REG - Wizz Air Holdings - Q3 F25 Results
30/01/2025 07:00
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RNS Number : 2003V Wizz Air Holdings PLC 30 January 2025
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE UK
MARKET ABUSE REGULATION.
WIZZ AIR HOLDINGS PLC - RESULTS FOR THE THREE MONTHS TO 31 DECEMBER 2024
Q3 F25 RESULTS:
REVENUE SUPPORTING RETURN TO GROWTH,
DESPITE SHORT-TERM FX AND COST HEADWINDS
LSE: WIZZ
Geneva, 30 January 2025: Wizz Air Holdings Plc ("Wizz Air", "the Company"
or "the Group"), today issues unaudited results for the three months to 31
December 2024 ("third quarter", "Q3" or "Q3 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 annual report for the year ended 31
March 2024 and any public announcements made by Wizz Air Holdings
Plc during the interim reporting period.
For the three months ended 31 December 2024 2023 Change
Period-end fleet size (1) 226 197 14.7%
ASKs (million km) 30,480 31,002 (1.7)%
Load factor (%) 90.3 87.6 2.7 ppt
Passengers carried (million) 15.5 15.1 2.6%
Total revenue (€ million) 1,176.8 1,064.8 10.5%
EBITDA (€ million) (2) 157.1 18.7 740.0%
EBITDA Margin (%) (2) 13.3 1.8 11.6 ppt
Operating loss for the period (€ million) (75.9) (180.4) (57.9)%
Net loss for the period (€ million) (241.1) (105.4) 128.7%
RASK (€ cent) 3.86 3.43 12.4%
Total CASK (€ cent) 4.25 4.10 3.6%
Fuel CASK (€ cent) 1.37 1.63 (16.3)%
Ex-fuel CASK (€ cent) 2.88 2.47 16.8%
Total cash (€ million) (2,3) 1,599.6 1,588.9 0.7%
Net debt (€ million) (2,4) 5,140.8 4,790.2 7.3%
(1 )Comparative figure has been changed from 195 to 197 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"
section of this document.
(3) Comparative figure is total cash as at 31 March 2024. Total cash
is a non-statutory financial performance measure and comprises cash and cash
equivalents (31 December 2024: €481.9 million; 31 March 2024:
€728.4 million), short-term cash deposits (31 December 2024:
€1,024.1 million; 31 March 2024: €751.1 million) and total current and
non-current restricted cash (31 December 2024: €93.6 million; 31 March
2024: €109.4 million).
(4 )Comparative figure is net debt balance as at 31 March 2024.
HIGHLIGHTS
▶1.7 per cent lower ASK capacity in Q3 vs last year.
▶Record traffic of 15.5 million passengers in Q3 (vs 15.1 million last
year) and 62.7 million in CY 2024.
▶Load factor up 2.7ppts yoy to 90.3 per cent (vs 87.6 per cent last
year).
▶Unit revenue (RASK) increased by 12.4 per cent year-on-year, due to a
better overall revenue environment and last year being affected by last
minute capacity redeployment away from Israel.
▶Total unit cost (CASK) increased only by 3.6 per cent year-on-year,
helped by an 18% decline in fuel unit costs.
▶Ex-fuel CASK increased by 16.8 per cent year-on-year, with higher
maintenance costs and the timing of other benefits now likely falling into Q4.
▶Total cash balance at €1.6 billion.
▶Operational metrics (including cancellations of Israel flights at the start
of the quarter):
▶Flight completion rate at 99.4 per cent (flat vs last year).
▶On-time performance increased to 75.5 per cent (vs 72.2 per cent in
last year).
▶Operating fleet utilization at 12:10 hours/day, in line with last
year's 12:15 hours.
▶Restarting operations into Israel with routes from Budapest, Sofia,
Bucharest, Krakow, London, Rome to Tel Aviv from beginning of March.
▶No change currently to GTF engine removal forecasts with an average of 40
aircraft to be grounded over F26. However, this may change depending on the
current engine selection negotiations to select the engine for 177 A321NEOs.
