REG - Wizz Air Holdings - Final Results
23/05/2024 07:00
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RNS Number : 5572P Wizz Air Holdings PLC 23 May 2024
WIZZ AIR HOLDINGS PLC - UNAUDITED RESULTS FOR THE 12 MONTHS TO 31 MARCH 2024
WIZZ AIR RETURNS TO PROFIT IN F24; DELIVERS IMPROVED ASSET UTILIZATION AND
ON-TIME PERFORMANCE; ENCOURAGING START TO F25
LSE: WIZZ
Geneva, 23 May 2024: Wizz Air Holdings Plc ("Wizz Air" or "the Company") one
of the most sustainable European airlines, today announces its unaudited
results for the full year ended 31 March 2024 ("F24").
Full year to 31 March 2024 2023 Change
Passengers carried 62,015,792 51,071,836 21.4%
Total revenue (€ million) 5,073.1 3,895.7 30.2%
EBITDA (€ million)(1) 1,193.2 134.3 788.5%
EBITDA Margin (%)(1) 23.5 3.4 20.1ppt
Operating profit/(loss) for the period (€ million)(2) 437.9 (466.8) n.m.
Unrealised foreign currency gain (€ million) 34.2 9.1 275.8%
Profit/(loss) for the period (€ million)(2) 365.9 (535.1) n.m.
RASK (€ cent) 4.17 3.98 4.6%
Fuel CASK (€ cent) 1.52 2.00 (23.7)%
Ex-fuel CASK (€ cent) 2.38 2.58 (7.8)%
Total cash (€ million)(1,3) 1,588.9 1,529.0 3.9%
Load factor (%) 90.1 87.8 2.4ppt
Period-end fleet size 208 179 16.2%
Period-end seat count (thousand) 68,813 58,190 18.3%
(1 )For definition of alternative performance measures presented refer to
"Glossary of terms" and "Alternative performance measures (APMS)" sections of
this document. These measures incorporate certain non-financial information
that management believes is useful when assessing the performance of the
Group.
(2) n.m.: not meaningful as a variance is more than (-)100 per cent.
(3 )Total cash comprises cash and cash equivalents (31 March 2024:
€728.4 million; 31 March 2023: €1,408.6 million), short-term cash
deposits (31 March 2024: €751.1 million; 31 March 2023: nil) and total
current and non-current restricted cash (31 March 2024: €109.4 million; 31
March 2023: €120.4 million).
HIGHLIGHTS
▶Wizz Air celebrates 20 years since its first flight, with more than 390
million passengers carried since launch.
▶ASK capacity 24.5 per cent higher in F24 vs last year.
▶Record traffic of 62.0 million passengers in F24 (vs 51.1 million
last year).
▶Unit revenue (RASK) up 4.6 per cent year-on-year, with ticket
RASK +11.2 per cent and ancillary -2.6 per cent.
▶Full year revenue impact from Israel and wider region crisis circa €80
million.
▶Unit cost (CASK) down by 14.8 per cent year-on-year, with fuel
CASK -23.7 per cent and ex-fuel -7.8 per cent.
▶EBITDA up significantly to €1.2 billion, in line with strong
pre-pandemic performance.
▶Total cash balance at €1.59 billion, after repayment of a €500 million
EMTN bond.
▶Significant improvement in operational metrics with operating fleet
utilization at 12:25 hours vs 11:08 hours last year and with 65.3 per
cent on-time performance, up from 56.2 per cent:
▶Maturing network with lower share of capacity operated on routes younger
than three years (-7 percentage points vs last year).
▶Navigating GTF engine disruption: 45x aircraft-on-ground at F24-end; 47x
as of 17 May 2024; Significant OEM compensation received for F24; Expect
circa 50x aircraft grounded by end of H1 of fiscal F25.
▶Received delivery of 39 new A321neos; finalized 13 lease extensions and
secured 11 more; received 20 GTF spare engines in F24 and advancing 8-10 more
in H1 F25.
▶Close to flat YoY capacity projections for H1 F25 and full F25.
▶Reported CO2 emissions at 52.0 grams per passenger/km for the rolling 12
months to 31 March 2024 (vs 53.8 grams for F23) and set aspirational goal to
use 10 per cent SAF by 2030. Improved to "B" score in the 2023 climate ranking
by CDP, a two-band improvement vs Wizz Air's 2022 score.
▶Trading in the financial year has been encouraging, with sustained demand
and positive booking momentum for the summer.
József Váradi, Wizz Air Chief Executive Officer commented on the results:
"Sustained healthy demand for air travel across our markets was a defining
feature of F24, signalling that the surge witnessed post pandemic has evolved
into a longer-term trend in consumer behaviour. Wizz Air has been strongly
positioned for this trend as reflected in our performance for the year.
We placed a sharp focus on increasing utilisation, improving load factors and
lowering unit costs (fuel and ex-fuel), and continued to invest in our
operations. Our efforts saw us carry a record number of passengers during the
year, return to profitability and reduce financial leverage while maintaining
our total cash position.
We responded rapidly to challenges during the year by flexing resources and
commercial arrangements, and quickly redeploying capacity where needed, as
renewed geopolitical instability emerged.
We also faced unprecedented supply chain disruption due to mandatory engine
material inspections affecting our neo aircraft fleet.
Despite these challenges, our 8,000-strong workforce delivered an exceptional
service, reflected across operational, financial and people metrics. I would
like to thank each one of our employees for embodying the WIZZ spirit through
their perseverance, dedication, passion and commitment in F24."
Commenting on the outlook and current trading for the Company, József Váradi
added:
"While some of the external challenges we experienced throughout F24,
including groundings due to GTF engine inspections and geopolitical
instability, are expected to persist in the coming year, we have proven that
our model is agile, highly resilient and well positioned to mitigate the
impact of these ongoing issues. This includes the current scale and diversity
of our network, which means we are incredibly well placed to react quickly to
issues as they arise.
While our capacity expectations for the year have been moderated in response
to these changes in the operating environment, new aircraft deliveries
persist, and our efforts to drive productivity and utilisation continue to
deliver results. As we enter F25, demand for air travel remains robust, with
no sign of abating in the near term, supporting a higher yield environment as
capacity across the whole industry remains constrained.
Our current trading indicators are positive, with selling load factors
trending higher year on year in the first two fiscal quarters and unit revenue
(RASK) performing equally well.
We will continue to use the levers available to us to mitigate challenges in
our sector, while relentlessly moving forward with the execution of our growth
strategy, operating one of the most sustainable fleets in the industry and
delivering value for all of our stakeholders."
NEAR TERM AND FULL YEAR OUTLOOK
The near-term and full-year outlook is summarised as follows:
▶Capacity (ASKs): H1 F25 and F25 flat YoY;
▶Load factors: F25 92%;
▶Revenue: F25 RASK up high single digit YoY;
▶Cost: F25 ex-fuel CASK up high single digits YoY; and F25 fuel CASK
'flattish' YoY;
▶Net income: F25 in the range of €500-600 millions, at current FX rates;
▶Group Corporate Effective Tax Rate (ETR): 14%.
SUMMARY OF F24 FINANCIAL RESULTS
▶Total revenue increased by 30.2 per cent to €5,073.1 million,
compared to €3,895.7 million in F23.
▶Fuel expenses decreased by 5.0 per cent to €1,855.7 million,
compared to €1,954.4 million in F23.
▶Operating expenses (excluding fuel) increased by 15.4 per cent to
€2,779.5 million, compared to €2,408.1 million in F23.
▶EBITDA grew substantially to €1,193.2 million, an increase
of €1,058.9 million vs F23.
▶Operating profit was €437.9 million compared to an operating loss of
€466.8 million in F23.
▶Net financing expenses decreased by 1.1 per cent to €96.8 million,
compared to €97.9 million recorded in F23.
▶Net foreign exchange gain for F24 was €19.4 million, compared to a gain
of €16.6 million in F23.
▶The Company recorded income tax credit of €24.8 million
in F24 compared to the €29.5 million credit in F23.
▶Wizz Air reported a net profit of €365.9 million
(F23: loss €535.1 million), returning to a full fiscal year of profitable
operations.
▶At 31 March 2024, the Group held total cash of €1,588.9 million
(including cash and cash equivalents of €728.4 million, €751.1 million
of short-term cash deposits and €109.4 million of restricted cash),
compared to €1,529.0 million in F23.
REVENUE AND COST HIGHLIGHTS
Total revenue increased driven by increases in capacity and load factor:
▶Passenger ticket revenue increased by 38.5 per cent to
€2,804.2 million.
▶Ancillary revenue increased by 21.3 per cent to €2,268.9 million.
▶Total unit revenue increased by 4.6 per cent to €4.17 cents per
available seat kilometre (ASK).
▶Ticket RASK increased by 11.2 per cent to €2.30 cent, reflecting a
stronger load factor year-on-year and favourable pricing environment,
specifically during the peak periods.
▶Ancillary RASK decreased by 2.6 per cent to €1.86 cent, mainly
driven by the impact of Israel-Hamas war, denting demand in markets with high
ancillary spend.
Total operating expenses increased by 6.3 per cent to €4,635.2 million
in F24 from €4,362.5 million in F23:
▶Total CASK decreased to €3.90 cent in F24 from €4.58 cent
in F23.
▶Ex-fuel CASK decreased by 7.8 per cent to €2.38 cent in F24 from
€2.58 cent in F23, reflecting improved aircraft utilization and on-time
performance, various savings in navigation and maintenance lines plus the
effect of supplier compensation and gains from multiple spare engine
financing in the last fiscal quarter (spare engines advanced to support GTF
engine inspections).
▶Fuel CASK decreased by 23.7 per cent to €1.52 cent in F24, driven
mainly by lower fuel charges, improved efficiency (expressed in metric tonnes
per ASK: -1.6 per cent YoY) and additional benefit from the prospective
rebalancing of free EU ETS emission quotas amongst industry players.
GTF ENGINE UPDATE
As of 17 May 2024, Wizz Air had 47 aircraft on the ground as a result of GTF
engine-related matters. The Company is expecting circa 50 aircraft to be
grounded by the end of the first half of fiscal F25 (approximately one year
since the first aircraft was grounded in September 2023). We continue to
maintain our assumption for the average expected shop visit time needed to
return engines back to service of circa 300 days. In the meantime, more spare
engine deliveries have been advanced and we are expecting further 8-10 new
spare engine deliveries, most of which should be delivered by the end of June
2024. The total number of spare engines should exceed 50 by the end of this
summer. Wizz Air has actively managed its fleet to minimise the impact of
grounding, deploying the neo fleet to longer sectors, extending existing
leases, securing third-party aircraft and advancing additional spare engines.
As announced previously, we have secured an OEM support package (including
compensation for grounded aircraft) and we expect to secure future
compensation on similar terms for Q4 F25 and beyond.
GEOPOLITICAL CRISIS IN THE MIDDLE EAST
Wizz Air cancelled circa 6 per cent of its planned capacity for Q3 in early
October, as the crisis emerged in Israel. Affected capacity was redeployed
across the network at short notice, which contributed to lower load factors in
the period. The conflict also impacted seasonal demand for travel to the
nearby markets of Jordan and Egypt, whose capacity was also partially
redeployed, accounting for an additional 3 per cent of the overall redeployed
capacity. In Q4, these changes continued to weigh on load factors. The impact
on full year Group revenue was circa €80 million. After careful
consideration, we decided to restart operations to Tel Aviv in the last
quarter of the year, and demand has been building steadily since. We continue
to monitor developments in the region closely, with operational decisions
driven solely by safety considerations.
OUR DIVERSIFIED GEOGRAPHIC FOOTPRINT AS A COMPETITIVE ADVANTAGE
In F24, despite industry-wide challenges, we continued to evolve our network.
Our network now spans 924 routes, to 200 destinations in more than 50
countries, operated across our four airlines.
We continued to build on our strong presence in our operating markets,
including maintaining Wizz Air's dominant position in our core CEE
countries. Wizz Air grew its market share to 27 per cent (+3 per cent points
vs F23) in CEE. In Western Europe, we continued to provide a differentiated
offer and act as a challenger to established peers across selected routes
where we can offer a distinct price advantage. At London Luton, we are now
the second largest airline, and have converted to operating an all Airbus
A321neo fleet there one year earlier than planned. In F25, our Italian
bases in Rome and Milan will see the largest schedule deployed to date.
Our Middle East route network is maturing as expected, and in line with the
profile of our CEE network development. During the year, we added a further
two aircraft in Abu Dhabi, exceeding initial fleet size expectations there.
FLEET DEVELOPMENTS
▶During F24 Wizz Air took delivery of 39 new A321neo aircraft, and 12
A320ceo aircraft were redelivered, ending the fiscal year with a total fleet
of 208 aircraft: 40x A320ceo, 41x A321ceo, 6x A320neo and 121x A321neo.
▶During F24 delivered aircraft were financed through 30 sale and leaseback
arrangements and 9 Japanese Operating Leases with Call Options (JOLCOs).
▶Wizz Air is extending leases for eleven additional aircraft from the
existing fleet (on top of thirteen completed). The lease extensions range
between two and four years and are being agreed at both discounted and
original lease rates.
▶Wizz Air also secured three former Wizz Air aircraft on dry lease (to be
delivered in F25), while also adding eight wet leased aircraft for periods
ranging from six to twelve months, providing additional capacity in F25.
▶The average age of the fleet currently stands at 4.3 years, the youngest
fleet among major European airlines, while the average number of seats per
aircraft has climbed to 224 as at March 2024.
▶The share of new "neo" technology aircraft within Wizz Air's fleet has
increased to 61 per cent by the end of F24.
▶During F25 we expect 27 new A321neo aircraft deliveries, including a first
XLR, three A320ceo aircraft on dry lease while nine A320ceo aircraft will be
returned to lessors and will exit the fleet.
▶As at 31 March 2024, Wizz Air's delivery backlog comprises a firm order
for 13x A320neo, 266x A321neo and 47x A321XLR aircraft, a total of 326
aircraft.
▶The table below provides fleet composition for the past, present and coming
fiscal year, including effected lease extensions and dry leases. Figures
reflect Airbus contractual delivery timelines. F25 includes Airbus
communicated delivery delays, whereas F26 does not. The Company expects 30-35
aircraft to be delayed in F26.
March 2024 March 2025 March 2026
Actual Planned Planned(1)
A320ceo (180/186 seats) (9x extensions) 40 34 21
A320neo (186 seats) 6 6 9
A321ceo (230 seats) (4x+11x extensions) 41 41 40
A321neo (239 seats) 121 147 219
A321neo XLR (239 seats) - 1 10
Fleet size (with finalised extensions) 208 229 299
(1) The Company expects 30-35 aircraft to be delayed.
FINANCIAL UPDATE
▶During F24 Wizz Air continued to apply its jet fuel and foreign currency
hedging policy. As of 17 May 2024, using jet fuel zero-cost collars and jet
fuel swaps, Wizz Air has a hedge coverage of 59 per cent for its jet fuel
needs for the F25 using mostly zero-cost collars at a price
of 750.0/859.0 $/mT and jet fuel swap at a price of 811.0 $/mT. For F26,
the coverage is 10 per cent at the price of 737.0/850.0 $/mT. The jet
fuel-related EUR/USD FX coverage stands at 62 per cent for F25
at 1.0790/1.1222, while the coverage for F26 stands at 11 per cent
at 1.0820/1.1249 rates.
▶In the second half of fiscal F24 Wizz Air repaid one of its two
outstanding €500 million bonds, issued under the €3 billion EMTN
programme. Following the bond repayment, Wizz Air renewed the EMTN programme.
▶Fitch Ratings has affirmed Wizz Air Holdings Plc's long-term issuer default
rating and senior unsecured rating at 'BBB-'.
▶The outstanding balance on the PDP facility at the end of March
2024 stands at $222.9 million (31 March 2023: $274.3 million).
▶The Company signed a repurchase agreement for its inventory of EU emissions
trading scheme credits, receiving €253.6 million. The inventory must be
repurchased from the counterparty by September 2024.
▶During the year, Wizz Air secured further EUR currency leases. It has
signed more finance-type leases (in addition to JOLCO), becoming effective
with F25 deliveries. Like JOLCO, these leases offer the option to purchase the
aircraft during the lease, are recognized as aircraft assets on balance sheet
and depreciate over aircraft's useful life, as opposed to its lease term.
▶Wizz Air received 20x GTF spare engines in F24 and is advancing a further
8-10x in F25 to limit the grounding of the NEO aircraft fleet (total GTF
spare pool to exceed 50x by the end of summer 2024).
▶Net debt(1) at the end of 31 March 2024 was €4,790.2 million vs
€3,892.8 million at the end of 31 March 2023, while the Company's leverage
ratio(1) (net debt to EBITDA) decreased from 29.0 at F23 year end to 4.0.
Over the same period, liquidity(1) reduced to 29.2% per cent from 36.2 per
cent .
▶The Company received OEM compensation from Pratt & Whitney related to
the GTF engine issues. The compensation relates to costs incurred in the
period ended 31 March 2024 and is presented within net other
income/(expense) in the consolidated statement of comprehensive income.
(1) For further definition of non-financial measures presented refer to
"Glossary of terms" and "Alternative performance measures (APMS)" sections of
this document.
