REG - Wizz Air Holdings - Half Year Results
07/11/2024 07:00
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RNS Number : 2717L Wizz Air Holdings PLC 07 November 2024
WIZZ AIR HOLDINGS PLC - UNAUDITED RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER
2024
PROFITABLE OPERATIONS WHILE MITIGATING CHALLENGES; POSITIVE BOOKING MOMENTUM
AND SHARP FOCUS ON COST INTO H2; FULL YEAR PROFIT GUIDANCE MAINTAINED
LSE: WIZZ
Geneva, 7 November 2024: Wizz Air Holdings Plc ("Wizz Air", "the Company"
or "the Group"), one of the most sustainable European airlines, today issues
unaudited results for the six months to 30 September 2024 ("first half",
"H1" or "H1 F25").
This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report
should be read in conjunction with the 2024 Annual Report and Accounts, and
any public announcements made by Wizz Air Holdings Plc during the interim
reporting period.
FINANCIAL RESULTS (unaudited)
Six months to 30 September 2024 2023 Change
Period-end fleet size (1) 224 189 18.5%
ASKs (million km) 61,608 62,193 (0.9)%
Load factor (%) 92.4 92.6 (0.2) ppt
Passengers carried (million) 33.3 33.0 0.8%
Total revenue (€ million) 3,066.1 3,052.3 0.5%
EBITDA (€ million) (2) 826.0 878.1 (5.9)%
EBITDA margin (%) (2) 26.9 28.8 (1.9) ppt
Operating profit for the period (€ million) 349.2 522.9 (33.2)%
Net profit for the period (€ million) 315.2 400.7 (21.3)%
RASK (€ cent) 4.98 4.91 1.4%
Total CASK (€ cent) 4.54 4.15 9.4%
Fuel CASK (€ cent) 1.54 1.55 (0.6)%
Ex-fuel CASK (€ cent) 3.00 2.60 15.4%
Total cash (€ million) (2,3) 1,858.1 1,588.9 16.9%
Net debt (€ million) (2,4) 4,763.0 4,790.2 (0.6)%
( )
(1 )Comparative figure has been changed from 187 to 189 in order to
include the two purchased Ukrainian aircraft on ground.
(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" sections of
this document.
(3) Comparative figure is total cash balance as at 31 March
2024. Total cash is a non-statutory financial performance measure and
comprises cash and cash equivalents (30 September 2024: €460.3 million; 31
March 2024: €728.4 million), short-term cash deposits (30 September 2024:
€1,306.1 million; 31 March 2024: €751.1 million) and total current and
non-current restricted cash (30 September 2024: €91.7 million; 31 March
2024: €109.4 million).
(4) Comparative figure is net debt balance as at 31 March 2024.
HIGHLIGHTS
▶ASK capacity 0.9 per cent down in H1 F25 vs last year, due to the Pratt
& Whitney GTF engine related aircraft groundings, as guided previously.
▶Passengers carried was 33.3 million in H1 F25 (vs 33.0 million in H1
F24), with a load factor of 92.4 per cent.
▶Total unit revenue (RASK) up 1.4 per cent to €4.98 cents, while
ticket RASK increased 1.3 per cent to €2.87 cents, and ancillary
RASK increased 1.6 per cent to €2.11 cents.
▶EBITDA decreased to €826.0 million in H1 F25 (vs €878.1 million in H1
F24), reflecting the cost inefficiencies carried as a result of grounded
aircraft due to GTF engine inspections and the cost of one-off wet leased
aircraft during the summer peak period, not fully offset by P&W
compensation. The period also had lower SLB profits compared to H1 F24 but
benefited from a reversal of lessor compensation provision as a result of
planning optimisation.
▶Operating profit down by 33.2 per cent to €349.2 million, due to lower
EBITDA and higher depreciation cost.
▶Net profit for H1 F25 of €315.2 million, down 21.3 per cent
year-over-year, with margin at 10.3 per cent.
▶Total cash increased by 16.9 per cent versus last year to
€1,858.1 million, and net debt remained stable at €4,763 million.
▶GTF engine inspections: 41 aircraft on ground as of 30 September 2024
down from 46 at the end of June; average groundings expected to be ca. 40-45
aircraft over the next 18 months vs the previous assumption of 50;
compensation received for H1 F25, and new compensation scheme is being
negotiated with Pratt & Whitney.
József Váradi, Wizz Air Chief Executive, commented on business developments
in the period:
"Wizz Air has delivered a resilient performance in the first half, driven by
solid air travel demand and strong focus on operational efficiency. We have
continued our efforts to protect capacity in the face of GTF-related engine
groundings, with total passengers increasing slightly year on year to 33.3
million, with load factor at 92.4 per cent. This includes a record 6.2 million
passengers during the month of August, reflecting the strong demand for routes
across our network and the dedication of all our colleagues to maintain high
standards and service levels.
Total revenue was broadly flat at €3,066.1 million, with unit revenue (RASK)
up 1.4 per cent to €4.98 cents year-over-year. Our ancillary revenue
streams, including priority boarding, bags and subscription product offering
continue to make an important contribution to overall revenues. In August, we
introduced a revolutionary new product, the 'All you can fly' annual
membership scheme, which was sold out within 48 hours from launch.
Cost control remained a key focus area during the first half, particularly
with the management of the Pratt & Whitney related aircraft groundings and
air traffic control disruptions. Cost per available seat kilometre (CASK),
excluding fuel, increased during the period by 15.4 per cent to €3.00
cents, reflecting the inefficiencies in the cost of aircraft groundings,
network and crew, including the cost of one-off wet leases that were put in
place to protect market positions during the peak summer season.
Net income for the period was at €315.2 million, and cash generation was
steady with total cash (including restricted cash and cash deposits with more
than three months' maturity) increasing to €1.9 billion. Net debt was flat
at €4,763 million and we remain committed to maintaining a prudent approach
to financial management.
On current trading and the outlook, Mr Váradi said:
"Bookings since the period end show no softening of demand, and we are
anticipating a positive momentum into the second half in terms of both
bookings and yield, notwithstanding the volatile geopolitical situation in the
Middle East. Our operations in Tel Aviv have been suspended until the middle
of January 2025 with capacity reallocated across our network focusing on route
densification, and we continue to monitor the situation closely in the
region.
In the second half, GTF issues will continue to inflate costs which will be
counterbalanced by action taken on improving fuel and operational efficiency,
and optimizing the network mix. As at the end of October, all one-off wet
leases have been terminated and a new compensation scheme is being negotiated
with Pratt & Whitney, providing stability for the rest of the financial
year.
As we look ahead, we now have better visibility to manage the GTF issues to
their expected conclusion in F27 and our timetable of deliveries from Airbus
means we will gradually return to growth from next year. During this period
our focus is on cost, and we have renewed our commitment to ultra-low cost
principles, so that we can deliver the lowest fares to our customers while our
growing fleet solidifies our market leadership in Central Eastern Europe
through better schedule options and higher operational reliability, and
unlocks potential new destinations in the West and East.
The age and gauge of our Airbus A321neo fleet, underpinned by our orderbook
and fleet renewal program, will give us unparalleled advantages in the long
term. To realise these benefits we continue to prioritise resilient
operational planning, unit cost and sustainability leadership and pricing
power through network density and quality. Wizz 500 remains our strategic
objective by 2032 as we expect to grow the fleet by 15-20% p.a. from next
year."
NEAR-TERM AND FULL-YEAR OUTLOOK
▶Capacity (ASKs): F25 up 1 per cent YoY;
▶Load factor: F25 at 92 per cent;
▶Revenue: F25 RASK up mid-single digits YoY;
▶Costs: F25 ex-fuel CASK up mid-teens YoY; and F25 fuel CASK down 3-5 per
cent YoY;
▶Group corporate effective tax rate (ETR): between 13.0 and
14.0 per cent;
▶Net income: F25 in the range of €350-450 million.
GTF ENGINE UPDATE
As of 30 September 2024, Wizz Air had 41 aircraft on ground due to the GTF
engine-related inspections; an improvement over the original F25 forecast
mainly due to expedited induction of quick-turn engines. Moving forward,
average groundings expected to be ca. 40-45 aircraft over the next 18 months
vs the previous assumption of 50, with forecast based on 300-day engine
turnaround time. Wizz Air received an additional 8 spare engines in H1 F25,
with a total of 54 supporting the operations during the year.
Compensation has been received for the H1 F25 period and a new compensation
scheme is being negotiated with Pratt & Whitney effective from 2025,
following the expiry of the existing package on 31 December 2024.
FLEET UPDATE
▶In the six months ended 30 September 2024 Wizz Air took delivery of 15
new A321neo aircraft, dry-leased 3 A320ceo aircraft, and redelivered 2 A320ceo
aircraft, ending the period with a total fleet of 224 aircraft: 41x A320ceo,
41x A321ceo, 6x A320neo, 136x A321neo.
▶Wizz Air secured 8 wet-leased aircraft to maintain network footprint and
customer offering during the summer peak operations. As of 31 October 2024 all
wet leases were terminated.
▶The average age of the fleet currently stands at 4.4 years, and remains the
youngest fleet of any major European airline, while the average number of
seats per aircraft has climbed to 225 as at September 2024.
▶The share of new "neo" technology aircraft within Wizz Air's fleet
increased to 63 per cent.
▶As at 30 September 2024, Wizz Air's delivery backlog comprises a firm order
for 264x A321neo and 47x A321XLR aircraft, a total of 311 aircraft.
FINANCIAL UPDATE
▶As of 25 October 2024, using jet fuel zero-cost collars, Wizz Air has
accumulated hedge coverage of 80 per cent of its jet fuel needs for F25 at a
price of 747/841 $/mT. For F26 the coverage is 50 per cent at the price of
714/797 $/mT. The jet fuel-related EUR/USD FX coverage stands at 85 per cent
for F25 at 1.08/1.12, while the coverage for F26 stands at 50 per cent at
1.09/1.13 rates.
▶Wizz Air has been downgraded by Fitch Ratings to 'BB+' with 'Stable
Outlook' due to high leverage attributed to 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 has indicated that the 'Stable Outlook' reflects
expectations of Fitch-defined EBITDAR margin at average 26%, which remains
high compared with airlines peers, and Fitch's assessment of the company's
deleveraging potential expected from F26. The Group's credit rating stands
at 'Ba1' 'Stable' by Moody's Investor Services.
▶The outstanding balance on the PDP facility on 30 September 2024 stands at
€146.0 million (30 September 2023: €117.9 million). On 4 November 2024,
the balance was repaid entirely.
▶Wizz Air rolled over the ETS sale and repurchase agreement with a balance
of €264.5 million.
▶Wizz Air continued to receive OEM compensation from Pratt & Whitney
related to the GTF engine issues, which is presented within the other
income in the consolidated statement of comprehensive income.
ESG UPDATE
▶As of 30 September 2024, the 12 months rolling CO(2) emissions per
passenger kilometre was at 52.6 grammes (vs 51.6 grammes in the preceding 12
months), the lowest among peers in the industry.
▶Wizz Air launched the second term of its Sustainability Ambassador
Programme, after successfully concluding the inaugural term during
the summer.
▶Wizz Air announced trial operations using Sustainable Aviation Fuel (SAF)
in collaboration with Airbus. This positions Wizz Air at the forefront of
compliance with the EU's forthcoming RefuelEU aviation regulations, which are
set to take effect in 2025.
▶Proud to have received two awards recognizing our efforts in
sustainability:
▶Most Sustainable Low-Cost Airline for the fourth consecutive year at the
World Finance Sustainability Awards 2024;
▶EMEA Environmental Sustainability Airline Group of the Year in 2024 by
CAPA - Centre for Aviation.
- Ends -
ABOUT WIZZ AIR
Wizz Air, one of the most sustainable European airlines, operates a fleet of
over 220 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 62 million passengers in the financial year ended 31
March 2024. Wizz Air is listed on the London Stock Exchange under the ticker
WIZZ. The company was recently named the World's Top 5 Safest Low-Cost
Airlines 2024 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" within the World Finance Sustainability Awards in 2021-2024,
the "Global Environmental Sustainability Airline Group of the Year" in
2022-2023 and the "EMEA Environmental Sustainability Airline Group of the
Year" in 2024 by the CAPA-Centre for Aviation Awards for Excellence.