▶Airbus delivery schedule further adjusted in January 2025, with 137 A321s
due for delivery over the next three years ending F28. Given lease returns,
the fleet is now forecast to grow from a forecast 230 aircraft as at the end
of March 2025 to 305 aircraft as at end March 2028; this compares to the
previous forecast of 380 aircraft at that end date.
József Váradi, Wizz Air Chief Executive Officer commented on business
developments in the period:
"As expected, demand and pricing were strong over the quarter, with ticket
RASK up 15% year-on-year. Booking rates were ahead of the same period last
year, leading to a 2.7ppt increase in our Q3 load factor to a positive 90.3%.
This was supported by a favorable comparison against the disruption to our
network last year in Israel. Q3 revenues were up 11% year-on-year to €1,177m
and we carried a record 15.5 million passengers in the quarter.
Wizz Air has continued to navigate the complexity imposed on its operations
from the ongoing grounding of some 20% of its fleet, due to the
well-documented GTF engine issue. This is reflected in our unit cost
performance, with Q3 ex-fuel CASK up 17% year-on-year, given the multiple
inefficiencies these groundings generate across a number of our cost lines.
Disappointingly the benefits of the stronger demand environment did not flow
through to our reported profit level due to these cost headwinds and a
significant €160m negative FX charge recognised in Q3. This reflects the
requirement to mark-to-mark our US$ denominated lease exposure at the ruling
rate at the end of each quarter. While a non-cash item, it has the potential
to introduce significant volatility to our reported profitability (with an FX
credit of €88m booked a year ago for a €248m swing year-on-year). Given
the current volatility in FX, the board has approved a hedging program to help
mitigate this in the future, the timing of which is yet to be determined given
current ruling exchange rates."
On current trading and the outlook, Mr Váradi added:
"Underlying demand remains positive at the start of Q4. January and February
RASK continue to track in the low double-digit range, underpinned by bookings
some 3ppts ahead of the same period last year. However, given the fact that
Easter in 2025 will fall in our Q126 quarter, our Q425 run rate to date will
be diluted as March is further booked. To date, our Q4 is circa 62%
booked, with RASK up 8.3% year-on-year.
Trading through the remainder of the current fiscal year remains a focus for
Wizz's management team, from maximizing daily revenues to seeking further
short and longer-term cost savings. As we look ahead to F26, we believe that
we are at an important inflection point for the business as we transition to a
sustained period of growth for the rest of the decade. This is a return to
Wizz's DNA and the basis for long-term value creation for shareholders.
Our confirmed aircraft orders provide a clear pathway for sustained growth,
giving us a competitive advantage in the medium-term. Our recently adjusted
Airbus delivery schedule underpins this ambition, especially when factoring in
the return our grounded fleet to the air over the next two years. Annual
capacity growth of 15-20% over the next five years will facilitate the
densification of Wizz's network, and allow it to protect and expand leading
postilions in its fast growing core markets and, in so doing, deliver cost
wins and a return to historic net margins and an investment grade balance
sheet."
NEAR-TERM AND FORWARD OUTLOOK
▶Capacity (ASKs): F25 reduced back to flat YoY from up 1%;
▶Load factor: Maintain F25 at 92 per cent;
▶Revenue: Maintain F25 RASK up mid-single digits YoY;
▶Cost: Increase F25 ex-fuel CASK to high teens YoY; and maintain F25 fuel
CASK down 3-5 per cent YoY;
▶Financial performance: Decrease F25 from the range of €350-450 million to
€250-300 million before any H2 unrealized FX losses; Reported F25 full year
NPAT likely to be in the range of €125-175 million at current FX rates.
▶The above guidance is based on current visibility in relation to external
events (including macro, security, infrastructure and/or supply chain
developments), revenue performance, as well as any airworthiness directive in
relation to GTF engine inspections and a number of available spare engines.
GTF ENGINE UPDATE
The new commercial support agreement with Pratt & Whitney was agreed at
the end of 2024, with this covering the two-year period for calendar years
2025 and 2026. The compensation package, which covers Wizz's direct costs
associated with the aircraft that have been grounded and those expected to be,
is similar to the levels of the previous agreement ruling during 2024.