ESG UPDATE
Environment
In the fiscal year 2024 Wizz Air achieved further progress on the
sustainability agenda:
▶Reduced CO2 emissions per passenger kilometre to 52.0 grammes in F24
(vs 53.8 grammes in F23).
▶Wizz Air took a significant step by investing in SAF companies, first
Firefly, then CleanJoule, and partnering with various SAF suppliers.
▶We adopted an aspirational goal to fuel our flights with a 10 per cent
sustainable aviation fuel blend by 2030.
▶During the year we performed fully electric turns of aircraft in Rome
Fiumicino and Budapest airports.
The efforts have not gone unnoticed, Wizz Air has won several industry awards
for our outstanding performance:
▶Most Sustainable Low-Cost Airline title for the third consecutive year at
the World Finance Sustainability Awards 2023.
▶Global Environmental Sustainability Airline Group of the Year for the
second consecutive year at the CAPA Aviation Summit.
▶Strategic Investment of the Year - Europe at the 2023 SAF Investor Awards,
for its investment in Firefly.
▶Improved to "B" score in the 2023 climate ranking by CDP, reaching
"management level", a two-band improvement vs Wizz Air's 2022 score.
People
▶Wizz Air is an ethnically diverse and inclusive professional organisation
with over 109 nationalities within its employee base (84 in cabin crew, 60 in
the flight crew and 61 in the office).
▶In F24, Wizz Air conducted its seventh employee engagement survey.
Company wide engagement score reached 7.1, making a notable increase of 0.7
compared to previous year.
Governance
▶Phit Lian Chong was appointed to the Board as a non-executive director in
July 2023 and subsequently to the Audit and Risk Committee in January
2024.
▶The Company welcomed four executives during the year, Silvia Mosquera as
Executive Vice President and Group Chief Commercial Officer, Boris Rogoff as
Central Operations Officer, Janos Pal as Revenue Officer, and Ervin Banyai as
Digital Officer.
OTHER DEVELOPMENTS
▶Wizz Air celebrated 20 years since its first flight on 19 May 2004 from
Katowice, Poland to London, Luton UK. Today, Wizz Air is the #1 airline in CEE
with a total market share of 27 per cent.
▶During the past quarter Wizz Air moved to a bigger and new headquarter
office in Budapest, that offers optionality to add further space
in the coming years as the company pursues a fleet of 500 aircraft by the
end of the decade.
▶Wizz Air announced the May 2024 opening of its second training center in
Rome. The training center will house three full-flight simulators with
capacity to train over 4800 Wizz Air pilots yearly.
- Ends -
ABOUT WIZZ AIR
Wizz Air is one of the most sustainable European ultra-low-cost airline and
operates a fleet of 210 Airbus A320 and A321 aircraft. A team of dedicated
aviation professionals delivers superior service and very low fares, making
Wizz Air the preferred choice of 62 million passengers in the fiscal year
ended 31 March 2024. Wizz Air is listed on the London Stock Exchange under the
ticker WIZZ. The company was recently named the World's Top 5 Safest Low-Cost
Airlines 2024 by airlineratings.com, the world's only safety and product
rating agency, and named Airline of the Year by Air Transport Awards in 2019
and in 2023. Wizz Air has also been recognised as the "Most Sustainable
Low-Cost Airline" within the World Finance Sustainability Awards in 2021-2023
and the "Global Environmental Sustainability Airline Group of the Year" by the
CAPA-Centre for Aviation Awards for Excellence 2022-2023.
For more information:
Investors: Mark Simpson, Wizz Air +36 1 777 9407
Media: Tamara Vallois, Wizz Air +36 1 777 9324
James McFarlane / Eleni Menikou/ Charles Hirst, MHP Group: +44 (0) 20
3128 8100
Certain information provided in this Press Release pertains to
forward-looking statements and is subject to significant risks and
uncertainties that may cause actual results to differ materially. It is not
feasible to enumerate all the factors and specific events that could impact
the outlook and performance of an airline group operating across Europe, the
Middle East, and beyond, as Wizz Air does. Some of the factors that are
susceptible to change and could notably influence Wizz Air's anticipated
results include,demand for aviation transport services, fuel costs,
competition from both new and established carriers, availability of Pratt and
Whitney GTF engines, turnaround times at Engine Shops, expenses related to
environmental, safety, and security measures, the availability of suitable
insurance coverage, actions taken by governments and regulatory agencies,
disruptions caused by weather conditions, air traffic control strikes, revenue
performance and staffing issues, delivery delays of contracted aircraft,
fluctuations in exchange and interest rates, airport access and fees, labour
relations, the economic climate within the industry, passengers' inclination
to travel, social, and political factors, including global pandemics, and
unforeseen security incidents.
FINANCIAL REVIEW
In F24, Wizz Air reported a net profit of €365.9 million, returning to a
full fiscal year of profitable operations as it carried a
record 62.0 million passengers (F23: 51.1 million). It was also a year in
which Wizz Air delivered markedly improved operations, increasing on-time
performance, aircraft utilisation and staff productivity. As the industry
continued its post-COVID-19 recovery, Wizz Air recorded its third consecutive
year of record capacity year-on-year growth, adding 24.5 per cent more
capacity vs F23.
Total revenue increased by 30.2 per cent year on year, and unit revenue grew
by 4.6 per cent, demonstrating that our choice of markets and fleet
allocation programme are delivering amid another year of record capacity
growth. We captured demand well across both the mature and maturing segments
of our network, absorbing operational disruptions, including the emergence of
the Israel-Hamas war in October of last year.
The resilience of the business was further tested with the grounding of a
portion of our neo fleet for mandatory engine inspections. Despite the
grounding of nearly a quarter of our fleet at the beginning of the fourth
quarter, as a result of timely and decisive action in response to this
challenge, we are confident that, in the current year, we will be able to
operate capacity comparable to last year. We expect to achieve this through a
combination of new aircraft deliveries, existing fleet lease extensions,
securing additional aircraft capacity from the market and delivering higher
utilisation.
The grounding of our neo fleet contributed to cost pressures, compounding the
challenges of an already strained supply chain. However, we moved swiftly to
secure a comprehensive support and compensation package from the OEM,
mitigating the operational and financial impact on the business.
During the year, flight disruption charges were elevated, exacerbated by
supply chain and geopolitical events. This further validates our resolution to
continue to invest in both our operations and the customer experience, as the
business continues to expand and to ensure greater resilience in the face of
challenges. In terms of broader cost trends during F24, the structural
advantages of operating a young fuel-efficient fleet (age 4.3 years) with
high-density seating (224 average seat count), and our ultra-low-cost
business model, were evident in our positive results. We delivered 7.8 per
cent lower unit ex-fuel costs year on year, reaching €2.38 cents per ASK.
Total fuel costs, including the cost of carbon and the impact of hedging,
were 5.0 per cent lower year on year, while fuel CASK decreased
by 23.7 per cent, as market prices came down compared to the previous year.
We also saw an improvement in fuel efficiency, measured in fuel
consumption/ASK, which reduced by 1.6 per cent year on year. Our policies of
hedging jet fuel and related foreign currency have equally protected the
business well during the year, and we continue to take a considered approach
to hedging going forward. During the year, we secured further EUR currency
leases and have introduced new fleet ownership structures (in addition to
JOLCO) that will impact deliveries in the current fiscal year.
The macro variables with significant influence on the financial performance of
the Group:
F24 F23 Change
Average jet fuel price ($/metric tonne, including into-plane premium and 1,000 1,218 (17.9)%
impact of effective hedges)
Average EUR/USD rate (including impact of effective hedges) 1.08 1.04 4.2%
Year-end EUR/USD rate 1.08 1.08 0.0%
Financial overview
Summary consolidated statement of comprehensive income
€ million F24 F23 Change
Total revenue 5,073.1 3,895.7 30.2%
Fuel costs (1,855.7) (1,954.4) (5.0)%
Operating expenses excluding fuel costs (2,779.5) (2,408.1) 15.4%
Total operating expenses (4,635.2) (4,362.5) 6.3%
Operating profit/(loss) 437.9 (466.8) n.m.
Operating margin 8.6% (12.0)% n.m.
Net financing expense (96.8) (97.9) (1.1)%
Profit/(loss) before income tax 341.1 (564.6) n.m.
Income tax credit 24.8 29.5 (16.1)%
Profit/(loss) for the year 365.9 (535.1) n.m.
n.m.: not meaningful as a variance is more than (-)100 per cent.
Earnings/(loss) per share
Earnings/(loss) per share, EUR (Note 8) F24 F23 Change
Basic earnings/(loss) per share, € 3.64 (5.07) 8.71
Diluted earnings/(loss) per share (€/share) 2.96 (5.07) 8.03
Financial performance
Revenue
The following table sets out an overview of revenue streams
for F24 and F23 and the percentage change in those items:
F24 F23
Total Percentage of total revenue Total Percentage of total revenue Percentage change
(€ million) (€ million)
Passenger ticket revenue(1) 2,804.2 55.3% 2,024.9 52.0% 38.5%
Ancillary revenue(1) 2,268.9 44.7% 1,870.8 48.0% 21.3%
Total revenue 5,073.1 100.0% 3,895.7 100.0% 30.2%
1.For further definition of non-financial measures presented refer to the
"Glossary of terms" and "Alternative performance measures (APMs)" sections of
this document.
Total revenue increased by 30.2 per cent to €5,073.1 million
in F24 from €3,895.7 million in F23 driven mainly by the
capacity increase year on year and a stronger load factor, supported by
sustained customer demand. Passenger ticket revenue increased by 38.5 per
cent to €2,804.2 million in F24 from €2,024.9 million in F23, and
ancillary revenue increased by 21.3 per cent to €2,268.9 million
in F24 from €1,870.8 million in F23. RASK increased by 4.6 per cent
to 4.17 Euro cents in F24 from 3.98 Euro cents in F23. Ticket
RASK increased by 11.2 per cent to 2.30 Euro cents in F24, reflecting
improved load factor year on year and a favourable pricing environment,
specifically during the peak periods. Ancillary RASK decreased by 2.6 per
cent to 1.86 Euro cents, mainly driven by the impact of the Israel-Hamas war
denting demand in markets with high ancillary spend.
Operating expenses
Total operating expenses increased by 6.3 per cent to €4,635.2 million
in F24 from €4,362.5 million in F23. Total
CASK decreased to 3.90 Euro cents in F24 from 4.58 Euro cents in F23,
driven mainly by lower fuel charges in the period along with Sale and Lease
Back gains and supplier compensations in the other expense line. Ex-fuel
CASK decreased by 7.8 per cent to 2.38 Euro cents
in F24 from 2.58 Euro cents in F23, reflecting improved aircraft
utilisation and on-time performance, various savings in navigation and
maintenance lines plus the effect of supplier compensations and gains from
multiple spare engine financing in the last fiscal quarter (spare engines
advanced to support GTF engine inspections).
The following table sets out for F24 and F23 the expenses relevant for the
CASK measure and the percentage changes in those expenses:
F24 F23
Total Percentage Unit cost (€cts/ASK) Total Percentage of total operating expenses Unit cost (€cts/ASK) Percentage change of total cost
(€ million) of total operating expenses (€ million)
Staff costs 507.8 11.0% 0.42 373.9 8.6% 0.38 35.8%
Fuel costs 1,855.7 40.0% 1.52 1,954.4 44.8% 2.00 (5.0%)
Distribution and marketing 117.1 2.5% 0.10 91.5 2.1% 0.09 27.9%
Maintenance materials and repairs 285.0 6.1% 0.23 237.0 5.4% 0.24 20.3%
Airport, handling and 1,210.1 26.1% 0.99 963.2 22.1% 0.99 25.6%
en-route charges
Depreciation and amortisation 755.3 16.3% 0.62 601.1 13.8% 0.61 25.7%
Net other (income)/expense (95.8) (2.1%) (0.08) 141.3 3.2% 0.14 (167.8%)
Total operating expenses 4,635.2 100.0% 3.81 4,362.5 100.0% 4.46 6.3%
Net cost from financial income and expense 116.2 0.10 114.5 0.12 1.5%
Total 4,751.4 3.90 4,476.9 4.58 6.1%
Staff costs were €507.8 million in F24, up by 35.8 per cent from
€373.9 million in F23, reflecting 16.4 per cent increase in staff
numbers, higher aircraft utilization and the cost-of-living adjustments to
salaries year on year.
Fuel costs decreased by 5.0 per cent to €1,855.7 million in F24 from
€1,954.4 million in F23 and fuel CASK decreased by 23.7 per cent
to 1.52 Euro cents in F24 from 2.00 Euro cents in F23. The average
fuel price, including hedging impact and into-plane
premium, decreased by 17.9 per cent to $1,000 per metric tonne
in F24 from $1,218 per metric tonne in F23. In addition to fuel price
impact, fuel consumption (metric tonnes per ASKs) decreased by 1.6 per
cent year-on-year, as the share of neo (more fuel-efficient aircraft variant)
in the fleet reached 61.1 per cent
Distribution and marketing costs increased by 27.9 per cent to
€117.1 million in F24 from €91.5 million in F23 tracking in line
with the revenue increase during the period.
Maintenance, materials and repair costs increased by 20.3 per cent to
€285.0 million in F24 from €237.0 million in F23, due
to larger fleet and greater number of maintenance events.
Airport, handling and en-route charges increased by 25.6 per cent to
€1,210.1 million in F24 from €963.2 million in F23, reflecting
the increase in passenger numbers versus last year.
Depreciation and amortisation charges increased by 25.7 per cent to
€755.3 million in F24, up from €601.1 million in F23, driven mainly
by larger fleet and the increased aircraft utilisation (operational
utilization in F24 was 12:25 hours versus 11:08 hours in F23).
Net other income of €95.8 million in F24, compared to a
€141.3 million expense in F23, consists mainly of: gains on aircraft
and engine sale and leaseback transactions of €244.8 million, credits and
compensation received from suppliers of €198.6 million, flight disruption
related expenses of €186.9 million and various expenses related to crew and
overheads amounting to €66.4 million and €83.2 million, respectively.
For further details, please refer to Note 5.
Net financing income and expense
The following table sets out an overview of net financing expenses
for F24 and F23 and the percentage change in those items:
€ million F24 F23 Change
Net financial expense (116.2) (114.5) 1.5%
Net foreign exchange gains 19.4 16.6 16.8%
Net financing expense (96.8) (97.9) (1.1)%
Net financing expenses decreased by 1.1 per cent to €96.8 million
in F24 from €97.9 million in F23, of which:
▶Financial income represents an increase of 287.2 per cent on the back
of an increase in short-term cash deposits and higher interest rate
environment in F24.
▶Financial expenses increased by 45.4 per cent driven by the interest
charges related to lease liabilities under IFRS 16 connected to the increased
fleet size and the higher interest rate environment, PDP financing and ETS
repurchasing.
▶Net foreign exchange gains increased by 16.8 per cent due to a more
favourable EUR/USD exchange environment during F24. The unrealized portion of
the foreign exchange gain, mainly driven by revaluation of US Dollar
denominated lease liabilities, amounted to €34.2 million gain in F24,
compared to a €9.1 million gain in F23.
Taxation
The Group recorded an income tax credit of €24.8 million in F24 compared
to the €29.5 million credit in F23. The effective rate for the Group
in F24 was negative 7.3 per cent compared to 5.2 per cent in F23. The
main components of the tax credit in F24 were changes in deferred tax
assets, partially offset by corporate income tax and local business tax
charges in Hungary. For further details please refer to Note 7.
Profit for the year
The Group earned a net profit of €365.9 million in F24, compared to the
net loss of €535.1 million in F23.
Other comprehensive income and expenses
In F24 the Group had other comprehensive income of €129.4 million
compared to an expense of €88.8 million in F23. The change is mainly
attributable to the favourable impact of fair values of the Group's open hedge
positions in F24.
Return on capital employed and capital structure
Return on capital employed (ROCE)(1) is a non-statutory performance measure
commonly used to measure the financial returns that a business achieves on the
capital it uses. ROCE for F24 was 11.1 per cent, compared to (13.5) per
cent for the previous year.
Two rating agencies, Fitch and Moody's, have issued updates during the third
quarter with Fitch maintaining Wizz Air's BBB- investment grade profile with
negative outlook, while Moody's issued a Ba1 rating with stable outlook.
The Company's leverage ratio(1) is 4.0 at the end of the 2024 financial
year, while liquidity(1) decreased to 29.2 per cent from 36.2 per cent at
the end of the 2023 financial year partially as a result of the Company
repaying its January 2024 maturity €500 million bond obligation from cash on
hand.
F24 F23 Change
ROCE 11.1% (13.5)% 24.6 ppt
Leverage ratio 4.0 29.0 (25.0) ppt
Liquidity 29.2% 36.2% (7.0) ppt
1.For definitions of non-financial measures presented refer to the "Glossary
of terms" and "Alternative performance measures (APMs)" sections of this
document.
Cash flows and financial position
Summary statement of cash flows
The following table sets out selected cash flow data and the Group's cash and
cash equivalents for F24 and F23:
€ million F24 F23 Change
Net cash generated by operating activities 676.8 421.9 60%
Net cash (used in)/generated by investing activities (360.0) 532.9 n.m.