For more information:
Investors:
Mark Simpson, Wizz
Air
+36 1 777 9407
Dorottya Durucsko, Wizz Air
Media:
Andras Rado, Wizz
Air
communications@wizzair.com
James McFarlane/ Eleni Menikou/ Charles Hirst, MHP Group +44 (0)
20 3128 8100
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.
H1 FINANCIAL REVIEW
In the first half of the financial year, Wizz Air carried 33.3 million
passengers, a 0.8 per cent increase compared to the same period in the
previous year, and generated revenues of €3,066.1 million, 0.5 per
cent higher than last period. These rates compare to capacity change
measured in terms of ASKs of 0.9 per cent lower but 1.0 per cent more seats.
The load factor decreased by 0.2 per cent to 92.4 per cent.
The net profit for the first half was €315.2 million, compared to a
net profit of €400.7 million in the same period of F24.
Summary condensed consolidated interim statement of comprehensive income
(unaudited)
Six months ended 30 September Three months ended 30 September
2024 2023 Change 2024 2023 Change
Passenger ticket revenue(1) 1,767.5 1,762.2 0.3% 1,065.7 1,074.0 (0.8)%
Ancillary revenue(1) 1,298.6 1,290.1 0.7% 741.1 741.7 (0.1)%
Total revenue 3,066.1 3,052.3 0.5% 1,806.8 1,815.7 (0.5)%
Staff costs (279.9) (250.5) 11.7% (142.9) (131.2) 8.9%
Fuel costs (948.0) (966.4) (1.9)% (488.1) (522.7) (6.6)%
Distribution and marketing (62.9) (64.9) (3.1)% (34.6) (36.8) (6.0)%
Maintenance, materials and repairs (176.3) (150.9) 16.8% (81.8) (81.2) 0.7%
Airport, handling and en-route charges (708.6) (631.9) 12.1% (386.8) (342.6) 12.9%
Depreciation and amortisation (476.8) (355.2) 34.2% (246.8) (198.4) 24.4%
Other expenses(2) (306.0) (200.6) 52.5% (194.2) (119.5) 62.5%
Other income(2) 241.6 91.1 165.2% 72.9 59.8 21.9%
Total operating expenses (2,716.9) (2,529.3) 7.4% (1,502.2) (1,372.7) 9.4%
Operating profit 349.2 522.9 (33.2)% 304.7 442.9 (31.2)%
Financial income 43.8 39.0 12.3% 21.9 23.5 (6.8)%
Financial expenses (124.3) (92.0) 35.1% (63.5) (46.6) 36.3%
Net foreign exchange gains/(losses) 94.3 (19.7) (578.7)% 104.4 (36.8) (383.7)%
Net financing income/(expense) 13.8 (72.7) (119.0)% 62.8 (59.9) (204.8)%
Profit before income tax 363.0 450.2 (19.4)% 367.5 383.1 (4.1)%
Income tax expense (47.8) (49.5) (3.4)% (53.5) (43.5) 23.0%
Net profit for the period 315.2 400.7 (21.3)% 314.0 339.6 (7.5)%
Net profit for the period attributable to:
Non-controlling interest (8.3) (4.4) 89.5% (3.8) (2.6) 44.9%
Owners of Wizz Air Holdings Plc 323.5 405.1 (20.1)% 317.8 342.3 (7.2)%
(1) For further definition of non-financial measures presented refer to
"Alternative performance measures (APMs)" and "Glossary of terms" sections of
this document.
(2) The Group previously presented net other expense for the six months
ended 30 September 2023 of €109.5 million. To enhance the presentation this
has been split to separately show other expenses of €200.6 million and
other income of €91.1 million on the face of the condensed consolidated
interim statement of comprehensive income. The Group previously net other
expense for the three months ended 30 September 2023 of €59.7 million. This
has been split to separately show other expenses of €119.5 million and
other income of €59.8 million on the face of the condensed consolidated
interim statement of comprehensive income. The composition of other income and
expenses is explained in Note 3. There was no impact on net income as a result
of this change in classification.
Revenue
Passenger ticket revenue increased by 0.3 per cent to €1,767.5 million
and ancillary revenue (or "non-ticket" revenue) increased by 0.7 per cent to
€1,298.6 million, driven by sustained demand for air travel in H1 F25.
Total revenue per ASKs (RASK) increased by 1.4 per cent
to €4.98 cents from €4.91 cents, driven by a nominal revenue increase
combined with a 0.9 per cent lower ASK production (mainly due to 1.9 per
cent shorter average aircraft stage length (km)).
Average revenue per passenger (net fare) was €92.2 during H1 F25, a
decrease of 0.4 per cent versus H1 F24. Average ticket revenue per
passenger decreased from €53.4 in H1 F24 to €53.2 in H1 F25,
€0.2 or 0.5 per cent lower than last year, while average ancillary
revenue per passenger remained stable at €39.1 in H1 F25.
Operating expenses
Operating expenses for H1 F25 increased by 7.4 per cent to
€2,716.9 million from €2,529.3 million in H1 F24. Key drivers being
higher airport and handling costs and en-route charges driven
by the generally increasing prices, increased crew-related salary costs
mainly driven by the salary adjustments, higher compensation costs in absolute
terms due to the overall growth of the Company, wet leased aircraft and
significantly higher maintenance costs. This is partly offset by favorable
impact on fuel costs on the back of the lower fuel prices explained below and
compensation received from Pratt & Whitney. The total cost per
ASKs (CASK) (including impact of hedges) increased by 9.4 per cent to
€4.54 cents in H1 F25 from €4.15 cents in H1 F24. CASK excluding
fuel expenses increased by 15.4 per cent to €3.00 cents in
H1 F25 compared to €2.60 cents in H1 F24.
Staff costs increased by 11.7 per cent to €279.9 million in H1 F25, up
from €250.5 million in H1 F24, reflecting the increase in capacity and the
cost-of-living adjustments to salaries year on year.
Fuel expenses decreased by 1.9 per cent to €948 million in H1 F25,
from €966.4 million in the same period of F24. Capacity (in ASK term)
decreased by 0.9 per cent, combined with a favorable price improvement.
The average fuel price (including hedge and Into Plane Premium impact) paid by
Wizz Air during H1 F25 decreased by $43 (per metric tonne) compared to
the same period of F24. Due to the grounding of NEO aircrafts, fleet average
fuel efficiency has slightly decreased, burning 2.29 metric tons / block
hours, versus prior year 2.28 metric tons / block hours.
Distribution and marketing costs decreased by 3.1 per cent to
€62.9 million from €64.9 million in the first half of F25, driven by
more efficient allocation of marketing efforts across increased seat capacity
and a reduced need for heavy promotions due to a strong pricing environment.
Maintenance, materials and repair costs increased by 16.8 per cent to
€176.3 million in H1 F25 from €150.9 million in H1 F24, due to a
larger fleet and greater number of maintenance events. Maintenance costs
benefited from reversal of lessor compensation provisions from planning
optimization.
Airport, handling and en-route charges increased to €708.6 million in the
first half of F25 versus €631.9 million in the same period of F24. The
cost increase is mainly due to higher pricing, partially also impacted by the
shorter average stage length profile contributing to higher Average departures
per day per operating aircraft.
Depreciation and amortisation charges were 34.2 per cent higher at
€476.8 million in the first half, up from €355.2 million in the same
period in F24. The increase is related to depreciation on the growing fleet
and to the change of depreciation profiles on the grounded aircrafts.
Other expenses amounted to €306.0 million in H1 F25, compared to
€200.6 million in the same period in F24. Among the key drivers, flight
disruption cost, including compensation paid to
customers, increased to €115.5 million in H1 F25 from
€99.0 million in H1 F24, wet lease expenses increased to
€94.9 million in H1 F25 from €10.3 million in
H1 F24, overhead-related expenses increased to €48.4 million in
H1 F25 from €42.5 million in H1 F24 and crew related
expenses decreased to €31.6 million in H1 F25 from €35.5 million in
H1 F24.
Other income amounted to €241.6 million in H1 F25, compared to
€91.1 million in the same period in F24. It included gain on sale and
leaseback transactions of €83.8 million in H1 F25 compared
€45.3 million in H1 F24, and credits and compensation received from
suppliers of €146.3 million in H1 F25 compared to €35.8 million in
H1 F24.
Financial income amounted to €43.8 million in the first half compared to
€39.0 million in the same period in F24, driven by the increase in
short-term cash deposits and higher interest rate environment in H1 F25.
Financial expenses amounted to €124.3 million in the first half compared
to €92.0 million in the same period in F24. Financial
expenses predominantly arise from interest charges related to lease
liabilities under IFRS 16 connected to the fleet size increase and the higher
interest rate environment.
Net foreign exchange gain was €94.3 million in the first half compared to
a loss of €19.7 million in the same period in F24, mainly caused by the
strengthening Euro against the US Dollar in H1 F25 (5.7%) in comparison to
H1 F24 over the course of one year. This resulted in higher unrealised
foreign exchange gain on the revaluation of US Dollar denominated lease
liabilities.
Taxation
The Group recorded an income tax charge of €47.8 million in the period
compared to an income tax charge of €49.5 million in the same period
in F24. The decrease in tax charge is mainly attributable to the slightly
lower profit before tax for the current period, which is partially offset by
the higher effective tax rate applicable in Hungary from FY25 due to the
introduction of OECD Pillar 2 minimum taxation.
Second quarter performance
In the three months to 30 September 2024 ("Q2" or "the second quarter"),
Wizz Air carried 17.9 million passengers, including no-shows, reflecting a 1.1
per cent increase compared to the same period in the previous year. Revenues
for the quarter totaled €1,806.8 million, with ASK capacity down by 0.7 per
cent YoY, but with seat capacity up 1.2 per cent due to a decrease in average
stage length of 1.9 per cent. The load factor remained largely stable,
slightly decreasing from 93.8 per cent to 93.7 per cent. Profit for the second
quarter was €314.0 million, compared to €339.6 million in the same period
of F24. The decline in profit is mainly due to the grounding of an average
of 43 aircraft due to the continuing GTF issue, which were only partially
compensated for, along with costs from one-off wet leases. This resulted in an
ex-fuel CASK of €3.26 cents, an increase of 22 per cent compared to the same
period in F24.
OTHER INFORMATION
1. Cash
Total cash (including restricted cash and cash deposits with more than three
months' maturity) at the end of the first half increased by 16.9 per cent
to €1,858.1 million versus 31 March 2024, of which €1,766.4 million
is non-restricted cash.
2. Hedging position
Wizz Air operates under a clear set of treasury policies approved by the Board
and supervised by the Audit and Risk Committee. The hedges under the hedge
policy will be rolled forward quarterly, 18 months out, with coverage levels
over time reaching indicatively between 65 per cent for the first quarter of
the hedging horizon and 15 per cent for the last quarter of the hedging
horizon. The hedging policy covers jet fuel and jet fuel-related EUR/USD
exposure. Jet fuel hedge coverages at 25 October 2024 are as follows:
Fuel hedge coverage
F25 F26
Period covered 6 months 12 months
Exposure in metric tonnes ('000) 921 2,131
Coverage in metric tonnes ('000) 739 1,061
Hedge coverage for the period 80% 50%
Weighted average ceiling $841.0 $797.0
Weighted average floor $747.0 $714.0
Foreign exchange hedge coverage
F25 F26
Period covered 6 months 12 months
Exposure in USD millions 638 1,435
Coverage in USD millions 545 730
Hedge coverage for the period 85% 51%
Coverage by hedge types:
Zero-cost collars in USD millions 545 730
Weighted average ceiling $1.1202 $1.1348
Weighted average floor $1.0767 $1.0910
Sensitivities
Pre-hedging, a $10 (per metric tonne) movement in the price of jet fuel will
impact the H2 F25 fuel costs by $9.3 million.
A one cent movement in the EUR/USD exchange rate impacts the
H2 F25 operating expenses by €13.8 million.
