REG - Wizz Air Holdings - Q3 F23 Results
26/01/2023 07:00
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RNS Number : 8959N Wizz Air Holdings PLC 26 January 2023
WIZZ AIR HOLDINGS PLC - RESULTS FOR THE THREE MONTHS TO 31 DECEMBER 2022
Q3 F23 RESULTS:
RECORD PEAK WINTER CAPACITY FLOWN, CONTINUED UNIT REVENUE GROWTH AND ANOTHER
PROFITABLE QUARTER
LSE: WIZZ
Geneva, 26 January 2023: Wizz Air Holdings Plc ("Wizz Air" or "the Company"),
the fastest-growing European low-cost airline, today issues unaudited results
for the three months to 31 December 2022 ("third quarter" or "Q3 F23").
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 annual report for the year ended 31
March 2022 and any public announcements made by Wizz Air Holdings Plc during
the interim reporting period.
Three months to 31 December 2022
2021 Change
Passengers carried 12,391,074 7,787,198 59.1%
Revenue (€ million) 911.7 408.4 123.2%
EBITDA (€ million) (2.8) (87.5) 96.8%
EBITDA margin (%) (0.3) (21.4) +21.1pp
Operating loss for the period (€ million) (155.5) (213.6) 27.2%
Unrealized FX gain/loss 220.9 (43.7) n.m.**
Reported profit/loss for the period (€ million) 33.5 (267.5) n.m.**
RASK (€ cent) 3.73 2.49 50.0%
Ex-Fuel CASK (€ cent) 2.49 2.67 (6.7%)
Total cash (€ million)* 1,367.1 1,400.3 (2.4%)
Load factor (%) 87.3 77.1 +10.2pp
Period-end fleet size 177 150 18.0%
Period-end seat count (thousand) 14,192.6 10,100.0 40.5%
* Total cash comprises cash and cash equivalents, short-term cash deposits,
and current and non-current restricted cash.
** n.m.: not meaningful as variance is more than (-)100%.
József Váradi, Wizz Air Group Chief Executive Officer commented on the
results:
"Wizz Air continued to deliver industry-leading growth during the third
quarter by operating 49 per cent more ASKs versus the same period last year
(and +38 per cent vs 2019), while continuing to deliver unit revenue growth
and a second consecutive quarter of net profit. Throughout the period, we
witnessed a solid pricing environment, supported by robust demand across our
broader and more diversified Wizz Air network.
As a result, revenue in the quarter grew significantly at +123 per cent versus
same period last year, while revenue per ASK was 50 per cent higher versus the
same period last year (and +4 per cent vs 2019).
On the cost side, operational adjustments contributed to a significantly lower
flight disruption cost compared to prior quarters. The strengthening Euro
currency helped to reduce overall fuel and certain maintenance costs; however,
its biggest impact was on revaluation of US dollar leasing liabilities,
reversing most of the prior two quarters' losses and helping to deliver a net
profit of €33.5 million for the quarter.
Wizz Air's total cash was €1.37b at the end of the calendar year,
approximately the same level of total cash as at the end of 2021."
Commenting on business developments in the period, Mr Váradi said:
"We are proud to have been awarded Global Environmental Sustainability Airline
Group of the Year by CAPA (Centre for Aviation), naming Wizz Air as the most
environmentally sustainable airline not just in Europe but globally. This is a
further validation of our commitment towards becoming the most environmentally
responsible choice for air travel. Furthering that commitment, we have also
signed a memorandum of understanding (MoU) for the supply of sustainable
aviation fuel (SAF) between 2023 and 2030.
Operationally, during the period we announced base expansions across Cyprus,
Italy, Austria, Poland, Albania, Georgia, Bulgaria and Serbia, while opening a
new base in Romania and strengthening our leadership in this core Wizz Air CEE
market.
We have started operating further routes to Saudi Arabia as part of an initial
phase of serving that important growth market and are pleased with initial
performance of these routes. Wizz Air Abu Dhabi has received eight aircraft
and is set to more than quadruple its revenue in the present quarter compared
to same period last year. In CEE we retained our market leadership position,
grew our market share by four per cent over prior quarter and nine per cent
over same period 2019."
