2024-2029). At 9 May, out of the 300 aircraft, 50 are subject to delivery in
F26 and for 42 financing is already contracted. The Group uses various
financing arrangements to finance aircraft, including Sale and Leaseback,
Japanese Operating Lease with Call Option (JOLCO), French Tax Lease (FTL) and
Finance Lease (FL) structures. In addition, Original Equipment Manufacturer
(OEM) backstop financing may also be available, supplemented by a partial
self-contribution.
▶The Wizz Air Group has committed to purchasing one IAE "neo" (GTF) spare
engine in 2025, valued at $22.3 million (€20.6 million) based on 2025 list
prices. This follows a previous commitment in 2024 valued at $174.1 million
(€161.6 million), based on 2024 list prices, to acquire 8 IAE "neo" (GTF)
spare engines in 2025. At 9 May, the engine has already been delivered.
▶A commitment to purchase three full-flight simulators. The total commitment
is valued at €22.2 million based on contract terms. Payment is due in
instalments, with €16.6 million paid as at 31 March 2025.
15. Contingent liabilities
Legal disputes
European Commission state aid investigations
Between 2011 and 2015, the European Commission initiated state aid
investigations with respect to certain arrangements between Wizz Air and the
following airports: Timişoara, Cluj-Napoca, Târgu Mureş, Beauvais and
Girona. In the context of these investigations, Wizz Air has submitted its
legal observations and supporting economic analyses of the relevant
arrangements to the European Commission, which are currently under review. The
European Commission has given notice that the state aid investigations
involving Wizz Air will be assessed on the basis of the new "EU guidelines on
state aid to airports and airlines", which were adopted by the European
Commission on 20 February 2014. Where relevant, Wizz Air has made further
submissions to the European Commission in response to this notification. In
relation to the Timişoara arrangements, the European Commission confirmed on
24 February 2020 that the arrangements did not constitute state aid. We are
awaiting decisions in relation to the other airport arrangements mentioned
herein above. Ultimately, an adverse decision by the European Commission could
result in a repayment order for the recovery from Wizz Air of any amount
determined by the European Commission to constitute illegal state aid. None of
these ongoing investigations are expected to lead to exposure that is material
to the Group.
No provision has been made by the Group in relation to these issues because
there is currently no reason to believe that the Group will incur charges from
these cases.
16. Related parties
Identity of related parties
Related parties are:
▶Indigo Hungary LP and Indigo Maple Hill LP (collectively referred to as
"Indigo" here), because of its shareholding and its appointment of two
Directors to the Board of Directors (all in service at 31 March 2025); and
▶key management personnel (Directors and Officers).
Indigo, Directors and Officers collectively held 25.7 per cent of the Ordinary
Shares of the Company as at 31 March 2025 (2024: 25.7 per cent).
Transactions with related parties
Transactions with Indigo
At 31 March 2025 Indigo held 24,684,895 Ordinary Shares, equal to 23.9 per
cent of the Company's issued share capital (2024: 24,684,895 Ordinary Shares,
23.9 per cent).
Indigo has an interest in convertible debt instruments issued by the Company.
The Company's liability to Indigo, including principal and accrued interest,
was €25.5 million at 31 March 2025 (2024: €25.7 million).
During the year ended 31 March 2025 the Company entered into transactions
with Indigo as follows:
▶The Company recognised interest expense on convertible debt instruments
held by Indigo in the amount of €1.9 million (2024: €1.8 million).
Transactions with key management personnel
Officers (members of executive management) and Directors of the Board are
considered to be key management personnel. The compensation of key management
personnel, including Non-Executive Directors, is as follows:
2025 2024
€ million € million
Salaries and other short-term employee benefits 9.9 10.1
Social security costs 1.2 1.1
Share-based payments 9.6 7.1
Total key management compensation expense 20.7 18.3
There were no termination benefits paid to any key management personnel in the
year or the prior year.
There were no post-employment benefits or other long-term benefits provided to
any key management personnel in the year or the prior year.
There were no material transactions with related parties during the financial
year, except as indicated below.
The Group has contracted with companies that are related to the CEO. The total
paid for such goods and services in F25 was €3.6 million. The main service
purchased was to provide machine-learning capabilities with regard to ticket
and ancillary sales. The amount paid for this service in F25 was €3.5
million (2024: €3.3 million), which in the judgment of the Board was not
material. On 31 March 2025, the outstanding amount payable to the related
party was €0.7 million (31 March 2024: €0.4 million).
17. Subsequent events
Based on the assessment conducted, no material subsequent events were
identified that would necessitate disclosure in the financial statements for
the reporting period.