3. Fully diluted share capital
The figure of 127,727,976 should be used for the Company's theoretical fully
diluted number of shares as at 30 September 2024. This figure comprises
103,389,585 issued ordinary shares and 24,246,715 new ordinary shares which
would have been issued if the full principal of outstanding convertible notes
had been fully converted on 30 September 2024 (excluding any ordinary shares
that would be issued in respect of accrued but unpaid interest on that date)
and 91,676 new ordinary shares which may be issued upon exercise of vested but
unexercised employee share options.
4. Ownership and control
To protect the EU airline operating license of Wizz Air Hungary Ltd and Wizz
Air Malta Ltd (subsidiaries of the Company), the Board has resolved to
continue to apply a disenfranchisement of Ordinary Shares held by non-EEA
Shareholders in the capital of the Company. This will continue to be done on
the basis of a "Permitted Maximum" of 45 per cent pursuant to the Company's
articles of association ("the Permitted Maximum"). In preparation
for the 2024 Annual General Meeting (AGM), on 4 September 2024 the Company
sent a Restricted Share Notice to Non-Qualifying registered Shareholders,
informing them of the number of Ordinary Shares that will be treated as
Restricted Shares:
▶a "Qualifying National" includes: (i) EEA nationals, (ii) nationals of
Switzerland and (iii) in respect of any undertaking, an undertaking which
satisfies the conditions as to nationality of ownership and control of
undertakings granted an operating licence contained in Article 4(f) of
Regulation (EC) No. 1008/2008 of the European Commission, as such conditions
may be amended, varied, supplemented or replaced from time to time, or as
provided for in any agreement between the EU and any third country (whether or
not such undertaking is itself granted an operating licence); and
▶a "Non-Qualifying National" includes any person who is not a Qualifying
National in accordance with the definition above.
5. Key statistics
For the six months ended 30 September
2024 2023 Change
Capacity
Number of aircraft at end of period* 224 189 18.5%
Number of operating aircraft at end of period** 188 182 3.3%
Equivalent aircraft 216.5 183.3 18.2%
Equivalent operating aircraft** 176.6 179.8 (1.8)%
Utilisation (block hours per aircraft per day) 10:05 12:12 (17.3)%
Utilisation (block hours per operating aircraft per day)** 12:48 12:26 2.9%
Total block hours 414,037 409,595 1.1%
Total flight hours 358,534 357,047 0.4%
Revenue departures 163,762 160,725 1.9%
Average departures per day per aircraft 3.99 4.79 (16.7)%
Average departures per day per operating aircraft** 5.06 4.88 3.7%
Seat capacity 35,975,406 35,625,271 1.0%
Average aircraft stage length (km) 1,712 1,746 (1.9)%
Total ASKs ('000 km) 61,607,713 62,192,609 (0.9)%
Operating data
RPKs ('000 km) 57,188,585 57,590,890 (0.7)%
Load factor (%) 92.4 92.6 (0.2)%
Passengers carried 33,252,451 32,979,806 0.8%
Fuel price (average US$ per tonne, including hedging impact and into-plane 970.0 1,013.0 (4.2)%
premium) ***
Foreign exchange rate (average US$/€, including hedge impact) 1.092 1.089 0.3%
* Aircraft at end of period includes 3 aircraft in Ukraine,
but excludes wet-leased aircraft. There were 8 wet-lease aircraft at end of
period H1 F25 and 0 wet-lease aircraft at end of period H1 F24. Comparative
figure has been changed from 187 to 189 as it did not include
the two purchased Ukrainian aircraft on ground.
** Operating aircraft includes above mentioned wet-lease aircraft, but
excludes grounded aircraft. At end of period H1 F25 there were 41 grounded
aircraft due to GTF engine inspections and 3 grounded aircraft in Ukraine. At
end of period H1 F24 there were 4 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.
*** Average fuel price metric has been changed to include into plane premium
figure as well, whereas prior year report excluded it. The current reporting
possibilities do not allow us to precisely calculate and separate IPP prices.
Prior year benchmark has been aligned to the new method.
6. Cost per available seat kilometers
For the six months ended 30 September
2024 2023
euro cents euro cents Change
Fuel costs 1.54 1.55 (0.6)%
Staff costs 0.45 0.40 12.5%
Distribution and marketing 0.10 0.10 -%
Maintenance, materials and repairs 0.29 0.24 20.8%
Airport, handling and en-route charges 1.15 1.02 12.7%
Depreciation and amortisation 0.77 0.57 35.1%
Other expenses 0.50 0.32 56.3%
Other income (0.39) (0.14) 178.6%
Net financial expenses* 0.13 0.09 44.4%
Total CASK 4.54 4.15 9.4%
Total ex-fuel CASK 3.00 2.60 15.4%
* Net financial expenses excluding Net foreign exchange gains/losses.
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 interim financial statements. As a result, some amounts and
percentages do not total - though such differences are all trivial.
7. Emerging and principal risks and uncertainties
The aviation industry is subject to many risks and Wizz Air's business is no
exception. A number of risks, as described in our 2024 Annual Report and
Accounts, have the potential to adversely affect Wizz Air's expected results
for the remainder of the current financial year. The principal and emerging
risks we identified at the start of the year are still present and are in
focus, especially risks related to conflicts between countries such as
prolonged war between Russia and Ukraine and the ongoing armed conflicts and
escalating tension in the Middle East, as well as operations and fleet related
issues like the unplanned maintenance of Pratt & Whitney GTF engines. The
overall risk profile of the principal risks remained unchanged, as the
fluctuations in individual risk ratings, considering the remediation actions,
largely balanced each other out. However, regulatory risk has been expanded to
include compensation payable to customers under EU regulation (EC) No.
261/2004.
The full list of risks considered is set out below:
▶information technology and cyber risk, including website availability,
protection of our own and our customers' data, and ensuring the availability
of operations-critical systems in a significantly escalating threat landscape;
▶external factors, ensuring the Company has capabilities and resilience to
deal with risks such as geopolitical risks (including the ongoing war between
Ukraine and Russia, and the escalating tension and armed conflicts in the
Middle-East), fuel cost, foreign exchange rates, risk of higher cost of doing
business, competition, general economic trends, and the default of a partner
financial institution;
▶fleet development, ensuring the Company has the right number of aircraft
and engines available at the right time to take advantage of commercial
opportunities and grow in a disciplined way without any supply chain
disruption;
▶operations, including safety events and terrorist incidents and employee
and passenger security;
▶network development, making sure that we are making the best use of our
capacity, driving maximum utilisation, minimal grounded capacity due to the
unplanned GTF engine maintenance and ensuring that we have access to the right
airport infrastructure at the right price so that we can keep on delivering
the superior Wizz Air service at low fares across an expanding network;
▶regulatory risk, making sure that we remain compliant with regulations,
including compensating customers, affecting our business and operations and we
remain agile to react to the changing governmental actions due to slowing
economic landscape, ownership and control, loss of traffic rights, and
changing policies and reporting obligations due to sustainability (taxation,
etc.);
▶human resources, ensuring we are able to recruit the right quality and the
right number of colleagues to support our ambition to grow and, once
recruited, that they remain engaged and motivated and that the Company has
appropriate succession management in place for key colleagues;
▶social and governance risks, making sure we operate in accordance with our
core values and our value of integrity, are respected throughout our business
processes and deals, and provide transparency to all our stakeholders through
responsible reporting and disclosure; and
▶environmental risk, ensuring that we are able to answer the growing need of
environmental protection and consciousness, mitigate the emerging transition
and physical risks and create a sustainable, climate-friendly service for our
customers, at all times respecting the planet.
The Directors consider that the principal risks to the Company's business
during the second half of the financial year remain those summarized above and
set out on pages 106 to 113 of our 2024 Annual Report and Accounts,
available at corporate.wizzair.com.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Condensed consolidated interim statement of comprehensive income
For the six months ended 30 September 2024 (unaudited)
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
(restated*)
Note € million € million
Passenger ticket revenue 6, 7 1,767.5 1,762.2
Ancillary revenue 6, 7 1,298.6 1,290.1
Total revenue 6, 7 3,066.1 3,052.3
Staff costs (279.9) (250.5)
Fuel costs (948.0) (966.4)
Distribution and marketing (62.9) (64.9)
Maintenance, materials and repairs (176.3) (150.9)
Airport, handling and en-route charges (708.6) (631.9)
Depreciation and amortisation (476.8) (355.2)
Other expenses* (306.0) (200.6)
Other income* 241.6 91.1
Total operating expenses (2,716.9) (2,529.3)
Operating profit 349.2 522.9
Financial income 8 43.8 39.0
Financial expenses 8 (124.3) (92.0)
Net foreign exchange gains/(losses) 8 94.3 (19.7)
Net financing income/(expense) 8 13.8 (72.7)
Share of net profit of associates - -
Profit before income tax 363.0 450.2
Income tax expense 9 (47.8) (49.5)
Net profit for the period 315.2 400.7
Net profit for the period attributable to:
Non-controlling interest (8.3) (4.4)
Owners of Wizz Air Holdings Plc 323.5 405.1
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 (60.1) 88.2
Cash flow hedging reserve recycled to profit or loss 4.2 36.0
Cost of hedging (46.2) 57.4
Currency translation differences 4.4 (3.0)
Share in other comprehensive income from investments - -
Other comprehensive (expense)/income for the period, net of tax (97.7) 178.6
Total comprehensive income for the period 217.5 579.3
Total comprehensive income for the period attributable to:
Non-controlling interest (7.0) (5.2)
Owners of Wizz Air Holdings Plc 224.5 584.6
Basic earnings per share (€/share) 10 3.13 3.92
Diluted earnings per share (€/share) 10 2.54 3.18
* The Group previously presented net other expense for the six months
ended 30 September 2023 of €109.5 million. To enhance the presentation this
has been split to separately show other expenses of €200.6 million and
other income of €91.1 million on the face of the condensed consolidated
interim statement of comprehensive income. The composition of other income and
expenses is explained in Note 3. There was no impact on net income as a result
of this change in classification.