On current trading and the outlook, Mr Váradi added:
"Our continued cost management is driving our ex-fuel CASK towards the
guidance given during last interim report (single digit increase vs H2 F20)
and we have caught up with peers in terms of systematic jet fuel hedging
impact through F24. We expect our ex-fuel CASK in F24 to be back at pre-COVID
levels.
More generally, we continue to see evidence of solid fare environment as
average fares (combined ticket and ancillaries) are trading above 2019 and
2022 levels. As we reach the end of January, we are seeing booking volumes
coming in ahead of 2022, which is in line with expectations. We remain
optimistic and maintain our RASK guidance for H2 F23 at mid-single digits
above the same period in 2019.
We remain on track to operate +35 per cent higher capacity versus H2 F20
(normalized for the COVID-19 impact in Feb-March 2020). For H1 F24 the planned
ASK growth is +30 per cent versus 2023 (and +65 per cent vs 2019). As with the
third quarter, we expect to see slightly more ASK contribution from longer
routes, connecting locations in Middle and Near East, as this region continues
to attract a higher volume of passengers in the months to come. This should
also bode well for better pricing opportunities.
Recently, we have also seen load factors improve, particularly November, but
also during December, despite the impact of skewed directional traffic, which
is characteristic in this period. We expect to see load factor gap continue to
close vs 2019 in the coming quarters as our recent network investments start
to mature.
We continue to expect an overall net loss in F23, but remain confident that
F24 will be profitable (subject to no adverse pandemic or geopolitical
events). We are set to return to pre-COVID-19 utilisation levels and to deploy
a fleet of c.185+ of the most efficient narrowbody aircraft this Summer,
across a more diversified network and with a highly engaged workforce of more
than 7,000 aviation professionals, without whom this would not be possible."
Q3 F23 REVENUE AND COST HIGHLIGHTS
Total revenue amounted to €911.7 million. Compared to Q3 F22:
· Ticket revenues increased by 186.3 per cent to €464.7 million.
· Ancillary revenues increased by 81.7 per cent to €447.0
million.
· Total unit revenue increased by 50.2 per cent to 3.73 euro cents
per available seat kilometre (ASK).
· Ticket revenue per passenger increased by 79.9 per cent to
€37.5 and was also up by 11.6 per cent versus Q3 F20.
· Ancillary revenue per passenger increased by 14.4 per cent to
€36.1 and was also up by 19.8 per cent versus Q3 F20.
Total operating costs increased 71.6 per cent to €1,067.2 million. Compared
to Q3 F22:
· Total unit costs (including net financing expense) increased by
15 per cent to 4.50 Euro cents per ASK.
· Ex-fuel unit costs decreased by 6.7 per cent to 2.49 euro cents
per ASK.
· Fuel unit costs increased by 61.6 per cent to 2.01 euro cents per
ASK.
Total cash reduced by 2.4 per cent to €1,367.1 from €1,400.3 million. Net
FX gain amounted to €224.1 million (Q3 F22: (€31.1) million) of which
€220.9 million was unrealized (Q3 F22: (€43.7) million), as the EUR
strengthened during the quarter versus USD and USD liabilities were revalued
at the end of period.
NETWORK ADDITIONS
New bases
Ø Suceava, Romania: two aircraft (started operation)
Base aircraft additions
Ø Rome, Italy: four additional aircraft, taking the base to eleven aircraft
Ø Milan, Italy: one additional aircraft, taking the base to seven aircraft
Ø Vienna, Austria: one additional aircraft, taking the base to six aircraft
Ø Warsaw, Poland: one additional aircraft, taking the base to ten aircraft
Ø Tirana, Albania: one additional aircraft, taking the base to ten aircraft
Ø Kutaisi, Georgia: one additional aircraft, taking the base to three
aircraft
Ø Belgrade, Serbia: one additional aircraft, taking the base to four aircraft
Ø Larnaca, Cyprus: two additional aircraft, taking the base to four aircraft
Base rationalisation
Ø Bari, Italy: two aircraft (from February)
Ø Bacau, Romania: one aircraft (from February)
Ø Cardiff, United Kingdom: one aircraft (January)
Wizz Air will continue to operate inbound flights to Bari and Bacau.
