TIDMWIZZ
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 (EUR million) 911.7 408.4 123.2%
EBITDA (EUR million) (2.8) (87.5) 96.8%
EBITDA margin (%) (0.3) (21.4) +21.1pp
Operating loss for the period (EUR
million) (155.5) (213.6) 27.2%
Unrealized FX gain/loss 220.9 (43.7) n.m.**
Reported profit/loss for the period
(EUR million) 33.5 (267.5) n.m.**
RASK (EUR cent) 3.73 2.49 50.0%
Ex-Fuel CASK (EUR cent) 2.49 2.67 (6.7%)
Total cash (EUR 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 EUR33.5 million for the quarter.
Wizz Air's total cash was EUR1.37b 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 EUR911.7 million. Compared to Q3
F22:
-- Ticket revenues increased by 186.3 per cent to EUR464.7 million.
-- Ancillary revenues increased by 81.7 per cent to EUR447.0 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
EUR37.5 and was also up by 11.6 per cent versus Q3 F20.
-- Ancillary revenue per passenger increased by 14.4 per cent to
EUR36.1 and was also up by 19.8 per cent versus Q3 F20.
Total operating costs increased 71.6 per cent to EUR1,067.2
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 EUR1,367.1 from EUR1,400.3
million. Net FX gain amounted to EUR224.1 million (Q3 F22:
(EUR31.1) million) of which EUR220.9 million was unrealized (Q3
F22: (EUR43.7) 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 gra ms 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 EUR1,000 (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
Zsuzsanna Trubek, Wizz Air: +36 70 652 4115
Media: 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 EUR911.7 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 EUR33.5 million, compared to a loss of EUR267.5
million in the same period of F22.
Summary statement of comprehensive income (unaudited)
For the three months ended 31 December
2022 2021
EUR million EUR 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)
Comprising:
Operating expense excluding exceptional expense (155.5) (213.6)
Exceptional expense - - (27.2%)
--------------------------------------------------------- ------------- ------------- -----------
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 EUR464.7 million
and ancillary income (or "non-ticket" revenue) increased by 81.7%
to EUR447.0 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 EUR73.57 in Q3 F23
which was 40.3% higher than the Q3 F22 level of EUR52.42. Average
ticket revenue per passenger increased from EUR20.84 in Q3 F22 to
EUR37.50 in Q3 F23 and average ancillary revenue per passenger
increased from EUR31.51 in Q3 F22 to EUR36.04 in Q3 F23,
representing increase of 14.4%.
Operating expenses
Operating expenses increased by 71.6% to EUR1,067.2 million from
EUR621.9 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 EUR99.0 million in Q3 F23 from
EUR61.8 million in Q3 F22 as the company continued its hiring and
training initiatives.
Fuel expenses increased by 140.1% to EUR490.6 million in Q3 F23
from EUR204.3 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 EUR25.4 million from EUR11.7 million in Q3 F22.
Maintenance, materials and repair costs decreased by 10.1% to
EUR53.6 million in Q3 F23 compared to EUR59.6m in Q3 F22.
Airport, handling and en-route charges increased 55.2% to
EUR241.1 million in the third quarter of F23 versus EUR155.3 in the
same quarter of the prior fiscal year.
Depreciation and amortisation charges increased by 21.2% in the
third quarter to EUR152.7 million, from EUR126.0 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 EUR4.8 million in the third quarter,
compared to EUR3.2 million in the same period of last fiscal
year.
Financial income amounted to EUR5.9 million in the third
quarter, compared to EUR0.6 million in the same period of last
fiscal year.
Financial expenses amounted to EUR38.1 million in Q3 F23
compared to EUR22.1 million in Q3 F22.
Net foreign exchange gain was EUR224.2 million in Q3 F23,
compared to a loss of EUR31.1 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 EUR3.0 million (Q3 F22: EUR1.4 million)
reflecting mainly local business tax and innovation tax in
Hungary.
Net loss for the nine months ended on 31 December 2022 was
EUR350.8 compared to EUR388.4 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 EUR1,367.1 million, of which over EUR1,237.9
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
F23 F24
Period covered 3 months 12 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
F24
Period covered 12 months
Exposure, jet fuel related (million) 1,560
Hedge coverage (million) 312
Hedge coverage for the period 20%
----------------------------------------- ------------
Weighted average ceiling EUR1.11
Weighted average floor EUR1.07
----------------------------------------- ------------
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 EUR3.7 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$/EUR, 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.
EUR 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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END
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