Condensed consolidated interim statement of financial position
As at 30 September 2024
30 Sep 2024 (unaudited) 31 Mar 2024 (audited)
Note € million € million
ASSETS
Non-current assets
Property, plant and equipment 11 6,245.9 5,815.0
Intangible assets 97.2 92.7
Restricted cash 38.1 54.0
Deferred tax assets 89.6 109.1
Derivative financial instruments 4 0.2 3.9
Trade and other receivables 13 39.6 37.1
Investments in associates 5.7 5.7
Investments in other entities 3.7 1.6
Total non-current assets 6,520.0 6,119.1
Current assets
Inventories 12 268.4 333.6
Trade and other receivables 13 627.0 669.6
Current tax assets 3.3 4.7
Derivative financial instruments 4 0.5 33.0
Restricted cash 53.6 55.4
Short-term cash deposits 1,306.1 751.1
Cash and cash equivalents 460.3 728.4
Total current assets 2,719.2 2,575.8
Total assets 9,239.2 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 (42.1) 13.8
Cost of hedging reserve (27.2) 19.0
Cumulative translation adjustments 5.9 2.8
Retained earnings/(Accumulated losses) 279.5 (48.7)
Capital and reserves attributable to the owners of Wizz Air Holdings Plc 412.6 183.4
Non-controlling interest (44.7) (37.7)
Total equity 367.9 145.7
Non-current liabilities
Borrowings 16 5,662.9 5,159.7
Convertible debt 25.2 25.4
Deferred income 17 161.7 147.2
Deferred tax liabilities 2.1 -
Derivative financial instruments 4 9.4 -
Trade and other payables 14 59.5 97.2
Provisions for other liabilities and charges 15 161.9 144.3
Total non-current liabilities 6,082.7 5,573.8
Current liabilities
Trade and other payables 14 1,034.9 925.2
Current tax liabilities 29.2 37.5
Borrowings 16 841.0 1,084.3
Convertible debt 0.3 0.3
Derivative financial instruments 4 68.5 0.7
Deferred income 17 669.1 797.4
Provisions for other liabilities and charges 15 145.6 130.0
Total current liabilities 2,788.6 2,975.4
Total liabilities 8,871.3 8,549.2
Total equity and liabilities 9,239.2 8,694.9
Condensed consolidated interim statement of changes in equity
For the six months ended 30 September 2024 (unaudited)
Share capital Share Reorganisation Equity Cash flow hedging reserve Cost of hedging reserve Cumulative translation adjustments Retained earnings/(Accumulated losses) € million Total Non-controlling interest Total
€ million premium reserve part of convertible debt € million € million € million € million € million equity
€ 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
Profit/(loss) for the period - - - - - - - 323.5 323.5 (8.3) 315.2
Other comprehensive income/(expense) - - - - (55.9) (46.2) 3.1 - (99.0) 1.3 (97.7)
Total comprehensive income/(expense) - - - - (55.9) (46.2) 3.1 323.5 224.5 (7.0) 217.5
Transactions with owners
Share-based payment charge - - - - - - - 4.7 4.7 - 4.7
Total transactions with owners - - - - - - - 4.7 4.7 - 4.7
Balance at 30 September 2024 - 381.2 (193.0) 8.3 (42.1) (27.2) 5.9 279.5 412.6 (44.7) 367.9
Condensed consolidated interim statement of changes in equity
For the six months ended 30 September 2023 (unaudited)
Share capital Share Reorganisation Equity Cash flow hedging reserve Cost of hedging reserve Cumulative translation adjustments Retained Total Non-controlling interest Total
€ million premium reserve part of convertible debt € million € million € million earnings € million € million equity
€ 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
Profit/(Loss) for the period - - - - - - - 405.1 405.1 (4.4) 400.7
Other comprehensive expense - - - - 124.2 57.4 (2.1) - 179.5 (0.8) 178.7
Total comprehensive expense - - - - 124.2 57.4 (2.1) 405.1 584.6 (5.2) 579.4
Transactions with owners
Share-based payment charge - - - - - - - 4.0 4.0 - 4.0
Total transactions with owners - - - - - - - 4.0 4.0 - 4.0
Balance at 30 September 2023 - 381.2 (193.0) 8.3 51.0 33.4 1.2 (24.5) 257.6 (32.1) 225.5
Condensed consolidated interim statement of cash flows
For the six months ended 30 September 2024 (unaudited)
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Cash flows from operating activities
Profit before income tax 363.0 450.2
Adjustments for:
Depreciation 465.5 346.5
Amortisation 11.3 8.7
Financial income (43.8) (39.0)
Financial expenses 124.3 92.0
Unrealised fair value losses/(gains) on derivative financial instruments 9.4 (15.6)
Unrealised foreign currency (gains)/losses (105.6) 14.3
Realised non-operating foreign currency losses 19.5 1.1
Gain on sale of property, plant and equipment (83.8) (45.3)
Share-based payment charges 4.7 3.9
Other non-cash operating expense/(income) 11.0 (5.4)
Share of net profit of associates - -
775.5 811.3
Changes in working capital
Decrease/(increase) in trade and other receivables 51.5 (137.0)
Decrease in restricted cash 14.0 18.1
Decrease in inventory 67.8 75.2
Increase in provisions 13.0 3.5
(Decrease)/increase in trade and other payables (44.4) 148.9
Decrease in deferred income (134.6) (183.7)
Cash generated by operating activities before tax 742.8 736.3
Income tax paid (22.7) (10.2)
Net cash generated by operating activities 720.1 726.1
Cash flows from investing activities
Purchase of aircraft maintenance assets (7.7) (73.7)
Purchase of tangible and intangible assets (195.9) (155.5)
Proceeds from sale of tangible assets 185.5 104.2
Advances paid for aircraft (234.0) (112.3)
Refund of advances paid for aircraft 154.6 218.6
Interest received 32.3 32.4
Increase in short-term cash deposits (572.9) (598.0)
Payment for acquisition of investment (2.1) (4.5)
Net cash used in investing activities (640.2) (588.8)
Cash flows from financing activities
Proceeds from new loans* 233.7 36.6
Repayment of loans* (342.9) (279.0)
Interest paid - loans - IFRS 16 lease liability (78.4) (57.5)
Interest paid - loans - JOLCO, FTL and FL (20.7) (7.7)
Proceeds from secured debt - 14.6
Repayment of secured debt (83.6) (143.1)
Interest paid - secured debt (8.3) (7.4)
Interest paid - other (0.3) (1.6)
Net cash used in financing activities (300.5) (445.1)
Net decrease in cash and cash equivalents (220.6) (307.8)
Cash and cash equivalents at the beginning of the period 716.4 1,408.6
Effect of exchange rate fluctuations on cash and cash equivalents (35.5) 30.7
Cash and cash equivalents at the end of the period** 460.3 1,131.5
* Mostly JOLCO, FTL Finance Leases (FL) and IFRS 16, 'Leases'.
** Cash and cash equivalents at 30 September 2024 include
€409.2 million (31 March 2024: €359.4 million; 30 September 2023:
€274.1 million; 31 March 2023: €197.3 million) of cash at bank and
€51.1 million (31 March 2024: €145.6 million; 30 September 2023:
€858.2 million; 31 March 2023: €1,211.3 million) of cash deposits
maturing within three months of inception, €nil money market funds (31 March
2024: €223.4 million; 30 September 2023: €nil; 31 March 2023: €nil)
and €nil (31 March 2024: €12.0 million; 30 September 2023:
€0.8 million; 31 March 2023: €6.0 million) of overdrafts (repayable on
demand), which are an integral part of cash management activities.
Notes to the condensed consolidated interim financial statements (unaudited)
1. General information
Wizz Air Holdings Plc ("the Company") is a limited liability company
incorporated in Jersey, registered under the address 44 Esplanade, St Helier
JE4 9WG, Jersey. The Company is managed from Switzerland, under the address
Route François-Peyrot 12, 1218 Le Grand-Saconnex, Geneve. The Company and its
subsidiaries (together referred to as "the Group" or "Wizz Air") provide
low-cost, low-fare passenger air transportation services on scheduled
short-haul and medium-haul point-to-point routes across Europe and the Middle
East. The Company's Ordinary Shares are listed in the ESCC category of the
Official List of the Financial Conduct Authority and admitted to the Main
Market of the London Stock Exchange.
2. Basis of preparation
These unaudited condensed consolidated interim financial statements present
the financial results of the Group for the six-month period ended 30
September 2024. These condensed consolidated interim financial statements have
been prepared in accordance with the Disclosure Guidance and Transparency
Rules of the Financial Conduct Authority, IAS 34, 'Interim Financial
Reporting' as adopted by the European Union. The unaudited condensed
consolidated interim financial statements should be read in conjunction with
the annual consolidated financial statements for the year ended 31 March
2024, which have been prepared in accordance with IFRSs and IFRICs as adopted
by the European Union and with those parts of the Companies (Jersey) Law 1991
applicable to companies reporting under IFRS.
The comparative figures included for the year ended 31 March 2024 do not
constitute statutory financial statements of the Group based on Article 105
(11) of the Companies (Jersey) Law 1991. The consolidated financial statements
of the Group for the year ended 31 March 2024, together with the Independent
Auditors' Report, have been filed with the Jersey Financial Services
Commission and are also available on the Company's website (wizzair.com). The
Independent Auditors' Report on those financial statements was unqualified.
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 interim financial statements. As a result, some amounts and
percentages do not total - though such differences are all trivial.
Going concern
Wizz Air's business activities together with principal risks likely to affect
its future development and performance as described in our 2024 Annual
Report and Accounts, including the plans to finance a growing number of future
aircraft deliveries, where sale and leaseback financing is typically secured
shortly before the scheduled delivery date of the aircraft and our judgment
that there will continue to be demand in the leasing market to finance our
aircraft prior to their delivery dates, have been reviewed by the Directors
and are considered to be unchanged.
At 30 September 2024, the Group held total cash of €1,858.1 million
(including cash and cash equivalents of €460.3 million, €91.7 million of
restricted cash and €1,306.1 million of short-term cash deposits), while
net current liabilities were €69.4 million and net assets were
€367.9 million. The Group's contractual undiscounted external borrowings
include: €500.0 million of bonds maturing in January 2026, €265.1 million
of ETS financing from Standard Chartered Bank repayable March 2026 and
convertible debt of €25.5 million. In addition, borrowings include a
carrying amount of €5,577.0 million in relation to future
liabilities from lease contracts accounted for under IFRS 16 and liabilities
related to JOLCO, Finance lease and FTL contracts. None of these borrowings
contain any financial covenants.
The Group operates using a three-year planning cycle. The Directors have
reviewed their latest financial forecasts for a period of 18 months from the
date of signing these interim financial statements including plans to finance
committed future aircraft deliveries (see Note 18
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) due within this period that are currently unfinanced and taking into account
available committed financing for aircraft. After making enquiries and testing
the assumptions against different forecast scenarios including a severe but
plausible (downside) scenario (see below), 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 of signing this interim report.
These enquiries and the testing performed in reaching this conclusion included
the review of a base case model that projects the cash flows of the business.
The base case model is derived from our contracted fleet plan which includes
notified aircraft delivery delays. We then overlay our forecast for aircraft
groundings prepared by our maintenance team given our GTF engine related
supply chain issues. These building blocks determine our available fleet for
the going concern period to which we apply a utilisation assumption that is
consistent with our actual utilisation in F24. We then build our network plan
and make appropriate revenue, cost, compensation, working capital and
financing assumptions to develop the base case cash flows.
This base case was then flexed to produce a downside forecast that assumes
lower demand leading to a 5 per cent reduction in RASK, 10 per cent higher
fuel cost per metric tonne, 5c stronger USD compared to EUR, the partial
exclusion of cost savings initiatives and including only the minimum amount
of supply chain related compensation expected to be secured for the full
going concern period. These downside forecast assumptions were modelled
cumulatively across the full going concern period and the downside case only
includes committed financing for future aircraft deliveries. Mitigating
actions in relation to the unfinanced aircraft and deferral of future aircraft
deliveries were also considered in preparation of the downside case used for
the going concern assessment.
The Directors also considered the impact of climate change over the time
period and concluded that it is unlikely that material physical or transition
risks that are described in our Sustainability Report, on pages 31 to 48 of
the 2024 Annual Report and Accounts, will arise over this period. As part of
our base and downside forecasts, we considered the costs of CORSIA
implementation and changes in the amount of "free" ETS credits, which
reflects in general our expected cost increases of carbon emissions. The use
of sustainable aviation fuel (SAF) with traditional fuel will impact the
average cost of jet fuel and this was also modelled as part of the base and
downside forecast by way of increased fuel pricing on 2% of our expected fuel
purchases from 1 January 2025.
In preparing the base and downside forecasts the Directors also considered the
requirements of security levels in its card acquirer contracts and took into
account the impact of the war in Ukraine, conflicts in the Middle East and
three airframes stranded in Ukraine (see Note 11
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). Whilst our plans include continuing to fly to Israel from January
2025, the potential impact of reallocating capacity to other routes if
required is understood based on prior experience. The Directors have also
assumed that there will be no further significant disruption of the magnitude
experienced in recent financial years. The Directors concluded that no
material adverse impact on future cash flows is likely to result from these
matters.
In this downside scenario, whilst there was a significant reduction in
forecast liquidity, forecast headroom on the security levels of our card
acquirer contracts was maintained for at least the next 12 months.
Accordingly, the Directors concluded that it is appropriate to retain the
going concern basis of accounting in preparing the financial statements.
3. Material accounting policies
These condensed consolidated interim financial statements have been prepared
in accordance with the accounting policies, methods of computation and
presentation applied in the Group's most recently published consolidated
financial statements for the year ended 31 March 2024, except for the changes
explained below.
The Group entered into finance leases (FL) during FY25. Under these
financing arrangements the legal title to the aircraft will be transferred
back to the Group upon repayment of the loan. Such contracts do not meet the
definition of a sale under IFRS 15, and are not accounted for as a lease
contract under IFRS 16. The asset is recognised as aircraft assets and
parts within PPE, in accordance with IAS 16 and a liability is recognised as
debt financing under IFRS 9. Options to repurchase the aircraft earlier than
the end of the full lease term are not taken into account unless the Group
is reasonably certain that such options will be exercised.