As part of our initial phase of serving the Saudi Arabia market, we have
commenced flying more routes to Jeddah and Riyadh from Italy and Austria. From
January and April, we will have a further 14 routes active (including from
Budapest, Bucharest, Rome, Catania, Larnaca, Milan, Naples, Sofia, Tirana and
Venice). There are also daily flights from Abu Dhabi to Dammam and soon we
will have daily flights from Abu Dhabi to Medina. The initial phase of our
Saudi Arabian operations includes a planned network of 24 inbound routes.
Abu Dhabi has taken delivery of another four aircraft during the quarter, in
time to serve peak regional demand, which falls counter-season to Europe. Its
network has grown parallel to its fleet, adding 20 more destinations and circa
474,000 more seats to/from Abu Dhabi vs same period last year.
In Tel Aviv, a destination which has been in high demand, we have deployed
more than twice the amount of inbound/outbound capacity versus same period
last year and today it can be reached from 30 bases and stations across our
network.
Despite closure of the Bari base, the adjustments in the network and further
expansion in Italy further reinforces Wizz Air's position as the third largest
airline there.
Wizz Air retains its market leadership position in CEE. It grew its market
share to 27 per cent (+4 per cent vs previous quarter and +9 per cent vs Q3
F20) and is the top airline in three of its core CEE markets (Romania, Hungary
and Bulgaria).
As another milestone for the company, Wizz Air flew 45 million passengers in
the calendar year 2022, setting a new record for the highest number of
passengers flown in any twelve-month period during the company's eighteen-year
history.
FLEET UPDATE
· In the three months ended 31 December 2022 Wizz Air took delivery
of nine new A321neo aircraft, while there were no redeliveries of A320ceo,
thus ending the third quarter with a total fleet of 177 aircraft: 53x A320ceo,
41x A321ceo, 6x A320neo, 77x A321neo.
· Delivered aircraft were financed through sale and leaseback
transactions.
· The average age of the fleet currently stands at 4.64 years, one
of the youngest fleets of any major European airline, while the average number
of seats per aircraft has climbed to 217 as at December 2022.
· The share of new "neo" technology aircraft within Wizz Air's
fleet increased to 47 per cent by the end of Q3 F23 and is planned to surpass
50per cent by the end of F23.
· For the remainder of F23 we expect four new A321neo aircraft
delivery, while nine A320ceo aircraft will be redelivered to lessors and will
exit the fleet.
· As at 31 December 2022, Wizz Air's delivery backlog comprises a
firm order for 13 x A320neo, 313 x A321neo and 47 x A321XLR aircraft, plus the
additional order for 15 x A321neo, a total of 388 aircraft.
FINANCIAL UPDATE
· Two rating agencies, Fitch and Moody's, have issued updates
during the third quarter with Fitch maintaining Wizz Air's BBB- investment
grade profile with negative outlook, while Moody's issued a Ba1 rating with
stable outlook.
· The Company has selected a lender for a $300m PDP (predelivery
payments)-backed facility as a standby source of additional liquidity. The
facility has a three-year term and can be used for any operational or
financing purpose. At time of publishing this report the facility has not been
drawn upon.
· Jet fuel hedging for F23 coverage is at 59 per cent of planned
consumption with F24 at 45 per cent.
· Jet fuel related EUR/USD FX hedge coverage for F24 is 20 per
cent.
ESG AND SUSTAINABILITY UPDATE
Wizz Air's CO2 emissions amounted to 55.2 grams per passenger/km for the
rolling twelve months to 31 December 2022. This represents its lowest ever
annual carbon intensity result recorded in one calendar year. We continue to
be focused on delivering value for all stakeholders and to further our
environmental and social agenda. The most material ESG related developments
during the three months ending December 2022 were:
Month Project Description
October-2022 Employee financial support As the cost of living continues to rise, Wizz Air decided to support its
employees with a gross €1,000 (in two instalments) to all staff under Head
level.
November-2022 Sustainable Aviation Fuels Wizz Air signed a Memorandum of Understanding (MoU) with OMV oil, gas and
chemicals company headquartered in Vienna, for the supply of sustainable
aviation fuel (SAF) between 2023 and 2030. The MoU gives Wizz Air the
opportunity to purchase up to 185,000 metric tons of SAF.
