TIDMWIZZ
RNS Number : 9233S
Wizz Air Holdings PLC
09 November 2023
WIZZ AIR HOLDINGS PLC - RESULTS FOR THE SIX MONTHS TO 30
SEPTEMBER 2023
RECORD NET PROFIT IN H1 AS CAPACITY CONTINUES TO GROW YOY AND
OPERATIONAL IMPROVEMENTS DELIVER RESULTS
LSE: WIZZ
Geneva , 9 November 2023: Wizz Air Holdings Plc ("Wizz Air",
"the Company" or "the Group"), the fastest-growing European
low-cost airline, today issues unaudited results for the six months
to 30 September 2023 ("first half", "H1" or "H1 F24").
This interim financial report does not include all the notes of
the type normally included in an annual financial report.
Accordingly, this report should be read in conjunction with the
2023 Annual Report and Accounts, and any public announcements made
by Wizz Air Holdings Plc during the interim reporting period.
FINANCIAL RESULTS (Unaudited)
Change
Six months to 30 September 2023 2022 (1)
------------------------------------------------- ----------- ------------- --------
Passengers carried (million) 33.0 26.5 24.6 %
Total revenue (EUR million) 3,052.3 2,193.8 39.1 %
EBITDA (EUR million) (3) 878.1 217.8 303.2 %
EBITDA Margin (%) (3) 28.8 9.9 18.8ppt
Operating profit/(loss) for the period (EUR
million) 522.9 (63.8) n.m.
Unrealised foreign currency losses (EUR million) (14.3) (285.2) (95.0) %
Profit/(loss) for the period (EUR million) 400.7 (384.3) n.m.
RASK (EUR cent) 4.91 4.48 9.6 %
Fuel CASK (EUR cent) 1.55 2.11 (26.5) %
Ex-fuel CASK (EUR cent) 2.60 2.62 (0.8) %
Total cash (EUR million) (2) 1,837.8 1,529.0 20.2 %
Load factor (%) 92.6 86.9 5.7ppt
Period-end fleet size 187 168 11.3 %
Period-end seat count (thousand) 35,625 30,485 16.9 %
------------------------------------------------- ----------- ------------- --------
(1) n.m.: not meaningful as a variance is more than (-)100 per cent.
(2) Total cash is a non-statutory financial performance measure
and comprises cash and cash equivalents (30 September 2023:
EUR1,132.3 million; 31 March 2023: EUR1,408.6 million), short-term
cash deposits (30 September 2023: EUR600.5 million; 31 March 2023:
nil) and total current and non-current restricted cash (30
September 2023: EUR105.0 million; 31 March 2023: EUR120.4
million).
(3) For further definition of non-financial measures presented
refer to "Glossary of terms and alternative performance measures
(APMS)" section of this document. These measures incorporate
certain non-financial information that management believes is
useful when assessing the performance of the Group.
HIGHLIGHTS
Profit for the period of EUR400.7 million, with Q2 five times
higher year-on-year.
Record high traffic of 33.0 million passengers in H1 (vs 26.5
million in H1 F23 and 22.1 million in H1 F20).
27.0 per cent higher ASK capacity in H1 vs H1 F23 (+63 per cent
vs H1 F20).
Unit revenue (RASK) was +9.6 per cent higher year on year;
ticket RASK +17.4 per cent.
Load factor recovered to an average of 92.6 per cent (vs 86.9
per cent in H1 F23 and 95 per cent in H1 F20 ).
Unit cost (CASK) -12.3 per cent year-on-year; ex-fuel CASK -0.8
per cent (driven primarily by continued airport delays, a higher
volume of past disruption claims and crew cost).
Total cash balance at EUR1.8 billion, reflecting larger selling
volumes and strong cash management.
Investment in operational strength delivering significant
results:
Improved flight completion rate to 99.2 per cent (vs 98.1 per
cent F23).
Utilisation in H1 increased to 12:18 hours (vs 11:49 in H1 F23);
Q1 to 11:58 hours and Q2 to 12:37 hours (vs 11:50 in Q2 F23).
Sustained robust demand environment throughout the period.
On track to take delivery of 21 Airbus 321neo aircraft by end of
F24 in line with projections for the year.
Currently extending 13 CEO leases (including 4x A321s - 230
seats) with seven already completed and six in documentation
stage.
Based on a service bulletin in relation to GTF engine
inspections (issued 3 November, 2023), and verification performed
with Pratt & Whitney, we are projecting a grounding of 45
aircraft by the end of F24 (including aircraft previously grounded
in September '23 and from mid-January '24). Overall impact to ASK
capacity for H2 F24 expected to be c.20 per cent higher YoY (Q3
c.25 per cent, Q4 c.15 per cent). Near and longer-term operational
and financial impact is mitigated by management actions and OEM
compensation that has now been secured.
Suspended Israel capacity until end of November '23 (redeploying
it across the network), while observing security situation and
maintaining a plan to redeploy capacity should things improve (in
H1 F24 ASK capacity to/from Israel amounted to 5 - 6 per cent of
total capacity).
József Váradi, Wizz Air Chief Executive, commented on business
developments in the period:
"This summer we delivered significantly improved operational
performance compared to last year. There were fewer flight
cancellations, and overall fleet utilisation and productivity
increased year on year. Our revenue and profit results reflect the
higher volumes we now operate and the enormous amount of work and
investment over the past three years.
In the first half, we saw very strong load factor recovery, as
demand remained robust, including in new markets that are maturing
steadily and where we continue to add frequencies and improve our
schedule. The Middle East route network is tracking a similar
maturity profile to the development of our CEE network, supporting
our decision to continue to invest in, add to and evolve capacity
there. Our wider fleet allocation programme remains active, and in
addition to our expanded flying programme this winter, we have
announced a summer 2024 expansion to Romania, Italy and Albania,
operating new A321neo aircraft.
The security of our Airbus order book continues to be the
backbone of our planned capacity growth and fleet renewal
programme. The initial GTF powder metal engine inspection
requirements had minimal impact on our operational capacity, and we
are taking measures to mitigate the impact of further inspections,
including higher utilisation from our existing fleet, aircraft
lease extensions and continued new aircraft deliveries.
With respect to sustainability in our operations, we continue to
make good progress, and we have made direct investments in new
start-ups and signed a number of off-take agreements with SAF
producers, thus securing a portion of our supply in the years to
come."
On current trading and the outlook, Mr Váradi said:
"We continue to see positive bookings in Q3, with selling load
factors exceeding last year's levels by single digit percentage
points. We estimate overall H2 ASK capacity will be circa 20 per
cent higher year on year, despite the number of GTF engines needing
off-wing inspection in the period. This figure still represents
industry-leading capacity growth and is a further testament to the
Company's ability to overcome adverse external factors.
Our plans to grow capacity next year are based on: combination
of new aircraft deliveries, existing fleet lease extensions,
securing additional aircraft capacity from the market and
delivering improved utilisation. Based on current best knowledge we
anticipate capacity for F25 to be at similar levels to F24. We have
secured a comprehensive compensation support package from the OEM
that will protect the Company's commercial and operational
performance in the coming quarters, protecting us from the costs of
grounding any aircraft while our GTF engines undergo
inspections.
Most of the financial impact from GTF removals will be mitigated
by timely OEM compensation, while higher yield opportunities in our
commercial programme will help protect revenue as market capacity
remains constrained. We are narrowing our F24 net income guidance,
initially set in June 2023, to a range of EUR 350-400 million. This
guidance reflects our expectations for H2 F24 in the context of the
ongoing macro environment uncertainty and continuing difficult
operating conditions, from an infrastructure and security
perspective.
We remain well protected against volatile fuel costs and FX
movements via a systematic hedging programme, and our strengthened
operations and a renewing fleet (tracking at 57 per cent at the end
of September '23) continue to deliver efficiencies for the business
while reducing unit costs.
Our continued ability to manage the impact of complicated issues
gives us the confidence that Wizz Air has the strategy and
expertise to achieve our profitable growth ambitions."
NEAR-TERM AND FULL-YEAR OUTLOOK
Capacity (ASKs): H2 F24 c.20 per cent higher YoY (Q3 c.25 per
cent, Q4 c.15 per cent).
Load factor: F24 above 90 per cent.
Cost: F24 ex-fuel CASK lower versus the prior year.
Financial performance: narrow F24 net income outlook to the
range of EUR350-400 million.
Above guidance remains subject to any adverse external events
(including macro, security, infrastructure and/or supply chain
developments), revenue performance, for which company has limited
visibility at this point in time, especially for Q4 period, as well
as any airworthiness directive in relation to GTF engine
inspections and number of available spare engines.
REVENUE AND COST HIGHLIGHTS H1
Total revenue amounted to EUR3,052.3 million, an increase of
39.1 per cent versus H1 F23:
Passenger ticket revenue(1) increased by 49.1 per cent to EUR1,762.2 million.
Ancillary revenue(1) increased by 27.5 per cent to EUR1,290.1
million.
Total unit revenue increased by 9.6 per cent to 4.91 Euro cents
per available seat kilometre (ASK).
Ticket revenue per passenger increased by 19.7 per cent to
EUR53.4 and was also up by 23.8 per cent versus H1 F20. Ticket RASK
improved by 17.4 per cent to 2.83 Euro cents year-on-year,
supported by strong pricing momentum in the period.
Ancillary revenue per passenger increased by 2.4 per cent to
EUR39.1 and was also up by 21.3 per cent versus H1 F20. Ancillary
RASK stayed flat year-on-year at 2.07 Euro cents as more focus went
to ticket pricing in the period, while ancillaries continued to be
attractively priced to drive the demand.
