In This Article:
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Revenue: Improved and stabilized on a unit basis, with a strong foundation for demand.
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Guidance Revision: Guidance reduced by approximately EUR100 million due to higher costs and unrealized FX loss.
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Unrealized FX Loss: EUR160 million loss due to a strengthening dollar.
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Passenger Count: Improvement noted, driven by better load factor.
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Ex-Fuel CASK: Increase due to inflationary pressures and inefficiencies from grounded aircraft.
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Net Profit (H1): EUR315 million, with a focus on EUR250 million to EUR300 million excluding FX impacts.
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Free Cash Flow: EUR189 million, with a positive operating cash flow of EUR91 million.
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Cash Balance: EUR1.6 billion at the end of the quarter.
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Fleet Growth: Expected to end the fiscal year with 227 aircraft, an increase of 21 aircraft year-on-year.
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Unit Costs: Reduced operating loss by more than 50%, with better EBITDA position.
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Lease Debt: Stable around 3.2 to 3.3, with improving leverage ratio.
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Pratt & Whitney GTF Issues: Continued impact with 40 aircraft grounded, affecting costs and operations.
Release Date: January 30, 2025
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) has seen a stabilization and increase in revenue on a unit basis, providing a strong foundation for future demand.
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The company is regaining growth momentum with the supply of new aircraft, overcoming previous groundings.
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Wizz Air Holdings PLC (WZZAF) is benefiting from a more favorable competitive landscape as competitors face supply chain constraints.
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The company has adjusted its aircraft delivery schedule to better align with Airbus' delivery capabilities and its own grounded aircraft situation.
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Wizz Air Holdings PLC (WZZAF) is confident in customer demand, with strong revenue performance and a positive outlook for future growth.
Negative Points
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Higher than expected costs, particularly in maintenance and depreciation, have forced Wizz Air Holdings PLC (WZZAF) to revise its guidance downward.
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The company is facing increased Eurocontrol charges, adding EUR60 million in adverse costs annually.
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Wizz Air Holdings PLC (WZZAF) is dealing with significant operational disruptions due to the Pratt & Whitney GTF engine issues, affecting both GTF and V2500 engines.
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The strengthening dollar has led to unrealized FX losses, impacting the company's financial results.
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Airports are becoming increasingly capacity constrained, leading to higher monopoly pricing and increased charges.
Q & A Highlights
Q: On FX, given the volatility, are you considering guiding excluding unrealized gains and losses altogether? A: Ian Malin, CFO, explained that while there's merit to excluding unrealized FX gains and losses, they aim to maintain consistency for this year. They focus on pre-FX numbers to track performance on controllable factors, acknowledging FX volatility.