The preparation of condensed consolidated interim financial statements
requires management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
Presentation in condensed consolidated interim statement of comprehensive
income was updated to split other expenses and other income. Other income
mainly relates to credits and compensation received from suppliers (Note 14),
gain on sale and leaseback transactions (Note 11) and income from cargo
operations. Other expenses mainly relate to short term wet lease expenses
(Note 11), compensation to customers (Note 14), expense from cargo
operations, crew and overhead related expenses.
In preparing these condensed consolidated interim financial statements
the significant judgments made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements for the
year ended 31 March 2024, with the exception of changes in estimates that are
required in determining the provision for income taxes and certain other
matters (Note 5). Taxes on income in the interim periods are accrued using
the effective rate (including Pillar Two taxes, please refer to Note 9) that
would be applicable to the expected total annual profit or loss.
In preparing the condensed consolidated interim financial statements, the
Directors have considered the impact of climate change, particularly in the
context of the disclosures included in the Strategic Report in
the 2024 Annual Report and Accounts, the stated emission targets and the
update provided on page 3
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of this interim report. These considerations did not have a material impact
on the Group's going concern assessment, nor on the financial reporting
judgments and estimates used in the preparation of these interim financial
statements.
New standards, amendments and interpretations issued and effective
The following amendments and interpretations apply for the first time in the
six months to 30 September 2024, but do not have a material impact, or any
impact on the condensed consolidated interim financial statements of the
Group:
▶Amendments to IAS 1, 'Presentation of Financial Statements': Classification
of Liabilities as Current or Non-current
▶Amendments to IAS 1, 'Presentation of Financial Statements': Non-current
Liabilities with Covenants
▶Amendments to IFRS 16, 'Leases': Lease Liability in a Sale and Leaseback
▶Amendments to IAS 7, 'Statement of Cash Flows' and IFRS 7,
'Financial Instruments': Disclosures: Supplier Finance Arrangements
New standards, amendments and interpretations issued but not yet effective
The following new accounting standards and interpretations have been published
by the IASB that are not yet effective and have not been early adopted by the
Group. These standards are either not relevant or not expected to have a
material impact on the Group in the current or future reporting periods or on
foreseeable future transactions.
Endorsed by the EU but not yet effective or not yet endorsed by the EU:
▶IFRS 19, 'Subsidiaries without Public Accountability: Disclosures'
▶Amendments to IAS 21, 'The Effects of Changes in Foreign Exchange Rates':
Lack of Exchangeability
▶Amendments to IFRS 9 and IFRS 7, Amendments to the 'Classification and
Measurement of Financial Instruments'
The following new accounting standards and interpretations have been published
by the IASB that are not yet effective and have not been early adopted by the
Group. The Group will assess the effects of the new standards on its
consolidated financial statements in due course.
▶IFRS 18, 'Presentation and Disclosure in Financial Statements'
▶Annual Improvements to IFRS Accounting Standards - Volume 11, contains
amendments to the following standards: IFRS 1, 'First-time Adoption of
International Financial Reporting Standards', IFRS 7, 'Financial Instruments:
Disclosures', IFRS 9, 'Financial Instruments', IFRS 10, 'Consolidated
Financial Statements' and IAS 7, 'Statement of Cash Flows'.
4. Financial risk management
Hedging
In F23 the Company reinstated its Board approved systematic hedging policy
with the following coverage and time horizon.
The hedges under the hedge policy will be rolled forward quarterly, 18
months out, with coverage levels over time reaching a minimum of 65 per cent
for the first quarter of the hedging horizon and 15 per cent for the last
quarter of the hedging horizon. In line with the hedging policy, Wizz Air also
hedges its US Dollar exposure related to fuel consumption.
As at 1 October 2024, the Wizz Air Board approved a USD Lease
Liabilities Economic Hedging Policy covering a large portion of foreign
exchange risks related to airplane lease financing denominated in US dollars.
Hedge transactions during the period
The Group uses zero-cost collar and JET swap instruments to hedge its jet
fuel-related foreign exchange exposures and jet fuel price exposures. In order
to ensure economic relationship, the Group enters into hedge relationships
where critical terms of the hedging instrument match exactly with that of the
hedged item.
The gains and losses arising from hedge transactions during the period were as
follows:
Foreign exchange hedge:
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Gain recognised within fuel costs
Effective cash flow hedge 2.9 0.6
Total gain recognised within fuel costs 2.9 0.6
Fuel hedge:
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Loss recognised within fuel costs
Effective cash flow hedge (7.1) (36.0)
Total loss recognised within fuel costs (7.1) (36.0)
Hedge period and open positions
The Group measures its derivative financial instruments at fair
value, calculated by a third-party front office system as per their industry
practice. As required, the fair values ascribed to those instruments are
verified also by management using high-level models. Such fair values might
change materially within the near future but 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 period the Group had the following open hedge positions:
Foreign exchange hedges with derivatives:
Derivative financial instruments
At 30 September 2024 Notional amount US$ million Non-current Current Non-current Current Net liability
assets assets liabilities liabilities € million
€ million € million € million € million
Effective cash flow hedge positions 1,207.0 0.2 0.5 (1.4) (8.1) (8.8)
Total foreign exchange hedge 1,207.0 0.2 0.5 (1.4) (8.1) (8.8)
Derivative financial instruments
At 31 March 2024 Notional amount US$ million Non-current Current Non-current Current Net asset
assets assets liabilities liabilities € million
€ million € million € million € million
Effective cash flow hedge positions 801.0 0.7 7.9 - (0.5) 8.1
Total foreign exchange hedge 801.0 0.7 7.9 - (0.5) 8.1
For the associated movements in other comprehensive income refer to the
condensed consolidated interim statements of comprehensive income and changes
in equity.
The open foreign currency cash flow hedge positions at period end can be
analysed according to their maturity periods and the price ranges of the
underlying hedge instruments as follows:
EUR/USD foreign exchange hedge:
F25 F26
At 30 September 2024 6 months 12 months
Maturity profile of notional amount (million) $545.0 $662.0
Weighted average ceiling $1.1202 $1.1360
Weighted average floor $1.0767 $1.0922
F25 F26
At 31 March 2024 6 months 12 months
Maturity profile of notional amount (million) $686.0 $115.0
Weighted average ceiling $1.1303 $1.1304
Weighted average floor $1.0867 $1.0873
Foreign exchange hedging with non-derivatives:
Non-derivatives, such as cash and loans, 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 30 September 2024 '000 Non-current Current Non-current Current Net liability
metric tonnes assets assets liabilities liabilities € million
€ million € million € million € million
Effective cash flow hedge positions 1,608.0 - - (8.0) (60.4) (68.4)
Total fuel hedge 1,608.0 - - (8.0) (60.4) (68.4)
Derivative financial instruments
At 31 March 2024 '000 Non-current Current Non-current Current Net asset
metric tonnes assets assets liabilities liabilities € 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 refer to the condensed
consolidated interim statements of comprehensive income and changes in equity.
The fuel hedge positions at period end can be analysed according
to their maturity periods and the price ranges of the underlying hedge
instruments as follows:
F25 F26
At 30 September 2024 6 months 12 months
Maturity profile ('000 metric tonnes) 716.0 892.0
Blended capped rate $844.0 $805.0
Blended floor rate $749.0 $720.0
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 $732.0
Effects of hedge accounting on the financial position and performance
The effects of the foreign exchange hedges on the Group's financial position
and performance are as follows:
At 30 Sep 2024 At 31 Mar 2024
Zero-cost collars
Carrying amount, net (liability)/asset (8.8) 8.1
Notional amount (US$ million) 1,207.0 801.0
Maturity date October 2024- February 2026 April 2024- August 2025
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging instruments (€ million) (3.4) 4.6
Change in value of hedged item used to determine hedge effectiveness (€ 3.4 (4.6)
million)
The effects of the fuel hedges on the Group's financial position and
performance are as follows:
At 30 Sep 2024 At 31 Mar 2024
Zero-cost collars
Carrying amount, net (liability)/asset (65.6) 28.0
Notional amount ('000 metric tonnes) 1,554.0 987.0
Maturity date October 2024- February 2026 April 2024- August 2025
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging instruments (€ million) (43.8) 12.4
Change in value of hedged item used to determine hedge effectiveness (€ 43.8 (12.4)
million)
Swaps
Carrying amount, net (liability)/asset (2.8) -
Notional amount ('000 metric tonnes) 54.0 -
Maturity date October 2024- November 2024 -
Hedge ratio 1:1 -
Change in fair value of outstanding hedging instruments (€ million) (2.8) -
Change in value of hedged item used to determine hedge effectiveness (€ 2.8 -
million)
Hedge effectiveness
The effectiveness of hedges is tested both prospectively and retrospectively
to determine the appropriate accounting treatment of hedge gains and losses.
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. Using these
estimates, 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 six months ended 30
September 2023 or the six months ended 30 September 2024.
None of the hedge counterparties had a material change in their credit status
that would have influenced the effectiveness of the hedging transactions.
Fair value estimation
The Group measures its derivative financial instruments at fair value,
calculated by a third-party front office system that falls into the Level 2
category. Fair values are determined based on inputs other than quoted prices
that are observable for the asset or liability, either directly or indirectly.
The front office platform provides comprehensive risk management capabilities,
using generally accepted valuation techniques, principally the Black-Scholes
model and discounted cash flow models. Equity investments are measured at fair
value through profit or loss. All the other financial assets and financial
liabilities of the Group are measured at amortised cost. For the majority of
these instruments, the fair values are not materially different from their
carrying amounts. The fair value of the money market funds included in cash
and cash equivalents as at 31 March 2024 was estimated using quoted prices
(Level 1).
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
30 Sep 2024 30 Sep 2024 31 March 2024 31 Mar 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 39.6 39.6 37.1 37.1
Restricted cash 91.7 91.7 109.4 109.4
Derivative financial assets 0.7 0.7 36.9 36.9
Trade and other receivables due within one year 455.9 455.9 534.0 534.0
Cash and cash equivalents 460.3 460.3 728.4 728.4
Short-term cash deposits 1,306.1 1,306.1 751.1 751.1
Trade and other payables due after more than one year (56.5) (56.5) (55.0) (55.0)
Trade and other payables due within one year (846.9) (846.9) (697.4) (697.4)
Derivative financial liabilities (77.9) (77.9) (0.7) (0.7)
Convertible debt (25.5) (25.5) (25.7) (25.7)
Borrowings (5,590.4) (5,582.5) (5,269.2) (5,071.0)
Secured debt (411.1) (399.0) (463.2) (458.4)
Unsecured debt (502.4) (477.0) (511.6) (482.3)
Deferred income (13.2) (13.2) (4.8) (4.8)
Net balance of financial instruments (liability) (5,166.0) (5,120.7) (4,829.1) (4,596.8)
The fair value of the Eurobonds is estimated using quoted prices (Level 1),
derivatives (Note 3) 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.
For the carrying amount of borrowings please see Note 16
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.
The following table presents the Group's financial assets and liabilities that
are measured at fair value at 30 September 2024:
Level 1 Level 2 Level 3 Total
€ million € million € million € million
Assets
Investments in other entities - - 3.7 3.7
Derivative financial instruments - 0.7 - 0.7
Cash and cash equivalents - - - -
- 0.7 3.7 4.4
Liabilities
Derivative financial instruments - 77.9 - 77.9
- 77.9 - 77.9
The following table presents the Group's financial assets and liabilities that
are measured at fair value 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
223.4 36.9 1.6 261.9
Liabilities
Derivative financial instruments - 0.7 - 0.7
- 0.7 - 0.7
5. Critical accounting estimates and judgments made in applying the Group's
accounting policies
For critical accounting estimates and judgments refer to Note 4 in
the 2024 Annual Report and Accounts of the Group. No significant changes to
such estimates and judgments occurred for the six months ended 30 September
2024.
6. Segment information
Reportable segment information
During F24 and F25 the Group had only one reportable segment, being its
entire route network, resulting in a net profit of €315.2 million during
the six months ended 30 September 2024 (for the six months ended 30
September 2023: €400.7 million net profit). All segment revenue was
derived wholly from external customers and, as the Group had a single
reportable segment, inter-segment revenue was zero.