Total operating costs increased 12.0 per cent to EUR2,529.3
million versus H1 F23:
Total unit costs (including net financing expense) decreased by
12.3 per cent to 4.15 Euro cents per ASK.
Ex-fuel unit costs decreased by 0.8 per cent to 2.60 Euro cents
per ASK, mainly driven by higher than expected flight disruption
and compensation charges and higher crew cost reflecting pay
adjustments made since summer of 2022.
Fuel unit costs decreased by 26.5 per cent to 1.55 Euro cents
per ASK.
Total cash increased by 20.2 per cent to EUR1,837.8 million from
EUR1,529.0 million.
The unrealised foreign currency losses in H1 amounted to EUR14.3
million (H1 F23: EUR285.2 million), this favorable change from last
year is largely attributed to the slower depreciation of the EUR
against the USD, leading to a more favorable revaluation of our USD
lease liabilities on the balance sheet.
(1) For further definition of non-financial measures presented
refer to "Glossary of terms and alternative performance measures
(APMS)" section of this document.
NETWORK UPDATES
Wizz Air announced significant growth in the Polish market
during the period, adding an eleventh aircraft to its Warsaw base
and further expanding the route network from other Polish
bases.
Wizz Air Abu Dhabi is growing the fleet this winter and is
adding two more aircraft, taking the fleet to eleven in total,
which is one extra aircraft compared to its initial plans.
Bucharest, Romania, will grow in size as largest base in the
network with addition of two A321neo from June 2024.
Tirana, Albania, will receive two additional A321neo aircraft
from next summer, adding two new routes and growing the number of
frequencies on existing routes.
Next summer, Italian bases in Rome and Milan will see the
largest schedule deployed to date with the addition of four new
A321neo aircraft, with three going to Rome and one to Milan. The
expansion will support six new routes and grow frequencies on 17
existing routes.
During the period, Wizz Air also announced that its entire fleet
of aircraft at London Luton Airport will be comprised of Airbus
A321neos by 2025.
Base aircraft additions
Catania, Italy: one additional aircraft, taking the base to four
aircraft.
Tirana, Albania: three additional aircraft, taking the base to
thirteen aircraft.
Warsaw, Poland: one additional aircraft, taking the base to
eleven aircraft.
Belgrade, Serbia: one additional aircraft, taking the base to
four aircraft.
Skopje, N. Macedonia: one additional aircraft, taking the base
to six aircraft.
London Luton, United Kingdom: one additional aircraft, taking
the base to twelve aircraft.
Bucharest, Romania: two additional aircraft, taking the base to
nineteen aircraft.
Rome, Fiumicino: three additional aircraft, taking the base to
fourteen aircraft.
Milan, Malpensa: one additional aircraft, taking the base to
eight aircraft.
Abu Dhabi, UAE: two additional aircraft, taking the base to
eleven aircraft.
Base aircraft reductions
Tuzla, Bosnia and Herzegovina: two aircraft
Suceava, Romania: two aircraft
FLEET UPDATE
In the six months ended 30 September 2023 Wizz Air took delivery
of 18 new A321neo aircraft, and 10 A320ceo aircraft were
redelivered, thus ending the first half with a total fleet of 187
aircraft: 40x A320ceo, 41x A321ceo, 6x A320neo and 100x
A321neo.
Four of the aircraft delivered were financed through Japanese
Operating Leases with Call Options (JOLCO) and the rest through
sale and leaseback transactions.
Wizz Air is extending thirteen leases, of which seven have been
signed and the other six are in the documentation stage. The lease
extensions range between two and four years and have been secured
at discounted or original lease rates.
The average age of the fleet currently stands at 4.20 years, and
remains one of the youngest fleets of any major European airline,
while the average number of seats per aircraft has climbed to 223
as at September 2023.
The share of new "neo" technology aircraft within Wizz Air's
fleet increased to 57 per cent and is planned to reach 63 per cent
by the end of F24.
In the remainder of F24 we expect 21 new A321neo aircraft
deliveries, while four A320ceo aircraft will be redelivered to
lessors and will exit the fleet. We expect minimal impact from
Airbus delivery delays in F25 and F26.
As at 30 September 2023, Wizz Air's delivery backlog comprises a
firm order for 13x A320neo, 287x A321neo and 47x A321XLR aircraft,
a total of 347 aircraft.
The table below provides expected number of aircraft for the
current and next fiscal years, including current extensions:
March 2024 March 2025 March 2026
Planned Planned Planned
--------------------------------------- -------------------------- ------------ ------------
A320ceo (180/186 seats) (7x extension) 35 27 17
A320neo (186 seats) 6 6 9
A321ceo (230 seats) 41 37 25
A321neo (239 seats) 121 162 219
A321neo XLR (239 seats) - 2 11
--------------------------------------- -------------------------- ------------ ------------
Fleet size (with finalised extensions) 203 234 281
--------------------------------------- -------------------------- ------------ ------------
A320ceo (180/186 seats) (2x extension)
doc stage 1 2 2
--------------------------------------- -------------------------- ------------ ------------
A321ceo (230 seats) (4x extension)
doc stage - 4 4
--------------------------------------- -------------------------- ------------ ------------
Fleet size (after extension) 204 240 287
--------------------------------------- -------------------------- ------------ ------------
Based on a service bulletin (issued 3 November, 2023) and
verification performed with Pratt & Whitney, we are projecting
a grounding of 45 aircraft at the end of F24 (including aircraft
grounded in September '23) in order to administer mandatory GTF
engine inspections. The so called 'Second Batch Engines' are
expected to be removed from middle of January '24, subject to
regulator's airworthiness directive. The final number of aircraft
impacted by the inspections at the end of F24, and periods beyond,
depends on utilization of engines (cycle count), number of spare
engines available and MRO induction slots schedule. Near and
longer-term operational and financial impact is mitigated by
management action and OEM compensation that has now been
secured.
FINANCIAL UPDATE
Fitch Ratings has affirmed Wizz Air Holdings Plc's long-term
issuer default rating and senior unsecured rating at 'BBB-.
As of 6 November, 2023, u sing jet fuel zero-cost collars, Wizz
Air has accumulated hedge coverage of 70 per cent of its jet fuel
needs for F24 at a price of 811/931 $/mT. For F25 the coverage is
38 per cent at the price of 747/854 $/mT. The jet fuel-related
EUR/USD FX coverage stands at 69 per cent for F24 at 1.0686/1.1114,
while the coverage for F25 stands at 32 per cent at 1.0931/1.1369
rates.
The initial EUR500 million bond, issued under the EUR3 billion
EMTN programme, matures in January 2024 and will be repaid from
cash.
The outstanding balance on the PDP facility at the end of
September 2023 stands at EUR117.9 million. The facility is paid
down automatically with new aircraft deliveries. The facility has
been extended to enable additional draw-downs, with the objective
of maximizing capacity utilization throughout the F24-F25
period.
Net debt(1) at the end of 30 September 2023 was flat at
EUR3,889.5 million vs EUR 3,892.8 million at the end of 31 March
2023, while the Company's leverage ratio(1) (net debt to EBITDA )
decreased from the F23 year-end 29.0x to 4.9x. Over the same
period, liquidity(1) reduced to c.36 per cent.
The Pratt & Whitney engine support package includes multiple
benefits for the Company, including compensation for impacted
aircraft. An element of this compensation, which was not material,
relates to costs incurred in the period ended 30 September 2023.
These credits are included in net other expense in the condensed
consolidated interim statement of comprehensive income. (1) For
further definition of non-financial measures presented refer to
"Glossary of terms and alternative performance measures (APMS)"
section of this document.
SUSTAINABILITY UPDATE
Wizz Air's CO(2) emissions amounted to 51.6 grams per
passenger/km for the rolling twelve months to 30 September 2023 (4
per cent improvement compared to the F23 average which was 53.8
grams, and 9.6 per cent lower than H1 F23 results a year ago, 57.1
grams per passenger/km), continuing the decreasing trend in the
Company's average carbon intensity performance in a twelve-month
period. The most important sustainability developments during the
six months ended September 2023 were:
Month Project Description
---------- --------------------- ---------------------------------------------------------
April 2023 Cepsa - SAF Memorandum of Understanding (MoU) with Cepsa,
partnership a leading international company committed to sustainable
mobility and energy, for the supply of SAF from
2025 onwards.
---------- --------------------- ---------------------------------------------------------
April 2023 First equity The airline announced a GBP5 million investment
investment in in a biofuel company, Firefly, marking its first
sustainable equity investment in sustainable aviation fuel
aviation fuel research and development.
R&D
---------- --------------------- ---------------------------------------------------------
May 2023 CleanJoule CleanJoule, a green-tech startup focused on the
production of SAF, announced a US$50 million investment
via a consortium led by the principals of Indigo
Partners, a US-based private equity firm, and
GenZero, a decarbonisation-focused investment
platform company of Temasek based in Singapore.
As part of the consortium's investment, Frontier
Airlines, Wizz Air and Volaris have signed binding
agreements to purchase up to 90 million gallons
of SAF.
---------- --------------------- ---------------------------------------------------------
June 2023 World Finance Wizz Air was named the Most Sustainable Low-Cost
Awards 2023 Airline for the third consecutive year at the
World Finance Sustainability Awards 2023.