In terms of the ongoing management of this, important considerations relating
to increased access to spare engines and additional engineering shop slots are
part of an ongoing tender related to the selection for engines for 177
A321neos. Management expects that these negotiations will be concluded by the
end of the current quarter.
FLEET UPDATE
▶In the three months ended 31 December 2024 Wizz Air saw its fleet
increase by two, ending the calendar year with 226 aircraft. Movements over
the quarter saw four A321neos delivered while two A320ceos were redelivered to
their lessors.
▶Critical in this past quarter, and not counted within our own fleet count,
all wet-leased aircraft were returned to their lessor companies by the end of
October.
▶The average number of seats per aircraft has climbed to 226 as at December
2024, up 1 quarter-on-quarter and by 3 over the last 12-months.
▶The share of new "neo" technology aircraft within Wizz Air's fleet stood at
64% by aircraft and 68% by seat capacity as at the end of December 2024, an
increase year-on-year of 6ppt in both instances.
▶For the remainder of F25 we expect eight new A321neo deliveries (including
our first XLR), while a further four A320ceo aircraft will exit the fleet.
▶As at 31 December 2024, Wizz Air's delivery backlog comprises 307 aircraft,
made up of 260 x A321neo and 47 x A321XLR aircraft.
▶The table below provides expected number of aircraft for the current and
next fiscal years, reflecting the January update from Airbus.
March 2025 March 2026 March 2027
Planned Planned Planned
A320ceo (180/186 seats) 35 22 12
A320neo (186 seats) 6 6 6
A321ceo (230 seats) 41 40 29
A321neo (239 seats) 147 189 222
A321neo XLR (239 seats) 1 8 12
Fiscal year end Fleet size 230 265 281
FINANCIAL UPDATE
▶As of 20 January 2025, using jet fuel zero-cost collars, Wizz Air has a
hedge coverage of 82 per cent for its jet fuel needs for the remainder of F25
at a price of 745/838 $/mT. For F26, the coverage is 56 per cent at the price
of 712/792 $/mT. The jet fuel-related EUR/USD FX coverage stands at 77 per
cent for F25 at 1.0733/1.1170, while the coverage for F25 stands at 53 per
cent at 1.0854/1.1291rates.
▶The outstanding balance of the PDP facility has been repaid fully in
November 2024.
▶Net debt(1) at 31 December 2024 was €5,140.8 million vs
€4,790.2 million at 31 March 2024, while the Company's leverage
ratio(1) (net debt to EBITDA) did not change compared to F24 year-end 4.0.
Over the same period, liquidity(1) decreased to 29.0 per cent.
(1 )For further definition of non-financial measures presented refer to
"Alternative performance measures (APMs)" and "Glossary of terms" sections of
this document.
ESG UPDATE
Wizz Air's CO2 emissions amounted to 52.4 grams per passenger for the rolling
twelve months to 31 December 2024. This was an increase of 1.9% over the 51.5
grams recorded for calendar 2023, but reflects the suboptimal fleet mix due to
the grounding of some of our neo aircraft and the wet leasing in of older,
more polluting capacity. These wet leases were all returned in October 2024,
with November seeing a 2.1% year-on-year improvement in carbon per pax
emissions and December a 4.1% fall.
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 of late have been:
▶Wizz Air, Airbus, Moeve and Charleroi Airport successfully completed
sustainable aviation fuel (SAF) operational trials, marking a pivotal step
towards decarbonizing aviation following the implementation of the Refuel EU
legislation. Wizz Air highlighted the importance of better educating
passengers about the advantages and challenges of SAF, while also calling for
increased industry collaboration and policy support to scale it adoption and
reduce costs.
▶Wizz Air welcomed the opportunity for collaboration and dialogue at COP29
on Transport Day and reaffirmed its commitment to decarbonizing aviation while
highlighting the critical role of international collaboration and effective
policy support in achieving net-zero emissions.