Net cash used in financing activities (1,016.1) (311.2) 227%
Net (decrease)/increase in cash and cash equivalents (699.3) 643.7 n.m.
Cash and cash equivalents at the beginning of the year 1,402.6 766.6 83%
Effect of exchange rate fluctuations on cash and cash equivalents 13.1 (7.7) n.m.
Cash and cash equivalents at the end of the year 716.4 1,402.6 (49%)
n.m.: not meaningful as a variance is more than (-)100 per cent.
Cash flows from operating activities
The majority of Wizz Air's cash inflows from operating activities are derived
from the sale of passenger tickets and ancillary services. Net cash flows from
operating activities are also affected by movements in working capital items.
Cash generated by operating activities increased from €421.9 million
in F23 to €676.8 million in F24 primarily driven by the following
factors:
▶Operating cash flows before adjusting for changes in working capital
improved by €892.0 million year on year driven by the market recovery and
increase in demand.
▶Changes in working capital deteriorated by €626.7 million, primarily
due to stabilised trading conditions. This stability led to smaller
fluctuation in unearned revenue (tickets paid by passengers for future
flights), following a significant increase in post-COVID activity.
Additionally, there were higher levels of trade and other receivables
(payments pending for collection on tickets sold) and accrued credits from key
suppliers.
Cash flows from investing activities
Investing activities resulted in €360.0 million net cash used in F24,
compared to €532.9 million net cash generated in F23, due to the
following:
▶The net cash flows from advances paid and refunded in relation to aircraft
deliveries increased by €121.8 million from a €12.1 million cash outflow
in F23 to a €109.7 million cash inflow in F24.
▶Cash outflows due to the increase in short-term cash deposits was
€748.5 million in F24 compared to the cash inflow in the amount of
€450.0 million due to the decrease in cash deposits in F23.
▶Net cash flows from the purchase and sale of tangible and intangible assets
including sale and leaseback transactions increased by €130.7 million from
€77.60 million cash inflow in F23 to €208.3 million cash inflow
in F24.
Cash flows from financing activities
Net cash outflow from financing activities increased from €311.2 million
(F23) to €1,016.1 million in F24. The principal elements of
the F24 outflow were as follows:
▶Repayments of loans and other types of financing and interest on them
amounting to €1,499.0 million (F23: €619.7 million) which includes bond
repayment and interest payment on the bond of €511.8 million (F23:
€11.8 million interest), less proceeds from new loans and other types of
financing of €482.9 million (F23: €308.5 million) comprising aircraft
and engine financing of €228.9 million (F23: €308.5 million) and a
borrowing secured with emission trading scheme (ETS) units of €254.0 million
(F23: nil).
Summary consolidated statement of financial position
The following table sets out summary statements of the financial position of
the Group for F24 and F23:
€ million F24 F23 Change
ASSETS
Property, plant and equipment 5,815.0 4,666.0 1,149.0
Restricted cash(1) 109.4 120.4 (11.0)
Derivative financial instruments(1) 36.9 1.2 35.7
Trade and other receivables(1) 706.7 411.4 295.3
Short-term cash deposits 751.1 - 751.1
Cash and cash equivalents 728.4 1,408.6 (680.2)
Other assets(1) 547.4 426.8 120.6
Total assets 8,694.9 7,034.4 1,660.5
EQUITY AND LIABILITIES
EQUITY
Equity 145.7 (357.9) 503.6
LIABILITIES
Trade and other payables(1) 1,022.4 945.4 77.0
Borrowings (incl. convertible debt)(1) 6,269.7 5,301.4 968.3
Deferred income(1) 944.6 873.6 71.0
Derivative financial instruments(1) 0.7 108.4 (107.7)
Provisions(1) 274.3 156.1 118.2
Other liabilities(1) 37.5 7.3 30.2
Total liabilities 8,549.2 7,392.3 1,156.9
Total equity and liabilities 8,694.9 7,034.4 1,660.5
1 Including both current and non-current asset and liability balances,
respectively.
Property, plant and equipment increased by €1,149.0 million as at 31 March
2024 compared to 31 March 2023, primarily driven by the investment made in
JOLCO financed aircraft and sale and leaseback financed right-of-use assets
(see also Note 9).
Restricted cash (current and non-current) decreased by €11.0 million as
at 31 March 2024 compared to the year before. The majority of this balance
is linked to Wizz Air's aircraft lease contracts, being cash deposits behind
letters of credit issued by Wizz Air's banks related primarily to lease
security deposits and maintenance reserves.
Derivative financial assets (current and non-current) increased by
€35.7 million as at 31 March 2024 compared to 31 March 2023 (see also
Notes 2 and 10). These balances are related to fuel hedge instruments.
Trade and other receivables increased by €295.3 million as at 31 March
2024 compared to 31 March 2023. This was primarily driven by an increase in
trade receivables as a result of increased sales and operational level.
Cash and cash equivalents amounted to €728.4 million at 31 March
2024 (2023: €1,408.6 million), and short-term cash deposits to
€751.1 million at 31 March 2024 (2023: €nil).
Borrowings (including convertible debt) increased by €968.3 million as
at 31 March 2024 compared to 31 March 2023. The increase was primarily
driven by lease liabilities recognised during the fiscal year, and financing
against aircraft pre-delivery payments (see Note 11).
Deferred income increased by €71.0 million as at 31 March 2024 compared
to 31 March 2023 (see Note 12). This was primarily driven by an increase in
unearned revenue and in deferred supplier credits.
Derivative financial liabilities (current and non-current) decreased by
€(107.7) million as at 31 March 2024 compared to 31 March 2023 (see
Notes 2 and 10). These balances are related to fuel hedge instruments.
Provisions increased by €118.2 million as at 31 March 2024 compared
to 31 March 2023, in line with the planned aircraft maintenance schedule (see
Note 13).
In F24, the Group's financial position returned to positive, marking a
significant recovery. This turnaround was driven by stabilized trading
conditions, increased post-COVID activity, and substantial capacity growth.
These factors contributed to improved cash flows and a stronger financial
foundation, positioning the Group for sustained growth and resilience.
Hedging strategy
Wizz Air operates under a clear set of treasury policies approved by the Board
and supervised by the Audit and Risk Committee. The Hedging Policy's objective
is to establish a framework to identify, report and manage foreign currency
and fuel exposures aiming to provide greater certainty and protection to the
value of the Group's net income, net equity and related cash flows that are
exposed to possible adverse movements in foreign currency exchange rates and
jet fuel prices. This is achieved through disciplined programmatic and
discretionary layering for a set time horizon (18 months) with regular
rollover maintaining hedge coverage levels.
The hedges under the Hedging Policy will be rolled forward quarterly, 18
months out, with coverage levels over time reaching indicatively between 65
per cent for the first quarter of the hedging horizon and 15 per cent for the
last quarter of the hedging horizon. Hedging instruments are zero cost collars
mostly but also Jet Fuel swaps are used for shorter dated exposures. In line
with the Hedging Policy, Wizz Air also hedges its fuel consumption-related US
Dollar exposure in a similar fashion. Hedge coverages as of 17th May 2024 are
set out below:
Fuel hedge coverage
Period covered F25 F26
11 months 7 months
Exposure in metric tonnes ('000) 1,655.1 1,811.7
Coverage in metric tonnes ('000) 981.0 185.0
Hedge coverage for the period 59% 10%
Coverage by hedge types:
Zero-cost collars in metric tonnes ('000) 934.0 185.0
Weighted average ceiling $859.0 $850.0
Weighted average floor $750.0 $737.0
SWAP in metric tonnes ('000) 47.0 -
Weighted average price $811.0 -
Foreign exchange hedge coverage
Period covered F25 F26
11 months 7 months
Exposure (million) $1,353.0 $1,437.0
Coverage (million) $845.0 $152.0
Hedge coverage for the period 62% 11%
Weighted average ceiling $1.1222 $1.1249
Weighted average floor $1.0790 $1.0820
STRATEGIC REPORT
KEY STATISTICS
F24 F23 Change
CAPACITY
Number of aircraft at end of period* 208 179 16.2%
Number of operating aircraft at end of period* 160 179 (10.6%)
Equivalent aircraft* 190.8 163.8 16.5%
Equivalent operating aircraft* 176.4 163.8 7.7%
Utilisation (block hours per aircraft per day) 11:29 11:08 3.1%
Utilisation (block hours per operating aircraft per day) 12:25 11:08 10.2%
Total block hours 802,346 666,476 20.4%
Total flight hours 699,837 580,863 20.5%
Revenue departures 309,594 267,707 15.6%
Average departures per day per aircraft 4.43 4.48 (1.1%)
Seat capacity 68,813,271 58,190,317 18.3%
Average aircraft stage length (km) 1,769 1,680 5.3%
Total ASKs ('000 km) 121,749,697 97,779,087 24.5%
OPERATING DATA
RPKs (revenue passenger kilometres) ('000 km) 109,962,210 86,807,338 26.7%
Load factor (%) 90.1% 87.8% 2.6%
Number of passenger segments 62,015,792 51,071,836 21.4%
Fuel price (US$ per tonne, including hedging impact and into-plane premium) 1,000 1,218 (17.9%)
Foreign exchange rate (US$/€ including hedging impact) 1.09 1.04 4.8%
* In F23 aircraft at end of period includes 3 Ukraine aircraft that
were considered operational during F23 and therefore were also included in
operating aircraft at end of period. In F24 aircraft at end of period includes
3 Ukraine aircraft although these aircraft are now excluded from operating
aircraft at end of period.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024 (unaudited)
Note 2024 2023
€ million € million
Passenger ticket revenue 4 2,804.2 2,024.9
Ancillary revenue 4 2,268.9 1,870.8
Total revenue 4 5,073.1 3,895.7
Staff costs (507.8) (373.9)
Fuel costs (1,855.7) (1,954.4)
Distribution and marketing (117.1) (91.5)
Maintenance materials and repairs (285.0) (237.0)
Airport, handling and en-route charges (1,210.1) (963.2)
Depreciation and amortisation (755.3) (601.1)
Net other income/(expense) 5 95.8 (141.3)
Total operating expenses (4,635.2) (4,362.5)
Operating profit/(loss) 437.9 (466.8)
Financial income 6 80.5 20.8
Financial expenses 6 (196.7) (135.3)
Net foreign exchange gains 6 19.4 16.6
Net financing expense 6 (96.8) (97.9)
Profit/(loss) before tax income 341.1 (564.6)
Income tax credit 7 24.8 29.5
Net profit/(loss) for the year 365.9 (535.1)
Net profit/(loss) for the year attributable to:
Non-controlling interests (10.7) (12.1)
Owners of Wizz Air Holdings Plc 376.6 (523.0)
Other comprehensive income/(expense) - items that may be subsequently
reclassified to profit or loss:
Change in fair value of cash flow hedging reserve, net of tax 64.6 (102.7)
Cash flow hedging reserve recycled to profit or loss 22.4 33.2
Cost of hedging 43.0 (30.0)
Cost of hedging recycled to profit or loss - 6.0
Currency translation differences (0.6) 4.7
Other comprehensive income/(expense) for the year, net of tax 129.4 (88.8)
Total comprehensive income/(expense) for the year 495.3 (623.9)
Total comprehensive income/(expense) for the year attributable to:
Non-controlling interests (10.8) (11.5)
Owners of Wizz Air Holdings Plc 506.1 (612.4)
Basic earnings/(loss) per share (€/share) 8 3.64 (5.07)
Diluted earnings/(loss) per share (€/share) 8 2.96 (5.07)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 MARCH 2024 (unaudited)
Note 2024 2023
€ million € million
ASSETS
Non-current assets
Property, plant and equipment 9 5,815.0 4,666.0
Intangible assets 92.7 76.7
Restricted cash 2 54.0 56.7
Deferred tax assets 109.1 50.6
Derivative financial instruments 10 3.9 0.2
Trade and other receivables 14 37.1 21.4
Investments in associates 5.7 -
Investments in other entities 2 1.6 -
Total non-current assets 6,119.1 4,871.7
Current assets
Inventories 333.6 295.6
Trade and other receivables 14 669.6 390.1
Current tax assets 4.7 3.8
Derivative financial instruments 10 33.0 1.0
Restricted cash 2 55.4 63.7
Short-term cash deposits 2 751.1 -
Cash and cash equivalents 2 728.4 1,408.6
Total current assets 2,575.8 2,162.8
Total assets 8,694.9 7,034.4
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital - -
Share premium 381.2 381.2
Reorganisation reserve (193.0) (193.0)
Equity part of convertible debt 8.3 8.3
Cash flow hedging reserve 13.8 (73.2)
Cost of hedging reserve 19.0 (24.0)
Cumulative translation adjustments 2.8 3.3
Accumulated losses (48.7) (433.6)
Capital and reserves attributable to the owners of Wizz Air Holdings Plc 183.4 (331.0)
Non-controlling interests (37.7) (26.9)
Total equity 145.7 (357.9)
Non-current liabilities
Borrowings 11 5,159.7 4,000.5
Convertible debt 2,17 25.4 25.7
Deferred income 12 147.2 103.3
Deferred tax liabilities - 3.2
Derivative financial instruments - 4.2
Trade and other payables 14 97.2 59.1
Provisions for other liabilities and charges 13 144.3 76.3
Total non-current liabilities 5,573.8 4,272.3
Current liabilities
Trade and other payables 14 925.2 886.3
Current tax liabilities 37.5 4.1
Borrowings 11 1,084.3 1,275.0
Convertible debt 2,17 0.3 0.3
Derivative financial instruments 10 0.7 104.2
Deferred income 12 797.4 770.3
Provisions for other liabilities and charges 13 130.0 79.8
Total current liabilities 2,975.4 3,120.0
Total liabilities 8,549.2 7,392.3
Total equity and liabilities 8,694.9 7,034.4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024 (unaudited)
Share capital Share premium Reorganisation reserve Equity part of convertible debt Cash flow hedging reserve Cost of hedging reserve Cumulative translation adjustments Accumulated losses Total Non-controlling interest Total
equity
€ million € million € million € million € million € million € million € million € million € million € million
Balance at 1 April 2023 - 381.2 (193.0) 8.3 (73.2) (24.0) 3.3 (433.6) (331.0) (26.9) (357.9)
Comprehensive income/(expense):
Profit/(loss) for the year - - - - - - - 376.6 376.6 (10.7) 365.9
Other comprehensive income/(expense) - - - - 87.0 43.0 (0.5) - 129.5 (0.1) 129.4
Total comprehensive income/(expense) for the year - - - - 87.0 43.0 (0.5) 376.6 506.1 (10.8) 495.3
Transactions with owners:
Share-based payment charge - - - - - - - 8.3 8.3 - 8.3
Total transactions - - - - - - - 8.3 8.3 - 8.3
with owners
Balance at 31 March 2024 - 381.2 (193.0) 8.3 13.8 19.0 2.8 (48.7) 183.4 (37.7) 145.7
FOR THE YEAR ENDED 31 MARCH 2023
Share Share Reorganisation reserve Equity part of convertible debt Cash flow hedging reserve Cost of hedging reserve Cumulative translation adjustment Retained earnings/(Accumulated losses) Total Non-controlling interest Total
capital premium equity
€ million € million € million € million € million € million € million € million € million € million € million
Balance at 1 April 2022 - 381.2 (193.0) 8.3 (3.8) - (0.7) 87.3 279.3 (15.4) 263.9
Comprehensive (expense)/income:
Loss for the year - - - - - - - (523.0) (523.0) (12.1) (535.1)
Other comprehensive (expense)/income - - - - (69.5) (24.0) 4.1 - (89.4) 0.6 (88.8)
Total comprehensive (expense)/income for the year - - - - (69.5) (24.0) 4.1 (523.0) (612.4) (11.5) (623.9)
Transactions with owners:
Share-based payment charge - - - - - - - 2.2 2.2 - 2.2
Total transactions - - - - - - - 2.2 2.2 - 2.2
with owners
Balance at 31 March 2023 - 381.2 (193.0) 8.3 (73.2) (24.0) 3.3 (433.6) (331.0) (26.9) (357.9)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024 (unaudited)
2024 2023
Note € million € million
Cash flows from operating activities
Profit/(loss) before income tax 341.1 (564.6)
Adjustments for:
Depreciation 9 736.1 587.6
Amortisation 19.2 13.5
Financial income 6 (80.5) (20.8)
Financial expenses 6 196.7 135.3
Unrealised fair value (gains)/losses on derivative financial instruments (8.9) 8.2
Unrealised foreign currency gains (34.2) (9.1)
Realised non-operating foreign currency losses/(gains) 7.2 (13.2)
Gain on sale of property, plant and equipment (244.8) (99.7)
Share-based payment charges 8.3 2.2
Other non-cash operating income (12.2) (3.4)
928.0 36.0
Changes in working capital
Increase in trade and other receivables (301.5) (186.1)
Decrease in restricted cash 12.3 48.3
Increase in inventory (35.9) (226.4)
(Decrease)/increase in provisions (2.8) 8.0
Increase in trade and other payables 70.2 316.7
Increase in deferred income 12 23.9 432.4
(233.8) 392.9
Cash generated by operating activities before tax 694.2 428.9
Income taxes paid (17.4) (7.0)
Net cash generated by operating activities 676.8 421.9
Cash flows from investing activities
Purchase of aircraft maintenance assets (107.6) (69.7)
Purchase of tangible and intangible assets (230.6) (94.7)
Proceeds from the sale of tangible assets 546.5 242.0
Advances paid for aircraft 9 (370.7) (475.5)
Refund of advances paid for aircraft 9 480.4 463.4
Interest received 77.8 17.4
(Increase)/decrease in short-term cash deposits (748.5) 450.0
Payment for acquisition of investments (7.3) -
Net cash (used in)/generated by investing activities (360.0) 532.9
Cash flows from financing activities
Proceeds from new loans* 67.9 63.0
Repayment of loans* (580.4) (492.5)
Interest paid - loans - IFRS 16 lease liability (124.4) (97.7)
Interest paid - loans - JOLCO and FTL (15.7) (14.8)
Repayment of unsecured debt (500.0) -
Proceeds from secured debt 415.0 245.5
Repayment of secured debt (248.4) -
Interest paid - unsecured debt (11.8) (11.8)
Interest paid - secured debt (14.5) (0.2)
Interest paid - other (3.8) (2.7)
Net cash used in financing activities (1,016.1) (311.2)
Net (decrease)/increase in cash and cash equivalents (699.3) 643.7
Cash and cash equivalents at the beginning of the year** 1,402.6 766.6
Effect of exchange rate fluctuations on cash and cash equivalents 13.1 (7.7)
Cash and cash equivalents at the end of the year** 716.4 1,402.6
* Mostly JOLCO/FTL and IFRS 16 leases.