---------- --------------------- ---------------------------------------------------------
July 2023 First fully Wizz Air celebrated the arrival of its eleventh
electric turnaround Airbus A321neo aircraft at its Rome Fiumicino
in Rome Fiumicino base with a fully electric turnaround - the first
one for the airline. Aviation Services used all-electric
baggage tractors and belt loaders, passenger stairs,
ground power unit and a towbarless pushback. The
electric turnaround allowed Wizz Air to reduce
carbon emissions from the ground handling process
by 85 per cent compared to using diesel-powered
equipment.
---------- --------------------- ---------------------------------------------------------
September ReFuelEU Aviation Wizz Air supports the ReFuelEU Aviation Regulation,
2023 Regulation recently adopted by the European Parliament. The
regulation establishes minimum shares of SAF to
be blended with conventional aviation fuel which
are binding. Wizz Air has established its SAF
strategy, which includes securing offtake agreements
with suppliers for the future and has already
signed agreements with Mabanaft/P2X Europe, OMV,
Neste and Cepsa.
---------- --------------------- ---------------------------------------------------------
September Wizz Sustainability Wizz Air launched its new, and first of its kind,
2023 Ambassador Programme Wizz Sustainability Ambassador Programme. Among
over 7,000 of Wizz Air's cabin crew and office
employees, 24 Sustainability Ambassadors have
been selected, representing 22 bases and two offices
across Albania, Austria, Bulgaria, Cyprus, Georgia,
Hungary, Italy, Malta, North Macedonia, Poland,
Romania, the UAE and the UK. The Wizz Sustainability
Ambassadors will support local sustainability
projects at the airline's bases and offices.
---------- --------------------- ---------------------------------------------------------
OTHER DEVELOPMENTS
In July Ms Phit Lian Chong joined the Board of the Company as an
independent Non-Executive Director. A citizen of Singapore, Ms
Chong has held multiple senior roles in aviation, travel and
logistics, including as a CEO of low-cost carriers Jetstar Asia
Airways and ValuAir from 2006 to 2012.
At the Annual General Meeting of Shareholders held on 2 August
2023 Shareholders approved all resolutions with the voting
participation rate reaching 86 per cent. On the same date
Shareholders also approved a resolution to purchase an additional
75 A321neo aircraft with delivery dates in 2028-2029.
Wizz Air launched Wizz Discount Club Light, a new loyalty
programme that offers exclusive in-flight discounts.
Wizz Air Hungary's cabin crew training organisation, which
provides initial cabin crew training, obtained approval from the
Ministry of Construction and Transport in Hungary to issue cabin
crew attestation. Wizz Air is the first airline in the country
whose training organisation can issue this type of international
document on behalf of the Hungarian Civil Aviation Authority. This
document will also be valid in all EU countries.
Wizz Air was awarded as Global Environmental Sustainability
Airline Group of the Year for the second consecutive year at CAPA
Asia Aviation Summit in Kuala Lumpur.
ABOUT WIZZ AIR
Wizz Air, the fastest growing European ultra-low-cost airline,
operates a fleet of 191 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 51.1 million
passengers in the financial year F23 ended 31 March 2023. Wizz Air
is listed on the London Stock Exchange under the ticker WIZZ. The
Company was recently named one of the world's top ten safest
airlines by airlineratings.com, the world's only safety and product
rating agency, and named Airline of the Year by the Air Transport
Awards in 2019 and in 2023. Wizz Air has also been recognised as
the Most Sustainable Low-Cost Airline by the World Finance
Sustainability Awards in 2021-2023 and as 'Airline Group of the
Year for Global Environmental Sustainability' by CAPA-Centre for
Aviation Awards for Excellence in 2022-2023.
For more information:
Investors: Zlatko Custovic, Wizz Air +36 1 777 9407
Media: Tamara Vallois, Wizz Air +36 1 777 9324
James McFarlane/Eleni Menikou/Charles
Hirst +44 (0) 20 3128 8100
H1 financial review
In the first half of the financial year, Wizz Air carried 33.0
million passengers, a 24.6 per cent increase compared to the same
period in the previous year, and generated revenues of EUR3,052.3
million, 39.1 per cent higher than last period. These rates compare
to capacity increase measured in terms of ASKs of 27.0 per cent and
16.9 per cent more seats. The load factor increased by 6.6 per cent
to 92.6 per cent.
The profit for the first half was EUR400.7 million, compared to
a loss of EUR384.3 million in the same period of F23.
Summary condensed consolidated interim statement of
comprehensive income (unaudited)
For the six months ended 30 September
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022
EUR million EUR million Change
------------------------------------------ ----------------- ------------------ ---------
Passenger ticket revenue * 1,762.2 1,182.1 49 %
Ancillary revenue * 1,290.1 1,011.7 28 %
------------------------------------------ ----------------- ------------------ ---------
Total revenue 3,052.3 2,193.8 39 %
------------------------------------------ ----------------- ------------------ ---------
Staff costs (250.5) (180.3) 39 %
Fuel costs (966.4) (1,032.7) (6) %
Distribution and marketing (64.9) (46.2) 40 %
Maintenance, materials and repairs (150.9) (115.5) 31 %
Airport, handling and en-route charges (631.9) (503.5) 26 %
Depreciation and amortisation (355.2) (281.6) 26 %
Net other expenses (109.5) (97.9) 12 %
------------------------------------------ ----------------- ------------------ ---------
Total operating expenses (2,529.3) (2,257.6) 12 %
------------------------------------------ ----------------- ------------------ ---------
Operating profit/(loss) 522.9 (63.8) (920) %
Financial income 39.0 3.1 1158 %
Financial expenses (92.0) (59.8) 54 %
Net foreign exchange loss (19.7) (269.2) (93) %
------------------------------------------ ----------------- ------------------ ---------
Net financing expense (72.7) (325.9) (78) %
------------------------------------------ ----------------- ------------------ ---------
Profit/(loss) before income tax 450.2 (389.7) (216) %
Income tax (expense)/credit (49.5) 5.4 (1,017) %
------------------------------------------ ----------------- ------------------ ---------
Profit/(loss) for the period 400.7 (384.3) (204) %
------------------------------------------ ----------------- ------------------ ---------
Profit/(loss) for the period attributable
to:
Non-controlling interest (4.4) (9.5) (54) %
Owners of Wizz Air Holdings Plc 405.1 (374.8) (208) %
------------------------------------------ ----------------- ------------------ ---------
* This is an APM and subsequently explained in Note 7 .
Revenue
Passenger ticket revenue increased by 49.1 per cent to
EUR1,762.2 million and ancillary revenue (or "non-ticket" revenue)
increased by 27.5 per cent to EUR1,290.1 million, driven by strong
demand for air travel in H1 F24. Total revenue per ASKs (RASK)
increased by 9.6 per cent to 4.91 Euro cents from 4.48 Euro cents,
driven by a 6.6 per cent higher load factor and a significantly
increased net fare (total net revenue per passengers).
Average revenue per passenger (net fare) was EUR92.6 during H1
F24, an increase of 11.7 per cent versus H1 F23. Average ticket
revenue per passenger increased from EUR44.6 in H1 F23 to EUR53.4
in H1 F24, EUR8.8 or 19.7 per cent higher than last year, while
average ancillary revenue per passenger increased from EUR38.2 in
H1 F23 to EUR39.1 in H1 F24, an increase of EUR0.9 or 2.4 per
cent.
Operating expenses
Operating expenses for H1 F24 increased by 12.0 per cent to
EUR2,529.3 million from EUR2,257.6 million in H1 F23. Key drivers
being higher airport and handling costs and en-route charges driven
by the increased capacity (27.0 per cent increase in ASKs),
increased crew-related salary costs mainly driven by the salary
adjustments, higher compensation costs in absolute terms due to the
overall growth of the Company. Favorable impact on fuel costs on
the back of the materially lower fuel prices explained below. The
total cost per ASKs (CASK) (including impact of hedges) decreased
by 12.3 per cent to 4.15 Euro cents in H1 F24 from 4.73 Euro cents
in H1 F23. CASK excluding fuel expenses decreased by 0.8 per cent
to 2.60 Euro cents in H1 F24 compared to 2.62 Euro cents in H1
F23.
Staff costs increased by 38.9 per cent to EUR 250.5 million in
H1 F23, up from EUR 180.3 million in H1 F23, reflecting the
increase in capacity and the cost-of-living adjustments to salaries
year on year.
Fuel expenses decreased by 6.4 per cent to EUR 966.4 million in
H1 F24, from EUR 1,032.7 million in the same period of F23. C
apacity (in ASK term) increased by 27.0 per cent, but the favorable
price improvement exceeded the negative capacity impact in absolute
terms. The average fuel price (including hedge impact) paid by Wizz
Air during H1 F24 decreased by $200 (per metric tonne) compared to
the same period of F23. On the top of that the consumption
efficiency also improved due to the increase of NEO fleet.
Distribution and marketing costs increased by 40.5 per cent to
EUR 64.9 million from EUR 46.2 million in the first half of F23, in
line with the increase in capacity, growing load factor and strong
pricing environment.
Maintenance, materials and repair costs increased by 30.6 per
cent to EUR 150.9 million in H1 F24 from EUR 115.5 million in H1
F23, due to a larger fleet and greater number of maintenance
events.
Airport, handling and en-route charges increased to EUR 631.9
million in the first half of F24 versus EUR 503.5 million in the
same period of F23. The inc rease is in line with the Company's
growth factor YoY in terms of ASK.
Depreciation and amortisation charges were 26.1 per cent higher
at EUR 355.2 million in the first half, up from EUR 281.6 million
in the same period in F23. The increase is related to depreciation
on the growing fleet and higher aircraft utilisation.