November-2022 CAPA Awards Wizz Air was named Global Environmental Sustainability Airline Group of the
Year by CAPA (Centre for Aviation). The airline also received recognition as
the EMEA Environmental Sustainability Airline of the Year. The awards
recognise airlines that put climate change at the forefront of their business
and strive for carbon neutrality.
December-2022 ISS ESG Corporate Rating Wizz Air's Corporate ESG Rating by the Institutional Stakeholder Services
improved to C-. We maintained or improved scores in all main ESG categories.
OTHER DEVELOPMENTS
· On 16 January 2023, Airline Economics magazine awarded Wizz Air
"European Capital Markets Deal of the Year" for its 500m euro bond issued in
2022.
· To enhance the leadership capacity, the following organizational
changes will become effective from 1 February 2023:
· Owain Jones, currently Development Officer, will be promoted to
Executive Vice President and Group Chief Corporate Affairs Officer. Owain
joined Wizz Air as General Counsel in September 2010 and has served as Chief
Corporate Officer, Managing Director Wizz Air UK and Chief Supply Chain and
Legal Officer.
· Ian Malin, Executive Vice President and Group Chief Financial
Officer will take over Owain's Purchasing and Procurement responsibilities.
· Johan Eidhagen, currently People and ESG Officer, will be
appointed as Officer and Managing Director of Wizz Air Abu Dhabi. Johan joined
Wizz Air as Head of Brand and Marketing in January 2015 and has served as
Chief Marketing Officer and Chief People and Marketing Officer.
· Veronika Jung, currently Head of HR, will be promoted to People
Officer. Veronika joined Wizz Air in March 2021 and in her new role as People
Officer, she will be responsible for Group Health and Safety, HR, Recruitment
and Organization Development.
· Yvonne Moynihan will be taking over the responsibility of
Sustainability as Corporate and ESG Officer going forward. Yvonne joined Wizz
Air in July 2022 as Corporate Officer.
ABOUT WIZZ AIR
Wizz Air, the fastest growing European ultra-low-cost airline and one of the
most sustainable, operates a fleet of 177 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 40.0 million passengers in
the financial year F20 ending 31 March, 2020 and 27.1 million passengers in
the financial year F22 ending 31 March 2022. Wizz Air is listed on the London
Stock Exchange under the ticker WIZZ. The company was recently named one of
the world's top ten safest airlines by airlineratings.com, the world's only
safety and product rating agency, and 2020 Airline of the Year by ATW, the
most coveted honour an airline or individual can receive, recognizing
individuals and organizations that have distinguished themselves through
outstanding performance, innovation, and superior service. Wizz Air is a
recipient of CAPA's prestigious Global Environmental Sustainability Airline
Group of the year award, 2022.
For more information:
Investors: Zlatko Custovic, Wizz Air +36 1 777 9407
Media: Zsuzsanna Trubek, Wizz Air: +36 70 652 4115
Edward Bridges / Jonathan Neilan, FTI Consulting LLP: +44 20 3727 1017
- Ends -
Q3 Financial review
In the third quarter, Wizz Air carried 12.4 million passengers, a 59.1%
increase compared to the same period in the previous year and generated
revenues of €911.7 million, 123.2% higher than last year. These rates
compare to capacity increase measured in terms of ASKs of 48.6% and 40.5% in
terms of seats. The load factor increased from 77.1% to 87.3%. The reported
net profit for the third quarter was €33.5 million, compared to a loss of
€267.5 million in the same period of F22.
