Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — H1 F24 Earnings Presentation
24 slides from Wizz Air's earnings presentation, Nov 9, 2023
Slide 1: Wizz Air Holdings Plc H1 F24 Results
WIZZ AIR HOLDINGS PLC H1 F24 RESULTS 9 November 2023
Slide 2: H1 F24 Highlights
H1 F24 | HIGHLIGHTS Record profit of +€401m vs -€384m H1 F23, Q2 profit 5x higher vs Q2 F23; Cash balance increased to €1.8bn with strong Free Cash Flow generation; Traffic up +25% vs H1 F23 and +49% vs H1 F20 to a record setting 33m pax; Summer ops improved vs H1 F23; completion rate 99.2% (vs 98.1
Slide 3: Key Business Metrics
H1 F24 | KEY BUSINESS METRICS RECORD CAPACITY AND PASSENGERS IN SUMMER ‘23 versus versus pre- pandemic (H1 F23) (H1 F20) Seats 35.6m (+17%) (+53%) Passengers 33.0m (+25%) (+49%) Aircraft* 187 (+19) (+68) Airports 196 (-4) (+45) Bases** 34 (-4) (+9) Countries 54 (+1) (+10) Employees 8,065 (+1,295) (+
Slide 4: Update on Engine Inspections
UPDATE ON ENGINE INSPECTIONS NEO GTF ENGINE LONG-TERM PROGRAM UNAFFECTED • Service bulletin received and grounding plan being Powder metal finalized • Safe operation secure inspections • Key areas now known: • Customized support plan and • An average 45 aircraft grounded due to engine compensation f
Slide 5: Financial Performance
H1 F24 | FINANCIAL PERFORMANCE HIGHEST EVER H1 NET PROFIT H1 F24 H1 F23 Change Revenue (€m) 3,052.3 2,193.8 39.1% ASK growth +27.0% Fuel costs (€m) (966.4) (1,032.7) (6.4%) Load factor +5.7pp Non-fuel costs (€m) (1,563.0) (1,224.9) 27.6% EBITDA (€m) 878.1 217.8 303.2% Passenger +24.6% growth Operati
Slide 6: Revenue Performance
H1 F24 | REVENUE PERFORMANCE PRICING GROWTH AS DEMAND REMAINS STRONG RASK (€ cent) H1 F24 vs H1 F23 vs H1 F20 Ancillary ASKs 62,193m +27.0% +63.3% +9.6% Ticket 4.91 RASK 4.91c +9.6% +11.9% 4.39 4.48 RASK Ticket 2.83c +17.4% +12.8% RASK Ancillary 2.08c +0.4% +10.6% 2.08 Load factor 92.6% +5.7pp -2.0p
Slide 7: Unit Cost Performance
H1 F24 | UNIT COST PERFORMANCE FUEL & EFFICIENCY TAILWINDS; STAFF COSTS & AIRPORT DELAYS A HEADWIND CASK (€ cent) CASK € cent Change Change H1F20 H1F23 H1F24 vs F23 vs F20 -12% Fuel (1.15) (2.11) (1.55) (26%) 36% CASK Fuel CASK ex-Fuel Staff costs (0.31) (0.37) (0.40) 8% 29% 2.11 1.55 Maintenance, m
Slide 8: Cash & Financial Position
H1 F24 | CASH & FINANCIAL POSITION IMPROVED TRADING UNDERPINS STRONGER LIQUIDITY € Bn +45% 2.0 +40% 1.79 1.84 Liquidity accelerating to record levels after 0.11 0.11 1.58 1.63 strong summer trading 0.14 1.53 1.5 1.38 0.15 0.12 0.16 PDP financing facility balance at €118m and 1.0 available for redraw
Slide 9: Free Cash Flow Development
FREE CASH FLOW DEVELOPMENT RECORD FREE CASH CONTRIBUTION FROM H1 TRADING €720m Free cash flow Strong EBITDA to free cash conversion €478m Positive contribution from working capital as growth accelerates €238m Funding repayment of debt and €172m deleveraging after the pandemic Disciplined capex spend
Slide 10: Delivering a More Resilient Wizz Air
DELIVERING A MORE RESILENT WIZZ AIR PROACTIVE MANAGEMENT OF ONGOING EXTERNAL CHALLENGES Headwinds continue to persist… …but Wizz mitigating the impact and getting stronger GTF engine inspection programme • Compensation and support package agreed with OEM Process ongoing; OEM shortages • Self-help in
Slide 11: Trading Update
H1 F24 TRADING UPDATE 1. Operational performance 2. Rising load factor 3. Fuel advantage 4. Brand awareness 5. Market position 6. Fleet update 7. Sustainability 11 PAGE 11
Slide 12: Operational Metrics
H1 F24 | OPERATIONAL METRICS OPERATIONAL IMPROVEMENTS DELIVERING KPI RESULTS On time performance 80 76.9% 73.0% 67.8% 70 63.0% 62.7% 61.7% 59.7% 59.6% 57.1% 57.4% 55.7% 60 54.6% 55.0% 50 45.6% 44.0% 42.2% 41.0% 38.4% 40 30 Apr May Jun Jul Aug Sept Completion rate 99.8% 99.9% 99.8% 99.8% 99.9% 100 99