Entity-wide disclosures
Products and services
Revenue from external customers can be analysed by groups of similar services
as follows:
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Passenger ticket revenue 1,767.5 1,762.2
Ancillary revenues 1,298.6 1,290.1
Total segment revenue 3,066.1 3,052.3
These categories are non-IFRS categories meaning that they are not necessarily
distinct from a nature, timing and risk point of view; however, management
believes that these categories provide clarity over the revenue profile of the
Group to the readers of the financial statements and are in line with airline
industry practice. The categories as per the definition of IFRS 15 are
disclosed in Note 7
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.
Ancillary revenue arises mainly from baggage charges, booking/payment currency
conversion charges, airport check-in fees, fees for various convenience
services (e.g. priority boarding, extended legroom and reserved seats),
loyalty programme membership fees, commission on the sale of on-board
catering, accommodation, car rental, travel insurance, bus transfers, premium
calls, co-branded cards and repatriation.
Geographic areas
Revenue from external customers can be analysed by geographic areas as
follows:
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
EU and EFTA countries 2,135.8 2,102.8
UK 330.6 349.8
Other (non-EU) 599.7 599.7
Total revenue from external customers 3,066.1 3,052.3
In the table above, other (non-EU) comprises a number of non-EU geographic
areas that are all individually less than 10 per cent of the total revenue.
Revenue was allocated to geographic areas based on the location of the first
departure airport on each ticket booking.
The Company's revenue from external customers within the EU is mainly
generated by Italy of €387.7 million for the six months ended 30 September
2024 (the six months ended 30 September 2023: €384.9 million), Romania of
€331.4 million (the six months ended 30 September 2023: €329.8 million)
and Poland of €279.2 million (the six months ended 30 September 2023:
€255.0 million).
The physical location of non-current assets is not disclosed by geographic
area. This is because: (i) by value most assets are associated either with
aircraft not yet received (pre-delivery payments) or with existing leased
aircraft and spare engines (RoU and maintenance assets), the location of which
changes regularly following aircraft capacity allocation decisions; and (ii)
the value of the remaining asset categories (land and buildings, and fixtures
and fittings) is not a material part of total non-current assets.
The distribution of the non-current assets between the key operating entities
of the Group is as follows:
30 Sep 2024 31 March 2024
€ million € million
Wizz Air Hungary Ltd. 2,256.5 2,448.9
Wizz Air Malta Ltd. 1,816.5 1,754.0
Wizz Air Fleet Management Ltd. 1,691.9 1,333.8
Wizz Air UK Limited 452.5 481.5
Wizz Air Asset Solutions Ltd. 236.9 -
Wizz Air Abu Dhabi Ltd. 59.4 56.5
Other 6.3 44.4
Total non-current assets 6,520.0 6,119.1
No revenue or non-current assets of the Group were recognised in Jersey, the
Company's country of domicile for the six months ended 30 September
2024 (for the six months ended 30 September 2023: €nil).
AOG Jet Limited, a wholly owned subsidiary of the Group, was successfully
established in July 2023. In June 2024, its name changed to Wizz Air Asset
Solutions Ltd. and it started its operation of leasing aircraft from
external lessors and sub-leasing them within the group.
Major customers
The Group derives the vast majority of its revenues from its passengers and
sells most of its tickets directly to the passengers as final customers rather
than through corporate intermediaries (tour operators, travel agents or
similar).
7. Revenue
The split of total revenue presented in the condensed consolidated interim
statement of comprehensive income, being passenger ticket revenue and
ancillary revenue, is a non-IFRS measure (or alternative performance measure).
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 Chief
Operating Decision Maker for evaluating the financial performance of its
single operating segment.
Revenue from contracts with customers can be disaggregated as follows based on
IFRS 15:
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Revenue from contracts with passengers 3,032.1 3,012.3
Revenue from contracts with other partners 34.0 40.0
Total revenue from contracts with customers 3,066.1 3,052.3
These two categories represent revenues that are distinct from a nature,
timing and risks point of view. 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,
where the Group acts as an agent.
The contract assets reported on 30 September 2024 as part of trade and other
receivables amounted to €5.1 million (31 March 2024: €6.4 million) and
the contract liabilities (unearned revenues) reported as part of deferred
income were €651.4 million as at 30 September 2024 (31 March 2024:
€790.3 million). Out of the €3,032.1 million revenue recognised for the
six months ended 30 September 2024 (for the six months ended 30 September
2023: €3,012.3 million), €790.3 million (the six months ended 30
September 2023: €761.1 million) was included in the contract liability
balance at the beginning of the period.
8. Net financing income and expenses
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Interest income 43.8 39.0
Financial income 43.8 39.0
Interest expenses on:
Convertible debt (0.9) (0.9)
IFRS 16 lease liability (78.6) (57.5)
JOLCO, FTL and FL liability (26.0) (16.5)
Unsecured debt (2.9) (6.6)
Secured debt (15.6) (9.3)
Other (0.3) (1.2)
Financial expenses (124.3) (92.0)
Net foreign exchange gains/(losses) 94.3 (19.7)
Net financing income/(expense) 13.8 (72.7)
Interest income and expense include interest on financial instruments.
Interest income is earned on cash and cash equivalents, short-term deposits
and restricted cash.
During H1 F25, the EUR/USD exchange rate increased from 1.08 at 31 March
2024 to 1.12 at 30 September 2024. This resulted in a foreign
exchange gain on remeasuring liabilities denominated in USD, including IFRS
16 lease, JOLCO, FTL and FL liabilities, which was partially offset by a
foreign exchange loss on remeasurement of cash and equivalents, cash deposits
and restricted cash in foreign currencies. Conversely, the decrease in the
EUR/USD exchange rate during H1 F24 had the opposite impact on the financial
result.
9. Income tax expense
The income tax charge for the six months ended 30 September 2024 was
€47.8 million (the six months ended 30 September 2023: €49.5 million
tax charge). The slight decrease in tax charge is mainly attributable
to the slightly lower profit before tax for the current period, which is
partially offset by the higher effective tax rate due to the introduction of
OECD Pillar 2 minimum taxation.
The effective income tax rate for the six months ended 30 September 2024 is
13.2 per cent (the six months ended 30 September 2023: 11.0 per cent). The
tax charge or credit for the period was calculated based on the
estimated annual effective income tax rate of the Group.
Deferred tax assets and liabilities recognised
RoU assets Lease liabilities Provisions for other liabilities and charges Property, plant and equipment Tax loss carry-forwards Hedge Other Total
€ million € million € million € million € million € million € million € million
At 1 April 2023 (151.7) 171.7 18.4 (9.8) 12.0 9.9 (3.1) 47.4
Deferred tax assets (141.0) 171.7 18.3 (8.8) 1.0 9.9 (0.5) 50.6
Deferred tax liabilities (10.7) - 0.1 (1.0) 11.0 - (2.6) (3.2)
Credited/(charged) to: -
Profit or loss 1.4 (9.6) (7.4) (15.4) 4.7 - 3.5 (22.8)
Other comprehensive income/(expense) - - - - - (18.3) - (18.3)
At 30 September 2023 (150.3) 162.1 11.0 (25.2) 16.7 (8.4) 0.4 6.3
Deferred tax assets (150.3) 162.1 10.7 2.6 1.0 (8.4) 1.0 18.7
Deferred tax liabilities - - 0.3 (27.8) 15.7 - (0.6) (12.4)
At 1 April 2024 (127.2) 172.9 14.6 (18.9) 27.4 (3.3) 43.7 109.2
Deferred tax assets (127.2) 172.9 14.6 (18.9) 27.4 (3.3) 43.7 109.2
Deferred tax liabilities - - - - - - - -
Credited/(charged) to:
Profit or loss 9.2 (12.1) (7.5) (20.5) - - (2.0) (32.9)
Other comprehensive income/(expense) - - - - - 11.2 - 11.2
At 30 September 2024 (118.0) 160.8 7.1 (39.4) 27.4 7.9 41.7 87.5
Deferred tax assets (118.0) 160.8 7.1 (37.3) 27.4 7.9 41.7 89.6
Deferred tax liabilities - - - (2.1) - - - (2.1)
Assets: + / Liabilities: -
The total balance of the deferred taxes is €89.6million deferred tax asset
(31 March 2024: €109.2 million asset) and €(2.1) million deferred tax
liability (31 March 2024: €0 million liability).
The €42.8 million (31 March 2024: €45.7million) net deferred tax asset
recognised in relation to IFRS 16 RoU assets and lease liabilities is driven
by the fact that certain subsidiaries of the Group in their income tax returns
recognise leasing fees in line with contracts, on a straight-line basis, which
differs from the timing of recognition under the IFRS 16 rules. Under IFRS 16,
the lease-related expenses are forward loaded, i.e. throughout the lease
period the Group IFRS financial statements cumulatively include more expense
and a lower profit (or higher loss) than the tax returns.
The €7.1 million (31 March 2024: €14.6 million) deferred tax asset was
recognised in relation to provisions (e.g. for carbon quota submission
obligation in the EU Emissions Trading System) that are not deductible for tax
purposes. This temporary difference will be reversed when the Company makes
payments to settle the related liability and receives the tax deductions.
The €(39.4) million (31 March 2024: €(18.9) million) net deferred tax
liability was recognised in connection to property, plant and equipment,
which is mainly driven by the different depreciation or capital allowance
derived from the tax rules compared to the accounting depreciation of the
assets. In addition, a deferred tax liability (€(22.5) million)
was recognised on the temporary difference related to a development reserve
formed according to the Hungarian corporate income tax rules. The development
reserve formed (€250.0 million) in Wizz Air Hungary Ltd. is for future
purchases of property, plant and equipment, which is deductible for tax
purposes, when it was formed, but no accounting depreciation will be tax
deductible on the assets purchased in the future on account of the development
reserve.
The deferred tax assets of €27.4 million (31 March 2024:
€27.4 million) on tax loss carry-forwards are mainly attributable to the
tax losses generated by Wizz Air UK Limited in prior years.
Substantially all of the deferred tax asset related to other temporary
differences amounting to €41.7 million (31 March 2024: €43.7 million)
is attributable to an intra-group sale of rights to purchase aircraft.
Global minimum tax
On 20 December 2021, the OECD released a framework for Pillar Two Model Rules
which will introduce a global minimum corporate tax rate of 15 per cent
applicable to multinational enterprise groups with global revenue over €750
million. On 15 December 2022, the EU Council formally adopted the EU Minimum
Tax Directive and the rules should apply in the EU for accounting periods
starting on or after 31 December 2023 (i.e. the year ending 31 March 2025 for
the Group). Switzerland, Hungary, the UK and Malta have implemented the
minimum tax rules, but with various exemptions still applicable in the
accounting periods starting in 2024. As a result, in F25 the income of the
Malta and Abu Dhabi airline subsidiaries of the Group will not be subject to
global minimum tax, although Abu Dhabi is introducing tax at 9 per cent, which
will apply from F25. The income of the UK subsidiary will be subject to
minimum tax but this should not result in an increased tax burden since the
tax rate in the UK is above 15 per cent. For profits generated by the
Hungarian subsidiaries of the Group, additional global minimum tax liabilities
apply from F25 and the effective tax rate on these profits approximate 15 per
cent in F25. As a result of Pillar Two taxes, the effective tax rate of the
Group increased by 2.6 percentage points from 10.6% to 13.2%, and the
current tax charge increased by €9.5 million from €38.3 million to
€47.8 million.
Management is monitoring minimum tax developments and assessing their
effects. The exemptions in Switzerland and Malta are expected to cease and
Abu Dhabi is also expected to introduce minimum taxation. For these reasons,
beyond F25 substantially all profits of the Group are expected to be subject
to minimum tax and the effective tax rate of the Group will approximate
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 account for such taxes as a current tax. Therefore, the minimum tax
rules had no impact on the recognition and measurement of deferred tax
balances at 30 September 2024.
10. Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss
attributable to equity holders of the Group by the weighted average number of
Ordinary Shares in issue during each period.
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
Profit for the six months, € million 323.5 405.1
Weighted average number of Ordinary Shares in issue 103,366,394 103,309,739
Basic earnings per share (€/share) 3.13 3.92
There were no Convertible Shares in issue at 30 September 2024 (30 September
2023: €nil).