Net other expense amounted to EUR109.5 million in H1 F24,
compared to EUR 97.9 million in the same period in F23. Key drivers
being: flight disruption-related expenses increased to EUR109.4
million in H1 F24 from EUR 89.6 million in H1 F23 due to capacity
increase, overheads-related expenses increased to EUR 42.5 million
in H1 F24 from EUR 25.5 million in H1 F23 and net other income
increased to EUR 35.2 million in H1 F24 from EUR 6.9 million in H1
F23.
Financial income amounted to EUR 39.0 million in the first half
compared to EUR 3.1 million in the same period in F23, d riven by
the increase in short-term cash deposi ts and hig her interest rate
environment in H1 F24.
Financial expenses amounted to EUR 92.0 million in the first
half compared to EUR 59.8 million in the same period in F23.
Financial expenses predominantly arise from interest charges
related to lease liabilities under IFRS 16 connected to the fleet
size increase and the higher interest rate environment.
Net foreign exchange loss was EUR 19.7 million in the first half
compared to a loss of EUR269.2 million in the same period in F23,
mainly caused by slower depreciation of Euro against the US Dollar
in H1 F24 (-3%) in comparison to H1 F23 (-12%) over the course of
one year. This resulted in lower unrealised foreign exchange loss
on the revaluation of US Dollar denominated lease liabilities.
Note: the Euro exchange rate deterioration versus US Dollar was
extremely high in H1 F23 following the outbreak of the
Ukraine-Russia war.
Taxation
The Group recorded an income tax charge of EUR49.5 million in
the period compared to an income tax credit of EUR5.4 million in
the same period in F23. The increase in tax charge is mainly
attributable to the positive income of the period compared to a
loss position in the prior period.
Second quarter performance
In the three months to 30 September 2023 ("Q2" or "the second
quarter"), Wizz Air carried 17.7 million passengers including
no-shows, a 23.9 per cent increase compared to the same period in
the previous year, and generated revenues of EUR1,815.7 million
with capacity increased in terms of ASKs by 27.4 per cent. The load
factor increased from 88.8 per cent to 93.8 per cent. The profit
for the second quarter was EUR339.6 million, compared to a profit
of EUR68.2 million in the same period of F23.
Other information
1. Cash
Total cash (including restricted cash and cash deposits with
more than three months' maturity) at the end of the first half
increased by 20.2 per cent to EUR1,837.8 million versus 31 March
2023, of which EUR1,732.8 million is non-restricted cash.
2. Ownership and control
To protect the EU airline operating license of Wizz Air Hungary
Ltd and Wizz Air Malta Ltd (subsidiaries of the Company), the Board
has resolved to continue to apply a disenfranchisement of Ordinary
Shares held by non-EEA Shareholders in the capital of the Company.
This will continue to be done on the basis of a "Permitted Maximum"
of 45 per cent pursuant to the Company's articles of association
("the Permitted Maximum"). In preparation for the 2023 Annual
General Meeting (AGM), on 2 August 2023 the Compan y sent a
Restricted Share Notice to Non-Qualifying registered Shareholders,
informing them of the number of Ordinary Shares that will be
treated as Restricted Shares:
a "Qualifying National" includes: (i) EEA nationals, (ii)
nationals of Switzerland and (iii) in respect of any undertaking,
an undertaking which satisfies the conditions as to nationality of
ownership and control of undertakings granted an operating licence
contained in Article 4(f) of Regulation (EC) No. 1008/2008 of the
European Commission, as such conditions may be amended, varied,
supplemented or replaced from time to time, or as provided for in
any agreement between the EU and any third country (whether or not
such undertaking is itself granted an operating licence); and
a "Non-Qualifying National" includes any person who is not a
Qualifying National in accordance with the definition above.
3. Hedging position
Wizz Air operates under a clear set of treasury policies
approved by the Board and supervised by the Audit and Risk
Committee. 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. The hedging policy covers jet fuel and jet fuel-related
EUR/USD exposure. Jet fuel hedge coverages at 30 September 2023 are
as follows assuming no impact of PW engine recalls:
Jet fuel hedge coverage
F24 F25
Period covered 6 months 12 months
------------------------------------------ ---------------- ----------------
Exposure in metric tonnes ('000) 945 2,131
Coverage in metric tonnes ('000) 582 479
------------------------------------------ ---------------- ----------------
Hedge coverage for the period 62% 22%
Coverage by hedge types:
Zero-cost collars in metric tonnes ('000) 582 479
------------------------------------------ ---------------- ----------------
Weighted average ceiling $ 936.0 $ 845.0
Weighted average floor $ 816.0 $ 743.0
------------------------------------------ ---------------- ----------------
Foreign exchange hedge coverage
F24 F25
Period covered 6 months 12 months
---------------------------------- ---------------- ----------------
Exposure in USD millions 905 1,845
Coverage in USD millions 428 405
---------------------------------- ---------------- ----------------
Hedge coverage for the period 47% 22%
Coverage by hedge types:
Zero-cost collars in USD millions 428 405
---------------------------------- ---------------- ----------------
Weighted average ceiling $ 1.1139 $ 1.1413
Weighted average floor $ 1.0709 $ 1.0975
---------------------------------- ---------------- ----------------
Sensitivities
Pre-hedging, a $10 (per metric tonne) movement in the price of
jet fuel will impact the H2 F24 fuel costs by $9.4 million.
A one cent movement in the EUR/USD exchange rate impacts the H2
F24 operating expenses by EUR14.3 million.
Key statistics
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022 Change
--------------------------------------------- ----------------- ------------------ ----------
Capacity
Number of aircraft at end of period 187 168 11.3 %
Equivalent aircraft 181.9 156.3 16.4 %
Utilisation (block hours per aircraft per
day) 12.30 11.82 4.1 %
Total block hours 409,595 338,125 21.1 %
Total flight hours 357,047 293,928 21.5 %
Revenue departures 160,725 141,108 13.9 %
Average departures per day per aircraft 4.83 4.93 (2.0) %
Seat capacity 35,625,271 30,485,203 16.9 %
Average aircraft stage length (km) 1,746 1,607 8.6 %
Total ASKs ('000 km) 62,192,609 48,976,909 27.0 %
Operating data
RPKs ('000 km) 57,590,890 43,219,485 33.3 %
Load factor % 92.6 % 86.9 % 6.6 %
Passengers carried 32,979,806 26,476,899 24.6 %
Fuel price (average US$ per tonne, including
hedge and IPP) 974.5 1,279.4 (23.8) %
Foreign exchange rate (average US$/EUR,
including hedge impact) 1.089 1.033 5.4 %
--------------------------------------------- ----------------- ------------------ ----------
Cost per available seat kilometers
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022 Change
Euro cents Euro cents Euro cents
--------------------------------------- ---------------- ----------------- -----------
Fuel costs 1.55 2.11 (26.5) %
Staff costs 0.40 0.37 8.1 %
Distribution and marketing 0.10 0.09 11.1 %
Maintenance, materials and repairs 0.24 0.24 - %
Airport, handling and en-route charges 1.02 1.03 (1.0) %
Depreciation and amortisation 0.57 0.57 - %
Net other expenses 0.18 0.20 (10.0) %
Net financial expenses 0.09 0.12 (25.0) %
--------------------------------------- ---------------- ----------------- -----------
Total CASK 4.15 4.73 (12.3) %
Total ex-fuel CASK 2.60 2.62 (0.8) %
--------------------------------------- ---------------- ----------------- -----------
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 interim financial statements. As a
result, some amounts and percentages do not total - though such
differences are all trivial.
Forward-looking statements
The information in this announcement includes forward-looking
statements which are based on the Company's or, as appropriate, the
Company's Directors' current expectations and projections about
future events. These forward-looking statements may be identified
by the use of forward-looking terminology including, but not
limited to, the terms "believes", "estimates", "plans", "projects",
"anticipates", "expects", "intends", "may", "will" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussion of strategy, plans, objectives,
goals, future events or intentions. These forward-looking
statements are subject to risks, uncertainties and assumptions
about the Company and its subsidiaries and investments, including,
among other things, the development of its business, trends in its
operating industry and future capital expenditures. In light of
these risks, uncertainties and assumptions, the events or
circumstances referred to in the forward-looking statements may
differ materially from those indicated in these statements.
Forward-looking statements may, and often do, materially differ
from actual results.
None of the future projections, expectations, estimates or
prospects or any other statements contained in this announcement
should be taken as forecasts or promises nor should they be taken
as implying any indication, assurance or guarantee that the
assumptions on which such future projections, expectations,
estimates or prospects have been prepared are correct or exhaustive
or, in the case of the assumptions, fully stated in the
announcement. Forward-looking statements speak only as of the date
of this announcement. Subject to obligations under the Listing
Rules and Disclosure and Transparency Rules made by the Financial
Conduct Authority under Part VI of the Financial Services and
Markets Act 2000 (as amended from time to time), neither the
Company nor any of its affiliates, or individuals acting on its
behalf, undertakes to publicly update or revise any such
forward-looking statement, or any other statements contained in
this announcement, whether as a result of new information, future
events or otherwise.
As a result of these risks, uncertainties and assumptions, one
should not place undue reliance on these forward-looking statements
as a prediction of actual results or otherwise. The information and
opinions contained in this announcement are provided as at the date
of this announcement and are subject to change without notice.