** Cash and cash equivalents at 31 March 2024 include
€359.4 million (€197.3 million at 31 March 2023;
€235.6 million at 31 March 2022) of cash at bank and
€145.6 million (€1,211.3 million at 31 March 2023; €531.0 million
at 31 March 2022) of cash deposits maturing within three months of inception,
€223.4 million money market fund (€nil at 31 March 2023; €nil at 31
March 2022) and overdrafts (repayable on demand) of €12.0 million (€6.0
million at 31 March 2023 and €nil at 31 March 2022), which are an integral
part of the Group's cash management activities.
NOTES FORMING PART OF THE CONDENSED FINANCIAL STATEMENTS
1. Material accounting policies and basis of preparation
The material accounting policies applied in the presentation of these
condensed consolidated financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise
stated.
Basis of preparation
These condensed consolidated financial statements combine the financial
information of the Company and its subsidiaries. The unaudited condensed
consolidated financial statements have been prepared and approved by the
Directors in accordance with International Financial Reporting Standards as
adopted by the EU ("Adopted IFRSs") and IFRS Interpretations Committee
guidance.
The condensed consolidated financial statements are presented in Euro (EUR or
€).
The Company has a policy of rounding each amount and percentage individually
from the fully accurate number to the figure disclosed in the condensed
consolidated financial statements. As a result, some amounts and percentages
do not total - though such differences are all trivial.
The accounting policies applied are consistent with those adopted and
disclosed in the Group's most recently published consolidated financial
statements for the year ended 31 March 2023.
The condensed consolidated financial statements have been prepared under the
historical cost convention, as modified by the revaluation of financial assets
and financial liabilities (including derivative instruments) at fair value
through profit or loss.
The preparation of the condensed consolidated financial statements in
conformity with adopted IFRS legislates the use of certain critical accounting
estimates and requires management to exercise judgments in the process of
applying the Group's accounting policies. The areas involving a high degree of
judgment or complexity or areas where assumptions and estimates involving
significant uncertainty that have a risk of causing material adjustment to
the carrying value of assets and liabilities in the coming year are disclosed
in Note 3.
This preliminary announcement does not constitute the Group's full financial
statements for the year ended 31 March 2024. The Group's full financial
statements will be approved by the Board of Directors and reported on by the
auditors in June 2024. Accordingly, the financial information for 2024 is
presented unaudited in this preliminary announcement.
Going concern
At 31 March 2024, the Group held total cash of €1,588.9 million (including
cash and cash equivalents of €728.4 million, €751.1 million of
short-term cash deposits and €109.4 million of restricted cash), while net
current liabilities were €399.6 million (including deferred income of
€797.4 million) and net assets were €145.7 million. The Group's
contractual undiscounted external borrowings comprise: €500.0 million of
bonds maturing in January 2026; €206.8 million of PDP financing from
Carlyle Aviation Partners Group (see Notes 2 and 11) that is repayable by
July 2025; €253.6 million of ETS financing from Standard Chartered Bank
repayable in September 2024; and convertible debt with a balance of
€25.7 million. In addition, borrowings include a carrying amount of
€5,255.3 million from lease contracts accounted for under IFRS 16 and
liabilities related to JOLCO and FTL contracts (see Note 11). None of these
borrowings contain any financial covenants. The Group also receives payment
for ticket and ancillary revenue in advance through arrangements with various
card acquirors which are subject to typical capacity and security limits. Two
ratings agencies, Fitch and Moody's issued updates during the third quarter
with Fitch maintaining Wizz Air's BBB- investment grade profile with negative
outlook, while Moody's issued a Ba1 rating with stable outlook.
The Group operates using a three-year planning cycle. The Directors have
reviewed their latest financial forecasts for a period of 18 months from the
date of releasing the preliminary financial statements including plans to
finance committed future aircraft deliveries (see Note 15) due within this
period that are currently unfinanced and taking into account available
committed financing for aircraft. Aircraft deliveries represent the Group's
primary capital expenditure during this period, which the group intends to
finance through various forms of sale and leaseback or other fleet financing
arrangements, consistent with its past practices. While such financing remains
uncommitted, the vendor additionally offers committed backstop financing. This
backstop financing would cover a substantial portion, though not all, of the
expenditure if the Group chooses to utilize it. After making enquiries and
testing the assumptions against different forecast scenarios including a
severe but plausible (downside) scenario (see below), the Directors have
satisfied themselves that the Group is expected to be able to meet its
commitments and obligations as they fall due for a period of at least the next
twelve months from the date of the release of the preliminary report.
These enquiries and the testing performed in reaching this conclusion included
the review of a base case model that projects the cashflows of the business.
The base case model is derived from our contracted fleet plan which includes
notified aircraft delivery delays. We then overlay our forecast for
aircraft groundings prepared by our maintenance team given our GTF engine
related supply chain issues as well as our contracted wet lease aircraft
commitments to mitigate these issues. These building blocks determine our
available fleet for the going concern period to which we apply a utilisation
assumption that is consistent with our actual utilisation in F24. We then
build our network plan and make appropriate revenue, cost, compensation,
working capital and financing assumptions to develop the base case cash flows.
This base case was then flexed to produce a downside forecast that assumes
lower demand leading to a 5% reduction in RASK, 10% higher fuel cost per
metric tonne, 5c stronger USD compared to EUR and exclusion of any supply
chain related compensation that is forecast to continue for the full going
concern period but not yet contracted. These downside forecast assumptions
were modelled cumulatively across the full going concern period. The downside
case also excludes any assumed financing for our currently unfinanced aircraft
deliveries (see Note 15). Mitigating actions in relation to the unfinanced
aircraft were also considered in preparation of the downside case used for the
going concern assessment.
The Directors also considered the impact of climate change over the time
period and concluded that it is unlikely that material physical or transition
risks will arise over this period. As part of our base and downside
forecasts, we considered the impact of higher pricing for ETS levied in Europe
and the UK as well as costs of CORSIA implementation. Combined with changes in
the amount of "free" ETS credits, this reflects in general our expected cost
increases of carbon emissions. The use of sustainable aviation fuel (SAF) with
traditional fuel will likely impact the average cost of jet fuel and was
modelled as part of the downside forecast by way of increased fuel pricing.
In preparing the base and downside forecasts, the Directors also considered
the requirements of security levels in its card acquirer contracts and took
into account the impact of the wars in Ukraine and Gaza and the three aircraft
stranded in Ukraine (see Note 9). Whilst our plans include continuing to fly
to Israel, the potential impact of reallocating capacity to other routes if
required is known. The Directors therefore concluded that no material
adverse impact on future cash flows is likely to result from these items. The
Directors have also assumed that there will be no further significant
disruption of the magnitude experienced in recent financial years.
In this downside scenario, whilst there was a significant reduction in
liquidity, headroom on the security levels of the card acquirer contracts was
maintained. Accordingly, the Directors concluded it is appropriate to retain
the going concern basis of accounting in preparing the financial statements.
2. Financial risk management
Financial risk factors
The Group is exposed to market risks relating to fluctuations in commodity
prices, interest rates and currency exchange rates. The objective of financial
risk management at Wizz Air is to minimise the impact of commodity price,
interest rate and foreign exchange rate fluctuations on the Group's earnings,
cash flows and equity. To manage commodity and foreign exchange risks, Wizz
Air uses foreign currency and jet fuel zero-cost collar contracts.
Risk management is carried out by the treasury department under policies
approved by the Board of Directors. The Board provides written principles for
overall risk management, as well as written policies covering specific areas,
such as foreign exchange risk, fuel price risk, credit risk, use of derivative
financial instruments, adherence to hedge accounting, and hedge coverage
levels. The Board has mandated the Audit and Risk Committee of the Board to
supervise the hedging activity of the Group and the compliance with the
policies approved by the Board.
Risk analysis
Market risks
Wizz Air operates under a clear set of treasury policies approved by the Board
and supervised by the Audit and Risk Committee.
Given the sustained and ongoing volatility in commodity prices, Wizz Air kept
its systematic jet fuel hedging policy and maintained hedge coverage in line
with the policy and its peers. The hedges under the hedge policy will be
rolled forward quarterly, 18 months out, with coverage levels over time
reaching indicatively between 65 per cent for the first quarter of the hedging
horizon and 15 per cent for the last quarter of the hedging horizon. In line
with the hedging policy, Wizz Air also hedges its fuel consumption-related US
Dollar exposure in a similar fashion.
Foreign currency risk
The Group is exposed to foreign currency risk on sales, purchases and
commitments that are denominated in a currency other than the functional
currency of its operating entities. The foreign currency exposure of the Group
is predominantly attributable to: (i) only a small portion of the Group's
revenues are denominated in or linked to the USD while a significant portion
of the Group's expenses are USD denominated, including fuel and aircraft
leases; and (ii) there are various
currencies in which the Group has significantly more revenues than expenses,
primarily the British Pound (GBP) and - to a smaller extent - the Polish Zloty
(PLN) and the Romanian Leu (RON).
EUR/USD foreign currency rate is the most significant underlying foreign
currency exposure to the Group.
The table below analyses the financial instruments by the currencies of future
receipts and payments as follows:
EUR USD Other Total
At 31 March 2024 € million € million € million € million
Financial assets
Trade and other receivables 315.3 156.7 99.2 571.2
Investments in other entities - 1.6 - 1.6
Derivative financial assets - 36.8 - 36.8
Cash and cash equivalents 138.4 523.8 66.2 728.4
Short-term cash deposits 154.0 597.1 - 751.1
Restricted cash 3.1 103.4 2.9 109.4
Total financial assets 610.8 1,419.4 168.3 2,198.5
Financial liabilities
Unsecured debt* 511.6 - - 511.6
Secured debt 257.5 205.7 - 463.2
IFRS 16 aircraft and engine lease liability 637.4 2,947.4 - 3,584.8
IFRS 16 other lease liability 16.8 - 10.3 27.1
JOLCO and FTL lease liability 1,122.4 401.9 119.1 1,643.4
Loans from non-controlling interests - 13.9 - 13.9
Convertible debt 25.7 - - 25.7
Trade and other payables 461.4 93.7 197.2 752.3
Derivative financial liabilities - 0.7 - 0.7
Deferred income 4.8 - - 4.8
Total financial liabilities 3,037.6 3,663.3 326.6 7,027.5
Net financial liabilities (2,426.8) (2,243.9) (158.3) (4,828.9)
EUR USD Other Total
At 31 March 2023 € million € million € million € million
Financial assets
Trade and other receivables 193.4 65.4 11.6 270.4
Derivative financial assets - 1.2 - 1.2
Cash and cash equivalents 964.4 373.0 71.2 1,408.6
Restricted cash 0.7 119.3 0.4 120.4
Total financial assets 1,158.5 558.9 83.2 1,800.6
Financial liabilities
Unsecured debt* 1,005.5 - - 1,005.5
Secured debt - 250.0 - 250.0
IFRS 16 aircraft and engine lease liability 405.1 2,371.4 - 2,776.5
IFRS 16 other lease liability 5.7 - 12.8 18.5
JOLCO and FTL lease liability 850.8 288.4 72.0 1,211.2
Loans from non-controlling interests - 13.8 - 13.8
Convertible debt 26.0 - - 26.0
Trade and other payables 558.1 68.7 78.8 705.6
Derivative financial liabilities - 108.4 - 108.4
Deferred income 4.8 - - 4.8
Total financial liabilities 2,856.0 3,100.7 163.6 6,120.2
Net liabilities (1,697.5) (2,541.8) (80.4) (4,319.6)
* Unsecured debt represents the European Mid Term Note and bank
overdrafts.
Trade and other receivables in this table, and also in the other disclosures
in this Note, exclude balances that are not financial instruments, being
prepayments, deferred expenses and part of other receivables. Similarly,
trade and other payables and deferred income in this table, and also in the
other disclosures in this Note, exclude balances that are not financial
instruments, being part of accruals and other payables.
Commodity risks
One of the most significant costs for the Group is jet fuel. The price of jet
fuel can be volatile and can directly impact the Group's financial
performance. See further details regarding jet fuel at market risks and hedge
transactions within this Note.
The Group is also exposed to price risk related to Emissions Trading System
(ETS) schemes. In order to comply with regulations, ETS allowances must be
purchased and surrendered on a yearly basis. To reduce the exposure to price
volatility and inflation, the Group enters into spot and forward purchase
transactions. As at 31 March 2024, all requirements for calendar
year 2023 and 100 per cent of total forecast requirements for calendar
year 2024 were covered. This coverage includes forward purchase agreements
to the value of €219.2 million. These forward purchase agreements qualify
for the own use exemption and therefore are not accounted for as a financial
instrument under IFRS 9.
Interest rate risk
The Group's objective is to reduce cash flow risk arising from the fluctuation
of interest rates on financing.
The Group has a small portion of future commitments under certain lease
contracts that are based on floating interest rates. The PDP refinancing
credit facility (See Note 11) is a variable rate loan, which is expected to
be gradually settled over one and a half year. The floating nature of these
interest charges exposes the Group to interest rate risk. Interest rates
charged on Eurobond, convertible debt liabilities and on the majority of the
leases to finance the aircraft are not sensitive to interest rate movements as
they are fixed until maturity.
The Group has not used financial derivatives to hedge its interest rate risk
during the year.
The Group has floating rate instruments within restricted cash, but given
their short-term (within three months) maturity, the interest rates are not
expected to move significantly during this short period.
Hedge transactions during the year
The Group uses zero-cost collar instruments to hedge its jet fuel-related
foreign exchange exposures and jet fuel price exposures. In order to ensure
economic relationship, the Group enters into hedge relationships where
critical terms of the hedging instrument match exactly with that of the hedged
item.
The gains and losses arising from hedge transactions during the year were as
follows:
Foreign exchange hedge:
2024 2023
€ million € million
Gain recognised within fuel costs
Effective cash flow hedge 1.9 -
Total gain recognised within fuel costs 1.9 -
Fuel hedge:
2024 2023
€ million € million
(Loss)/gain recognised within fuel costs
Effective hedge (24.3) (33.2)
Cost of hedging recycled to profit or loss - (6.0)
Total loss recognised within fuel costs (24.3) (39.2)
Hedge year-end open positions
The Group measures its derivative financial instruments at fair value, as
calculated by management using an independent derivative valuation platform.
Such fair values might change materially within the near future but these
changes would not arise from assumptions made by management or other sources
of estimation uncertainty at the end of the period but from the movement of
market prices. The fair value calculation is most sensitive to movements in
the jet fuel and foreign currency spot prices, their implied volatility and
respective yields.
At the end of the year, the Group had the following open hedge positions:
Foreign exchange hedges with derivatives:
Derivative financial instruments
At 31 March 2024 Notional Non-current Current Non-current Current Net
amount assets assets liabilities liabilities asset
US$ million € million € million € million € million € million
Effective cash flow hedge positions 801.0 0.7 7.9 - (0.5) 8.1
Total foreign exchange hedges 801.0 0.7 7.9 - (0.5) 8.1
Derivative financial instruments
At 31 March 2023 Notional Non-current Current Non-current Current Net
amount assets assets liabilities liabilities liability
US$ million € million € million € million € million € million
Effective cash flow hedge positions 312.0 - - - (0.4) (0.4)
Total foreign exchange hedges 312.0 - - - (0.4) (0.4)
For the movements in other comprehensive income, refer to the consolidated
statement of changes in equity.