Alternative performance measures (APMs)
Alternative performance measures are non-IFRS standard performance measures
aiming to introduce the Company's performance in line with management's
requirements. The existing presentation is considered relevant for the users
of the financial statements because: (i) it mirrors disclosures presented
outside of the financial statements; and (ii) it is regularly reviewed by the
senior management team of the Group for evaluating the financial performance
of its single operating segment.
Ancillary revenue: generated revenue from ancillaries (including other
ancillary revenue-related items). Rationale - Key financial indicator for the
separation of different revenue lines.
Average capital employed: average capital employed is the sum of the annual
average equity and interest-bearing borrowings (including convertible debt),
less annual average cash and cash equivalents, and short-term cash deposits.
Rationale - This key financial indicator is integral for evaluating the
profitability and effectiveness of capital utilisation.
Calculation: average equity + interest-bearing borrowings (including
convertible debt) - cash and cash equivalents - short-term cash deposits.
Earnings before interest, tax, depreciation and amortisation (EBITDA): EBITDA
represents the profit or loss before accounting for net financing costs or
gains, income tax expenses or credits, and depreciation and amortisation.
Rationale - This measure serves as a key financial indicator for the Company,
providing insights into operational profitability.
Calculation: operating profit/(loss) + depreciation and amortisation.
EBITDA margin %: EBITDA margin % is computed by dividing EBITDA by total
revenue in millions of euros. Rationale - This metric presents EBITDA as a
percentage of total net revenue and offers valuable financial insights for the
Company's performance assessment.
Calculation: EBITDA/total revenue (€ million) x 100
2025 2024
€ million € million
Operating profit 167.5 437.9
Depreciation and amortisation 966.8 755.3
EBITDA 1,134.3 1,193.2
Total revenue 5,267.6 5,073.1
EBITDA margin (%) 21.5% 23.5%
Leverage ratio: leverage ratio is computed by dividing net debt by the last
twelve months EBITDA. Rationale - It serves as a crucial key financial
indicator for the Group, facilitating an assessment of the organisation's
financial leverage and debt management.
Calculation: please see the table under the definition of net debt.
Liquidity: liquidity represents cash, cash equivalents, and short-term cash
deposits, expressed as a percentage of the last twelve months revenue.
Rationale - This key financial indicator offers a comprehensive view of the
Group's cash position and financial stability.
Calculation: please see the table below.
31 March 2025 31 March 2024
€ million € million
Cash and cash equivalents 597.5 728.4
Short-term cash deposits 1,060.2 751.1
Total revenue 5,267.6 5,073.1
Liquidity 31.5% 29.2%
Net debt: net debt is defined as interest-bearing borrowings (including
convertible debt) less cash and cash equivalents. Rationale - plays a pivotal
role as a key financial indicator, offering valuable information regarding the
Group's financial liquidity and leverage position.
Calculation: please see the table below.
31 March 2025 31 March 2024
€ million € million
Non-current liabilities
Borrowings 5,070.6 5,159.7
Convertible debt 25.2 25.4
Current liabilities
Borrowings 1,517.9 1,084.3
Convertible debt 0.3 0.3
Current assets
Short-term cash deposits 1,060.2 751.1
Cash and cash equivalents 597.5 728.4
Net debt 4,956.3 4,790.2
EBITDA 1,134.3 1,193.2
Leverage ratio 4.4 4.0
Passenger ticket revenue: generated revenue from ticket sales (including other
ticket revenue related items). Rationale - Key financial indicator for the
separation of different revenue lines.
Return on capital employed (ROCE): operating profit or loss before tax divided
by average capital employed, expressed as a percentage. Rationale - ROCE is a
key financial indicator that facilitates an assessment of the Group's
profitability and the efficiency of capital utilisation.
Calculation: please see the range below.
2025 2024
€ million € million
Operating profit 167.5 437.9
Average Shareholders' equity 231.4 (106.1)
Average borrowings and convertible debt 6,441.8 5,785.6
Average cash and cash equivalents (663.0) (1,068.5)
Average short-term cash deposits (905.7) (375.6)
Average capital employed 5,104.6 4,235.4
ROCE (%) 3.3% 10.3%
Total cash: non-statutory financial performance measure and comprises/is
calculated from cash and cash equivalents, short-term cash deposits and total
current and non-current restricted cash. Rationale - This key financial
indicator offers a comprehensive view of the Group's cash position and
financial stability.
Calculation: please see the table below.
