In This Article:
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Revenue: EUR1.259 billion, with EUR702 million from ticket revenue and EUR557 million from ancillary revenue.
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Unit Revenue: Increased by 3.1% year on year.
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EBITDA: 16% higher year on year.
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Net Profit: Impacted by EUR27 million FX swing and EUR40 million wet lease costs.
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Ex-Fuel CASK: EUR2.72, up 8% year on year; adjusted to EUR2.59, up 3% year on year.
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Fleet Size: 226 aircraft, with 46 grounded at the end of the period.
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Cash Balance: Approximately EUR2 billion.
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Net Debt: Reduced to 3.7 times EBITDA.
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Guidance: Net profit expected between EUR350 million to EUR450 million.
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Load Factor Guidance: Maintaining 92% for the year.
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Fuel Hedging: 65% hedged for FY26, 19% for FY27.
Release Date: August 01, 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 robust revenue environment with unit revenue up over 3%, generating more cash and improving the leverage ratio to below 4.
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The company has been recognized as the Most Sustainable Low-Cost Airline for the fourth consecutive time, highlighting its commitment to sustainability.
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Operational metrics have improved significantly, with aircraft utilization reaching 12 hours 48 minutes, up from 12 hours 7 minutes the previous year.
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On-time performance and completion rates have improved, positioning Wizz Air Holdings PLC (WZZAF) as one of the best in the industry, enhancing customer satisfaction.
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The company is 65% hedged on both fuel and FX for fiscal 2026, providing some protection against market volatility.
Negative Points
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Profitability was negatively impacted by a EUR27 million FX loss and a one-off wet lease cost of EUR40 million.
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The GTF engine issues have led to operating older and under-gauged aircraft, negatively affecting unit cost performance.
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The company faces significant cost pressures, including higher maintenance and depreciation costs due to the grounding of aircraft.
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Wizz Air Holdings PLC (WZZAF) is experiencing a mismatch in timing between wet lease costs and the return of engines, affecting financial performance.
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The competitive environment has softened, with competitors dropping fares, impacting Wizz Air Holdings PLC (WZZAF)'s pricing strategy and revenue.
Q & A Highlights
Q: Is the timing mismatch on costs due to wet leases and engine returns expected to continue until the wet leases exit the fleet? A: Jozsef Varadi, CEO, explained that the wet lease operations are planned to phase out completely by the end of October. There may be some legal obligations to manage, but operationally, wet lease aircraft will not be used after November 1st.