Emerging and principal risks and uncertainties
The aviation industry is subject to many risks and Wizz Air's
business is no exception. A number of risks, as described in our
2023 Annual Report and Accounts, have the potential to adversely
affect Wizz Air's expected results for the remainder of the current
financial year, as well as newly emerging risks that we have
included into our summary. These include external factors related
to conflicts between countries such as prolonged war between Russia
and Ukraine and the renewed Israeli-Palestinian armed conflict, as
well as fleet development-related difficulties like the unplanned
maintenance of Pratt & Whitney GTF engines.
The full list of risks considered is set out below:
information technology and cyber risk , including website
availability, protection of our own and our customers' data, and
ensuring the availability of operations-critical systems in a
significantly escalating threat landscape;
external factors , ensuring the Company has capabilities and
resilience to deal with risks such as geopolitical risks (including
the ongoing war between Ukraine and Russia, and the renewed
Israeli-Palestinian armed conflict), fuel cost, foreign exchange
rates, risk of higher cost of doing business, competition, general
economic trends, and the default of a partner financial
institution;
network development , making sure that we are making the best
use of our capacity, driving maximum utilisation and ensuring that
we have access to the right airport infrastructure at the right
price so that we can keep on delivering the superior Wizz Air
service at low fares across an expanding network;
fleet development , ensuring the Company has the right number of
aircraft and engines available at the right time to take advantage
of commercial opportunities and grow in a disciplined way without
any supply chain disruption;
regulatory risk , making sure that we remain compliant with
regulations affecting our business and operations and we remain
agile to react to the changing governmental actions due to slowing
economic landscape, ownership and control, loss of traffic rights,
and changing policies due to sustainability (taxation, etc.);
operations , including safety events and terrorist incidents and
employee and passenger security;
human resources , ensuring we are able to recruit the right
quality and the right number of colleagues to support our ambition
to grow and, once recruited, that they remain engaged and motivated
and that the Company has appropriate succession management in place
for key colleagues;
social and governance risks , making sure we operate in
accordance with our core values and our value of integrity, are
respected throughout our business processes and deals, and provide
transparency to all our stakeholders through responsible reporting
and disclosure; and
environmental risk , ensuring that we are able to answer the
growing need of environmental protection and consciousness,
mitigate the emerging transition and physical risks and create a
sustainable, climate-friendly service for our customers, at all
times respecting the planet.
The Directors consider that the principal risks to the Company's
business during the second half of the financial year remain those
summarised above and set out on pages 86 to 93 of our 2023 Annual
Report and Accounts, available at corporate.wizzair.com.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Condensed consolidated interim statement of comprehensive
income
For the six months ended 30 September 2023 (unaudited)
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022
Note EUR million EUR million
---------------------------------------------- ---- ---------------- -----------------
Passenger ticket revenue 6, 7 1,762.2 1,182.1
Ancillary revenue 6, 7 1,290.1 1,011.7
---------------------------------------------- ---- ---------------- -----------------
Total revenue 6, 7 3,052.3 2,193.8
---------------------------------------------- ---- ---------------- -----------------
Staff costs (250.5) (180.3)
Fuel costs (966.4) (1,032.7)
Distribution and marketing (64.9) (46.2)
Maintenance, materials and repairs (150.9) (115.5)
Airport, handling and en-route charges (631.9) (503.5)
Depreciation and amortisation (355.2) (281.6)
Net other expenses 8 (109.5) (97.9)
---------------------------------------------- ---- ---------------- -----------------
Total operating expenses (2,529.3) (2,257.6)
---------------------------------------------- ---- ---------------- -----------------
Operating profit/(loss) 522.9 (63.8)
Financial income 9 39.0 3.1
Financial expenses 9 (92.0) (59.8)
Net foreign exchange loss 9 (19.7) (269.2)
---------------------------------------------- ---- ---------------- -----------------
Net financing expense 9 (72.7) (325.9)
---------------------------------------------- ---- ---------------- -----------------
Profit/(loss) before income tax 450.2 (389.7)
Income tax (expense)/credit 10 (49.5) 5.4
---------------------------------------------- ---- ---------------- -----------------
Profit/(loss) for the period 400.7 (384.3)
---------------------------------------------- ---- ---------------- -----------------
Profit/(loss) for the period attributable
to:
Non-controlling interest (4.4) (9.5)
Owners of Wizz Air Holdings Plc 405.1 (374.8)
---------------------------------------------- ---- ---------------- -----------------
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 88.2 (125.9)
Cash flow hedging reserve recycled to profit
or loss 36.0 (8.7)
Cost of hedging 57.4 (2.9)
Currency translation differences (3.0) (4.9)
---------------------------------------------- ---- ---------------- -----------------
Other comprehensive income/(expense) for
the period, net of tax 178.6 (142.4)
---------------------------------------------- ---- ---------------- -----------------
Total comprehensive income/(expense) for
the period 579.3 (526.7)
---------------------------------------------- ---- ---------------- -----------------
Total comprehensive income/(expense) for
the period attributable to:
Non-controlling interest (5.2) (11.9)
Owners of Wizz Air Holdings Plc 584.6 (514.8)
---------------------------------------------- ---- ---------------- -----------------
Basic earnings/(loss) per share (EUR/share) 11 3.92 (3.63)
---------------------------------------------- ---- ---------------- -----------------
Diluted earnings/(loss) per share (EUR/share) 11 3.18 (3.63)
---------------------------------------------- ---- ---------------- -----------------
Condensed consolidated interim statement of financial
position
As at 30 September 2023
30 Sep 2023 31 Mar 2023
(unaudited) (audited)
Note EUR million EUR million
--------------------------------------------- ---- ---------------------- ----------------------
ASSETS
Non-current assets
Property, plant and equipment 12 5,064.0 4,666.0
Intangible assets 85.9 76.7
Equity investment 21 4.5 -
Restricted cash 44.8 56.7
Deferred tax assets 18.6 50.6
Trade and other receivables 13 20.4 21.4
Derivative financial instruments 4 10.0 0.2
--------------------------------------------- ---- ---------------------- ----------------------
Total non-current assets 5,248.2 4,871.7
--------------------------------------------- ---- ---------------------- ----------------------
Current assets
Inventories 8 220.4 295.6
Trade and other receivables 13 525.8 390.1
Current tax assets 4.4 3.8
Derivative financial instruments 4 83.0 1.0
Restricted cash 60.2 63.7
Short-term cash deposits 600.5 -
Cash and cash equivalents 1,132.3 1,408.6
Total current assets 2,626.7 2,162.8
--------------------------------------------- ---- ---------------------- ----------------------
Total assets 7,874.9 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 51.0 (73.2)
Cost of hedging reserve 33.4 (24.0)
Cumulative translation adjustments 1.2 3.3
Retained losses (24.5) (433.6)
--------------------------------------------- ---- ---------------------- ----------------------
Capital and reserves attributable to the
owners of Wizz Air Holdings Plc 257.6 (331.0)
Non-controlling interest (32.1) (26.9)
--------------------------------------------- ---- ---------------------- ----------------------
Total equity 225.5 (357.9)
--------------------------------------------- ---- ---------------------- ----------------------
Non-current liabilities
Borrowings 16 4,407.0 4,000.5
Convertible debt 25.5 25.7
Deferred income 17 117.1 103.3
Deferred tax liabilities 12.4 3.2
Derivative financial instruments 4 - 4.2
Trade and other payables 14 57.2 59.1
Provisions for other liabilities and charges 15 95.4 76.3
--------------------------------------------- ---- ---------------------- ----------------------
Total non-current liabilities 4,714.6 4,272.3
--------------------------------------------- ---- ---------------------- ----------------------
Current liabilities
Trade and other payables 14 1,005.8 886.3
Current tax liabilities 21.1 4.1
Borrowings 16 1,189.5 1,275.0
Convertible debt 0.3 0.3
Derivative financial instruments 4 0.2 104.2
Deferred income 17 585.6 770.3
Provisions for other liabilities and charges 15 132.3 79.8
--------------------------------------------- ---- ---------------------- ----------------------
Total current liabilities 2,934.8 3,120.0
--------------------------------------------- ---- ---------------------- ----------------------
Total liabilities 7,649.4 7,392.3
--------------------------------------------- ---- ---------------------- ----------------------
Total equity and liabilities 7,874.9 7,034.4
--------------------------------------------- ---- ---------------------- ----------------------
Condensed consolidated interim statement of changes in
equity
For the six months ended 30 September 2023 (unaudited)
Equity Cash
part flow Cost
Share Share of hedging of hedging Cumulative Retained Total
capital premium Reorganisation convertible reserve reserve translation earnings Total Non-controlling equity
EUR EUR reserve debt EUR EUR adjustments EUR EUR interest EUR
million million EUR million EUR million million million EUR million million million EUR 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
Profit/(loss)
for the
period - - - - - - - 405.1 405.1 (4.4) 400.7
Other
comprehensive
income/(expense) - - - - 124.2 57.4 (2.1) - 179.5 (0.8) 178.7
----------------- ---------- ---------- ------------------- ------------- ----------- ---------- --------------- ----------- ---------- --------------- -----------
Total
comprehensive
income/(expense) - - - - 124.2 57.4 (2.1) 405.1 584.6 (5.2) 579.4
----------------- ---------- ---------- ------------------- ------------- ----------- ---------- --------------- ----------- ---------- --------------- -----------
Transactions
with owners
Share-based
payment
charge - - - - - - - 4.0 4.0 - 4.0
----------------- ---------- ---------- ------------------- ------------- ----------- ---------- --------------- ----------- ---------- --------------- -----------
Total
transactions
with owners - - - - - - - 4.0 4.0 - 4.0
----------------- ---------- ---------- ------------------- ------------- ----------- ---------- --------------- ----------- ---------- --------------- -----------
Balance
at 30 September
2023 - 381.2 (193.0) 8.3 51.0 33.4 1.2 (24.5) 257.6 (32.1) 225.5
----------------- ---------- ---------- ------------------- ------------- ----------- ---------- --------------- ----------- ---------- --------------- -----------
Condensed consolidated interim statement of changes in
equity
For the six months ended 30 September 2022 (unaudited)
Equity Cash
part flow Cost
Share Share of hedging of hedging Cumulative Retained Non-controlling Total
capital premium Reorganisation convertible reserve reserve translation earnings Total interest equity
EUR EUR reserve debt EUR EUR adjustments EUR EUR EUR EUR
million million EUR million EUR million million million EUR 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
income
Loss for
the period - - - - - - - (374.8) (374.8) (9.5) (384.3)
Other
comprehensive
expense* - - - - (134.6) (2.9) (2.5) - (140.0) (2.4) (142.4)
-------------- ---------- ---------- -------------------- ------------- ------------ ----------- ---------------- ----------- ----------- --------------- -----------
Total
comprehensive
expense - - - - (134.6) (2.9) (2.5) (374.8) (514.8) (11.9) (526.7)
-------------- ---------- ---------- -------------------- ------------- ------------ ----------- ---------------- ----------- ----------- --------------- -----------
Transactions
with owners
Share-based
payment
charge - - - - - - - 4.2 4.2 - 4.2
-------------- ---------- ---------- -------------------- ------------- ------------ ----------- ---------------- ----------- ----------- --------------- -----------
Total
transactions
with owners - - - - - - - 4.2 4.2 - 4.2
-------------- ---------- ---------- -------------------- ------------- ------------ ----------- ---------------- ----------- ----------- --------------- -----------
Balance
at 30
September
2022 - 381.2 (193.0) 8.3 (138.4) (2.9) (3.2) (283.3) (231.3) (27.3) (258.6)
-------------- ---------- ---------- -------------------- ------------- ------------ ----------- ---------------- ----------- ----------- --------------- -----------
* In the prior period items within other comprehensive income
were presented separately in the condensed consolidated interim
statement of changes in equity. See the details in the condensed
consolidated interim statement of comprehensive income.