31 March 2025 31 March 2024
€ million € million
Non-current assets
Restricted cash 36.3 54.0
Current assets
Restricted cash 42.0 55.4
Short-term cash deposits 1,060.2 751.1
Cash and cash equivalents 597.5 728.4
Total cash 1,736.0 1,588.9
Total revenue: total ticket and ancillary revenue for the given period. The
split of total revenue presented in the consolidated statement of
comprehensive income. Rationale - Key financial indicator for the Company.
Glossary of terms
Aircraft utilisation/utilisation: the number of hours one aircraft is in
operation on one day. Rationale - Key performance indicator in aviation
business, measurement for one day of aircraft productivity.
Calculation (for one month): monthly aircraft utilisation equals total block
hours divided by number of days in the month divided by the equivalent
aircraft number divided by 24 hours. Calculation (for a longer period than one
month): the given period aircraft utilisation equals the weighted average of
monthly aircraft utilisation based on the month-end fleet counts.
Ancillary revenue per passenger: ancillary revenue divided by the number of
passengers (PAX) in the given period, which gives the ancillary performance
per passenger. Rationale - Key performance indicator for revenue performance
measurement.
Calculation: ancillary revenue / PAX
Available seat kilometres (ASK)/total ASKs: the number of seats available for
scheduled passengers multiplied by the number of kilometres those seats were
flown. Rationale - Key performance indicator for capacity measurement.
Calculation: seats on aircraft x stage length
Average aircraft stage length (km): average distance that an aircraft flies
between the departure and arrival airport. Rationale - Key performance
indicator for measurement of capacity and productivity.
Calculation: average stage length of the revenue sectors in the given period
(ASKs / capacity)
Average departures per aircraft per day: the number of departures one
aircraft performs in a day in the given period. Rationale - Key performance
indicator for revenue generation / utilisation of assets.
Calculation: total number of revenue sectors per number of days (in the given
period) per equivalent aircraft number
CASK (total unit cost): total cost per ASK, where cost is defined as operating
expenses and financial expenses net of financial income. Rationale - Key
performance indicator for divisional cost control.
Calculation: total operating expenses + financial income + financial expenses
/ total of ASKs (km) x 100
Completion factor or rate: per cent of operated flights compared to scheduled
flights. Rationale - Key performance indicator for commercial planning and
controlling, measurement for operational performance.
Calculation: number of operated flights / number of scheduled flights
Equivalent aircraft or average aircraft count: the average number of aircraft
available to Wizz Air within a period. The count includes spare aircraft,
aircraft under maintenance and parked aircraft. Rationale - Key performance
indicator in aviation business for the measurement of average aircraft
available for flying and capacity.
Calculation (for one month): average from the daily fleet count in a given
month which includes/excludes deliveries and redeliveries. Calculation (for a
longer period than one month): weighted average of the monthly equivalent
aircraft numbers based on the number of days in the given period.
Equivalent operating aircraft or average operating aircraft count: the average
number of operating aircraft available to Wizz Air within a period. The count
includes all aircraft except those parked. Rationale - Key performance
indicator in aviation business for the measurement of average fleet and
capacity.
Calculation (for one month): average from the daily operating fleet count in
the given month which includes / excludes deliveries and redeliveries.
Calculation (for a longer period than one month): weighted average of the
monthly equivalent operating aircraft numbers based on the number of days in
the given period.
Ex-fuel CASK (ex-fuel unit costs): this measure is computed by dividing the
total ex-fuel cost by the total ASKs within a given timeframe. Ex-fuel CASK
defines the unit ex-fuel cost for each kilometre flown per seat in Wizz Air's
fleet. Note: total ex-fuel cost consists of total operating expenses and net
cost from financial income and expense, but does not contain fuel costs.
Rationale - It serves as an essential performance indicator for overseeing
divisional cost control. The rationale for employing this metric is rooted in
its ability to gauge and manage non-fuel operating expenses effectively.
Calculation: total ex-fuel cost (euro) / total of ASKs (km) x 100
Foreign exchange rate: average foreign exchange rate, plus any hedge deal for
the given period, calculated with a weighted average method. Rationale - Key
performance indicator for fuel control and treasury teams.
Fuel CASK (fuel unit cost): this metric is calculated by dividing the total
fuel costs (plus additional fuel consumption related costs) by the sum of
Available Seat Kilometres (ASKs) during a specific reporting period. Rationale
- Fuel CASK provides an insightful unit fuel cost measurement, representing
the cost incurred for flying one kilometre per seat within Wizz Air's fleet.
The rationale behind the use of this measure lies in its effectiveness as a
critical performance indicator for the control and management of fuel
expenses.
Calculation: total fuel cost (euro)/total of ASKs (km) x 100.
