In This Article:
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Revenue: Positive unique revenue development in H1, with continued strength expected in H2.
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Capacity: Flat in ASK terms, up 1% in seat terms.
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Fleet Size: Increased from 189 to 232 aircraft.
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Grounded Aircraft: 44 GTF aircraft grounded during the period.
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Passenger Numbers: Up almost 1% with flat load factor performance.
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EBITDA: Slightly down compared to the prior year.
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Free Cash Flow: GBP 447 million generated in the period.
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Cash Position: GBP 1.9 billion at the end of September.
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Net Leverage Ratio: Under pressure due to grounded aircraft and high spare engine ratio.
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Fuel Costs: Decreased despite inefficiencies from older aircraft and lease extensions.
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Operational KPIs: Completion rate at 99.4%, with a target of 99.5%.
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Growth Outlook: 20% growth expected in the next financial year, focusing on European markets.
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Guidance: Mid-single digit revenue growth expected for the full financial year.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wizz Air Holdings PLC (WZZAF) reported a positive unique revenue development in the first half of fiscal 2025, with expectations for continued revenue strength into the second half.
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The company has successfully shifted capacity from underperforming markets to performing markets, enhancing profitability and revenue.
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Wizz Air Holdings PLC (WZZAF) has been recognized for the third time in a row as the most sustainable airline in Europe by CPAs.
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The company is entering a growth phase after a standstill period, with plans for organic growth and margin expansion in fiscal year 2026.
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Wizz Air Holdings PLC (WZZAF) has improved its operational efficiency, with a slight increase in utilization and a nearly on-target completion rate of 99.4%.
Negative Points
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The company faced significant cost pressures due to GTF engine groundings, which led to a loss of 20% of its fleet and necessitated costly measures like extending aircraft leases and taking market wet leases.
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Wizz Air Holdings PLC (WZZAF) experienced high disruption costs due to a lack of spare engines and aircraft, leading to cancellations and increased expenses.
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The company is dealing with inefficiencies from operating an older fleet and lease extensions, impacting fuel costs and overall cost structure.
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Fitch downgraded Wizz Air Holdings PLC (WZZAF) from investment grade, citing inefficiencies caused by Pratt and Whitney's engine issues as a primary reason.
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The company is facing challenges with airport costs due to a lack of growth, as airports penalize for no growth, impacting overall cost management.