▶During the period, Wizz Air was awarded as: Most Sustainable Low-Cost
Airline for the fourth consecutive year at the World Finance Sustainability
Awards 2024; Best Airline for Carbon Reduction at the inaugural Carbon Awards
2024 hosted by World Finance: and EMEA Environmental Sustainability Airline
Group of the Year in 2024 by CAPA - the Centre for Aviation.
- Ends -
This announcement contains inside information. The person responsible for
making this announcement on behalf of the Group is Ian Malin, Chief Financial
Officer.
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
Media: Andras Rado, Wizz Air
+36 1 777 9324
James McFarlane/Eleni Menikou/Charles Hirst, MHP Group
wizz@mhpgroup.com
Certain information provided in this Press Release pertains to forward-looking
statements and is subject to significant risks and uncertainties that may
cause actual results to differ materially. It is not feasible to enumerate all
the factors and specific events that could impact the outlook and performance
of an airline group operating across Europe, the Middle East, and beyond, as
Wizz Air does. Some of the factors that are susceptible to change and could
notably influence Wizz Air's anticipated results include demand for aviation
transport services, fuel costs, competition from both new and established
carriers, availability of Pratt & Whitney GTF engines, turnaround times at
Engine Shops, expenses related to environmental, safety, and security
measures, the availability of suitable insurance coverage, actions taken by
governments and regulatory agencies, disruptions caused by weather conditions,
air traffic control strikes, revenue performance and staffing issues, delivery
delays of contracted aircraft, fluctuations in exchange and interest rates,
airport access and fees, labour relations, the economic climate within the
industry, passengers' inclination to travel, social, and political factors,
including global pandemics, and unforeseen security incidents.
Q3 Financial review
In the third quarter, Wizz Air carried 15.5 million passengers, a 2.6 per
cent increase compared to the same period in the previous year and generated
revenues of €1,176.8 million, 10.5 per cent higher year-on-year. These
rates compare to capacity decrease measured in terms of ASKs of 1.7%
and 0.4% in terms of seats. The load factor increased by 3.1% to 90.3%.
The reported net loss for the third quarter was €241.1 million,
compared to a loss of €105.4 million in the same period of F24.
Summary statement of comprehensive income (unaudited)
For the three months ended 31 December
2024 2023
€ million € million Change
Passenger ticket revenue 626.2 553.9 13%
Ancillary revenue 550.7 510.9 8%
Total revenue 1,176.8 1,064.8 11%
Staff costs (141.5) (126.9) 11%
Fuel costs (416.7) (506.6) (18)%
Distribution and marketing (28.1) (29.4) (4)%
Maintenance, materials and repairs (105.4) (69.4) 52%
Airport, handling and en-route charges (312.2) (301.8) 3%
Depreciation and amortisation (232.9) (199.0) 17%
Other expenses* (81.2) (84.8) (4)%
Other income* 65.3 72.8 (10)%
Total operating expenses (1,252.7) (1,245.2) 1%
Operating loss (75.9) (180.4) (58)%
Financial income 21.5 24.0 (10)%
Financial expenses (63.7) (50.1) 27%
Net foreign exchange (losses)/gains (159.5) 88.1 (281)%
Net financing (expense)/income (201.7) 62.0 (425)%
Loss before income tax (277.6) (118.4) 134%
Income tax credit 36.5 13.0 181%
Loss for the period (241.1) (105.4) 129%
Loss for the period attributable to:
Non-controlling interest (3.2) (7.7) (59)%
Owners of Wizz Air Holdings Plc (237.9) (97.7) 144%
* The Group previously presented net other expense for the
three months ended 31 December 2023 of €12.0 million. To enhance the
presentation this has been split to separately show other expenses of
€84.8 million and other income of €72.8 million on the face of the
summary statement of comprehensive income. There was no impact on net income
as a result of this change in classification.
