Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q1 F24 Earnings Presentation
18 slides from Wizz Air's earnings presentation, Aug 3, 2023
Slide 1: Wizz Air Holdings Plc Q1 F24 Results
3 August 2023 WIZZ AIR HOLDINGS PLC Q1 F24 RESULTS
Slide 2: Q1 F24 Highlights
Q1 F24 | HIGHLIGHTS Net profit of €61.1m with record traffic of 15.3m pax (vs 12.2m in F23) Summer performing according to plan Confidence in delivering our FY guidance of €350m – €450m Flight completion rate at 99.2% (vs 98.4% F23); utilization c.12h (vs 11:47h F23) Unit revenue +21% YoY with load
Slide 3: Key Business Metrics: Diversified Network Supporting Growth
Q1 F24 | KEY BUSINESS METRICS versus pre- versus DIVERSIFIED NETWORK SUPPORTING GROWTH (Q1 F23) pandemic (Q1 F20) Seats 16.8m (+16%) (+51%) Passengers 15.3m (+25%) (+47%) Aircraft* 182 (+25) (+58) Airports 194 (+1) (+47) Bases** 35 (-5) (+10) Countries 53 (+3) (+9) Employees 8,000 (+1,860) (+3,025)
Slide 4: Net Profit: Return to Strong Profitability in Q1
Q1 F24 | NET PROFIT RETURN TO STRONG PROFITABILITY IN Q1 Q1 F24 Q1 F23 Change Revenue (€m) 1,236.6 808.8 52.9% ASK growth +26.6% Fuel costs (€m) (443.7) (508.0) (12.7%) Load factor +6.5pp Non-fuel costs (€m) (713.0) (585.3) 21.8% EBITDA (€m) 236.7 (154.4) n.m. Passenger +25.3% growth Operating profi
Slide 5: Revenue Performance
Q1 F24 | REVENUE PERFORMANCE CONTINUED STRONG DEMAND AND RISING LOAD FACTORS Ancillary +20.8% Q1 F24 vs Q1 F23 vs Q1 F20 Ticket 4.19 +20.8% +9.0% RASK 4.19c 3.77 RASK Ticket 2.33c +38.7% +10.6% 3.46 RASK Ancillary 1.86c +3.9% +11.7% 1.86 Load factor 91.2% +6.5pp -2.5pp 1.66 1.79 ✓ Continued strong d
Slide 6: Financial Performance: Liquidity Improved and Net Debt Reduced
Q1 F24 | FINANCIAL PERFORMANCE LIQUIDITY IMPROVED AND NET DEBT REDUCED +17% € million 1,792 1,800 106 Higher capacity, improved trading and lower fuel 1,583 1,529 1,500 153 costs underpin stronger liquidity position 1,379 120 162 Cash deposits earning high interest 1,200 Net debt reducing to €3.8b (
Slide 7: Cost Performance
Q1 F24 | COST PERFORMANCE HIGHER UTILIZATION AND EFFICIENCY DRIVING LOWER EX-FUEL CASK Change Change CASK (€ cent) CASK € cent Q1F20 Q1F23 Q1F24 vs F23 vs F20 Fuel (1.12) (2.18) (1.50) (31%) 34% -16% CASK Fuel Staff costs (0.32) (0.37) (0.40) 9% 25% CASK ex-Fuel Maintenance, materials & (0.24) (0.23
Slide 8: Trading Update
Q1 F24 TRADING UPDATE 1. Operational performance 2. Recovering Load Factor 3. Market position 4. Network development 5. Fleet development 6. Sustainability and ETS allowances PAGE 8
Slide 9: Operational Performance
Q1 F24 | OPERATIONAL PERFORMANCE OPERATIONAL ADJUSTMENTS DELIVER RESULTS vs Q1 F23 Cancellations vs LY Flights 75,689 +12.6% 1,180 +25% more passengers Load factor 91.2% -47% fewer cancellations +6.5pp +1pp vs Euro average Fleet 11:58h 620 +1.5% utilization Regularity 99.2% +0.8pp Q1 F23 Q1 F24 PAGE
Slide 10: Load Factor and Seat Count Rising
Q1 F24 | LOAD FACTOR AND SEAT COUNT RISING 100 240 +9.0% Average seat count 93.6% 95 Load factor 91.2% 230 90 221 220 84.7% 214 85 210 80 198 200 75 190 70 Q1 F20 Q1 F23 Q1 F24 Q1 F20 Q1 F23 Q1 F24 Fleet average seat count +12% vs F20; Recovering load factor x higher fleet average seat count x large
Slide 11: Expanding Market Presence
Q1 F24 | EXPANDING MARKET PRESENCE WIDENING CEE MARKET LEADERSHIP Winter 23/24 Aircraft Base total 75 Catania, Italy +1 4 64% 64% Tirana, Albania +1 11 59% 57% 55% Warsaw, Poland +1 11 50 49% Skopje, N. Macedonia +1 6 43% Luton, London +1 12 36% 34% 33% 32% 31% 24% 23% 25% Q1 F24 25 23% 23% 22% 20%
Slide 12: Fleet Development
Q1 F24 | FLEET DEVELOPMENT SECURE, LONG-TERM NEO FLEET PLAN ➢ 182 aircraft; nine A321neo delivered; six A320ceo redelivered ➢ 4.32-years average fleet age, first A321neo delivery from Tianjin, China ➢ Attractive financing through calendar-end 2024 +350 ➢ Expect Airbus delays for last quarter of F25
Slide 13: Focus on Sustainable Aviation Fuels
Q1 F24 | FOCUS ON SUSTAINABLE AVIATION FUELS • Memorandum of Understanding with Cepsa for supply of SAF • Continued decrease in CO2 emitted: 52.5 g CO2/ RPK (rolling 12 months) LOWEST CO2/RPK COMMITMENT • First equity investment in SAF (5M GBP invested in Firefly Green Fuels’ SAF R&D) -40% vs SECOND
Slide 14: Loss of Emission Trading Allowances
LOSS OF EMISSION TRADING ALLOWANCES LESS IMPACT ON WIZZ AIR •Impacts flights taking off & landing at EEA airports Free EU ETS Allowances •Phased approach for allowance loss (-25% in % of F23 total emissions* c.40% CY2024, -25% in CY2025, -50% in CY2026) c.32% •Wizz Air less dependent on free allowan
Slide 15: Near-Term and Full-Year Outlook
NEAR-TERM AND FULL-YEAR OUTLOOK Guidance Capacity growth (ASKs) H1: ~25% YoY; H2: +30% YoY Load Factor Q2: up to 94%; FY: 90%+ Ex-fuel CASK FY: lower YoY Net profit (F24) Range €350 – €450 million PAGE 15
Slide 16: In Summary
IN SUMMARY Delivering on key goals: higher capacity and better operational KPIs YoY Operations improvements & maturing network deliver higher load factors Summer developing in line with expectations Fuel & FX protected with hedging policy in-place for 1 year+ Ex-fuel unit cost reducing in line with
Slide 17: Wizz | Disclaimer
WIZZ | DISCLAIMER This presentation has been prepared by Wizz Air Holdings Plc (the “Company”). By receiving this presentation and/or attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation is
Slide 18: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM* 100% HEDGE COVERAGE 62% 53%258% 267% 27% 16% 18% F24 F25 F24 F25 F24 F25 9 months 9 months 9 months 3 months 9 months 9 months Fuel EU / UK ETS** FX EURUSD Weighted average ceiling $958 / mt $835 / mt $1.11 $1.14 Weighted average floor $834 / mt $733 / mt $1.07 $1.10 * As of