Condensed consolidated interim statement of cash flows
For the six months ended 30 September 2023 (unaudited)
Six months Six months
ended 30 Sep ended 30
2023 Sep 2022
EUR million EUR million
------------------------------------------------------- ---------------------- ----------------------
Cash flows from operating activities
Gain/(loss) before income tax 450.2 (389.7)
Adjustments for:
Depreciation 346.5 275.3
Amortisation 8.7 6.2
Financial income (39.0) (3.1)
Financial expenses 92.0 59.8
Unrealised fair value (gains)/losses on derivative
financial instruments (15.6) 14.1
Unrealised foreign currency losses 14.3 285.2
Realised non-operating foreign currency losses/(gains) 1.1 (25.4)
Gain on sale of property, plant and equipment (45.3) (41.8)
Share-based payment charges 3.9 4.3
Other non-cash income (5.4) -
------------------------------------------------------- ---------------------- ----------------------
811.3 184.9
------------------------------------------------------- ---------------------- ----------------------
Changes in working capital
Increase in trade and other receivables (137.0) (114.1)
Decrease in restricted cash 18.1 45.5
Increase in derivatives - (6.0)
Decrease/(increase) in inventory 75.2 (57.7)
Increase in provisions 3.5 61.7
Increase in trade and other payables 148.9 300.9
(Decrease)/increase in deferred income (183.7) 62.9
------------------------------------------------------- ---------------------- ----------------------
Cash generated by operating activities before
tax 736.3 478.2
------------------------------------------------------- ---------------------- ----------------------
Income tax paid (10.2) (4.2)
------------------------------------------------------- ---------------------- ----------------------
Net cash generated by operating activities 726.1 473.9
------------------------------------------------------- ---------------------- ----------------------
Cash flows from investing activities
Payment for acquisition of equity investment (4.5) -
Purchase of aircraft maintenance assets (73.7) (55.2)
Purchases of tangible and intangible assets (155.5) (38.2)
Proceeds from sale of tangible assets 104.2 95.2
Advances paid for aircraft (112.3) (261.9)
Refund of advances paid for aircraft 218.6 284.9
Interest received 32.4 2.4
(Increase)/Decrease in short-term cash deposits (598.0) 84.8
------------------------------------------------------- ---------------------- ----------------------
Net cash (used in)/generated by investing activities (588.8) 111.9
Cash flows from financing activities
Proceeds from new loans* 36.6 47.7
Repayment of loans* (279.0) (240.7)
Interest paid - loans - IFRS 16 lease liability (57.5) (43.6)
Interest paid - loans - JOLCO (7.7) (3.6)
Proceeds from secured debt 14.6 -
Repayment of secured debt (143.1) -
Interest paid - secured debt (7.4) -
Interest paid - other (1.6) (1.4)
------------------------------------------------------- ---------------------- ----------------------
Net cash used in financing activities (445.1) (241.7)
------------------------------------------------------- ---------------------- ----------------------
Net (decrease)/increase in cash and cash equivalents (307.8) 344.2
Cash and cash equivalents at the beginning of
the period 1,408.6 766.6
Effect of exchange rate fluctuations on cash and
cash equivalents 30.7 18.5
------------------------------------------------------- ---------------------- ----------------------
Cash and cash equivalents at the end of the period** 1,131.5 1,129.3
------------------------------------------------------- ---------------------- ----------------------
* Mostly JOLCO and IFRS 16 leases.
** Cash and cash equivalents at 30 September 2023 include
EUR274.1 million (EUR197.3 million at 31 March 2023; EUR235.6
million at 31 March 2022) of cash at bank and EUR858.2 million
(EUR1,211.3 million at 31 March 2023; EUR531.0 million at 31 March
2022) of cash deposits maturing within three months of inception
and overdrafts (repayable on demand) of EUR0.8 million (EUR6.0
million at 31 March 2023; EURnil at 31 March 2022), which are an
integral part of the Group's cash management activities.
Notes to the condensed consolidated interim financial statements
(unaudited)
1. General information
Wizz Air Holdings Plc ("the Company") is a limited liability
company incorporated in Jersey, registered under the address 44
Esplanade, St Helier JE4 9WG, Jersey. The Company is managed from
Switzerland, under the address Route François-Peyrot 12, 1218 Le
Grand-Saconnex, Geneve. The Company and its subsidiaries (together
referred to as "the Group" or "Wizz Air") provide low-cost,
low-fare passenger air transportation services on scheduled
short-haul and medium-haul point-to-point routes across Europe and
the Middle East. The Company's Ordinary Shares are listed in the
premium segment of the Official List of the Financial Conduct
Authority and admitted to the Main Market of the London Stock
Exchange.
2. Basis of preparation
These unaudited condensed consolidated interim financial
statements present the financial results of the Group for the
six-month period ended 30 September 2023. These condensed
consolidated interim financial statements have been prepared in
accordance with the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority, IAS 34, 'Interim Financial
Reporting' as adopted by the European Union and those parts of the
Companies (Jersey) Law 1991 applicable to companies reporting under
IFRS. The unaudited condensed consolidated interim financial
statements should be read in conjunction with the annual
consolidated financial statements for the year ended 31 March 2023,
which have been prepared in accordance with IFRSs and IFRICs as
adopted by the European Union and with those parts of the Companies
(Jersey) Law 1991 applicable to companies reporting under IFRS.
The comparative figures included for the year ended 31 March
2023 do not constitute statutory financial statements of the Group
based on Article 105 (11) of the Companies (Jersey) Law 1991. The
consolidated financial statements of the Group for the year ended
31 March 2023, together with the Independent Auditors' Report, have
been filed with the Jersey Financial Services Commission and are
also available on the Company's website (wizzair.com). The
Independent Auditors' Report on those financial statements was
unqualified.
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 interim financial statements. As a
result, some amounts and percentages do not total - though such
differences are all trivial.
Going concern
Wizz Air's business activities, financial performance and
financial position, together with external factors and principal
risks likely to affect its future development and performance as
described in our 2023 Annual Report and Accounts, including the
plans to finance a growing number of future aircraft deliveries,
where sale and leaseback financing is typically secured shortly
before the scheduled delivery date of the aircraft and our judgment
that there will continue to be demand in the leasing market to
finance our aircraft prior to their delivery dates, have been
reviewed by the Directors and are considered to be unchanged.
At 30 September 2023, the Group held total cash of EUR1,837.8
million (including cash and cash equivalents of EUR1,132.3 million,
EUR105.0 million of restricted cash and EUR600.5 million of
short-term cash deposits), while net current liabilities were
EUR308.1 million and net assets were EUR225.5 million. The Group's
contractual undiscounted external borrowings include: EUR500.0
million of bonds maturing in January 2024, EUR500.0 million of
bonds maturing in January 2026, EUR117.9 million of PDP financing
from Carlyle Aviation Partners that is repayable over twelve months
but may be re-borrowed and convertible debt of EUR25.8 million. A
further EUR4,457.5 million in relation to future liabilities from
lease, JOLCO and FTL contracts are presented as borrowings. None of
these borrowings contain any financial covenants.
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 signing these interim
financial statements including plans to finance committed future
aircraft deliveries (see Note 18 ) due within this period. 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 signing this interim report.