Revenue
Passenger ticket revenue increased by 13.0% to €626.2 million and
ancillary income (or "non-ticket" revenue) increased by 7.8% to
€550.7 million year on year, driven by higher average net fares and a
slightly improved load factor (increased by 3.1%). The total revenue per ASK
(RASK) increased by 12.4% to 3.86 Euro cents from 3.43 Euro cents due
to higher ticket and ancillary prices and load factor.
Average revenue per passenger increased to €75.79 during Q3 F25, which
was 7.7% higher than last year, during the same period. Average ticket
revenue per passenger increased from €36.6 in Q3 F24 to
€40.3 in Q3 F25, and average ancillary revenue per
passenger increased from €33.8 in Q3 F24 to €35.5 in Q3 F25,
representing a increase of 5.0%.
Operating expenses
Operating expenses for Q3 F25 increased by 0.6% to €1,252.7 million
from €1,245.2 million in Q3 F24 despite the 1.7% lower year-on-year
capacity. The total cost per ASK (CASK) increased by 3.6% to 4.25 Euro
cents in Q3 F25 from 4.10 Euro cents in Q3 F24, driven mainly by
significantly higher maintenance and depreciation costs and generally higher
staff, overhead, lease cost, airport, handling and en-route charges. This is
partly offset by savings on fuel and flight disruption costs.
Staff costs increased by 11.5% to €141.5 million in Q3 F25, up from
€126.9 million in Q3 F24, reflecting the increase in capacity and the
cost-of-living adjustments to salaries year on year.
Fuel expenses decreased by 17.7% to €416.7 million in Q3 F25, from
€506.6 million in the same period of F24. The average fuel price
(including hedge impact) paid by Wizz Air
during Q3 F25 decreased by 19.9% compared to the same period of last
year. On the top of that the consumption efficiency also improved due to the
increase of NEO fleet.
Distribution and marketing costs decreased by 4.4% to €28.1 million
in Q3 F25 from €29.4 million in Q3 F24, reflecting the cost saving
initiatives carried out for some IT expenses and for the customer experience
center and increased revenue in the period.
Maintenance, materials and repair costs increased by 51.9% to
€105.4 million in Q3 F25 compared to €69.4 million in Q3 F24. Due
to the larger fleet Line & Light maintenance cost increases even if not
all aircraft were being utilized, as parking procedure and engine changes
generate cost. A greater number of heavy maintenance events were performed,
with an unfavorable mix shift towards more expensive structural checks.
Related to upcoming CEO re-deliveries, provision building for lease-end
settlement also increases the F25 cost level.
Airport, handling and en-route charges increased 3.4% to €312.2 million
in Q3 F25 versus €301.8 million in the same quarter of the prior fiscal
year due to 2.6% more passengers carried and to a general growth of
contracted rates.
Depreciation and amortisation charges increased by 17.1% in Q3 F25 to
€232.9 million, from €199 million in Q3 F24. The increase to
depreciation is in line with the growing fleet.
Other expenses amounted to €81.2 million in Q3 F25, compared to
€84.8 million in the same period of last fiscal year. Other
expenses decreased due to elevated flight disruption cost
in Q3 F24 stemming from Israel crises started in October 2023.
Other income amounted to €65.3 million in Q3 F25, compared to
€72.8 million in the same period of last fiscal year. Other
income decreased due to less sale and leaseback transactions (higher number
of aircraft deliveries in Q3 F24 compared to Q3 F25) and fewer credits
and compensation received from suppliers.
Financial income amounted to €21.5 million in Q3 F25, compared to
€24.0 million in Q3 F24, driven by the increase in short-term cash
deposits and higher interest rate environment in Q3 F25.
Financial expenses amounted to €63.7 million in Q3 F25 compared to
€50.1 million in Q3 F24, driven by the increase in fleet size, the higher
interest rate environment and the PDP financing.
Net foreign exchange loss was €159.5 million in Q3 F25, compared to
a gain of €88.1 million in Q3 F24. This significant change was driven
by the weakening of the Euro/USD exchange rate, which declined from 1.105
in Q3 F24 to 1.041 at the end of Q3 F25. The unfavorable movement
impacted the revaluation of USD-denominated lease liabilities, leading to the
loss.