Fuel price (average US dollar per tonne): average fuel price within a
period, calculated as fuel cost (including other fuel cost related items)
divided by the consumption. Rationale - Key performance indicator for fuel
cost controlling.
Gauge: the average seat capacity per aircraft.
JOLCO (Japanese Tax Lease) and French Tax Lease: special forms of structured
asset financing, involving local tax benefits for Japanese and French
investors, respectively. Rationale - These measures are employed to
encapsulate specific lease contracts that facilitate enhanced cash utilisation
strategies.
Load factor (%): the number of seats sold (PAX) divided by the number of seats
available on the aircraft (capacity). Rationale - Key performance indicator
for commercial and revenue controlling.
Calculation: the number of seats sold divided by the number of seats
available.
Net fare (total revenue per passenger): average revenue per passenger
calculated by total revenue divided by the number of passengers (PAX) during a
specified period. Rationale - This metric is a crucial performance indicator
for commercial control, offering insights into the overall revenue generated
per passenger.
Calculation: total revenue / PAX
Operating aircraft utilisation: the number of hours that one operating
aircraft is in operation on one day. Rationale - Key performance indicator in
aviation business, measurement for one-day aircraft productivity.
Calculation (for one month): average daily operating aircraft utilisation in a
month equals total monthly block hours divided by number of days in the month
divided by the equivalent operating aircraft number divided by 24 hours.
Calculation (for a longer period than one month): the given period operating
aircraft utilisation equals the weighted average of monthly operating aircraft
utilisation based on the month-end operating aircraft counts.
Passengers (alternative names: passengers carried, PAX): passengers who
bought a ticket (thus making revenue for the Company) for a revenue sector.
Rationale - Key performance indicator for commercial controlling team.
Calculation: sum of number of passengers of all revenue sectors.
PDP: PDP refers to the pre-delivery payments made under the Group's aircraft
purchase agreements. These payments signify contractual commitments designed
to support fleet expansion and growth.
Period-end fleet size or number of aircraft at end of period: the number of
aircraft that Wizz Air has in its fleet and that are leased or owned at the
end of the given period. The count contains spare and aircraft under
maintenance as well. Rationale - Key performance indicator in aviation
business for the measurement of fleet.
Calculation: sum of aircraft at the end of the given period.
Period-end operating aircraft: the number of operating aircraft that Wizz Air
has in its fleet and that are leased and/or owned at the end of the given
period. The count includes all aircraft except those parked. Rationale - Key
performance indicator in aviation business for the measurement of operating
aircraft at a period end.
Calculation: sum of operating aircraft at the end of the given period.
RASK: RASK is determined by dividing total revenue by total ASK. This measure
characterises the unit net revenue performance for each kilometre flown per
seat within Wizz Air's fleet. Rationale - It serves as a pivotal performance
indicator for commercial control, providing insights into revenue generation
efficiency.
Calculation: total revenue (euro) / total of ASKs (km) x 100
Revenue departures or sectors: flight between departure and arrival airport
where Wizz Air generates revenue from ticket sales. Rationale - Key
performance indicator in revenue generation controlling.
Calculation: sum of departures of all sectors.
Revenue passenger kilometres (RPK): the number of seat kilometres flown by
passengers who paid for their tickets. Rationale - Key performance indicator
for revenue measurement.
Calculation: number of passengers x stage length.
Seat capacity / capacity: the total number of available (flown) seats on
aircraft for Wizz Air within a given period (revenue sectors only). Rationale
- Key performance indicator for capacity measurement.
Calculation: sum of capacity of all revenue sectors.
Ticket revenue per passenger: passenger ticket revenue divided by the number
of passengers (PAX) in the given period. Rationale - Key performance indicator
for measurement of revenue performance.
Calculation: passenger ticket revenue / PAX
Total block hours: each hour from the moment an aircraft's brakes are released
at the departure airport's parking place for the purpose of starting a flight
until the moment the aircraft's brakes are applied at the arrival airport's
parking place. Rationale - Key performance indicator in aviation business,
measurement for aircraft's block hours.
Calculation: sum of block hours of all sectors (in the given period).
Total flight hours: each hour from the moment the aircraft takes off from the
runway for the purposes of flight until the moment the aircraft lands at the
runway of the arrival airport. Rationale - Key performance indicator in the
airline business for the measurement of capacity and flown flight hours by
aircraft.
Calculation: sum of flight hours of all sectors (in the given period).
Yield: represents the total revenue generated per Revenue Passenger Kilometre
(RPK). Rationale - This measure is integral for assessing and controlling
commercial performance by quantifying the revenue derived from each kilometre
flown by paying passengers.
Calculation: total revenue / RPK
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