The open foreign currency cash flow hedge positions at year end can be
analysed according to the maturity periods and price ranges of the underlying
hedge instruments as follows:
EUR/USD foreign exchange hedge:
F25 F26
At 31 March 2024 12 months 6 months
Maturity profile of notional amount (million) $686.0 $115.0
Weighted average ceiling $1.1303 $1.1304
Weighted average floor $1.0867 $1.0873
F24 F25
At 31 March 2023 12 months 6 months
Maturity profile of notional amount (million) $312.0 -
Weighted average ceiling $1.1154 -
Weighted average floor $1.0724 -
Foreign exchange hedge with non-derivatives:
Non-derivatives, such as cash, are existing financial assets or liabilities
that hedge highly probable foreign currency cash flows in the future and
therefore act as a natural hedge.
Fuel hedge with derivatives:
Derivative financial instruments
At 31 March 2024 '000 Non-current Current Non-current Current Net
metric tonnes assets assets liabilities liabilities asset
€ million € million € million € million € million
Effective cash flow hedge positions 987.0 3.1 25.1 - (0.3) 28.0
Total fuel hedge 987.0 3.1 25.1 - (0.3) 28.0
Derivative financial instruments
At 31 March 2023 '000 Non-current Current Non-current Current Net
metric tonnes assets assets liabilities liabilities liability
€ million € million € million € million € million
Effective cash flow hedge positions 1,258.5 0.2 1.0 (4.2) (103.8) (106.8)
Total fuel hedge 1,258.5 0.2 1.0 (4.2) (103.8) (106.8)
For the movements in other comprehensive income, refer to the consolidated
statement of changes in equity.
The fuel hedge positions at year end can be analysed according to the maturity
periods and price ranges of the underlying hedge instruments as follows:
F25 F26
At 31 March 2024 12 months 6 months
Maturity profile ('000 metric tonnes) 841.0 146.0
Blended capped rate $860.0 $844.0
Blended floor rate $751.0 $732.0
F24 F25
At 31 March 2023 12 months 6 months
Maturity profile ('000 metric tonnes) 1,081.0 177.5
Blended capped rate $994.0 $884.0
Blended floor rate $864.0 $767.0
Effects of hedge accounting on the financial position and performance
The effects of the foreign exchange hedges on the Group's financial position
and performance are as follows:
2024 2023
Zero-cost collars
Carrying amount net asset/(liability) (€ million) 8.1 (0.4)
Notional amount (US$ million) 801.0 312.0
Maturity date April 2024- August 2025 April 2023- March 2024
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging instruments (€ million) 4.6 -
Change in value of hedged item used to determine hedge effectiveness (€ (4.6) -
million)
The effects of the fuel hedges on the Group's financial position and
performance are as follows:
2024 2023
Zero-cost collars
Carrying amount net asset/(liability) 28.0 (106.8)
Notional amount ('000 metric tonnes) 987.0 1,006.9
Maturity date April 2024- August 2025 April 2023- October 2024
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging instruments (€ million) 12.4 (83.2)
Change in value of hedged item used to determine hedge effectiveness (€ (12.4) 83.2
million)
Hedge effectiveness
The effectiveness of hedges is tested both prospectively to determine the
appropriate accounting treatment of open positions. Prospective testing of
open hedges requires making certain estimates, the most significant one being
for the future expected level of the business activity (primarily the
utilisation of fleet capacity) of the Group. Building on these estimations of
the future, management makes a judgment on the accounting treatment of open
hedging instruments. Hedge accounting for jet fuel and foreign currency cash
flow hedges is discontinued where the "highly probable" forecast criterion is
not met in accordance with the requirements of IFRS 9.
There was no discontinued hedging relationship during the financial year
ended 31 March 2024 and during the financial year ended 31 March 2023.
None of the hedge counterparties had a material change in their credit status
that would have influenced the effectiveness of the hedging transactions.
Sensitivity analysis
The table below shows the sensitivity of the Group's profits to various market
risks for the current and the prior year, excluding any hedge impacts.
2024 2023
Difference in profit after tax Difference in profit after tax
€ million € million
Fuel price sensitivity
Fuel price $100 higher per metric tonne -167.1 -142.4
Fuel price $100 lower per metric tonne +167.1 +142.4
FX rate sensitivity (USD/EUR)
FX rate 0.05 higher (meaning EUR stronger) +204 +208.9
FX rate 0.05 lower -221.3 -269.0
FX rate sensitivity (GBP/EUR)
FX rate 0.03 higher (meaning EUR stronger) -16.8 -11.6
FX rate 0.03 lower +18.0 +12.4
Interest rate sensitivity (EUR)
Interest rate is higher by 100 bps +16.4 +14.1
Interest rate is lower by 100 bps -16.7 -13.9
The Group is primarily exposed to changes in EUR/USD foreign exchange rate.
The sensitivity of profit or loss to changes in the exchange rates arises
mainly from USD lease liabilities and jet fuel-related USD exposure.
The interest rate sensitivity calculation above considers the effects of
varying interest rates on the interest income on bank deposits and floating
rate leases.
The table below shows the sensitivity of the Group's other comprehensive
income to various market risks for the current and the prior year. These
sensitivities relate to the impact of the market risks on the balance of the
cash flow hedging reserve (which includes gains and losses related to open
cash flow hedges both for foreign exchange rates and jet fuel price).
2024 2023
Difference Difference
€ million € million
Fuel price sensitivity
Fuel price $100 higher per metric tonne -91.0 -114.3
Fuel price $100 lower per metric tonne +91.0 +114.3
FX rate sensitivity (USD/EUR)
FX rate 0.05 higher (meaning EUR stronger) +1.6 -5.1
FX rate 0.05 lower -1.6 +5.1
Fuel volume sensitivity (metric tonnes)
100,000 metric tonnes reduction in forecast fuel purchases +3.7 -7.8
100,000 metric tonnes increase in forecast fuel purchases -3.7 +7.8
The sensitivity analyses for 2024 above were performed with reference to the
following market rates, as the base case:
▶for profits, annual average rates: jet fuel price $978 per metric tonne;
EUR/USD FX rate 1.08; EUR/GBP FX rate 0.86; and
▶for other comprehensive income, year-end spot rates: jet fuel price $846.5
per metric tonne; EUR/USD FX rate 1.08.
Liquidity risks
Prudent liquidity risk management implies maintaining sufficient cash and the
availability of funding. Financial year 2024 had an extremely challenging
environment of tight financial conditions, high inflation, high energy prices
and heightened geopolitical risk in some of the markets we serve. These
challenges impacted our supply chain, operational capacity and the liquidity
position of the Group. As a response, a number of actions are being taken to
improve costs and liquidity, the most important ones being:
▶continuing to ensure that the flights that are operated deliver positive
cash contributions;
▶securing nearly all lease financing for aircraft delivery positions until
December 2024;
▶working with suppliers to reduce contracted rates and improve payment
terms;
▶reducing discretionary spending and suspending non-essential capital
expenditures;
▶extending the EMTN programme in January 2024 following the repayment of
€500 million bond and effectively reducing the liability to a 4 year €500
million bond which was issued in January 2022;
▶redrawing PDP financing from the credit facility that was contracted in
February 2023 and is available for a maximum of three years (see Note 11);
▶entering into an ETS repurchase agreement with Standard Chartered whereby
Wizz Air monetised its ETS allowance inventory (3.3 million units) at spot
price, receiving €253.6 million, in exchange for a commitment to repurchase
the units at a fixed price in mid-September 2024 before surrendering them for
calendar year 2023; and
▶working with acquiring banks to expand our ticket sales capacity. These
banks will share a portion of the credit risk for paid tickets that have not
been flown without requiring to provide collateral.
As a result of these measures, the Group is confident in its ability to
maintain sufficient liquidity in case of further unexpected events or
increases in commodity prices. For further notes, refer to the going concern
assessment under Note 1.
The Group invested excess cash primarily in USD and EUR denominated short-term
time deposits with high-quality bank counterparties.
See table in Note 11 that analyses the carrying amount of the Group's
borrowings into relevant maturity groupings based on the remaining period at
the statement of financial position date.
The Group has obligations under financial guarantee contracts. The most
significant financial guarantee contracts relate to aircraft leases, hedging,
EMTN notes, PDP financing and Convertible Notes. For these items, the
respective underlying liabilities are reflected under the appropriate line of
the financial liabilities part of the table above (for leases, the liability
is presented under borrowings). Since the liability itself is already
reflected in the table, it would not be appropriate to also include the
financial guarantee provided by another Group entity for the same obligation.
Management does not expect that any payment under these guarantee contracts
will be required by the Company.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. The Group's exposure to credit risk from individual customers is
limited as the large majority of the payments for flight tickets are collected
before the service is provided.
However, the Group has significant banking, hedging, aircraft manufacturer and
card-acquiring relationships that represent counterparty credit risk. The
Group analysed the creditworthiness of the relevant business partners in order
to assess the likelihood of non-performance of liabilities and therefore
assets due to the Group. The credit quality of the Group's financial assets is
assessed by reference to external credit ratings (published by Standard &
Poor's or similar institutions) of the counterparties as follows:
A A- Other Unrated Total
At 31 March 2024 € million € million € million € million € million
Financial assets
Cash and cash equivalents 449.0 1.2 265.5 12.8 728.4
Short-term cash deposits 751.1 - - - 751.1
Restricted cash 109.4 - - - 109.4
Trade and other receivables 5.1 5.8 3.8 556.4 571.1
Derivative financial assets 21.0 12.1 3.8 - 36.9
Investments in other entities - - - 1.6 1.6
Total financial assets 1,335.5 19.0 273.1 570.9 2,198.5
A A- Other Unrated Total
At 31 March 2023 € million € million € million € million € million
Financial assets
Cash and cash equivalents 1,398.6 0.3 2.9 6.8 1,408.6
Restricted cash 120.4 - - - 120.4
Trade and other receivables 20.8 0.4 - 249.2 270.4
Derivative financial assets 0.9 0.3 - - 1.2
Total financial assets 1,540.7 1.0 2.9 256.0 1,800.6
From the unrated category within trade and other receivables, the Group has
€25.8 million (2023: €21.0 million) receivables from different aircraft
lessors in respect of maintenance reserves and lease security deposits
paid. However, given that the Group physically possesses the aircraft owned
by the lessors and that the Group has significant future lease payment
obligations towards the same lessors, management does not consider the credit
risk on maintenance reserve receivables to be material. Most of the remaining
balance in this category in both years relates to ticket sales receivables
from customers and non-ticket revenue receivables from business partners.
These balances are spread between a significant number of counterparties and
the credit performance in these channels has historically been good.
Based on the information above, management does not consider the counterparty
risk of any of the counterparties to be material and therefore no fair value
adjustment was applied to the respective cash or receivable balances.
Fair value estimation
The Group classifies its financial instruments based on the technique used for
determining fair value into the following categories:
Level 1: Fair value is determined based on quoted prices (unadjusted) in
active markets for identical assets or liabilities.
Level 2: Fair value is determined based on inputs other than quoted prices
that are observable for the asset or liability, either directly or indirectly.
Level 3: Fair value is determined based on inputs that are not based on
observable market data (that is, on unobservable inputs).
The following table presents the Group's financial assets and liabilities that
are measured at fair value at 31 March 2024:
Level 1 Level 2 Level 3 Total
€ million € million € million € million
Assets
Investments in other entities - - 1.6 1.6
Derivative financial instruments - 36.9 - 36.9
- 36.9 1.6 38.5
Liabilities
Derivative financial instruments - 0.7 - 0.7
- 0.7 - 0.7
The following table presents the Group's financial assets and liabilities that
are measured at fair value at 31 March 2023:
Level 1 Level 2 Level 3 Total
€ million € million € million € million
Assets
Derivative financial instruments - 1.2 - 1.2
- 1.2 - 1.2
Liabilities
Derivative financial instruments - 108.4 - 108.4
- 108.4 - 108.4
The Group measures its derivative financial instruments at fair value,
calculated by a third-party front office system that falls into the Level 2
category. The front office platform provides comprehensive risk management
capabilities, using generally accepted valuation techniques, principally the
Black-Scholes model and discounted cash flow models. The fair value of
investments in other entities is estimated using Level 3 methodology.
All the other financial assets and financial liabilities are measured at
amortised cost.
Capital management
The Group's objectives when managing capital are: (i) to safeguard the Group's
ability to continue as a going concern in order to provide returns for
Shareholders and benefits for other stakeholders; (ii) to secure funds at
competitive rates for its future aircraft acquisition commitments (see
Note 15); and (iii) to maintain an optimal capital structure to reduce the
overall cost of capital.
The current sources of capital for the Group are equity as presented in the
statement of financial position, bonds and other borrowings (see Note 11),
as well as, to a smaller extent, convertible debt.
Wizz Air's strategy is to hold significant cash and liquid funds to mitigate
the impact of potential business disruption events and to invest in
opportunities as they come along in an increasingly volatile market
environment. Accordingly, the Group has so far retained all profits and paid
no dividends and financed all its aircraft and most of its spare engine
acquisitions through sale and leaseback agreements. The Group furthered its
financing options through the establishment in January 2021 of a €3.0
billion European Mid Term Note (EMTN) programme and issuance of its debut bond
by Wizz Air Finance Company B.V., unconditionally and irrevocably guaranteed
by Wizz Air Holdings Plc. Following 2024 bond repayment, Wizz Air renewed the
EMTN programme. In addition, the Group entered into a PDP refinancing credit
facility which is available for a maximum of three years and also entered into
a repurchasing agreement utilising its large inventory of ETS units.
The existing aircraft orders of the Group create a need for raising
significant amounts of capital in the following years. The strategy of the
Group is to ensure that it has access to various forms of long-term financing,
which in turn allows the Group to further reduce its cost of capital and the
cost of ownership of its aircraft fleet.
3. Critical accounting estimates and judgements made in applying the Group's
accounting policies
a.Maintenance policy
The estimations and judgments applied in the context of the maintenance
accounting policy of the Group impact the balance of: (i) property, plant and
equipment (and, within that, aircraft maintenance assets, as detailed in
Note 9); and (ii) aircraft maintenance provisions (as detailed in Note 13).
Estimate: For aircraft held under lease agreements, provision is made for the
minimum unavoidable costs of specific future maintenance obligations required
by the lease at the time when such obligation becomes certain. The amount of
the provision involves making estimates of the cost of the heavy maintenance
work that is required to discharge the obligation, including any end-of-lease
costs. A 5 per cent increase in the planned costs of heavy maintenance works
at the 31 March 2024 year end would increase the balance of both aircraft
maintenance assets and aircraft maintenance provisions by €13.1 million.
Estimate: The cost of heavy maintenance is capitalised and recognised as a
tangible fixed asset (and classified as an "aircraft maintenance asset") at
the earlier of: (a) the time the lease re-delivery condition is no longer
met; or (b) when maintenance, including enhancement, is carried out. The
calculation of the depreciation charge on such assets involves making
estimates primarily for the future utilisation of the aircraft. A 9 per cent
change in the F25 forecast aircraft utilisation would result in the same
average utilisation as in F24. This would cause a €2.6 million decrease in
the balance of aircraft maintenance assets.
The basis of these estimates is reviewed annually at least, and also when
information becomes available that is capable of causing a material change to
an estimate, such as renegotiation of end-of-lease return conditions,
increased or decreased utilisation of the assets, or changes in the cost of
heavy maintenance services.
Judgment: On a lease-by-lease basis, the Group makes a judgment whether it
would perform future maintenance that would impact the condition of the
respective aircraft or spare engine asset in a way that eliminates the need
for paying compensation to the lessor on the re-delivery of the leased asset.
When such maintenance is not expected, then accrual is made for the
compensation due to the lessor in line with the terms of the respective lease
contract.
Judgment: The policy adopted by the Group, as summarised above, is only one of
the policies available under IFRS in accounting for heavy maintenance for
aircraft held under lease agreements. A principal alternative policy involves
recognising provisions for future maintenance obligations in accordance with
hours flown or similar measure, and not only when lease re-delivery conditions
are not met. In the judgment of the Directors, the policy adopted by the
Group, whereby provisions for maintenance are recognised only when lease
re-delivery conditions are not met, provides the most reliable and relevant
information about the Company's obligations to incur major maintenance
expenditure on leased aircraft and at the same time it best reflects the fact
that an aircraft has lower maintenance requirements in the early years of its
operation. The average age of the Group's aircraft fleet at 31 March
2024 was 4.3 years (31 March 2023: 4.6 years). Given the policy adopted, we
currently do not consider that the impact of climate change has a material
impact on the maintenance provision.
b.Hedge and derivative accounting
Estimate: The asset and liability balances at year end related to open hedge
instruments can be material. The fair value of derivatives is estimated by a
third-party front office system as per their industry practice. As required,
the fair values ascribed to those instruments are verified also by management
using high-level models. These estimations are performed based on market
prices observed at year end and, therefore, according to paragraph 128 of IAS
1, do not require further disclosure. Such fair values might change materially
within the next financial year but these changes would not arise from
assumptions made by management or other sources of estimation uncertainty at
the end of the year but from the movement of market prices. The fair value
calculation is most sensitive to movements in the jet fuel and foreign
currency spot prices, their implied volatility and respective yields. A
sensitivity analysis for the jet fuel price and for the FX rate on most
relevant currency pairs is included in Note 2.
