Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — FY2024 Earnings Presentation
20 slides from Wizz Air's earnings presentation, May 23, 2024
Slide 1: Wizz Air Holdings Plc Annual Results
WIZZ AIR HOLDINGS PLC ANNUAL RESULTS 23 MAY 2024
Slide 2: F24 Highlights
F24 | HIGHLIGHTS Return to profitability, €365.9m net income in F24, in line with guidance Capacity ASKs +24.5% vs F23; Record traffic of 62m pax (vs 51m pax in F23) RASK €4.17c (+4.6% vs F23); driven by ticket RASK improvement of 11% (vs F23) CASK €3.90c (-14.8% vs F23), driven by lower fuel cost;
Slide 3: F24 Key Business Metrics
F24 | KEY BUSINESS METRICS RECORD PASSENGER TRAFFIC, FLEET NOW 61% NEOS AND AVG SEAT COUNT OF 224 Change vs F23 Seats 69m +18% Passengers 62m +21% Aircraft* 208 +29 Average aircraft age 4.3 years -0.3 Share of A320NEO 61% 12pp Average seat count 224 +5 Airports 193 -1 Countries 53 -1 Bases** 33 -2 E
Slide 4: Improved Operations
F24 | IMPROVED OPERATIONS DELIVERING COST BENEFITS AND DRIVING FINANCIAL PERFORMANCE Operational fleet utilization* (hh:mm) Completion rate** +0.7% On-time performance*** +10 pp +1:17h 99.4% 99.1% 73.2% 56.2% 65.3% 12.01 12.25 11.08 98.7% F20 F23 F24 F20 F23 F24 F20 F23 F24 99.4% 98.7% 99.1% ASKs +2
Slide 5: Financial Performance
F24 | FINANCIAL PERFORMANCE RETURN TO PROFITABILITY In € millions F24 F23 Change External factors: • Sustained demand for travel Revenue 5,073 3,896 30.2% combined with improving ticket Fuel costs 1,856 1,954 -5.0% yields • GTF engine inspections Non-fuel costs 2,780 2,408 15.4% • Middle East geopol
Slide 6: Revenue Performance
F24 | REVENUE PERFORMANCE STRONGER TICKET REVENUE OFFSETTING SOFTER ANCILLARIES In € cents +4.6% F24 F23 Change 3.98 4.17 RASK Ancillary ASKs 121,750m 97,779m 24.5% RASK Ticket RASK 4.17c 3.98c 4.6% 1.86 1.91 RASK Ticket 2.30c 2.07c 11.2% RASK Ancillary 1.86c 1.91c -2.6% 2.07 2.30 Load Factor 90.1%
Slide 7: Unit Cost Performance
F24 | UNIT COST PERFORMANCE IMPROVEMENT DRIVEN BY LOWER FUEL COSTS, HIGHER UTILIZATION AND PRODUCTIVITY F24 F23 Change Fuel 1.52 2.00 -23.7% In € cents F24 F23 Gain on SLB -0.20 -0.10 Staff costs 0.42 0.38 9.1% Supplier compensation -0.16 -0.04 Maintenance, materials & repairs 0.23 0.24 -3.4% Flight
Slide 8: Industry Leading CASK
F24 | INDUSTRY LEADING CASK FLEET EFFICIENCY OFFSETTING OWNERSHIP COSTS AND REDUCING TOTAL CASK Total CASK (€ cents) Reported stage length Reported stage length +11% 4.6 4.6 +23% -15% +16% 3.9 4.0 3.7 3.5 F20 F23 F24 F20 F23 F24 Stage length adjusted to 1,600km Stage length adjusted to 1,600km +15%
Slide 9: Cash Position
F24 | CASH POSITION SAFEGUARDING LIQUIDITY DURING GROUNDINGS In billion € Restricted cash • Repayment of €500 million EMTN bond Free cash • PDP facility & ETS repurchase agreement 1.8 1.62 1.59 • OEM compensation collected & continuing 1.6 1.50 1.53 0.17 1.38 0.12 0.11 • Fitch IG rating affirmed at
Slide 10: ESG Developments
F24 | ESG DEVELOPMENTS REDUCTION IN CARBON EMISSIONS AND IMPROVED EMPLOYEE ENGAGEMENT • Industry-leading CO2/ RPK emissions at 52.0 grams in F24 (vs 53.8 grams in F23) • Aspiration to power 10% of flights with sustainable aviation fuel (“SAF”) by 2030 • Youngest fleet among European peers (4.3 years
