Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q3 2023 Earnings Presentation
22 slides from Wizz Air's earnings presentation, Jan 26, 2023
Slide 1: Wizz Air Holdings Plc Q3 F23 Results
WIZZ AIR HOLDINGS PLC Q3 F23 RESULTS 26 January 2023
Slide 2: Q3 F23 Highlights
Q3 F23 | HIGHLIGHTS Q3 revenue up +43% vs. Q3 F20, overall 9M F23 up +35% vs. 9M F20 Unit revenue grew +4% in Q3 vs F20; Ancillary unit revenue +7% vs Q3 F20 Breakeven Q3 EBITDA, with 9M F23 at €220m, despite higher input costs Fuel unit cost down 5% in Q3 versus H1F23 Positive impact from stronger
Slide 3: Q3 F23 Key Business Metrics
Q3 F23 | KEY BUSINESS METRICS versus versus Q3 F22 Q3 F20 Passengers 12.4m (+59%) (+24%) Aircraft* 177 (+27) (+57) Airports 194 (-2) (+40) Bases** 35 (-7) (+10) Countries 54 (+3) (+9) World 2022 Most Sustainable Finance Low-Cost Airline CAPA Global Environmental (Centre for Sustainability Airline Av
Slide 4: Growing Market Presence
Q3 F23 | GROWING MARKET PRESENCE Q3 F23 Q3 F20 Market share up 4% vs Q2 F23 and 9% vs Q3 F20 80% 70% 67% 64% 60% 56% 53% 50% 40% 40% 36% 34% 33% 30% 30% 30% 27% 27% 27% 25% 23% 23% 22% 22% 21% 20% 20% 18% 18% 16% 12% 9% 10% 10% 6% 5%6% 5%4% 3% 3.0% 0.5% 0% CEE Albania Austria BIH Bulgaria Cyprus UK
Slide 5: Q3 F23 Financial Performance
Q3 F23 | FINANCIAL PERFORMANCE Q3 F23 Q3 F22 Change Revenue (€m) 911.7 408.4 123.2% EBITDA (€m) (2.8) (87.5) 96.8% Operating cost (€m) 1,067.2 621.9 71.6% Operating (loss) (€m) (155.5) (213.6) 27.2% Net foreign exchange gain/ (loss) (€m)* 224.2 (31.1) n.m. Reported profit / (loss) (€m) 33.5 (267.5)
Slide 6: Revenue Performance
Q3 F23 | REVENUE PERFORMANCE STRONG FARE ENVIRONMENT EXTENDS INTO WINTER 22/23 Revenue (€m) RASK 3.73c (+3.6% vs F20) +43% RASK Ancillary 1.83c (+7.45% vs F20) 911m RASK Ticket - flat, driven by lower load factor ✓ Capacity growth aligned to market dynamics 637m 447m +123% ✓ Broader network enables
Slide 7: Cash Management
Q3 F23 | CASH MANAGEMENT In € million 1,630 204 54 26 125 1,367 38 Cash - 1 Oct 2022 Operations Unflown revenue AP / AR Inventory Pre Delivery Cash - 31 Dec 22 (including leases) (EU / UK ETS) Payments Cash refers to total cash and comprises cash and cash equivalents, short-term cash deposits, and c
Slide 8: Cash Management
Q3 F23 | CASH MANAGEMENT € million 1,630 1,583 135 153 1,401 1,379 1,367 -2% 165 162 129 Cash balance in line with prior year Unflown revenue grows from a larger base 1,495 Purchase of EU ETS credits 1,430 1,236 1,238 1,217 Net inflow of ~€38m from PDP refunds Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Rest
Slide 9: Ex-Fuel CASK
Q3 F23 | EX-FUEL CASK RETURN TO HIGH AIRCRAFT UTILISATION CASK (€ cent) Change Change Q3 F23 Q3 F22 Q3 F20 vs Q3 vs Q3 F22 F20 Fuel 2.01 1.24 1.21 62.1% 66.1% Staff costs 0.41 0.38 0.33 7.9% 24.2% Distribution & marketing 0.10 0.07 0.06 42.9% 66.7% Maintenance, materials & repairs 0.22 0.36 0.27 (38
Slide 10: Restore Ex-Fuel CASK Performance
RESTORE EX-FUEL CASK PERFORMANCE Unit cost benefits from return to normal utilisation, A321neo fleet and fundamental business shifts A • Younger fleet with average age of 4.64 years • Adding more A321neo with 239 seats • Fleet utilisation normalises Back B To pre COVID • Network optimization levels
Slide 11: Increasing Utilisation with F24 in Sight
INCREASING UTILISATION WITH F24 IN SIGHT 1. Flight disruptions normalise in line with historical benchmarks 2. Operational resilience to resist external factors 3. Enhance customer service 4. Younger, larger and more efficient fleet 5. Network developments 6. Sustainability leadership PAGE 11
Slide 12: Flight Disruptions Normalise
FLIGHT DISRUPTIONS NORMALISE RETURNING TO FULL UTILISATION OVER NEXT QUARTERS vs Q3 F20 Q3 F22 Q3 F23 H1 F24 Targets 16.4bn 24.4bn ASK growth +30% ASKs -7.1% +38.1% vs F23 Load factor 77.1% 87.3% F20 levels -15.4ppt -5.2ppt Utilisation 8:57 hours 10:31 hours >12:30 hours -24.3% -11.1% Regularity 99.