These enquiries and the testing performed in reaching this
conclusion included the review of a base case model of how the
operations of the business would develop against a backdrop of
persistent inflation, an adverse fuel and exchange rate environment
and continued aircraft delivery delays that have been notified by
Airbus. Notably, as part of this base case, the expected
consequences of the metallurgy inspections announced by Pratt &
Whitney (RTX) and grounding of 45 aircraft, on average, commencing
15 January 2024 and spanning 18 months, have been mitigated by
management actions and original equipment manufacturer ("OEM")
compensation that has now been secured. In the absence of detailed
information and instructions from the involved regulatory
organisations and the OEM, the Directors believe this scenario to
be a realistic assumption. This base case was then flexed to
produce a downside forecast that reflects the potential impact of
trading scenarios such as a lower RASK, higher fuel price, stronger
USD and exclusion of uncommitted lease financing for future
aircraft deliveries (see Note 18 ). Both the base and downside
forecasts reflect the repayment of EUR500 million of bonds in
January 2024.
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 that are described in our
Sustainability Report, on pages 29 to 40 of the 2023 Annual Report
and Accounts, will arise over this period.
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 war in Ukraine,
the three aircraft stranded in Ukraine (see Note 5 and Note 12 )
and the war in Palestine. The Directors concluded that no material
adverse impact on future cash flows is likely to result from these
matters.
In this downside scenario the Group is still forecasting
significant liquidity (or access to liquidity) throughout this
period. Accordingly, the Directors concluded it is appropriate to
retain the going concern basis of accounting in preparing the
financial statements.
3. Accounting policies
These condensed consolidated interim financial statements have
been prepared in accordance with the accounting policies, methods
of computation and presentation applied in the Group's most
recently published consolidated financial statements for the year
ended 31 March 2023, except for the changes explained below.
The Group's interests in equity investments are presented as
financial assets at fair value through other comprehensive
income.
The useful life of aircraft assets that were first leased and
then purchased by the Group is estimated based on the date of the
major overhaul events that are no longer economical to perform.
Within the current aircraft fleet the maximum estimated useful life
of A320ceo aircraft is 20 years.
The preparation of condensed consolidated interim financial
statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial
statements the significant judgments made by management in applying
the Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements for the year ended 31 March 2023, with the
exception of changes in estimates that are required in determining
the provision for income taxes. Taxes on income in the interim
periods are accrued using the effective rate that would be
applicable to expected total annual profit or loss.
In preparing the condensed consolidated interim financial
statements, the Directors have considered the impact of climate
change, particularly in the context of the disclosures included in
the Strategic Report in the 2023 Annual Report and Accounts, the
stated emission targets and the update provided on pages 5 and 6 of
this Interim Report. These considerations did not have a material
impact on the Group's going concern assessment, nor on the
financial reporting judgments and estimates used in the preparation
of these interim financial statements.
New standards, amendments and interpretations issued and
effective
The following amendments and interpretations apply for the first
time in the six months to 30 September 2023, but do not have a
material impact, or any impact (except the for disclosure of gross
deferred tax balances in relation to leases under Amendment to IAS
12, see Note 10), on the condensed consolidated interim financial
statements of the Group:
IFRS 17, 'Insurance Contracts' including Amendments to IFRS
17
Amendments to IFRS 17, 'Insurance Contracts': Initial
Application of IFRS 17 and IFRS 9 - Comparative Information
Amendments to IAS 1, 'Presentation of Financial Statements' and
IFRS Practice Statement 2: Disclosure of Accounting Policies
Amendments to IAS 8, 'Accounting Policies, Changes in Accounting
Estimates and Errors': Definition of Accounting Estimates
Amendments to IAS 12, 'Income Taxes': Deferred Tax Related to
Assets and Liabilities Arising from a Single Transaction
New standards, amendments and interpretations issued but not yet
effective
The following new accounting standards and interpretations have
been published by the IASB that are not yet effective and have not
been early adopted by the Group. These standards are either not
relevant or not expected to have a material impact on the Group in
the current or future reporting periods or on foreseeable future
transactions.
Endorsed by the EU but not yet effective or not yet endorsed by
the EU:
Amendments to IAS 1, 'Presentation of Financial Statements':
Classification of Liabilities as Current or Non-current
Amendments to IAS 1, 'Presentation of Financial Statements':
Non-current Liabilities with Covenants
Amendments to IFRS 16, 'Leases': Lease Liability in a Sale and
Leaseback
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements : these
amendments require disclosures to enhance the transparency of
supplier finance arrangements and their effects on a company's
liabilities, cash flows and exposure to liquidity risk. The
disclosure requirements are the IASB's response to investors'
concerns that some companies' supplier finance arrangements are not
sufficiently visible, hindering investors' analysis.
Amendments to IAS 21: The Effects of Changes in Foreign Exchange
Rates: Lack of Exchangeability: an entity is impacted by the
amendments when it has a transaction or an operation in a foreign
currency that is not exchangeable into another currency at a
measurement date for a specified purpose. A currency is
exchangeable when there is an ability to obtain the other currency
(with a normal administrative delay), and the transaction would
take place through a market or exchange mechanism that creates
enforceable rights and obligations.
Not endorsed by the EU but will become immediately effective
once endorsed:
Amendment to IAS 12: International Tax Reform - Pillar Two Model
Rules
This amendment gives companies temporary relief from accounting
for deferred taxes arising from the Organization for Economic
Co-operation and Development's (OECD) international tax reform. The
amendments also introduce targeted disclosure requirements for
affected companies. For more details refer to Note 10.
4. Financial risk management
Interest rate benchmarks
As a result of interest rate benchmark reform, many benchmark
interest rates are not published anymore. In connection with
floating rate leases, the Group had exposures to LIBOR rates, which
were published until 30 June 2023. This had no material impact on
the H1 F24 condensed consolidated interim financial statements.
Hedging
In F23 the Company reinstated its Board approved systematic
hedging policy with the following coverage and time horizon.
The hedges under the hedge policy will be rolled forward
quarterly, 18 months out, with coverage levels over time reaching a
minimum of 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 US Dollar
exposure related to fuel consumption.
Hedge transactions during the period
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
period were as follows:
Foreign exchange hedge:
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022
EUR million EUR million
======================================= ----------------- -----------------
Gain recognised within fuel costs
Effective cash flow hedge 0.6 -
Total loss recognised within fuel costs 0.6 -
--------------------------------------- ----------------- -----------------
Fuel hedge:
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022
EUR million EUR million
================================================= -------------- -----------------
(Loss)/gain recognised within fuel costs
Effective hedge (loss)/gain transferred into the
statement of profit or loss (36.0) 8.7
Total (loss)/gain recognised within fuel costs (36.0) 8.7
------------------------------------------------- -------------- -----------------
Hedge period and open positions
The Group measures its derivative financial instruments at fair
value, as calculated by the banks involved in the hedging
transactions. 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 period end and therefore, according to paragraph 128 of
IAS 1, do not require further disclosure. 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 period the Group had the following open hedge
positions:
Foreign exchange hedges with derivatives:
Derivative financial instruments
---------------------------------------------------------
Notional Non-current Current Non-current Current Net
amount assets assets liabilities liabilities asset
At 30 September 2023 US$ million EUR million EUR million EUR million EUR million EUR million
----------------------------- ------------ -------------- ------------ ------------- ------------ ------------
Effective cash flow hedge
positions 833.0 2.9 15.7 - - 18.6
----------------------------- ------------ -------------- ------------ ------------- ------------ ------------
Total foreign exchange hedge 833.0 2.9 15.7 - - 18.6
----------------------------- ------------ -------------- ------------ ------------- ------------ ------------
Derivative financial instruments
---------------------------------------------------------
Notional Non-current Current Non-current Current Net
amount assets assets liabilities liabilities liability
At 31 March 2023 US$ million EUR million EUR million EUR million EUR million EUR million
----------------------------- ------------ -------------- ------------ ------------- ------------ -------------
Effective cash flow hedge
positions 312.0 - - - (0.4) (0.4)
----------------------------- ------------ -------------- ------------ ------------- ------------ -------------
Total foreign exchange hedge 312.0 - - - (0.4) (0.4)
----------------------------- ------------ -------------- ------------ ------------- ------------ -------------
For the movements in other comprehensive income refer to the
condensed consolidated interim statements of changes in equity and
comprehensive income.
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:
F24 F25
At 30 September 2023 6 months 12 months
---------------------------------------------- -------- -------------------------
Maturity profile of notional amount (million) $ 428.0 405.0
---------------------------------------------- -------- -------------------------
Weighted average ceiling $ 1.1139 1.1413
Weighted average floor $ 1.0709 1.0975
---------------------------------------------- -------- -------------------------
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 -
--------------------------------------------- --------- ---------------------------
Fuel hedge with derivatives:
Derivative financial instruments
---------------------------------------------------------
'000 Non-current Current Non-current Current Net
metric assets assets liabilities liabilities asset
At 30 September 2023 tonnes EUR million EUR million EUR million EUR million EUR million
-------------------------- ---------- -------------- ------------ ------------- ------------ ------------
Effective cash flow hedge
positions 1,061.0 7.1 67.3 - (0.2) 74.2
-------------------------- ---------- -------------- ------------ ------------- ------------ ------------
Total fuel hedge 1,061.0 7.1 67.3 - (0.2) 74.2
-------------------------- ---------- -------------- ------------ ------------- ------------ ------------
Derivative financial instruments
---------------------------------------------------------
'000 Non-current Current Non-current Current Net
metric assets assets liabilities liabilities liability
At 31 March 2023 tonnes EUR million EUR million EUR million EUR million EUR 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
condensed consolidated interim statements of changes in equity and
comprehensive income.