Summary statement of comprehensive income (unaudited)
For the three months ended 31 December
2022 2021
€ million € million Change
Passenger ticket revenue 464.7 162.3 186.3%
Ancillary revenue 447.0 246.0 81.7%
Total revenue 911.7 408.4 123.2%
Staff costs (99.0) (61.8) 60.2%
Fuel costs (including exceptional expense) (490.6) (204.3) 140.1%
Distribution and marketing (25.4) (11.7) 117.1%
Maintenance materials and repairs (53.6) (59.6) (10.1%)
Airport, handling and en-route charges (241.1) (155.3) 55.2%
Depreciation and amortisation (152.7) (126.0) 21.2%
Net other expense (4.8) (3.2) 50.0%
Total operating expense (1,067.2) (621.9) 71.6%
Operating loss (155.5) (213.6) (27.2%)
Comprising:
Operating expense excluding exceptional expense (155.5) (213.6)
Exceptional expense - -
Financial income 5.9 0.6
Financial expenses (38.1) (22.1)
Net foreign exchange gain/(loss) 224.2 (31.1)
Net financing income/(expense) 192.0 (52.6) n.m.**
Profit/(Loss) before income tax 36.4 (266.1) n.m.**
Income tax expense (3.0) (1.4) 114.3%
Profit/(Loss) for the period 33.5 (267.5) n.m.**
Profit/(Loss) for the period attributable to:
Non-controlling interest (4.7) (2.6)
Owners of Wizz Air Holdings Plc 38.2 (264.9)
Underlying profit/(loss) for the period* 33.5 (267.5) n.m.**
Underlying profit/(loss) for the period attributable to:
Non-controlling interest (4.7) (2.6)
Owners of Wizz Air Holdings Plc 38.2 (264.9)
* Underlying loss excludes exceptional items, being the impact of hedge
losses classified as discontinued resulting from the impact of COVID-19.
** n.m.: not meaningful as variance is more than (-)100%.
Revenue
Passenger ticket revenue increased by 186.3% to €464.7 million and ancillary
income (or "non-ticket" revenue) increased by 81.7% to €447.0 million,
driven by higher operated capacity and higher load factor relative to third
quarter of previous fiscal year. Total revenue per ASK (RASK) increased by
50.2% to 3.73 euro cents from 2.49 euro cents due to growing demand, higher
ticket prices and 13.2% higher load factor.
Average revenue per passenger increased to €73.57 in Q3 F23 which was 40.3%
higher than the Q3 F22 level of €52.42. Average ticket revenue per passenger
increased from €20.84 in Q3 F22 to €37.50 in Q3 F23 and average ancillary
revenue per passenger increased from €31.51 in Q3 F22 to €36.04 in Q3 F23,
representing increase of 14.4%.
Operating expenses
Operating expenses increased by 71.6% to €1,067.2 million from €621.9
million in Q3 F22. The capacity increase for same period in terms of ASKs was
48.6%. Total cost per ASK ('CASK') increased by 15.0% to 4.50 euro cents in Q3
F23 from 3.92 euro cents in Q3 F22. Variable costs increased with higher
operated capacity, resulting in higher staff, airport, handling and en-route
charges. Net other expense increased due to several financing transactions on
aircraft and spare engines during the fiscal quarter.
Staff costs increased by 60.2% to €99.0 million in Q3 F23 from €61.8
million in Q3 F22 as the company continued its hiring and training
initiatives.
Fuel expenses increased by 140.1% to €490.6 million in Q3 F23 from €204.3
million in the same period of F22. The increase is reflecting higher
operational capacity in the period and the price increase of 40.7% (excluding
hedging impact and into-plane premium) compared to same period last year. The
average fuel price (including hedging impact and excluding into-plane premium)
paid by Wizz Air during the third quarter was US$1,088.9 per tonne, an
increase of 51.7% from US$717.9 the same period in F22.
Distribution and marketing costs increased by 117.1% in Q3 F23 to €25.4
million from €11.7 million in Q3 F22.
Maintenance, materials and repair costs decreased by 10.1% to €53.6 million
in Q3 F23 compared to €59.6m in Q3 F22.
Airport, handling and en-route charges increased 55.2% to €241.1 million in
the third quarter of F23 versus €155.3 in the same quarter of the prior
fiscal year.
Depreciation and amortisation charges increased by 21.2% in the third quarter
to €152.7 million, from €126.0 million in the same period of F22. This is
a result of increased fleet and higher aircraft utilization, reaching an
average of 10:31 block hours per aircraft for third fiscal quarter.
Other expense amounted to €4.8 million in the third quarter, compared to
€3.2 million in the same period of last fiscal year.
Financial income amounted to €5.9 million in the third quarter, compared to
€0.6 million in the same period of last fiscal year.