Income tax credit was a €36.5 million credit (Q3 F24: €13.0 million)
reflecting a negative profit before tax in the period. The increase in tax
credit is mainly attributable to the higher loss of 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.
Net profit for the nine months ended on 31 December 2024 was
€74.2 million compared to a profit of €295.3 million in the same
period of the last year.
Other information
1. Cash
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
€1,599.6 million, of which over €1,506.0 million is free 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 are rolled forward monthly, 18 months out, with coverage levels over
time reaching indicatively between 85 per cent for the first quarter of the
hedging horizon and 35 per cent for the last quarter of the hedging horizon.
The hedging policy covers jet fuel and jet fuel-related EUR/USD exposure.
Hedge coverages at 20 January 2025 are as follows:
Fuel hedge coverage
F25 F26 F27
Period covered 3 months 12 months 12 months
Exposure in metric tonnes ('000) 446 2,178 2,518
Coverage in metric tonnes ('000) 367 1,221 144
Hedge coverage for the period 82% 56% 6%
Blended weighted average ceiling $838.0 $792.0 $757.0
Blended weighted average floor $745.0 $712.0 $687.0
Foreign exchange hedge coverage
F25 F26 F27
Period covered 3 months 12 months 12 months
Exposure in USD millions 320 1,529 1,705
Coverage in USD millions 246 814 96
Hedge coverage for the period 77% 53% 6%
Weighted average ceiling $1.1170 $1.1291 $1.0933
Weighted average floor $1.0733 $1.0854 $1.0513
Sensitivities
Pre-hedging, a $10 (per metric ton) movement in the price of jet fuel impacts
the Q4 F25 fuel costs by $4.5 million.
One cent movement in the EUR/USD exchange rate impacts the Q4 F25 operating
expenses by €4.2 million.
3. Fully diluted share capital
The figure of 127,733,907 should be used for the Company's theoretical fully
diluted number of shares as at 31st December 2024. This figure comprises
103,391,947 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 31st December 2024 (excluding any ordinary shares
that would be issued in respect of accrued but unpaid interest on that date)
and 95,245 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 three months ended 31 December
2024 2023 Change
Capacity
Number of aircraft at end of period* 226 197 14.7%
Number of operating aircraft at end of period** 183 180 1.7%
Equivalent aircraft 224.5 192.9 16.4%
Equivalent operating aircraft** 181.8 180.5 0.7%
Utilisation (block hours per aircraft per day) 9:45 11:35 -15.7%
Utilisation (block hours per operating aircraft per day)** 12:10 12:15 (0.6)%
Total block hours 203,675 203,544 0.1%
Total flight hours 177,129 177,585 (0.3)%
Revenue departures 77,636 77,437 0.3%
Average departures per day per aircraft 3.72 4.41 (15.6)%
Average departures per day per operating aircraft** 4.64 4.67 (0.6)%
Seat capacity 17,201,344 17,271,832 (0.4)%
Average aircraft stage length (km) 1,772 1,795 (1.3)%
Total ASKs ('000 km) 30,479,934 31,002,145 (1.7)%
Operating data
RPKs ('000 km) 27,485,776 27,159,121 1.2%
Load factor % 90.3% 87.6% 3.1%
Passengers carried 15,527,765 15,129,491 2.6%
Fuel price (average US$ per tonne, including hedging impact and into-plane 857.0 1,070.0 (19.9)%
premium) ***
Foreign exchange rate (average US$/€, including hedge impact) 1.081 1.078 0.3%
* Aircraft at end of period includes 3 aircraft in Ukraine, but
excludes wet-leased aircraft. Comparative figure has been changed from 195 to
197 as it did not include the two purchased Ukrainian aircraft on ground.