Slide 13: Operational Performance
H1 F24 | OPERATIONAL PERFORMANCE IMPROVED UTILIZATION IN KEY SUMMER PERIOD AS CAPACITY GROWS YOY vs H1 F23 Flights 160,725 Utilization vs LY vs pre-COVID +13.9% In hours & minutes Q1 Q2 Q2 Q2 Q1 Load factor 92.6% Q1 7% +5.7pp Fleet 12:18h +4.1% 13.04 13.38 utilization* 11.47 11.50 11.58 12.37 Regula
Slide 14: Rising Load Factor
H1 F24 | RISING LOAD FACTOR LOAD FACTOR MAINTAINED DESPITE HIGH-CAPACITY GROWTH Capacity as a percent of pre-pandemic levels (measured in seat capacity) Load factor 153% 98% 97% 96% 96% 96% 95% 95% 95% 95% 94% 94% 96% 94% 93% 92% 92% 92% 92% 91% 91% 90% 90% 89% 88% 87% 86% Industry WIZZ Apr May Jun
Slide 15: Fuel Advantage
H1 F24 | FUEL ADVANTAGE FUEL EFFICIENCY MORE THAN OFFSETS EMISSIONS COST In € cents 0.18 0.26 0.15 0.11 1.55 1.15 *Fuel consumption (tons) per ASKs, unadjusted for stage length difference H1 F20 Fuel CASK Fuel efficiency* ETS mix/price Fuel Price Hedge/ IPP/ FX H1 F24 Fuel CASK ✓ More fuel-efficient
Slide 16: Building the Brand
BUILDING THE BRAND IMPROVED BRAND AWARNESS ACROSS MARKETS YOY CEE Breakthrough Customer initiatives: Prompted brand awareness ✓ Increased customer service capacity Sept ’22 ✓ Automation solutions 92% 91% 91% 89% 92% Sept ’23 83% 81% 84% ✓ Amelia virtual assistant on Wizz App 60% ✓ Customer claims ba
Slide 17: Wizz Today: Leader in Our Core Markets
WIZZ TODAY: LEADER IN OUR CORE MARKETS #1 or #2 POSITION IN 10 OUT OF 13 WIZZ AIR BASED COUNTRIES Summer ‘24 Aircraft Base total 75 Bucharest, Romania +2 19 Tirana, Albania +2 13 58% 57% Rome, Italy +3 14 56% 55% Milan, Italy +1 8 50 48% Gdansk, Poland +1 8 43% 33% 31% 32% Q2 F24 29% Q2 F23 24% 25%
Slide 18: Fleet Management & Engine Inspections
FLEET MANAGEMENT & ENGINE INSPECTIONS ORDERBOOK, LEASE EXTENSIONS & CAPACITY MANAGEMENT SUPPORT FLEET COUNT Short term actions to mitigate groundings No impact to longer term fleet plan and growth 204 450 A321XLR A320neo 422 47 345 179 45 anticipated A321neo A320 47 groundings 373 A321 37 330 24 39
Slide 19: Sustainability Update
SUSTAINABILITY UPDATE DELIVERING LOWEST CO2 EMISSION INTENSITY TODAY • Youngest fleet among European peers (4.2 years) • Most Sustainable Low-Cost Airline for the third consecutive year at the World Finance Sustainability Awards 2023 • Global Environmental Sustainability Airline Group of the Year fo
Slide 20: Outlook
OUTLOOK Guidance Capacity growth (ASKs) H2 F24: c.20% YoY (Q3: c.25%, Q4: c.15%) Load Factor FY: 90%+ Ex-fuel CASK FY: lower YoY Net profit (F24) Narrow range to €350 – €400 million 20 PAGE 20
Slide 21: 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 22: Q2 F24 Financial Performance
Q2 F24 | FINANCIAL PERFORMANCE Q2 F24 Q2 F23 Change Revenue (€m) 1,815.7 1,385.0 31.1% ASK growth +27.4% Fuel costs (€m) (522.7) (524.7) (0.4%) Load factor +5.0pp Non-fuel costs (€m) (850.0) (639.6) 32.9% EBITDA (€m) 641.4 372.2 72.3% Passenger +23.9% growth Operating profit (€m) 443.0 220.7 100.7%
Slide 23: Q2 F24 Cost Performance
Q2 F24 | COST PERFORMANCE Change Change CASK € cent Q2F20 Q2F23 Q2F24 vs F23 vs F20 Fuel (1.16) (2.05) (1.60) (22%) 37% Staff costs (0.28) (0.38) (0.43) 11% 51% Maintenance, materials & (0.21) (0.24) (0.25) 7% 19% repairs Airport, handling & en-route (0.94) (1.07) (1.05) (2%) 12% Depreciation & amor
Slide 24: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM* 100% HEDGE COVERAGE 70% 69% 50% 258% 267% 38% 32% F24 F25 F24 F25 F24 F25 6 months 12 months 6 months 6 months 6 months 6 months Fuel EU / UK ETS** FX EURUSD Weighted average ceiling $931 / mt $854 / mt $1.11 $1.14 Weighted average floor $811 / mt $747 / mt $1.07 $1.09 • As