Financial expenses amounted to €38.1 million in Q3 F23 compared to €22.1
million in Q3 F22.
Net foreign exchange gain was €224.2 million in Q3 F23, compared to a loss
of €31.1 million in Q3 F22. The change is driven mainly by unrealised
foreign exchange gains as the EUR strengthened versus the USD.
Income tax expense was €3.0 million (Q3 F22: €1.4 million) reflecting
mainly local business tax and innovation tax in Hungary.
Net loss for the nine months ended on 31 December 2022 was €350.8 compared
to €388.4 in the same period of F22.
OTHER INFORMATION
1. Cash and cash equivalents
Total cash and cash equivalents (including restricted cash and cash deposits
with more than 3 months maturity) at the end of the third quarter was
€1,367.1 million, of which over €1,237.9 million is free cash.
2. Hedging positions
Wizz Air operates under a clear set of treasury policies approved by the Board
and supervised by the Audit and Risk Committee. Given the sustained and
ongoing volatility in commodity prices Wizz Air has decided to reinstate the
jet fuel hedging and align the policy with its peers from F24 onwards. 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. In line with the hedging policy, Wizz Air also started
hedging its US dollar exposure related to fuel consumption.
Jet fuel hedge coverage
Period covered F23 F24
12 months
3 months
Exposure in metric tonnes ('000) 360 1,881
Coverage in metric tonnes ('000) 211 840
Hedge coverage for the period 59% 45%
Coverage by hedge types:
Zero-cost collars in metric tonnes ('000) 167 840
Weighted average ceiling $1,334 $1,032
Weighted average floor $1,028 $897
Call options in metric tonnes ('000) 44 -
Weighted average ceiling $1,204 -
Weighted average floor - -
EURUSD FX hedge coverage
Period covered F24
12 months
Exposure, jet fuel related (million) 1,560
Hedge coverage (million) 312
Hedge coverage for the period 20%
Weighted average ceiling €1.11
Weighted average floor €1.07
Sensitivities
Pre-hedging, a $10 (per metric ton) movement in the price of jet fuel impacts
the Q4 F23 fuel costs by $3.6 million.
One cent movement in the EUR/USD exchange rate impacts the Q4 F23 operating
expenses by €3.7 million.
3. Fully diluted share capital
The figure of 127,703,720 should be used for the Company's theoretical fully
diluted number of shares as at 20 January 2023. This figure comprises
103,268,354 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 20 January 2023 (excluding any ordinary
shares that would be issued in respect of accrued but unpaid interest on that
date) and 188,651 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 licence of Wizz Air Hungary Ltd (a
subsidiary 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 2022 Annual
General Meeting (AGM), on 13 September 2022 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.
KEY STATISTICS
For the three months ended 31 December
2022 2021 Change
Capacity
Number of aircraft at end of period 173* 150 15.3%
Equivalent aircraft 170.8 144.8 17.9%
Utilisation (block hours per aircraft per day, hh:mm) 10:31 8:58 17.4%
Total block hours 165,532 119,534 38.5%
Total flight hours 144,244 104,465 38.1%
Revenue departures 65,178 48,835 33.5%
Seat capacity 14,192,56 10,100,00 40.5%
Average aircraft stage length (km) 1,721 1,627 5.8%
Total ASKs ('000 km) 24,421,506 16,432,170 48.6%
Operating data
RPKs ('000 km) 21,465,694 12,629,285 70.0%
Load factor 87.31% 77.13% 13.2%
Number of passenger segments 12,391,074 7,789,800 59.1%
Fuel price (average US$/mT, incl. hedging impact but excl. into-plane premium) 1,089 717 51.9%
FX rate (average US$/€, including hedging impact) 1.02 1.14 (-10.7%)
*excludes UA aircraft
CASK
For the three months ended 31 December
2022 2021 Change
euro cents euro cents euro cents
Fuel costs 2.01 1.24 0.77
Staff costs 0.41 0.38 0.06
Distribution and marketing 0.10 0.07 0.04
Maintenance, materials and repairs 0.22 0.36 (0.14)
Airport, handling and en-route charges 0.99 0.95 0.04
Depreciation and amortisation 0.63 0.77 (0.14)
Other expenses/income 0.02 0.02 (0.03)
Net of financial income and expenses 0.13 0.13 0.00
Total CASK 4.50 3.92 0.58
CASK excluding exceptional operating expense 4.50 3.92 0.58
Total ex-fuel CASK 2.49 2.67 (0.18)
Available seat kilometres (ASK): the number of seats available for scheduled
passengers multiplied by the number of kilometres those seats were flown.