** Operating aircraft excludes grounded aircraft. At end of
period Q3 F25 there were 43 grounded aircraft due to GTF engine inspections
and 3 grounded aircraft in Ukraine. At end of period Q3 F25 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 (CASK)
For the three months ended 31 December
2024 2023 Change
euro cents euro cents euro cents
Fuel costs 1.37 1.63 (16.3)%
Staff costs 0.46 0.41 13.4%
Distribution and marketing 0.09 0.09 (2.7)%
Maintenance, materials and repairs 0.35 0.22 54.5%
Airport, handling and en-route charges 1.02 0.97 5.2%
Depreciation and amortisation 0.76 0.64 19.1%
Other expenses 0.27 0.27 (2.6)%
Other income (0.21) (0.23) (8.8)%
Net financial expenses* 0.14 0.08 64.5%
Total CASK 4.25 4.10 3.6%
Total ex-fuel CASK 2.88 2.47 16.8%
* Net financial expenses excluding Net foreign exchange
(losses)/gains
ADDITIONAL 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.
Average capital employed: average capital employed is the sum of the annual
average equity and interest-bearing borrowings (including convertible debt),
less annual average cash and cash equivalents, and short-term cash deposits.
Rationale - This key financial indicator is integral for evaluating the
profitability and effectiveness of capital utilisation.
Calculation: average equity + interest-bearing borrowings (including
convertible debt) - cash and cash equivalents - short-term cash deposits.
Earnings before interest, tax, depreciation and amortisation (EBITDA): EBITDA
represents the profit or loss before accounting for net financing costs or
gains, income tax expenses or credits, and depreciation and 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.
Three months ended 31 Dec 2024 Three months ended 31 Dec 2023
€ million € million
Operating loss (75.9) (180.4)
Depreciation and amortisation (232.9) (199.0)
EBITDA 157.1 18.7
Total revenue (€ million) 1,176.8 1,064.8
EBITDA margin (%) 13.3% 1.8%
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: please see the table below.
31 Dec 2024 31 Dec 2023
€ million € million
Non-current liabilities
Borrowings 6,481.8 4,971.8
Convertible debt 25.5 25.7
Current liabilities
Borrowings 138.9 835.0
Convertible debt 0.5 0.5
Current assets
Short-term cash deposits 1,024.1 82.3
Cash and cash equivalents 481.9 1,506.9
Net debt 5,140.8 4,243.8
Additional data to calculate leverage ratio
EBITDA for the 9 months ended 31 December 983.1 896.8
EBITDA for the 3 months ended 31 March 296.3 (74.5)
Total EBITDA for the rolling 12 months 1,279.3 822.3
Leverage ratio 4.0 5.2
Liquidity: liquidity represents cash, cash equivalents, and short-term cash
deposits, expressed as a percentage of the last twelve months' revenue.
Rationale - This key financial indicator offers a comprehensive view of the
Group's cash position and financial stability.
Calculation: please see the table below.
31 Dec 2024 31 Dec 2023
€ million € million
Cash and cash equivalents 481.9 1,506.9
Short-term cash deposits 1,024.1 82.3
Additional data to calculate liquidity
Total revenue for the 9 months ended 31 December 4,242.9 4,117.1
Total revenue for the 3 months ended 31 March 953.1 790.2
Total revenue for the rolling 12 months 5,196.1 4,907.3
Liquidity 29.0% 32.4%
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.
31 Dec 2024 31 Mar 2024
€ million € million
Non-current liabilities
Borrowings 6,481.8 5,159.7
Convertible debt 25.5 25.4
Current liabilities
Borrowings 138.9 1,084.3
Convertible debt 0.5 0.3
Current assets
Short-term cash deposits 1,024.1 751.1
Cash and cash equivalents 481.9 728.4
Net debt 5,140.8 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.
Total cash: non-statutory financial performance measure and comprises/is
calculated from cash and cash equivalents, short-term cash deposits and total
current and non-current restricted cash. Rationale - This key financial
indicator offers a comprehensive view of the Group's cash position and
financial stability.
Calculation: please see the table below.
31 Dec 2024 31 Mar 2024
€ million € million
Non-current assets
Restricted cash 41.5 54.0
Current assets
Restricted cash 52.1 55.4
Short-term cash deposits 1,024.1 751.1
Cash and cash equivalents 481.9 728.4
Total cash 1,599.6 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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