Business
Return to Systemic Jet Fuel Hedging
Return to Systemic Jet Fuel Hedging.
About this update from Wizz Air Holdings Plc
[{"type":"text","content":"\n \n \n RETURN TO SYSTEMIC JET FUEL HEDGING\n \n \n LSE: WIZZ\n \n \n \n \n \n Geneva, 16 June 2022:\n Wizz Air Holdings Plc (\"Wizz Air\" or \"the Company\"), the fastest growing and one of the most sustainable European airlines,\n today announces\n it will be returning to a systemic jet fuel hedge policy.\n \n \n \n \n \n During the earlier phases of the Covid-19 crisis, key players in the airline industry, including Wizz Air, were severely impacted with significant financial hedge losses. As a result, during that time and as agreed with its Board of Directors, Wizz Air moved to a no hedge policy to avoid hedge losses in the future.\n \n \n \n \n \n In Europe however, key competitors continued to hedge, albeit at lower coverage levels versus pre-pandemic. \n \n \n \n \n \n Given the sustained and ongoing volatility in commodity prices Wizz Air has decided to reinstate a hedging policy and aligning its policy to those of its peers. As a result, the Company will:\n \n \n \n \n \n 1. Mirror hedge coverage levels of our main peers as of F24 - leveling the playing field on jet fuel prices.\n \n \n 2. Put additional jet fuel price caps in place for H2 F23 - limiting the exposure for the Company should further extreme volatility in jet fuel prices be observed in market.\n \n \n \n \n \n This revised policy was approved by the Board and will be executed over the next few weeks, and the systemic hedge policy will be rolled forward quarterly, 18 months out, with coverage levels over time reaching indicatively between 65% for the first quarter of the hedging horizon and 15% for the last quarter of the hedging horizon. \n \n \n \n \n \n The Company will equally hedge transactional USD exposure with regards to jet fuel.\n \n \n \n \n \n József Váradi, Wizz Air Group Chief Executive Officer commented on the results:\n \n \n \n \n \n \n \n \n \"Wizz Air has a superior competitive advantage on its fleet, enabling lower operating cost and lower fuel burn versus any major player in the industry. Equally Wizz Air has a sustainable competitive advantage given its exposure to a faster growing CEE footprint, characterized by higher GDP growth and market growth. \n \n \n \n \n \n \n \n \n \n To fully benefit from our key sustainable competitive advant...