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 period has been 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.
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
Profit for the six months, € million 323.5 405.1
Interest expense on convertible debt (net of tax), € million 0.9 0.9
Profit used to determine diluted earnings per share 324.4 406.0
Weighted average number of Ordinary Shares in issue 103,366,394 103,309,739
Adjustment for assumed conversion on convertible instruments 24,350,964 24,395,931
Weighted average number of Ordinary Shares for diluted earnings per share 127,717,358 127,705,670
Diluted earnings per share (€/share) 2.54 3.18
11. Property, plant and equipment
Land and building Aircraft maintenance assets Aircraft assets and parts Fixtures and fittings Advances paid for aircraft* Advances paid for aircraft maintenance assets RoU assets - aircraft and spares RoU assets - other Total
€ million € million € million € million € million € million € million € 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 0.8 110.9 278.4 0.4 159.3 38.2 374.6 0.1 962.7
Disposals - (134.8) (5.2) - (218.5) - (216.3) (0.1) (574.9)
Transfers - 46.5 - - - (46.5) - - -
FX translation effect - 2.0 1.4 - - 0.1 4.6 - 8.1
At 30 September 2023 26.7 453.2 1,572.9 12.6 750.8 200.0 4,083.5 27.3 7,127.0
At 1 April 2024 37.5 581.6 1,806.1 13.2 842.3 149.9 4,661.7 33.8 8,126.1
Additions 5.4 80.1 531.1 1.6 292.0 40.2 279.6 1.4 1,231.4
Disposals - (31.4) (191.9) (0.1) (154.5) - (103.9) (3.0) (484.8)
Transfers - 51.1 39.0 - (39.0) (51.1) - - -
FX translation effect - (5.2) 4.4 - - 2.0 7.7 - 8.9
At 30 September 2024 42.9 676.2 2,188.7 14.7 940.8 141.0 4,845.1 32.2 8,881.6
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 period 0.8 72.3 46.7 0.9 - - 224.6 1.5 346.8
Disposals - (130.5) (1.8) - - - (214.3) - (346.6)
FX translation effect - (0.7) (0.7) - - - (0.9) - (2.3)
At 30 September 2023 6.8 183.5 172.8 9.3 - - 1,679.2 11.4 2,063.0
At 1 April 2024 7.4 226.9 216.7 10.2 - - 1,841.1 8.8 2,311.1
Depreciation charge for the period 0.7 119.5 51.7 1.1 - - 290.6 1.9 465.5
Disposals - (31.2) (4.0) (0.1) - - (102.6) (1.5) (139.4)
FX translation effect - (4.1) 0.6 - - - 1.8 0.2 (1.5)
At 30 September 2024 8.1 311.1 265.0 11.2 - - 2,030.9 9.4 2,635.7
Net book amount
At 1 April 2023 19.9 186.2 1,169.7 3.8 810.0 208.2 2,250.8 17.4 4,666.0
At 30 September 2023 19.9 269.7 1,400.1 3.3 750.8 200.0 2,404.3 15.9 5,064.0
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
At 30 September 2024 34.8 365.1 1,923.7 3.5 940.8 141.0 2,814.2 22.8 6,245.9
* Disposals represent the refunds upon delivery of aircraft of advances
previously paid.
The Group entered into various financing arrangements in order to finance
aircraft including sale and leaseback, Japanese Operating Lease with Call
Option (JOLCO), French Tax Lease (FTL) and Finance Lease (FL)
structures. Certain 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, FTL and FL are
not classified as leases under IFRS 16 and 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 16
(file:///C:/Users/durucskod/Downloads/Wizz%20Air%20Holding%20Plc.%20-%20half%20year%20report%20F25_2024.09.30%20Stock%20market%20report.xhtml#id20cccb6033e4fc48965229ac2ae129a_238)
for details on lease liabilities.
Additions to aircraft maintenance assets (30 September 2024:
€80.1 million; 30 September 2023: €110.9 million) were fixed assets
created primarily against provision 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 HY25, in the statement of cash flows the cash inflow was
€154.6 million "refund of advances paid for aircraft" and the cash
outflow was €234.0 million "advances paid for aircraft". In F23, the
Group entered into a PDP financing loan agreement denominated in US Dollars
($), according to which PDPs in the amount of $260.0 million were pledged as
collateral as of 31 March 2024 (see Note 16). As of 30 September
2024, $188.0 million is pledged as collateral.
The Group has reviewed the expected useful lives attributed to its leased
aircraft fleet and notes that the duration of its leases is significantly less
than the current expected economic life of an aircraft. No climate risk that
may impact these assets during the lease terms has been identified. Given
this, no change to the expected useful life is considered necessary as a
result of climate change.
The Group recognised €83.8 million as gain on sale and leaseback
transactions in the period (the six months ended 30 September 2023:
€45.3 million).
Short term wet lease expenses of €94.9 million were recognised in the
period (the six months ended 30 September 2023: €10.3 million).
Impairment assessment
The Group reviewed potential triggers of impairment, including the assessment
of the changes to the forecast results. No indication of impairment was
identified.
A separate impairment assessment was performed for the aircraft stranded in
Ukraine as disclosed below.
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.
Three airframes are grounded in Kyiv. They are in good condition and with no
damage, evidenced by photographic images and local employee information.
Maintenance work has been performed to put parking and storage procedures in
place. The total net book value of the assets is €17.1 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, prospect of recovery under insurance arrangements, selling the
assets in full or in parts to third parties, and continued grounding with no
recovery prospects. In case of successful repatriation it is assumed that the
aircraft can return to the fleet by summer season 2025 and can continue to
generate cash inflows. The other scenarios considered are range between full
recovery and complete loss of the asset values. Based on the weighted
probability assessment, management considers the carrying value of the
aircraft to be recoverable from the cash flows generated through the various
scenarios assessed.
12. Inventories
30 Sep 2024 31 Mar 2024
€ million € million
Aircraft consumables 43.8 37.2
UK Emissions Trading Scheme (UK ETS) allowances* 23.8 44.6
EU Emissions Trading Scheme (EU ETS) allowances (refer to Note 16)* 200.8 251.8
Total inventories: 268.4 333.6
* Emission Trading Scheme (ETS) allowances have been further detailed
to separately display allowances under UK and EU Emissions Trading Schemes.
The decrease in ETS allowances balance is due to surrendering of UK ETS units
in April and EU ETS units in September 2024.
Inventories totaling €10.9 million were recognised as maintenance materials
and repairs expenses in the period (the six months ended 30 September 2023:
€12.9 million).
13. Trade and other receivables
30 Sep 2024 31 Mar 2024
€ million € million
Non-current
Receivables from lessors 27.0 25.4
Other receivables 12.6 11.8
Non-current trade and other receivables 39.6 37.2
Current
Trade receivables 234.0 320.5
Receivables from lessors 2.7 3.1
Other receivables 38.0 31.9
Total current other receivables 40.7 35.0
Prepayments, deferred expenses and accrued income 352.3 314.2
Current trade and other receivables 627.0 669.7
Total trade and other receivables 666.6 706.9
Receivables from lessors (both current and non-current) represent the deposits
provided by the Group to lessors as security in relation to lease contracts
and in relation to the funding of future maintenance events.
Trade receivables included €157.9 million of receivables from contracts
with customers (at 31 March 2024: €192.4 million).
Total trade and other receivables as at 30 September 2024 included financial
instruments in the amount of €495.5 million (31 March 2024:
€571.1 million).
Impairment of trade and other receivables
30 Sep 2024 31 Mar 2024
€ million € million
Impaired receivables
- trade receivables (2.8) (2.8)
Allowances on impaired receivables
- other receivables (0.5) (0.5)
14. Trade and other payables
30 Sep 2024 31 Mar 2024
€ million € million
Non-current liabilities
Accrued expenses 59.5 97.2
Non-current trade and other payables 59.5 97.2
Current liabilities
Trade payables 234.8 215.9
Payables to passengers 30.8 68.4
Other payables 39.3 28.2
Accrued expenses 730.0 612.8
Current trade and other liabilities 1,034.9 925.3
Total trade and other payables 1,094.4 1,022.5
Payables to passengers include the refunds made in credits which can be used
by customers for rebooking tickets for later dates or can be requested to be
refunded by the Group in cash and other liabilities towards customers. Credits
not eligible for cash refund are classified as deferred income.
Accrued expenses mainly include accruals for operating expenses such as
airport and ground handling, fuel, ETS allowances, en-route and navigation,
crew and maintenance-related expenses and liabilities for EU regulation (EC)
No. 261/2004 (EU261) compensation to customers in the amount of
€27.8 million (31 March 2024: €11.8 million), refund made to passengers
beyond the original paid value. The change in the balance of accrued expenses
includes a release of €21.1 million (the six months ended 30 September 2023:
€nil) based on the judgment that the Group will perform future maintenance
which eliminates the need for paying compensation to the lessor on the
re-delivery of the leased asset. Related credit is recognised in the
statement of comprehensive income within maintenance, materials and repairs.
The Group recognised €115.5 million for EU regulation (EC) No. 261/2004
(EU261) and other flight disruption
related compensation to customers in the period (the six months ended 30
September 2023: €99.0 million).
Credits received in the amount of €146.3 million
are related to incentives and compensation from Original Equipment
Manufacturers (OEMs) and other suppliers (the six months ended 30 September
2023: €35.8 million). These credits and compensations are accounted for
as other income in the statement of comprehensive income.
Total trade and other payables as at 30 September 2024 included financial
instruments in the amount of €903.3 million (31 March 2024:
€752.3 million).
15. Provisions for other liabilities and charges
Aircraft Other Total
maintenance
€ million € million € million
At 31 March 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 103.1 - 103.1
Charged to profit or loss (6.0) 9.4 3.4
Used during the period (38.7) (0.9) (39.6)
At FX translation effect 4.8 - 4.8
At 30 September 2023 211.9 15.8 227.8
Non-current provisions 95.3 0.1 95.4
Current provisions 116.6 15.7 132.3
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 76.2 - 76.2
Charged to profit or loss - 15.2 15.2
Used during the period (48.8) (1.3) (50.1)
FX translation effect (8.1) - (8.1)
At 30 September 2024 282.9 24.6 307.5
Non-current provisions 161.8 0.1 161.9
Current provisions 121.1 24.5 145.6
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 balance sheet date. Current
aircraft maintenance provisions relate to heavy maintenance obligations
expected to be fulfilled in the coming financial year. The amount of provision
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. 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 those agreements in respect of
the same group of engines and APUs.
16. Borrowings
30 Sep 2024 31 Mar 2024
€ million € million
Lease liability under IFRS 16 566.8 563.2
Unsecured debts - 12.0
Secured debt 146.0 409.4
Liability related to JOLCO, FTL and FL contracts 128.2 99.7
Total current borrowings 841.0 1,084.3
Lease liability under IFRS 16 3,011.7 3,048.8
Unsecured debt 502.4 499.6
Secured debt 265.1 53.8
Loans from non-controlling interests 13.4 13.9
Liability related to JOLCO, FTL and FL contracts 1,870.3 1,543.6
Total non-current borrowings 5,662.9 5,159.7
Total borrowings 6,503.9 6,244.0
Unsecured debt
On 19 January 2022, Wizz Air Finance Company B.V., a 100 per cent 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 with a maturity in January 2026. These
Eurobonds do not contain any financial covenants. The EMTN programme was
renewed in January 2024.
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 €nil (31 March 2024: €12.0 million).
Secured debt
In February 2023, the Group entered into a PDP financing loan agreement,
according to which a part 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 US$270.0 million, keeping the
total drawdown limit at US$280.6 million. At 30 September 2024, $164.3
million (31 March 2024: $222.9 million) was borrowed, and PDPs in the amount
of $188.0 million (31 March 2024: $260.0 million) are pledged as
collateral. The loan is subject to a variable interest rate based on Secured
Overnight Financing Rate. The Group has an obligation to repay the financed
amount, its interest and other costs related to the transaction by
August 2025. After the period end the Group decided to accelerate the
repayment and the Group has been repaid the outstanding balance on 4
November 2024 (refer to Note 20). The below maturity profile represents the
original repayment schedule as at 30 September 2024. When all obligations are
settled, the aircraft purchase rights and the PDPs are automatically
re-novated to Wizz Air. In case of default, the Group bears the potential
risk of losing the purchase rights and the related PDP amounts. The PDP
refinancing credit facility is available for further financing for a maximum
of two years and does 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 it 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 €0.8 million expense relating to short-term leases
(the six months ended 30 September 2023: €2.3 million) and €nil expense
relating to variable lease payments in the period (the six months ended 30
September 2023: €0.4 million).