Slide 11: Focus on F25
FOCUS ON F25 EXPANDING OPERATIONAL IMPROVEMENTS & DRIVING HIGHER MARGINS 1. GTF engine update 2. Strong platform for margin expansion 3. Network adjustments 4. Expanding the product set 5. Fleet development 6. EU ETS credits 7. Outlook PAGE 11
Slide 12: GTF Engine Update
GTF ENGINE UPDATE PROGRESSING AS EXPECTED, WITH CLOSE MANAGEMENT OF SHOP VISITS WITH OEM Current status F25 expectations Final Objectives ▪ 47x AOG as of 17 May ▪ c.50x AOG H1 F25-end ▪ Safe & stable operations ▪ Average shop time 300 ▪ Average shop time 300 ▪ Reliable fleet days (wing-to-wing since
Slide 13: Strong Platform for Margin Expansion
F25 | STRONG PLATFORM FOR MARGIN EXPANSION SUPPORTED BY OPERATIONAL IMPROVEMENTS AND A FAVOURABLE DEMAND ENVIRONMENT ✓ Op. utilization: +20 min. YoY (to c.12:45h in F25) Continued ✓ OTP (D15): higher YoY (to 80% in F25) operational ✓ Flight completion rate: +0.1 pp (to 99.5% in F25) excellence ✓ New
Slide 14: Network Adjustments
F25 | NETWORK ADJUSTMENTS FOCUS ON CURRENT YEAR PROFITABILITY AND F26 GROWTH Incremental planes Network route maturity Route portfolio management focused to strongest markets driving higher profit on returns (Capacity actions in H1 F25) 4% 1% ) Aug ’24 YoY < 1 years 6% H1 F24 % ASKs % ASKs 20% RASK*
Slide 15: Expanding the Product Set
F25 | EXPANDING THE PRODUCT SET TO DRIVE ANCILLARY GROWTH AND IMPROVE CUSTOMER OFFERING Timing BUNDLES WIZZ SHOP&FLY • Optimizing ancillary • Partnership with InterLnkd. performance and • The platform offers Artificial increasing conversion. Intelligence -driven • Introducing the Wizz personalized s
Slide 16: Fleet Development
F25 | FLEET DEVELOPMENT NEW DELIVERIES FROM SUMMER ‘24 DO NOT REQUIRE ENGINE INSPECTIONS A321XLR A321neo A321 A320neo A320 Key developments F24: Contractual positions shown • Fleet of 208 aircraft at year end 449 • 39x A321neo deliveries; 12x A320ceo redeliveries 421 320+ 47 • 20x GTF spare deliveri
Slide 17: EU ETS Credits
F25 | EU ETS CREDITS REBASING TO 2023 EMISSIONS RESULTS IN ADDITIONAL FREE EU ETS UNITS Estimate of additional free ▪ Free ETS allowances on-track to be phased out by ‘26 EU ETS credits (CY 2024) ▪ EU rebasing allocation in CY ‘23 (policy change) ▪ Wizz Air receives additional free units (tailwind i
Slide 18: F25 Outlook
F25 | OUTLOOK DRIVING MARGIN EXPANSION F25 Capacity growth (ASKs) H1: flat YoY, FY: flat YoY Load Factor FY: 92% RASK FY: Up high single digits YoY CASK ex-Fuel FY: Up high single digits YoY* Fuel CASK FY: ’Flattish’ YoY Net profit FY: €500-600 million Effective tax rate FY: 14% * Driven by deprecia
Slide 19: Disclaimer
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 intend
Slide 20: Appendix: Hedge Program
APPENDIX | HEDGE PROGRAM EU/ UK ETS* AS OF 17 MAY 2024 100% FUEL FX EURUSD 62% 59% 10% 11% F25 F26 F25 F26 F25 11 months 7 months 11 months 7 months 12 months Weighted average ceiling $859 / mt $850 / mt $1.1222 $1.1249 Weighted average floor $750 / mt $737 / mt $1.079 $1.082 *Inclusive of free allo