Estimate and judgment: The effectiveness of hedges is evaluated prospectively
to ascertain the suitable accounting treatment for hedge gains and losses.
Additionally, designated hedging relationships undergo retrospective
assessment for ineffectiveness, with any ineffective portion subsequently
recognized in the Statement of Profit and Loss. Prospective testing of open
hedges requires making certain estimates, the most significant one being for
the future expected level of the business activity (primarily the utilisation
of fleet capacity) of the Group, which is supported by the models used to
prepare going concern assessments.
Building on these estimations of the future, management exercises judgment on
the appropriate accounting treatment, considering the alignment of hedge
instruments with the Group's risk management objectives and strategies. Hedge
accounting for jet fuel and foreign currency cash flow hedges is discontinued
where the "highly probable" forecast criterion was not met in accordance with
the requirements of IFRS 9.
None of the hedge counterparties had a material change in their credit status
that would have influenced the effectiveness of the hedging transactions.
c.Net presentation of government taxes and other similar levies
The Group's accounting policy stipulates that where charges levied by airports
or government authorities on a per passenger basis represent a government tax
in fact or in substance, then such amounts are presented on a net basis in the
statement of comprehensive income (netted against revenue).
Judgment: Management reviews all passenger-based charges levied by airports
and government authorities to ensure that any amounts recovered from
passengers in respect of these charges are appropriately classified within the
statement of comprehensive income. Given the variability of these charges and
the number of airports and jurisdictions within which the Group operates, the
assessment of whether these items constitute taxes in nature is an inherently
complex area for some airports, requiring a level of judgment.
d.Accounting for aircraft and spare engine assets
Judgment: When the Group acquires new aircraft and spare engines, it applies
the following critical judgments in determining the acquisition cost of these
assets:
▶engine contracts typically include the selection of an engine type to be
installed on future new aircraft, a commitment to purchase a certain number of
spare engines, and lump-sum (i.e. not per engine) concessions from the
manufacturer. Management recalculates the unit cost of engines by allocating
lump-sum credits over all engines ordered and by adjusting costs between
installed and spare engines in a way that ensures that identical physical
assets have an equal acquisition cost; and
▶aircraft acquisition costs are recalculated to reflect the impacts of: (i)
any adjustment on the cost of installed engines (as above); and (ii)
concessions received from the manufacturers of other aircraft components under
selection agreements. Such acquisition cost has relevance also for leased
aircraft when calculating the amount of total gain or loss on the respective
sale and leaseback agreement.
e.Accounting for leases
Judgment: Some of the Group's lease contracts contain options to extend the
lease term for a period of one to two years. The extension option is taken
into account in the measurement of the lease liability only when the Group is
reasonably certain that it would later exercise the option. Such judgment is
made lease by lease, and is relevant both at inception, for the initial
measurement of the lease liability, and also for a subsequent remeasurement of
the lease liability if the initial judgment is revised at a later date.
Judgment: The Group takes the view that, as a lessee, it is not able to
readily determine the interest rate implicit in its lease contracts.
Therefore, it applies its incremental borrowing rate for discounting future
lease payments.
The estimations made by management in accounting for leases do not materially
impact the asset and liability balances of the Group. The majority of aircraft
and spare engine assets are leased and as such their period of depreciation is
the shorter of their useful economic lives and lease duration. As these assets
are new at the inception of the lease and typically have a useful economic
life of at least twice the duration of the lease, no further estimation has
been required.
f.Revenue from contracts with other partners
Revenue from contracts with other partners relates to commissions on the sale
of on-board catering, accommodation, car rental, travel insurance, bus
transfers, premium calls and co-branded cards.
Judgment: The Group considers that it is an agent (as opposed to principal) in
relation to all its contracts with other partners. Accordingly, Wizz Air
recognises revenue from these contracts on a net (commission) basis.
Out of these contracts, the provision of on-board catering services is the
most significant in value and it is also the most complex from the perspective
of making the "agent versus principal" assessment/judgment. The Company's
judgment is that it is an agent that was based on the facts that it is the
partner that: (i) enters into contracts with the passengers/customers and
bears the liability towards them for delivering the products and services;
(ii) defines the majority of the product portfolio, manages the inventory, is
responsible for product availability/outage, has title to the inventory and
bears the risk of loss; and (iii) has discretion in establishing prices. The
difference on this contract between gross sales and net commission revenue (as
recognised in the statement of comprehensive income) was €55.9 million
(2023: €49.2 million).
4. Revenue
The split of total revenue presented in the consolidated statement of
comprehensive income, being passenger ticket revenue and ancillary revenue, is
a non-IFRS measure (or alternative performance measure). The existing revenue
presentation is considered relevant for the users of the financial statements
because: (i) it mirrors disclosures presented outside of the financial
statements; and (ii) it is regularly reviewed by the Chief Operating Decision
Maker for evaluating financial performance of the (now only one) operating
segment.
Revenue from contracts with customers can be disaggregated as follows based on
IFRS 15:
2024 2023
€ million € million
Revenue from contracts with passengers 4,994.6 3,833.7
Revenue from contracts with other partners 78.5 62.0
Total revenue from contracts with customers 5,073.1 3,895.7
These two categories represent revenues that are distinct from a nature,
timing and risks point of view. Revenue from contracts with other partners
relates to commissions on the sale of on-board catering, accommodation, car
rental, travel insurance, bus transfers, premium calls and co-branded cards,
where the Group acts as an agent.
The contract costs reported at 31 March 2024 as part of trade and other
receivables amounted to €6.4 million (31 March 2023: €5.9 million) and
the contract liabilities (unearned revenues) reported as part of deferred
income were €790.3 million (31 March 2023: €761.1 million). Out of the
€4,994.6 million revenue from contracts with passengers recognised
in F24 (2023: €3,833.7 million), €761.1 million (2023:
€326.6 million) was included in the contract liability balance at the
beginning of the year (see unearned revenue in Note 12).
5. Operating profit/(loss)
Net other income/(expense)
The following categories of transactions are included in net other
income/(expenses):
2024 2023
€ million € million
Gain on sale and leaseback transactions 244.8 99.7
Credits and compensation received from suppliers* 198.6 40.1
Flight disruption-related expenses (186.9) (130.6)
Crew-related expenses (66.4) (69.6)
Overhead-related expenses (83.2) (62.3)
Expense relating to short-term leases (3.5) (8.4)
Expense relating to variable lease payments (0.6) (3.0)
Auditors' remuneration (2.6) (1.7)
Impairment reversal for receivables 0.7 0.2
Net other expense* (5.1) (5.7)
Net other income/(expense) 95.8 (141.3)
*Net other expense has been further detailed to separately display credits and
compensation received from suppliers.
Credits and compensation received from suppliers related to incentives and
compensation received from Original Equipment Manufacturers (OEMs) and other
suppliers.
Overhead-related expenses include fees for legal support, professional
services, consulting and IT-related services.
Net other expense is mainly related to income and expenses from cargo
operations.
6. Net financing income and expense
2024 2023
€ million € million
Interest income 80.5 20.8
Financial income 80.5 20.8
Interest expenses on:
Convertible debt (1.8) (1.7)
IFRS 16 lease liability (123.8) (97.9)
JOLCO and FTL lease liability (34.3) (18.8)
Unsecured debt (11.8) (13.3)
Secured debts (22.3) (2.0)
Other (2.7) (1.5)
Financial expenses (196.7) (135.3)
Net foreign exchange gains 19.4 16.6
Net financing expense (96.8) (97.9)
Interest income and expense include interest on financial instruments.
Interest income is earned on cash and cash equivalents, short-term deposits
and restricted cash.
Net foreign exchange gain in amount of €8.8 million (2023: €5.4 million
gain) relates to the remeasurement of lease liabilities denominated in
USD (Note 2).
7. Income tax credit
Recognised in the consolidated statement of comprehensive income:
2024 2023
€ million € million
Current tax on profit for the year 39.8 1.0
Adjustment for current tax of prior years 0.7 (1.1)
Other income-based taxes for the year 7.9 9.7
Adjustment for income-based taxes of prior years 1.5 0.1
Total current tax expense 49.9 9.7
Decrease in deferred tax liabilities (3.2) (0.2)
Increase in deferred tax assets (71.5) (39.0)
Total deferred tax credit (74.7) (39.2)
Total tax credit (24.8) (29.5)
The Company, that is Wizz Air Holdings Plc, has a local corporate tax rate of
13.97 per cent (2023: 13.97 per cent). The tax rate relates to Switzerland,
where the Company is tax resident, but does not have any commercial
operations. The current tax expense significantly increased compared to the
prior year due to the swing from a loss before tax for the Group to a profit
before tax. The increase in deferred tax assets more than offset the increase
in current taxes and turned the total tax charge of the Group into a total tax
credit. The increase in deferred tax assets was mainly attributable to the
recognition of new deferred tax assets as explained in the tax reconciliation
table below.
Out of the total deferred tax benefit of €39.0 million in F23,
€29.7 million (shown also in the tax reconciliation table below) is a
one-off credit impact attributable to the change of the tax residency of Wizz
Air Hungary Ltd. from Switzerland to Hungary effective from 1 April 2023, as
temporary differences are being reversed at a higher tax rate in F24 and
beyond.
Reconciliation of effective tax rate
The tax credit for the year (including both current and deferred tax charges
and credits) is different to the Company's standard rate of corporation tax of
13.97 per cent (2023: 13.97 per cent). The difference is explained below.
2024 2023
€ million € million
Profit/(loss) before tax 341.0 (564.6)
Tax at the corporation tax rate of 13.97 per cent (2023: 13.97 per cent) 47.6 (78.9)
Adjustment for current tax of prior years 0.7 (1.1)
Adjustment for income-based taxes of prior years 1.5 0.1
Effect of the change of tax residency of Wizz Air Hungary Ltd. from 1 April - (29.7)
2023
Effect of different tax rates of subsidiaries versus the parent company (25.4) 55.3
Effect of current year losses not being eligible for utilisation against - 15.1
taxable profits in future years
Effect of newly recognised deferred tax assets (44.0) -
Tax losses utilised for which no previous deferred tax was recognised (13.1) -
Other income-based foreign tax 7.9 9.7
Total tax credit (24.8) (29.5)
Effective tax rate (7.3)% 5.2%
The Company paid €17.4 million of tax in the year (2023: €6.8 million).
Other income-based foreign tax represents the local business tax and the
"innovation contribution" payable in Hungary in F24 and F23 by the
Hungarian subsidiaries of the Group, primarily Wizz Air Hungary Ltd. Hungarian
local business tax and innovation contribution are levied on an adjusted
profit basis.
In F23, the Group did not recognise deferred tax assets for most of its tax
loss carry-forwards. Such tax losses were incurred primarily by Wizz Air
Hungary Ltd. during F21-F23. In F24, all of Wizz Air Hungary Ltd.'s tax loss
carry-forwards were utilised at 9 per cent tax rate, resulting in a decrease
in the tax charge of the Group by €13.1 million this year.
A deferred tax asset has now been recognised following an intra-group sale of
aircraft purchase rights between two subsidiaries of the Group. These rights
have no carrying value in the statement of financial position of the Group but
have a carrying value (in the form of intangible asset) in the books of the
buyer subsidiary in its local GAAP financial statements, which has been partly
amortised by the end of F24 but will mostly be amortised in future years.
While the profit from the intra-group sale was recognised by the seller
subsidiary and was subject to tax in F22, the buyer subsidiary will recognise
most of the corresponding expenses (from the intangible asset) in future
years, including deduction for tax purposes, that will reduce the current tax
charge of the Group in those years.
The effect of different tax rates of subsidiaries is a composition of impacts
primarily in Hungary, the UK and Malta, relating to the airline subsidiaries
of the Group other than in the UAE where there is currently no corporate tax.
Global minimum tax
On 20 December 2021, the OECD released a framework for Pillar Two Model Rules
which will introduce a global minimum corporate tax rate of 15 per cent
applicable to multinational enterprise groups with global revenue over €750
million. On 15 December 2022, the EU Council formally adopted the EU minimum
tax directive and the rules should apply in the EU for accounting periods
starting on or after 31 December 2023 (i.e. the year ending 31 March 2025 for
the Group). Switzerland, Hungary, the UK and Malta have implemented the
minimum tax rules, but with various exemptions still applicable in the
accounting periods starting in 2024. As a result, in F25 the income of the
Malta and Abu Dhabi airline subsidiaries of the Group will not be subject to
global minimum tax, although Abu Dhabi is introducing tax at 9%, which will
apply from F25. The income of the UK subsidiary will be subject to minimum tax
but this will not result in an increased tax burden since the tax rate in the
UK is above 15 per cent. For profits generated by the Hungarian subsidiaries
of the Group, additional global minimum tax liabilities will apply
from F25 and it is estimated that the effective tax rate on these profits
will approximate 15 per cent in F25.
The assessment by management of the detailed minimum tax rules is still in
progress but it is expected that beyond F25 substantially all profits of the
Group will be subject to minimum tax and the effective tax rate of the Group
will approximate 15 per cent.
In line with the exception introduced by a 2023 amendment of IAS 12, 'Income
Taxes', the Group does not account for deferred taxes on "Pillar Two income
taxes" but will account for such taxes as a current tax when incurred in the
future. Therefore, the minimum tax rules had no impact on the recognition and
measurement of deferred tax balances at 31 March 2024, and hence on the total
tax charge in the year.
Tax residency change
Wizz Air Hungary Ltd. moved its place of effective management from Switzerland
to Hungary with an effective date of 1 April 2023. As a consequence, its tax
residency is Hungarian from F24 onwards.
Recognised in the statement of other comprehensive income
2024 2023
€ million € million
Deferred tax related to movements in cash flow hedging reserve (13.2) 9.9
Total tax (charge)/credit (13.2) 9.9
Interpretation 23, 'Uncertainty over Income Tax Treatments' (IFRIC 23)
The Group has open tax periods in a number of jurisdictions involving
uncertainties of different nature and materiality. The Group assessed the
impact of uncertainty of each of its open tax positions in line with the
requirements of IFRIC 23. The outcome of this assessment F24 balance of
€0.1 million at the end of both F24 and F23. For all other tax returns, the
Group concluded that it was probable that the tax authority would accept the
uncertain tax treatment that has been taken or is expected to be taken in
those tax returns and therefore accounted for income taxes consistently with
that tax treatment. The final liabilities, as later assessed by the tax
authorities, are not expected to materially vary from the amounts that have
been recognised by the Group.
8. Earnings/(loss) per share
Basic earnings/(loss) per share
Basic earnings or loss per share is calculated by dividing the profit or loss
attributable to equity holders of the Company by the weighted average number
of Ordinary Shares in issue during each year.
2024 2023
Profit/(loss) for the year, € million 376.6 (523.0)
Weighted average number of Ordinary Shares in issue 103,329,836 103,210,067
Basic earnings/(loss) per share, € 3.64 (5.07)
There were no Convertible Shares in issue at 31 March 2024 (2023: nill).
Diluted earnings/(loss) per share
There is no difference between the basic and diluted loss per share
for F23 as potential Ordinary Shares are anti-dilutive due to incurred loss.
Diluted earnings per share is calculated by adjusting the weighted average
number of Ordinary Shares in issue with the weighted average number of
Ordinary Shares that could have been issued in the respective period as a
result of the conversion of the following convertible instruments of the
Group:
▶ Convertible Shares;
▶ Convertible Notes; and
▶ Employee share options (vested share options are included in the
calculation).
The profit for the year has been adjusted for the purposes of calculating
diluted earnings per share in respect of the interest charge relating to the
debt which could have been converted into shares.