The maturity profile of borrowings as at 30 September 2024 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 42.1 0.2 10.1 - - - 52.4
Between one and three months 89.9 0.4 27.7 - 47.8 - 165.8
Between three months and one year 431.7 2.5 90.4 - 98.2 - 622.8
Between one and two years 542.2 2.6 134.9 502.4 265.1 - 1,447.2
Between two and three years 480.9 2.6 136.0 - - - 619.5
Between three and four years 409.6 2.8 139.9 - - - 552.3
Between four and five years 382.6 2.6 164.9 - - - 550.1
In more than five years 1,174.3 11.5 1,294.6 - - 13.4 2,493.8
Total borrowings 3,553.3 25.2 1,998.5 502.4 411.1 13.4 6,503.9
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
In 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
17. Deferred income
30 Sep 2024 31 Mar 2024
€ million € million
Non-current liabilities
Deferred income 161.7 147.2
Current liabilities
Unearned revenue 651.4 790.3
Other 17.7 7.1
669.1 797.4
Total deferred income 830.8 944.6
Non-current deferred income represents the value of benefit for the Group
coming 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 and credits provided to
passengers with no cash conversion option in the amount of €32.0 million
(at 31 March 2024: €17.1 million). Unearned revenue decreased primarily
due to seasonality having lower volume of bookings than before summer season.
The contract liabilities (unearned revenue) of €651.4 million existing
at 30 September 2024 (at 31 March 2024: €790.3 million) will become
revenue during the upcoming twelve months (subject to further cancellations
that might happen after the period end).
18. Capital commitments
At 30 September 2024 the Group had the following capital commitments:
▶A commitment to purchase 311 Airbus aircraft of the A320 family in the
period 2024-2029. The total commitment is valued at US$46.7 billion (€41.7
billion) based on list prices last published in 2018 and escalated annually
until the reporting date based on contract terms (31 March 2024: US$48.7
billion (€45.2 billion) to purchase 326 Airbus aircraft of the A320 family
in the period 2024-2029). At 31 October 2024, out of the 311 aircraft 10
are to be delivered in H2 F25 and for 8 financing is already contracted. The
Group uses various financing arrangements in order 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.
▶A commitment to purchase two IAE "neo" (GTF) spare engines
anticipated in 2025. The total commitment is valued at US$43.5 million
(€38.8 million) at list prices in 2024 US$ terms (31 March 2024: US$174.1
million (€161.6 million) to purchase eight spare engines in the period
2024-2026). At 31 October 2024, both engines are anticipated to be
delivered in H2 F25 and none of them are financed yet.
▶A commitment to purchase three full-flight simulators. The total
commitment is valued at €13.6 million based on contract terms. Payment is
due in instalments with €9.6 million paid as at 30 September 2024.
19. Contingent liabilities
The Group has certain contingent liabilities in relation to European
Commission state aid investigations. These matters were explained in
Note 33 in the 2024 Annual Report and Accounts of the Group and there have
been no significant developments in these cases since then.
The Group also has contingent liabilities regarding personal income taxes in
certain jurisdictions.
No provision has been made by the Group in relation to these cases because
there is currently no reason to believe that the Group will incur charges from
these cases.
20. Subsequent events
On 4 November 2024, the Group fully repaid the outstanding balance of the
PDP Financing liability. See Note 16.
21. Related parties
The Group has related party relationships with Indigo Hungary LP and Indigo
Maple Hill LP (collectively referred to as "Indigo" here) and its key
management personnel (Directors and Officers).
There were no related party transactions in the period ended 30 September
2024 that materially affected the financial position or the performance of
the Group during that period and there were no changes to the related party
positions described in the 2024 Annual Report and Accounts that could have a
material effect on the financial position or performance of the Group in the
same period.
The Group has contracted with companies that are related to the CEO. The
total paid for such goods and services in H1 F25 was
€1.4 million (H1 F24: €2.1 million). The main service purchased was
to provide machine learning capabilities with regards to ticket and ancillary
sales. The amount paid for this service in H1 F25 was €1.3
million (H1 F24: €2.1 million), which in the judgment of the Board was
not material. On 30 September 2024, the outstanding amount payable to the
related party was €0.2 million (31 March 2024: €0.4 million).
22. Seasonality of operations
The Group's results of operations, like those of most other airlines in
Europe, vary significantly from quarter to quarter within the financial year.
Historically, the Group has had higher passenger revenue during the summer
season in comparison to the winter season (with the exception of the periods
around Christmas, New Year and Easter) as this is the period during which many
Europeans tend to take their annual holiday. Flight frequency, load factor and
average ticket prices all tend to be higher during such peak periods compared
to other periods of the year.
Statement of Directors' responsibilities
The directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the EU and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority and that the interim management report includes a
fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
▶an indication of important events that have occurred during the six months
ended 30 September 2024 and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
▶material related party transactions in the six months ended 30 September
2024 and any material changes in the related party transactions described in
the 2024 Annual Report and Accounts of the Group.
The Directors of Wizz Air Holdings Plc are listed in the 2024 Annual Report
and Accounts of the Group.
A list of current Directors is maintained on the Wizz Air Holdings Plc
website: wizzair.com.
This Interim Financial Report was approved by the Board of Directors and
authorised for issue on 7 November 2024 and signed on its behalf by:
József Váradi
Chief Executive Officer
Independent review report to Wizz Air Holdings Plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Wizz Air Holdings Plc's condensed consolidated interim
financial statements (the "interim financial statements") in the Interim
financial report of Wizz Air Holdings Plc for the 6 month period ended 30
September 2024 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with International Accounting Standard 34,
'Interim Financial Reporting' as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
The interim financial statements comprise:
▶the Condensed consolidated interim statement of financial position as
at 30 September 2024;
▶the Condensed consolidated interim statement of comprehensive income for
the period then ended;
▶the Condensed consolidated interim statement of cash flows for the period
then ended;
▶the Condensed consolidated interim statement of changes in equity for the
period then ended; and
▶the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim financial report of
Wizz Air Holdings Plc have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting' as adopted by the
European Union and the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Interim financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim financial report, including the interim financial statements, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the Interim financial report in accordance with
the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority. In preparing the Interim financial
report, including the interim financial statements, the directors are
responsible for assessing the group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the group or to cease operations, or have no realistic alternative
but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Interim financial report based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
7 November 2024
OTHER INFORMATION
1. Alternative performance measures
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
Chief Operating Decision Maker 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 (see Notes 6 and 7).
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.
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 amortization.
Rationale - This measure serves as a key financial indicator for the Company,
providing insights into operational profitability.
Calculation: operating profit/(loss) + Depreciation and amortization.
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) * 100.
Six months ended 30 Sep 2024 Six months ended 30 Sep 2023
€ million € million
Operating profit 349.2 522.9
Depreciation and amortisation 476.8 355.2
EBITDA 826.0 878.1
Total revenue 3,066.1 3,052.3
EBITDA margin (%) 26.9% 28.8%
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 organization's
financial leverage and debt management.
Calculation: net debt / EBITDA (12 months).
30 Sep 2024 30 Sep 2023
€ million € million
Non-current liabilities
Borrowings 5,662.9 4,407.0
Convertible debt 25.2 25.5
Current liabilities
Borrowings 841.0 1,189.5
Convertible debt 0.3 0.3
Current assets
Cash and cash equivalents 460.3 1,132.3
Short-term cash deposits 1,306.1 600.5
Net debt 4,763.0 3,889.5
Additional data to calculate leverage ratio
EBITDA for the 6 months ended 30 September 826.0 878.1
EBITDA for the 6 months ended 31 March 314.9 (83.5)
Total EBITDA for the rolling 12 months 1,140.9 794.6
Leverage ratio 4.2 4.9
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.
30 Sep 2024 30 Sep 2023
€ million € million
Cash and cash equivalents 460.3 1,132.3
Short-term cash deposits 1,306.1 600.5
Additional data to calculate liquidity
Total revenue for the 6 months ended 30 September 3,066.1 3,052.3
Total revenue for the 6 months ended 31 March 2,020.8 1,702.0
Total revenue for the rolling 12 months 5,086.9 4,754.3
Liquidity 34.7% 36.4%
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.
30 Sep 2024 31 March 2024
€ million € million
Non-current liabilities
Borrowings 5,662.9 5,159.7
Convertible debt 25.2 25.4
Current liabilities
Borrowings 841.0 1,084.3
Convertible debt 0.3 0.3
Current assets
Cash and cash equivalents 460.3 728.4
Short-term cash deposits 1,306.1 751.1
Net debt 4,763.0 4,790.2
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 (see Notes 6 and 7).
Return on capital employed (ROCE): it is operating profit or loss after 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 table below.
30 Sep 2024 30 Sep 2023
€ million € million
Additional data to calculate ROCE
Operating profit for the 6 months ended 30 September 349.1 522.9
Operating loss for the 6 months ended 31 March (85.1) (403.0)
Total operating profit for the rolling 12 months 264.0 119.9
Effective tax rate for the period (10.5)% (1.6)%
Operating profit after tax 291.7 118.1
Average Shareholders' equity 296.8 (16.5)
Average borrowings 6,050.2 5,308.2
Average cash and cash equivalents (796.3) (1,130.8)
Average short-term cash deposits (953.3) (482.9)
Average capital employed 4,597.4 3,678.0
ROCE (%) 6.3% 3.2%
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.
30 Sep 2024 31 March 2024
€ million € million
Non-current assets
Restricted cash 38.1 54.0
Current assets
Restricted cash 53.6 55.4
Short-term cash deposits 1,306.1 751.1
Cash and cash equivalents 460.3 728.4
Total cash 1,858.1 1,588.9
Total revenue: total ticket and ancillary revenue for the given period. The
split of total revenue presented in the condensed consolidated interim
statement of comprehensive income. Rationale - Key Financial indicator for the
Company.
2. Glossary of terms
Aircraft utilisation / utilisation: the number of hours of one aircraft is in
operation on one day. Rationale - Key performance indicator in aviation
business, measurement for one day aircraft productivity.
Calculation (for 1 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 1
month): the given period aircraft utilisation equals with 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 one passenger. Rationale - Key performance indicator for revenue
performance measurement.
Calculation: ancillary revenue / PAX.
Available seat kilometers (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 * 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) *100.
Completion factor or rate: per cent of operated flights compared to the
scheduled flights. Rationale - Key performance indicator for commercial
planning and controlling, measurement for operational performance.
Calculation: Number of operated flights divided by scheduled flights.
Equivalent aircraft or average aircraft count: the average number of aircraft
available to Wizz Air within a period. The count contains 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 that: 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 (EUR)/total of ASKs (km)*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 Kilometers (ASKs) during a specific reporting period. Rationale
- Fuel CASK provides an insightful unit fuel cost measurement, representing
the cost incurred for flying one kilometer 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 (EUR) / Total of ASKs (km) * 100.
Fuel price (average US$ per tonne): average fuel price within in 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 one 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 spares 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 the total revenue by the total ASK. This
measure characterizes the unit net revenue performance for each kilometer
flown per seat within Wizz Air's fleet. Rationale - It serves as a pivotal
performance indicator for commercial control, providing insights into the
revenue generation efficiency.
Calculation: total revenue (EUR) / Total of ASKs (km) * 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 * 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.
Stage length: the length of the flight from take-off to landing in a single
leg.
Calculation: sum of kilometres flown during a flight.
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 Kilometer
(RPK). Rationale - This measure is integral for assessing and controlling
commercial performance by quantifying the revenue derived from each kilometer
flown by paying passengers.
Calculation: total revenue / RPK.
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