Slide 13: Operational Resilience
OPERATIONAL RESILIENCE Infrastructure People Aircraft ✓Systems scale ✓Hired 3,000+ people in 2021- ✓Additional spare aircraft ✓Process automation 2022 period ✓Fleet renewal and allocation ✓Crew scheduling and ✓Training center throughput program onboarding tools grows five-fold versus pre- ✓A321neo e
Slide 14: Customers - At the Center of Everything We Do
CUSTOMERS - AT THE CENTER OF EVERYTHING WE DO On-line travel document validation Broader brand awareness Breakthrough Established CEE +54pp 97% +4pp +15pp 94% 89% +10pp 85% +13pp 56% 41% 36% 30% 40% 40% 23% of customers checking-in online for non-Schengen flights; also validate travel documents befo
Slide 15: Larger, More Efficient Fleet
LARGER, MORE EFFICIENT FLEET ✓ 177 aircraft; nine x A321neo delivered; share of NEO fleet at 47% ✓ 4.64-year average fleet age, 217 fleet average seat count (vs 203 Q3 F20) ✓ Attractive financing through calendar-end 2023 ✓ Airbus delays XLR into F25 ✓ Growing ASKs in H1 F24 +30% vs H1 F23 231 234 2
Slide 16: Scaling Up in Markets We Know
SCALING UP IN MARKETS WE KNOW ….helps to keep airport costs down versus F22 New destination New airport countries (same 2% Join country) existing Increasing airports 3% frequencies 16% 79% versus Q3 F20 New capacity in Q3 F23 Rest of the 52% network 48% UAE + Italy …while freeing up resource to expa
Slide 17: Wizz Air Abu Dhabi - Two Years In
WIZZ AIR ABU DHABI - TWO YEARS IN Key facts: Major opportunities exist in under served LCC segment • Employees: 380+ • Countries serving: 18 • Seats deployed in 2022: 1.3 million • Fleet size: 8 x A321neo (239 seat density) • Fleet age: 1.2 years • Brand awareness: Abu Dhabi 41%; UAE 36% • AUH inbou
Slide 18: Q3 Sustainability Update
Q3 SUSTAINABILITY UPDATE • Winner of CAPA Aviation EMEA and Global Environmental Sustainability Airline Group of the Year • Employee assistance payments to help offset inflation • Signed MoU with OMV for SAF supply 2023 - 2030 LOWEST CO2/RPK COMMITMENT • Lowest CO2 per RPK emitted in CY 2022 at 55.2
Slide 19: Outlook
OUTLOOK Maintain H2 F23 Ex-Fuel CASK guidance at single digits vs H2 F20 Maintain H2 F23 RASK guidance at mid-single digits vs H2 F20 ASK growth remains on track 35%+ vs H2 F20* Expect net loss for F23, but return to profit in F24 Operational focus in F24 on: (i) aircraft utilisation – 12:30 hours (
Slide 20: Summary
SUMMARY Unit costs reducing, supported by increased utilisation, cost advantages, fuel hedge parity and currency strength Wizz Air revenue growth continuing driven by ancillaries and higher load factor; proven pricing platform in Q3 winter quarter Network expanding geographically and becomes more ro
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: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM 100% HEDGE 59% COVERAGE 258% 267% 45% 43% 20% F23 F24 F23 F24 F24 3 months 12 months 3 months 12 months 12 months Fuel EU / UK ETS FX EURUSD Capped rate $1,334 $1,032 Floor rate $1,028 $897 Weighted average ceiling $1.11 Weighted avg ceiling $1,204** Weighted average floor $1