CASK: cost per ASK, where cost is defined as operating expenses and financial
expenses net of financial income, excluding exceptional items.
Ex-fuel CASK: cost per ASK, where cost is defined as operating expenses and
financial expenses net of fuel expenses and financial income, excluding
exceptional items.
Equivalent aircraft: the number of aircraft available to Wizz Air in a
particular period, reduced on a per aircraft basis to reflect any proportion
of the relevant period that an aircraft has been unavailable.
Adjusted free cash flow: net cash generated by operating activities and
proceeds from sale of tangible assets.
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.
Load factor: the number of seats sold divided by the number of seats
available.
Revenue passenger kilometres (RPK): the number of seat kilometres flown by
passengers who paid for their tickets.
RASK: total revenue divided by ASK.
Utilisation: the total block hours for a period divided by the total number of
aircraft in the fleet during the period and the number of days in the relevant
period.
Yield: the total revenue per RPK.
For the definition of certain other technical terms used in this document,
including some non-GAAP financial measures, please refer to our 2022 Annual
Report and Accounts, particularly on page 68.
Definition and reconciliation of other non-statutory financial performance
measures
'Earnings before interest, tax, depreciation and amortisation' (EBITDA) is
profit (or loss) before net financing costs (or gain), income tax expense (or
credit), depreciation and amortization and exceptional items.
EBITDA (excluding exceptional items) is profit (or loss) before net financing
costs (or gain), income tax expense (or credit), depreciation and amortization
and exceptional items.
€ million 2022
2021
Operating loss (excluding exceptional expense) (155.5) (213.6)
Depreciation and amortisation 152.7 126.0
EBITDA (excluding exceptional expense) (2.8) (87.5)
The Company has a policy of rounding each amount and percentage individually
from the fully accurate number to the figure disclosed in the information
presented. As a result, some amounts and percentages do not total - though
such differences are all small.
FORWARD-LOOKING STATEMENTS
The information in this announcement includes forward-looking statements which
are based on the Company's or, as appropriate, the Company's Directors'
current expectations and projections about future events. These
forward-looking statements may be identified by the use of forward-looking
terminology including, but not limited to, the terms "believes", "estimates",
"plans", "projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or comparable
terminology, or by discussion of strategy, plans, objectives, goals, future
events or intentions. These forward-looking statements are subject to risks,
uncertainties and assumptions about the Company and its subsidiaries and
investments, including, among other things, the development of its business,
trends in its operating industry and future capital expenditures. In light
of these risks, uncertainties and assumptions, the events or circumstances
referred to in the forward-looking statements may differ materially from
those indicated in these statements. Forward-looking statements may, and often
do, materially differ from actual results.
None of the future projections, expectations, estimates or prospects or any
other statements contained in this announcement should be taken as forecasts
or promises nor should they be taken as implying any indication, assurance or
guarantee that the assumptions on which such future projections, expectations,
estimates or prospects have been prepared are correct or exhaustive or, in the
case of the assumptions, fully stated in the announcement. Forward-looking
statements speak only as of the date of this announcement. Subject to
obligations under the listing rules and disclosure and transparency rules made
by the Financial Conduct Authority under Part VI of the Financial Services and
Markets Act 2000 (as amended from time to time), neither the Company nor any
of its affiliates, or individuals acting on its behalf, undertakes to publicly
update or revise any such forward-looking statement, or any other statements
contained in this announcement, whether as a result of new information, future
events or otherwise.
As a result of these risks, uncertainties and assumptions, you should not
place undue reliance on these forward-looking statements as a prediction of
actual results or otherwise. The information and opinions contained in this
announcement are provided as at the date of this announcement and are subject
to change without notice.
This announcement includes inside information.
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