Diluted earnings/(loss) per share 2024 2023
Profit/(loss) for the year, € million 376.6 (523.0)
Interest expense on convertible debt (net of tax), € million 1.8 -
Profit/(loss) used to determine diluted earnings per share, € million 378.4 (523.0)
Weighted average number of Ordinary Shares in issue, thousands 103,330 103,210
Adjustment for assumed conversion on convertible instruments, thousands 24,380 -
Weighted average number of Ordinary Shares for diluted earnings per share, 127,710 103,210
thousands
Diluted earnings/(loss) per share, € 2.96 (5.07)
9. Property, plant and equipment
Land and buildings Aircraft maintenance assets Aircraft assets and parts Fixtures and Advances Advances paid RoU assets - aircraft and spares RoU assets - other Total
€ million € million € million fittings paid for aircraft maintenance assets € million € million € million
€ million for aircraft* € million
€ million
Cost
At 1 April 2022 25.8 374.0 690.3 11.3 734.4 224.6 3,414.1 16.1 5,490.6
Additions 0.1 106.4 652.8 1.8 481.7 69.7 745.5 11.2 2,069.2
Disposals - (137.2) (38.2) (0.9) (406.1) - (225.0) - (807.4)
Transfers - 85.2 - - - (85.2) - - -
FX translation effect - 0.2 (6.6) - - (0.9) (14.0) - (21.3)
At 31 March 2023 25.9 428.6 1,298.3 12.2 810.0 208.2 3,920.6 27.3 6,731.1
Additions 12.3 202.0 576.9 1.1 512.7 68.7 1,048.1 11.9 2,433.7
Disposals (0.7) (172.1) (72.7) (0.1) (480.4) - (315.8) (5.4) (1,047.2)
Transfers - 127.0 - - - (127.0) - - -
FX translation effect - (3.9) 3.6 - - - 8.8 - 8.5
At 31 March 2024 37.5 581.6 1,806.1 13.2 842.3 149.9 4,661.7 33.8 8,126.1
Accumulated depreciation
At 1 April 2022 4.5 263.4 83.8 7.6 - - 1,492.7 7.2 1,859.2
Depreciation charge for the year 1.5 117.5 59.0 1.7 - - 405.7 2.7 588.1
Disposals - (137.2) (14.1) (0.9) - - (225.0) - (377.2)
FX translation effect - (1.3) (0.1) - - - (3.6) - (5.0)
At 31 March 2023 6.0 242.4 128.6 8.4 - - 1,669.8 9.9 2,065.1
Depreciation charge for the year 1.7 156.7 92.9 1.9 - - 479.8 2.9 735.9
Disposals (0.3) (166.1) (4.3) (0.1) - - (311.0) (4.0) (485.8)
FX translation effect - (6.1) (0.5) - - - 2.5 - (4.1)
At 31 March 2024 7.4 226.9 216.7 10.2 - - 1,841.1 8.8 2,311.1
Net book amount
At 31 March 2024 30.1 354.7 1,589.4 3.0 842.3 149.9 2,820.6 25.0 5,815.0
At 31 March 2023 19.9 186.2 1,169.7 3.8 810.0 208.2 2,250.8 17.4 4,666.0
* Disposals represent the refunds upon delivery of aircraft of advances
previously paid.
The Group entered into various financing arrangements in order to finance
aircraft including sale and leaseback, Japanese Operating Lease with Call
Option (JOLCO) and French Tax Lease (FTL) structures. Certain of these
arrangements include Special Purpose Vehicles (SPV) in the financing structure
and in accordance with IFRS 10, where the Group has control of these entities,
these are consolidated in the Group balance sheet. Aircraft assets and parts
leased under JOLCO as part of sale and leaseback arrangements are not
classified as leases under IFRS 16 and treated as aircraft assets and parts
(as if there were no sale at all).
Other right-of-use (RoU) assets include leased buildings and simulator
equipment. Please refer to Note 11 for details on lease liabilities.
Additions to aircraft maintenance assets (2024: €202.0million;
2023: €106.4 million) were fixed assets created primarily against
provision for maintenance, as the Group's aircraft or their main components no
longer met the relevant return conditions under lease contracts.
Additions to "advances paid to aircraft maintenance assets" reflect primarily
the advance payments made by the Group to the engine maintenance service
provider under power by the hour agreements.
Additions to "advances paid for aircraft" represent PDPs made in the year,
while disposals in the same category represent PDP refunds received from the
manufacturer where the respective aircraft or spare engine was leased (i.e.
not purchased) by the Group. During F24 in the statement of cash flows the
cash inflow was €480.4 million "refund of advances paid for aircraft" and
the cash outflow was €370.7 million "advances paid for aircraft". In F23,
the Group entered into a PDP financing loan agreement denominated in US
Dollars ($), according to which PDPs in the amount of $334.4 million were
pledged as collateral as of 31 March 2023 (see Note 11). As of 31 March 2024,
$260.0 million is pledged as collateral.
The Group has reviewed the expected useful lives attributed to its leased
aircraft fleet and notes that the duration of its leases is significantly less
than the current expected economic life of an aircraft. No climate risk that
may impact these assets during the lease terms has been identified. Given
this, no change to the expected useful life is considered necessary as a
result of climate change.
Impairment assessment
Landing slots are assets with indefinite useful life and are to be tested
annually for impairment. An impairment assessment was performed for a single
cash-generating unit (CGU) that includes the whole route network, virtually
all property, plant, equipment, the landing slots and other intangible assets
of the Group.
No indication of impairment of any of the single CGU's assets was identified.
A separate impairment assessment was performed for the aircraft stranded in
Ukraine as disclosed below.
Aircraft in Ukraine
In February 2022, the airspace of Ukraine, Russia and Moldova was closed until
further notice as a result of the war in Ukraine. Four of Wizz Air's aircraft
were stranded in Ukrainian territory, one in Lviv and three in Kyiv.
The aircraft in Lviv, and all six engines of the aircraft in Kyiv were
successfully repatriated. After attending airframe structural checks and
engine inspections the aircraft and the engines returned to service with no
significant extra repair work required.
The airframes remaining in Kyiv are in good condition and with no damage,
evidenced by photographic images and local employee information. Maintenance
work has been performed to put parking and storage procedures in place. The
total net book value of the assets is €20.7 million. Since these stranded
assets are not generating cash-inflows, an impairment assessment was
performed.
Management evaluated various scenarios, including successful repatriation to
the fleet, prospect of recovery under insurance arrangements, selling the
assets in full or in parts to third parties, and continued grounding with no
recovery prospects. In case of successful repatriation it is assumed that the
aircraft can return to the fleet by summer season 2025 and can continue to
generate cash inflows. The other scenarios considered are ranging between full
recovery and complete loss of the asset values. Based on the weighted
probability assessment, management considers the carrying value of the
aircraft to be recoverable from the cash flows generated through the various
scenarios assessed.
10. Derivative financial instruments
2024 2023
€ million € million
Assets
Non-current derivatives 3.9 0.2
Cash flow hedges 3.9 0.2
Current derivatives 33.0 1.0
Cash flow hedges 33.0 1.0
Total derivative financial assets 36.9 1.2
Liabilities
Non-current derivatives - (4.2)
Cash flow hedges - (4.2)
Current derivatives (0.7) (104.2)
Cash flow hedges (0.7) (104.2)
Total derivative financial liabilities (0.7) (108.4)
Derivative financial instruments represent cash flow hedges (see Note 2). The
full value of a hedging derivative is classified as a current asset or
liability if the remaining maturity of the hedged item is less than a year.
The changes in the net position of assets and liabilities in respect of open
cash flow hedges are detailed in the consolidated statement of changes in
equity.
The mark-to-market gains (derivative financial assets) were generated on gains
on call options bought (as part of zero-cost collar instruments) that were in
the money at year end.
The mark-to-market losses (derivative financial liabilities) were generated on
losses on put options sold (as part of zero-cost collar instruments) that were
out of the money at year end.
11. Borrowings
2024 2023
€ million € million
Lease liability under IFRS 16 563.2 444.2
Unsecured debt 12.0 506.7
Secured debt 409.4 250.0
Liability related to JOLCO and FTL contracts 99.7 74.1
Total current borrowings 1,084.3 1,275.0
Lease liability under IFRS 16 3,048.8 2,350.9
Unsecured debt 499.6 498.8
Secured debt 53.8 -
Loans from non-controlling interests 13.9 13.8
Liability related to JOLCO and FTL contracts 1,543.6 1,137.0
Total non-current borrowings 5,159.7 4,000.5
Total borrowings 6,244.0 5,275.5
Unsecured debt
On 19 January 2021, Wizz Air Finance Company B.V., a 100 per cent owned
subsidiary of Wizz Air Holdings Plc, issued a €500.0 million 1.35 per cent
Eurobond, fully and irrevocably guaranteed by the Company, under the
€3,000.0 million EMTN programme. The bond was repaid upon maturity in
January 2024. Further to that, on 19 January 2022, Wizz Air Finance Company
B.V., a 100 per cent owned subsidiary of Wizz Air Holdings Plc, issued a
€500.0 million 1.00 per cent Eurobond, fully and irrevocably guaranteed by
the Company, under the €3,000.0 million EMTN programme with a maturity in
January 2026. These Eurobonds do not contain any financial covenants. The EMTN
programme was renewed in January 2024.
Bank overdrafts which are repayable on demand and are an integral part of cash
management activities are included within unsecured debt in the amount of
€12.0 million (31 March 2023: €6.0 million).
Secured debt
In February 2023, the Group entered into a PDP financing loan agreement,
according to which a part of the PDPs made have been financed and at the same
time pledged as collateral, through the novation of the PDPs and the
associated aircraft purchase rights to an orphan SPV. In October 2023, the
loan facility was extended by an additional US$270.0 million, keeping the
total drawdown limit at US$280.6 million. At 31 March 2024, $222.9 million (31
March 2023: $274.3 million) was borrowed, and PDPs in the amount of $260.0
million (31 March 2023: $334.4 million) are pledged as collateral.
The loan is subject to a variable interest rate based on Secured Overnight
Financing Rate. The Group has an obligation to repay the financed amount, its
interest and other costs related to the transaction by July 2025. When all
obligations are settled, the aircraft purchase rights and the PDPs are
automatically re-novated to Wizz Air. In case of default, the Group bears the
potential risk of losing the purchase rights and the related PDP amounts. The
PDP refinancing credit facility is available for further financing for a
maximum of two years and does not contain any financial covenants.
In December 2023, the Group entered into an ETS sale and repurchase agreement
according to which EU allowances were sold for €253.6 million with a
commitment to repurchase it in September 2024. The consideration received is
recognised as a financial liability within secured debt. The difference
between the sale price and the repurchase price is recognised as interest
expense over the period between the sale date and the repurchase date. The
facility does not contain any financial covenants.
The maturity profile of borrowings as at 31 March 2024 is as follows:
IFRS 16 aircraft and engine lease liability IFRS 16 other lease liability JOLCO and FTL lease liability Unsecured debt Secured debt Loans from non-controlling interests Total
€ million € million € million € million € million € million € million
Payments due:
Within one month 35.8 0.2 9.6 12.0 - - 57.6
Between one and three months 70.2 0.4 18.5 - 35.3 - 124.4
Between three months and one year 454.7 1.9 71.5 - 374.1 - 902.2
Between one and two years 535.3 2.8 107.0 499.6 53.8 - 1,198.5
Between two and three years 488.0 2.9 110.0 - - - 600.9
Between three and four years 409.0 3.1 113.0 - - - 525.1
Between four and five years 365.0 3.1 116.4 - - - 484.5
More than five years 1,226.8 12.7 1,097.4 - - 13.9 2,350.8
Total borrowings 3,584.8 27.1 1,643.4 511.6 463.2 13.9 6,244.0
The maturity profile of borrowings as at 31 March 2023 is as follows:
IFRS 16 aircraft and engine lease liability IFRS 16 other lease liability JOLCO and FTL lease liability Unsecured debt Secured debt Loans from non-controlling interests Total
€ million € million € million € million € million € million € million
Payments due:
Within one month 44.9 0.2 - 6.0 5.2 - 56.3
Between one and three months 68.8 0.4 18.6 - 65.0 - 152.8
Between three months and one year 328.0 1.9 55.6 500.7 179.8 - 1,066.0
Between one and two years 415.0 2.6 77.8 - - - 495.4
Between two and three years 385.0 2.3 79.5 498.8 - - 965.6
Between three and four years 303.1 1.9 81.4 - - - 386.4
Between four and five years 222.6 1.8 83.2 - - - 307.6
More than five years 1,009.1 7.4 815.1 - - 13.8 1,845.4
Total borrowings 2,776.5 18.5 1,211.2 1,005.5 250.0 13.8 5,275.5
The total cash outflow for leases, including JOLCO and FTL, during F24 was
€720.5 million (2023: €604.9 million). See Note 5 for details on
expenses relating to short-term and variable lease payments, and Note 9 for
details on right-of-use assets.
12. Deferred income
2024 2023
€ million € million
Non-current liabilities
Deferred income 147.2 103.3
Current liabilities
Unearned revenue 790.3 761.1
Other 7.1 9.2
797.4 770.3
Total deferred income 944.6 873.6
Non-current deferred income represents the value of benefit for the Group
coming from credits and free aircraft components received from manufacturers
and component suppliers, which will be recognised as a credit (a decrease to
aircraft-related expenses) over the useful life of the respective asset.
Current deferred income represents the value of tickets paid by passengers for
which the flight service is yet to be performed ("unearned revenue"), the
value of membership fees paid but not yet recognised, the current part of the
value of supplier credits received and credits provided to passengers with no
cash conversion option in the amount of €17.1 million (31 March 2023:
€19.4 million). Unearned revenue increased due to higher demand and ticket
booking made further in advance.
The contract liabilities (unearned revenue) of €790.3 million existing
at 31 March 2024 (31 March 2023: €761.1 million31 March 2023) will become
revenue during F25 (subject to further cancellations that might happen after
the year end).
13. Provisions for other liabilities and charges
Aircraft maintenance Other Total
€ million € million € million
At 1 April 2022 88.8 18.3 107.1
Non-current provisions 43.0 0.9 43.9
Current provisions 45.8 17.4 63.2
Transferred to trade and other payables and deferred income - (13.0) (13.0)
Capitalised within property, plant and equipment 86.6 - 86.6
Charged to profit or loss 7.0 4.6 11.6
Used during the year (34.5) (2.5) (37.0)
FX translation effect 0.8 - 0.8
At 31 March 2023 148.7 7.4 156.1
Non-current provisions 76.2 0.1 76.3
Current provisions 72.5 7.2 79.8
Capitalised within property, plant and equipment 195.8 - 195.8
Charged to profit or loss - 5.3 5.3
Used during the year (81.8) (2.0) (83.8)
FX translation effect 0.9 - 0.9
At 31 March 2024 263.6 10.7 274.3
Non-current provisions 144.2 0.1 144.3
Current provisions 119.4 10.6 130.0
Non-current provisions mainly relate to future aircraft maintenance
obligations of the Group on leased aircraft and spare engines, falling due
typically between one and five years from the balance sheet date. Current
aircraft maintenance provisions relate to heavy maintenance obligations
expected to be fulfilled in the coming financial year. The amount of provision
reflects management's estimates of the cost of heavy maintenance work that
will be required in the future to discharge obligations under the Group's
lease agreements (see Note 3). Maintenance provisions in relation to engines
and APUs covered by power by the hour agreements are netted off with the
prepayments made to the maintenance service provider under those agreements in
respect of the same group of engines and APUs.
14. Financial instruments
Fair values
The fair values of the financial instruments of the Group together with their
carrying amounts shown in the statement of financial position are as follows:
Carrying amount Fair value Carrying amount Fair value
31 March 2024 31 March 2024 31 March 2023 31 March 2023
€ million € million € million € million
Financial asset at fair value through other comprehensive income 1.6 1.6 - -
Trade and other receivables due after more than one year 37.1 37.1 21.3 21.3
Restricted cash 109.4 109.4 120.4 120.4
Derivative financial assets 36.9 36.9 1.2 1.2
Trade and other receivables due within one year 534.0 534.0 249.0 249.0
Cash and cash equivalents 728.4 728.4 1,408.6 1,408.6
Short-term cash deposits 751.1 751.1 - -
Trade and other payables due after more than one year (55.0) (55.0) (59.1) (59.1)
Trade and other payables due within one year (697.4) (697.4) (646.4) (646.4)
Derivative financial liabilities (0.7) (0.7) (108.4) (108.4)
Convertible debt (25.7) (25.7) (26.0) (26.0)
Borrowings (5,269.2) (5,071.0) (4,020.0) (3,408.8)
Secured debt (463.2) (458.4) (250.0) (250.0)
Unsecured debt (511.6) (482.3) (1,005.5) (927.1)
Deferred income (4.8) (4.8) (4.8) (4.8)
Net balance of financial instruments (liability) (4,829.1) (4,596.7) (4,319.6) (3,630.0)
The fair value of the Eurobonds is estimated using quoted prices (Level 1),
derivatives (Note 2) and lease liabilities are valued using Level 2
methodology and the fair value of all other financial assets and financial
liabilities is estimated using Level 3 in the fair value hierarchy.
15. Capital commitments
At 31 March 2024 the Group had the following contracted capital commitments:
▶A commitment to purchase 326 Airbus aircraft of the A320 family in the
period 2024-2029. The total commitment is valued at US$48.7 billion (€45.2
billion) based on list prices last published in 2018 and escalated annually
until the reporting date based on contract terms (2023: US$42.2 billion
(€38.8 billion) to purchase 290 Airbus aircraft of the A320 family in the
period 2023-2028 and US$11.0 billion (€10.1 billion) in relation to 75
A321neo aircraft as approved by shareholders in August 2023). At 17 May, out
of the 326 aircraft 27 are subject to delivery in F25 and for 15 financing is
already contracted. The Group uses various financing arrangements in order to
finance aircraft including Sale and Leaseback, Japanese Operating Lease with
Call Option (JOLCO) and French Tax Lease (FTL) structures. In addition,
Original Equipment Manufacturer (OEM) backstop financing may also be
available, supplemented by a partial self-contribution.
▶Wizz Air Group has committed to purchasing eight IAE "neo" (GTF) spare
engines between 2024 and 2026, valued at US$174.1 million (€161.6 million)
based on 2024 list prices. This follows a previous commitment in 2023 valued
at US$572.5 million (€525.7 million), based on 2023 list prices, to acquire
27 IAE "neo" (GTF) spare engines over the period 2023-2026. At 17 May, all
eight engines are anticipated to be delivered by F25 and financing is already
contracted for all of them.
▶A commitment to purchase 3 Full Flight Simulators. The total commitment is
valued at €13.6 million based on contract terms. Payment is due in
instalments with €6.4 million paid as at 31 March 2024.
16. Contingent liabilities
Legal disputes
European Commission state aid investigations
Between 2011 and 2015, the European Commission has initiated state aid
investigations with respect to certain arrangements made between Wizz Air and
the following airports, respectively: Timişoara, Cluj-Napoca, Târgu Mureş,
Beauvais and Girona. In the context of these investigations, Wizz Air has
submitted its legal observations and supporting economic analyses of the
relevant arrangements to the European Commission, which are currently under
review. The European Commission has given notice that the state aid
investigations involving Wizz Air will be assessed on the basis of the new "EU
guidelines on state aid to airports and airlines" which were adopted by the
European Commission on 20 February 2014. Where relevant, Wizz Air has made
further submissions to the European Commission in response to this
notification. In relation to the Timişoara arrangements, the European
Commission confirmed on 24 February 2020 that the arrangements did not
constitute state aid. We are awaiting decisions in relation to the other
airport arrangements mentioned herein above. Ultimately, an adverse decision
by the European Commission could result in a repayment order for the recovery
from Wizz Air of any amount determined by the European Commission to
constitute illegal state aid. None of these ongoing investigations are
expected to lead to exposure that is material to the Group.
No provision has been made by the Group in relation to these issues because
there is currently no reason to believe that the Group will incur charges from
these cases.
17. Related parties
Identity of related parties
Related parties are:
▶Indigo Hungary LP and Indigo Maple Hill LP (collectively referred to as
"Indigo" here), because of its shareholding and its appointment of two
Directors to the Board of Directors (all in service at 31 March 2024); and
▶Key management personnel (Directors and Officers).
Indigo, Directors and Officers altogether held 25.7 per cent of the ordinary
shares of the Company at 31 March 2024 (2023: 25.6 per cent).
Transactions with related parties
Transactions with Indigo
At 31 March 2024 Indigo held 24,684,895 Ordinary Shares, equal to 23.9 per
cent of the Company's issued share capital (2023: 24,684,895 Ordinary Shares,
23.9 per cent).
Indigo has an interest in convertible debt instruments issued by the Company.
The Company's liability to Indigo, including principal and accrued interest,
was €25.7 million at 31 March 2024 (2023: €26.0 million).
During the year ended 31 March 2024 the Company entered into transactions
with Indigo as follows:
▶the Company recognised interest expense on convertible debt instruments
held by Indigo in the amount of €1.8 million (2023: €1.7 million).
Transactions with key management personnel
Officers (members of executive management) and Directors of the Board are
considered to be key management personnel. The compensation of key management
personnel, including Non-Executive Directors, is as follows:
2024 2023
€ million € million
Salaries and other short-term employee benefits 9.7 9.1
Social security costs 1.1 1.2
Share-based payments 7.1 6.3
Total key management compensation expense 17.9 16.6
There were no termination benefits paid to any key management personnel in the
year or the prior year.
There were no post-employment benefits or other long-term benefits provided to
any key management personnel in the year or the prior year.
There were no material transactions with related parties during the financial
year except as indicated below.
The Group has contracted with companies that are related to the CEO. The total
paid for such goods and services in F24 was €3.4 million. The main service
purchased was to provide machine learning capabilities with regard to ticket
and ancillary sales. The amount paid for this service in F24 was €3.3
million (2023: €2.5 million), which in the judgement of the Board was not
material. On 31 March 2024, the outstanding amount payable to the related
party was €0.4 million.
18. Subsequent events
Based on the assessment conducted, no material subsequent events have been
identified that would necessitate disclosure in the financial statements for
the reporting period.
Glossary of terms
Definitions:
Aircraft utilisation/utilisation: the number of hours of one aircraft is in
operation on one day. Rationale - Key performance indicator in aviation
business, measurement for one-day aircraft productivity.
Calculation (for one month): monthly aircraft utilisation equals total block
hours divided by number of days in the month divided by the equivalent
aircraft number divided by 24 hours. Calculation (for a longer period than one
month): the given period aircraft utilisation equals with the weighted average
of monthly aircraft utilisation based on the month-end fleet counts.
Ancillary revenue per passenger: ancillary revenue divided by the number of
passengers (PAX) in the given period, which gives the ancillary performance
per one passenger. Rationale - Key performance indicator for revenue
performance measurement.
Calculation: ancillary revenue/PAX.
Available seat kilometres (ASK)/total ASKs: the number of seats available for
scheduled passengers multiplied by the number of kilometres those seats were
flown. Rationale - Key performance indicator for capacity measurement.
Calculation: seats on aircraft*stage length.
Average aircraft stage length (km): average distance that an aircraft flies
between the departure and arrival airport. Rationale - Key performance
indicator for measurement of capacity and productivity.
Calculation: average stage length of the revenue sectors in the given period
(ASKs/capacity).
Average departures per aircraft per day: the number of departures one
aircraft performs in a day in the given period. Rationale - Key performance
indicator for revenue generation/utilisation of assets.
Calculation: total number of revenue sectors per number of days (in the given
period) per equivalent aircraft number.
CASK (total unit cost): total cost per ASK, where cost is defined as
operating expenses and financial expenses net of financial income. Rationale -
Key performance indicator for divisional cost control.
Calculation: total operating expenses+financial income+financial
expenses/total of ASKs (km)*100.
Completion factor or rate: per cent of operated flights compared to the
scheduled flights. Rationale - Key operational performance indicator for the
measurement of scheduled flight completion.
Calculation: number of operated flights/number of scheduled flights.
Equivalent aircraft or average aircraft count: the average number of aircraft
available to Wizz Air within a period. The count contains spare aircraft,
aircraft under maintenance and parked aircraft. Rationale - Key performance
indicator in aviation business for the measurement of average aircraft
available for flying and capacity.
Calculation (for one month): average from the daily fleet count in a given
month which includes/excludes deliveries and redeliveries. Calculation (for a
longer period than one month): weighted average of the monthly equivalent
aircraft numbers based on the number of days in the given period.
Equivalent operating aircraft or average operating aircraft count: the average
number of operating aircraft available to Wizz Air within a period. The count
includes all aircraft except those parked. Rationale - Key performance
indicator in aviation business for the measurement of average fleet and
capacity.
Calculation (for one month): average from the daily operating fleet count in
the given month which includes/excludes deliveries and redeliveries.
Calculation (for a longer period than one month): weighted average of the
monthly equivalent operating aircraft numbers based on the number of days in
the given period.
Ex-fuel CASK (ex-fuel unit costs): this measure is computed by dividing the
total ex-fuel cost by the total ASKs within a given timeframe. Ex-fuel CASK
defines the unit ex-fuel cost for each kilometre flown per seat in Wizz Air's
fleet. Note that: total ex-fuel cost consists of total operating expenses and
net cost from financial income and expense but does not contain fuel costs.
Rationale - It serves as an essential performance indicator for overseeing
divisional cost control. The rationale for employing this metric is rooted in
its ability to gauge and manage non-fuel operating expenses effectively.
Calculation: total ex-fuel cost (EUR)/total of ASKs (km)*100.
Foreign exchange rate: average foreign exchange rate, plus any hedge deal for
the given period, calculated with a weighted average method. Rationale - Key
performance indicator for Fuel Controlling and Treasury teams.
Fuel CASK (fuel unit cost): this metric is calculated by dividing the total
fuel costs (plus additional fuel consumption related costs) by the sum of
available seat kilometres (ASKs) during a specific reporting period. Rationale
- Fuel CASK provides an insightful unit fuel cost measurement, representing
the cost incurred for flying one kilometre per seat within Wizz Air's fleet.
The rationale behind the use of this measure lies in its effectiveness as a
critical performance indicator for the control and management of fuel
expenses.
Calculation: total fuel cost (EUR)/total of ASKs (km)*100.
Fuel price (average US$ per tonne): average fuel price within a
period, calculated as fuel cost (including other fuel cost-related items)
divided by the consumption. Rationale - Key performance indicator for fuel
cost controlling.
JOLCO (Japanese Tax Lease) and French Tax Lease: special forms of structured
asset financing, involving local tax benefits for Japanese and French
investors, respectively. Rationale - These measures are employed to
encapsulate specific lease contracts that facilitate enhanced cash utilisation
strategies.
Load factor (%): the number of seats sold (PAX) divided by the number of seats
available on the aircraft (capacity). Rationale - Key performance indicator
for commercial and revenue controlling.
Calculation: the number of seats sold, divided by the number of seats
available.
Net fare (total revenue per passenger): average revenue per one passenger
calculated by total revenue divided by the number of passengers (PAX) during a
specified period. Rationale - This metric is a crucial performance indicator
for commercial control, offering insights into the overall revenue generated
per passenger.
Calculation: total revenue/PAX.
Operating aircraft utilisation: the number of hours that one operating
aircraft is in operation on one day. Rationale - Key performance indicator in
aviation business, measurement for one-day aircraft productivity.
Calculation (for one month): average daily operating aircraft utilisation in a
month equals total monthly block hours divided by number of days in the month
divided by the equivalent operating aircraft number divided by 24 hours.
Calculation (for a longer period than one month): the given period operating
aircraft utilisation equals the weighted average of monthly operating aircraft
utilisation based on the month-end operating aircraft counts.
Passengers (alternative names: passengers carried, PAX): passengers who
bought a ticket (thus making revenue for the Company) for a revenue sector.
Rationale - Key performance indicator for Commercial controlling team.
Calculation: sum of number of passengers of all revenue sectors.
PDP: refers to the pre-delivery payments made under the Group's aircraft
purchase agreements. These payments signify contractual commitments designed
to support fleet expansion and growth.
Period-end fleet size or number of aircraft at end of period: the number of
aircraft that Wizz Air has in its fleet and that are leased and/or owned at
the end of the given period. The count contains spare aircraft, aircraft under
maintenance and parked aircraft. Rationale - Key performance indicator in
aviation business for the measurement of fleet.
Calculation: sum of aircraft at the end of the given period.
Period-end operating aircraft: the number of operating aircraft that Wizz Air
has in its fleet and that are leased and/or owned at the end of the given
period. The count includes all aircraft except those parked. Rationale - Key
performance indicator in aviation business for the measurement of operating
aircraft at a period end.
Calculation: sum of operating aircraft at the end of the given period.
RASK: RASK is determined by dividing the total revenue by the total ASK. This
measure characterises the unit net revenue performance for each kilometre
flown per seat within Wizz Air's fleet. Rationale - It serves as a pivotal
performance indicator for commercial control, providing insights into the
revenue generation efficiency.
Calculation: total revenue (EUR)/total of ASKs (km)*100.
Revenue departures or sectors: flight between departure and arrival airport
where Wizz Air generates revenue from ticket sales. Rationale - Key
performance indicator in revenue generation controlling.
Calculation: sum of departures of all sectors.
Revenue passenger kilometres (RPK): the number of seat kilometres flown by
passengers who paid for their tickets. Rationale - Key performance indicator
for revenue measurement.
Calculation: number of passengers*stage length.
Seat capacity/capacity: the total number of available (flown) seats on
aircraft for Wizz Air within a given period (revenue sectors only). Rationale
- Key performance indicator for capacity measurement.
Calculation: sum of capacity of all revenue sectors.
Ticket revenue per passenger: passenger ticket revenue divided by the number
of passengers (PAX) in the given period. Rationale - Key performance indicator
for measurement of revenue performance.
Calculation: passenger ticket revenue/PAX.
Total block hours: each hour from the moment an aircraft's brakes are
released at the departure airport's parking place for the purpose of starting
a flight until the moment the aircraft's brakes are applied at the arrival
airport's parking place. Rationale - Key performance indicator in the airline
business for the measurement of capacity and completed block hours by
aircraft.
Calculation: sum of block hours of all sectors (in the given period).
Total flight hours: each hour from the moment the aircraft takes off from the
runway for the purposes of flight until the moment the aircraft lands at the
runway of the arrival airport. Rationale - Key performance indicator in the
airline business for the measurement of capacity and flown flight hours by
aircraft.
Calculation: sum of flight hours of all sectors (in the given period).
Yield: represents the total revenue generated per revenue passenger kilometre
(RPK). Rationale - This measure is integral for assessing and controlling
commercial performance by quantifying the revenue derived from each kilometre
flown by paying passengers.
Calculation: the total revenue/RPK.
Alternative performance measures (APMs):
Alternative performance measures are non-IFRS standard performance measures
aiming to introduce the Company's performance in line with management's
requirements. The existing presentation is considered relevant for the users
of the financial statements because: (i) it mirrors disclosures presented
outside of the financial statements; and (ii) it is regularly reviewed by the
Chief Operating Decision Maker for evaluating the financial performance of its
single operating segment.
Ancillary revenue: generated revenue from ancillaries (including other
ancillary revenue-related items). Rationale - Key financial indicator for the
separation of different revenue lines.
Average capital employed: average capital employed is the sum of the annual
average equity and interest-bearing borrowings (including convertible debt),
less annual average cash and cash equivalents, and short-term cash deposits.
Rationale - This key financial indicator is integral for evaluating the
profitability and effectiveness of capital utilisation.
Calculation: average equity+interest-bearing borrowings (including convertible
debt)-cash and cash equivalents-short-term cash deposits.
Earnings before interest, tax, depreciation and amortisation (EBITDA): EBITDA
represents the profit or loss before accounting for net financing costs or
gains, income tax expenses or credits, and depreciation and amortisation.
Rationale - This measure serves as a key financial indicator for the Company,
providing insights into operational profitability.
Calculation: operating profit/(loss)+depreciation and amortisation.
EBITDA margin %: EBITDA margin % is computed by dividing EBITDA by total
revenue in millions of Euros.Rationale - This metric presents EBITDA as a
percentage of total net revenue and offers valuable financial insights for the
Company's performance assessment.
Calculation: EBITDA/total revenue (€ million)*100.
2024 2023
€ million € million
Operating profit/(loss) 437.9 (466.8)
Depreciation and amortisation 755.3 601.1
EBITDA 1,193.2 134.3
Total revenue 5,073.1 3,895.7
EBITDA margin (%) 23.5% 3.4%
Leverage ratio: the leverage ratio is computed by dividing net debt by the
last twelve months' EBITDA. Rationale - It serves as a crucial key financial
indicator for the Group, facilitating an assessment of the organisation's
financial leverage and debt management.
Calculation: please see in the table under the definition of net debt.
Liquidity: represents cash, cash equivalents and short-term cash deposits,
expressed as a percentage of the last twelve months' revenue. Rationale - This
key financial indicator offers a comprehensive view of the Group's cash
position and financial stability.
Calculation: please see the table below.
31 March 2024 31 March 2023
€ million € million
Cash and cash equivalents 728.4 1,408.6
Short-term cash deposits 751.1 -
Total revenue 5,073.1 3,895.7
Liquidity 29.2% 36.2%
Net debt: interest-bearing borrowings (including convertible debt) less cash
and cash equivalents. Rationale - Plays a pivotal role as a key financial
indicator, offering valuable information regarding the Group's financial
liquidity and leverage position.
31 March 2024 31 March 2023
€ million € million
Non-current liabilities
Borrowings 5,159.7 4,000.5
Convertible debt 25.4 25.7
Current liabilities
Borrowings 1,084.3 1,275.0
Convertible debt 0.3 0.3
Current assets
Short-term cash deposits 751.1 -
Cash and cash equivalents 728.4 1,408.6
Net debt 4,790.2 3,892.8
EBITDA 1,193.2 134.3
Leverage ratio 4.0 29.0
Passenger ticket revenue: generated revenue from ticket sales (including other
ticket revenue-related items). Rationale - Key financial indicator for the
separation of different revenue lines.
Return on capital employed (ROCE): operating profit or loss after tax divided
by average capital employed, expressed as a percentage. Rationale - ROCE is a
key financial indicator that facilitates an assessment of the Group's
profitability and the efficiency of capital utilisation.
Calculation: please see the range below.
2024 2023
€ million € million
Operating profit/(loss) 437.9 (466.8)
Effective tax rate for the year (7.3)% 5.2%
Operating profit/(loss) after tax 469.7 (442.5)
Average Shareholders' equity (106.1) (47.0)
Average borrowings 5,785.6 4,633.1
Average cash and cash equivalents (1,068.5) (1,087.6)
Average short-term cash deposits (375.6) (225.0)
Average capital employed 4,235.4 3,273.5
ROCE (%) 11.1% (13.5)%
Total cash: non-statutory financial performance measure and comprises/is
calculated from cash and cash equivalents, short-term cash deposits and total
current and non-current restricted cash. Rationale - This key financial
indicator offers a comprehensive view of the Group's cash position and
financial stability.
Calculation: please see the table below.
31 March 2024 31 March 2023
€ million € million
Non-current assets
Restricted cash 54.0 56.7
Current assets
Restricted cash 55.4 63.7
Short-term cash deposits 751.1 -
Cash and cash equivalents 728.4 1,408.6
Total cash 1,588.9 1,529.0
Total revenue: total ticket and ancillary revenue for the given period. The
split of total revenue presented in the consolidated statement of
comprehensive income. Rationale - Key financial indicator for the Company.
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