The fuel hedge positions at period end can be analysed according
to the maturity periods and price ranges of the underlying hedge
instruments as follows:
F24 F25
At 30 September 2023 6 months 12 months
-------------------------------------- ------------------------- -------------------------
Maturity profile ('000 metric tonnes) 582.0 479.0
-------------------------------------- ------------------------- -------------------------
Blended capped rate $ 936.0 $ 845.0
Blended floor rate $ 816.0 $ 743.0
-------------------------------------- ------------------------- -------------------------
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:
At 30 Sep 2023 At 31 Mar 2023
EUR million EUR million
------------------------------------------------- ------------------------- ---------------------------
Zero-cost collars
Carrying amount, net asset/(liability) 18.6 (0.4)
Notional amount 833.0 312.0
Maturity date October 2023- April 2023-
January 2025 March 2024
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging 14.1 -
instruments
Change in value of hedged item used to determine (14.1) -
hedge effectiveness
------------------------------------------------- ------------------------- ---------------------------
The effects of the fuel hedges on the Group's financial position
and performance are as follows:
At 30 Sep 2023 At 31 Mar 2023
EUR million EUR million
------------------------------------------------- ------------------------- --------------------------
Zero-cost collars
Carrying amount, net asset/(liability) 74.2 (106.8)
Notional amount 1,061.0 1,006.9
Maturity date October 2023- April 2023-
January 2025 October 2024
Hedge ratio 1:1 1:1
Change in fair value of outstanding hedging
instruments 45.3 (83.2)
Change in value of hedged item used to determine
hedge effectiveness (45.3) 83.2
------------------------------------------------- ------------------------- --------------------------
Hedge effectiveness
The effectiveness of hedges is tested both prospectively and
retrospectively to determine the appropriate accounting treatment
of hedge gains and losses. 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 six
months ended 30 September 2022 or the six months ended 30 September
2023.
None of the hedge counterparties had a material change in their
credit status that would have influenced the effectiveness of the
hedging transactions.
Fair value estimation
The Group measures its derivative financial instruments at fair
value, as calculated by the banks involved in the hedging
transactions. These instruments fall into the Level 2 category.
Fair values are determined based on inputs other than quoted prices
that are observable for the asset or liability, either directly or
indirectly. The banks are using generally accepted valuation
techniques, principally the Black-Scholes model and discounted cash
flow models. Equity investments are measured at fair value through
profit or loss. All the other financial assets and financial
liabilities of the Group are measured at amortised cost. For the
majority of these instruments, the fair values are not materially
different from their carrying amounts. Fair value of unsecured debt
amounted to EUR935.1 million as at 30 September 2023 (31 March
2023: EUR927.1 million) as estimated using quoted prices (Level 1).
Fair value of secured debt amounted to EUR117.9 million as at 30
September 2023 (31 March 2023: EUR250.0 million) as estimated using
Level 3 methodology. Fair value of convertible debt amounted to
EUR25.8 million as at 30 September 2023 (31 March 2023: EUR26.0
million) as estimated using Level 3 methodology. Fair value of
borrowings amounted to EUR3,729.8 million as at 30 September 2023
(31 March 2023: EUR3,408.8 million) as estimated using Level 2
methodology. For the carrying amount of borrowings please see Note
16 .
The following table presents the Group's financial assets and
liabilities that are measured at fair value at 30 September
2023.
Level 1 Level 2 Level 3 Total
=================================
EUR million EUR million EUR million EUR million
================================= =================== ================== ================== ==================
Assets
Equity investment - - 4.5 4.5
Derivative financial instruments - 93.0 - 93.0
================================= =================== ================== ================== ==================
- 93.0 4.5 97.5
===================================================== ================== ================== ==================
Liabilities
Derivative financial instruments - 0.2 - 0.2
================================= =================== ================== ================== ==================
- 0.2 - 0.2
----------------------------------------------------- ------------------ ------------------ ------------------
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
EUR million EUR million EUR million EUR million
================================= =================== ================== ================== ==================
Assets
Equity investment - - - -
Derivative financial instruments - 1.2 - 1.2
================================= =================== ================== ================== ==================
- 1.2 - 1.2
===================================================== ================== ================== ==================
Liabilities
Derivative financial instruments - 108.4 - 108.4
================================= =================== ================== ================== ==================
- 108.4 - 108.4
----------------------------------------------------- ------------------ ------------------ ------------------
5. Critical estimates and judgments made in applying the Group's
accounting policies
For critical estimates and judgments refer to Note 4 in the 2023
Annual Report and Accounts of the Group. No significant changes to
such estimates and judgments occurred for the six months ended 30
September 2023, except for the below.
Aircraft in Ukraine
Judgment: 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 repatriat ed. 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. It is assumed that the aircraft can
return to the fleet before the summer season in 2024. For more
details refer to Note 12.
6. Segment information
Reportable segment information
During F23 and F24 the Group had only one reportable segment,
being its entire route network, resulting in a net profit of
EUR400.7 million during the six months ended 30 September 2023 (for
the six months ended 30 September 2022: EUR384.3 million loss). All
segment revenue was derived wholly from external customers and, as
the Group had a single reportable segment, inter-segment revenue
was zero.
Entity-wide disclosures
Products and services
Revenue from external customers can be analysed by groups of
similar services as follows:
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
EUR million EUR million
------------------------- ----------------- -------------------
Passenger ticket revenue 1,762.2 1,182.1
Ancillary revenues 1,290.1 1,011.7
------------------------- ----------------- -------------------
Total segment revenue 3,052.3 2,193.8
------------------------- ----------------- -------------------
These categories are non-IFRS categories meaning that they are
not necessarily distinct from a nature, timing and risk point of
view; however, management believes that these categories provide
clarity over the revenue profile of the Group to the readers of the
financial statements and are in line with airline industry
practice. The categories as per the definition of IFRS 15 are
disclosed in Note 7 .
Ancillary revenue arises mainly from baggage charges,
booking/payment currency conversion charges, airport check-in fees,
fees for various convenience services (e.g. priority boarding,
extended legroom and reserved seats), loyalty programme membership
fees, commission on the sale of on-board catering, accommodation,
car rental, travel insurance, bus transfers, premium calls,
co-branded cards and repatriation.
Geographic areas
Revenue from external customers can be analysed by geographic
areas as follows:
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
EUR million EUR million
-------------------------------------- ------------------- --------------------
EU and EFTA countries 2,102.8 1,560.2
UK 349.8 280.1
Other (non-EU) 599.7 353.5
-------------------------------------- ------------------- --------------------
Total revenue from external customers 3,052.3 2,193.8
-------------------------------------- ------------------- --------------------
In the table above, other (non-EU) comprises a number of non-EU
geographic areas that are all individually less than 10 per cent of
the total revenue.
Revenue was allocated to geographic areas based on the location
of the first departure airport on each ticket booking.
The Company's revenue from external customers within the EU is
mainly generated by Italy of EUR384.9 million for the six months
ended 30 September 2023 (the six months ended 30 September 2022:
EUR305.7 million), Romania of EUR329.8 million (the six months
ended 30 September 2022: EUR236.8 million) and Poland of EUR255.0
million (the six months ended 30 September 2022: EUR178.9
million).
The physical location of non-current assets is not disclosed by
geographic area. This is because: (i) by value most assets are
associated either with aircraft not yet received (pre-delivery
payments) or with existing leased aircraft and spare engines (RoU
and maintenance assets), the location of which changes regularly
following aircraft capacity allocation decisions; and (ii) the
value of the remaining asset categories (land and buildings, and
fixtures and fittings) is not a material part of total non-current
assets.
The distribution of the non-current assets between the key
operating entities of the Group is as follows:
30 Sep 2023 31 March 2023
EUR million EUR million
-------------------------- --------------------- ----------------------
Wizz Air Hungary 2,444.9 2,755.8
Wizz Air UK 480.8 460.1
Wizz Air Fleet Management 568.1 504.9
Wizz Air Malta 1,679.9 1,117.2
Wizz Air Abu Dhabi 71.3 32.5
Other 3.2 1.2
-------------------------- --------------------- ----------------------
Total non-current assets 5,248.2 4,871.7
-------------------------- --------------------- ----------------------
No revenue or non-current assets of the Group were recognised in
Jersey, the Company's country of domicile for the six months ended
30 September 2023 (for the six months ended 30 September 2022:
EURnil).
Wizz Air Malta Limited and WAM Ventures Holding Limited were
successfully established in 2022 to reinforce Wizz Air's position
and support its expansion plans in Europe. From 1 April 2023, Wizz
Air Malta Limited commenced commercial operations and started to
sell tickets for its own flights in addition to its wet-lease
operations.
AOG Jet Limited, a wholly owned subsidiary of the Group, was
successfully established in July 2023.
Major customers
The Group derives the vast majority of its revenues from its
passengers and sells most of its tickets directly to the passengers
as final customers rather than through corporate intermediaries
(tour operators, travel agents or similar).
7. Revenue
The split of total revenue presented in the condensed
consolidated interim statement of comprehensive income, being
passenger ticket revenue and ancillary revenue, is a non-IFRS
measure (or alternative performance measure). 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.
Revenue from contracts with customers can be disaggregated as
follows based on IFRS 15:
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
EUR million EUR million
-------------------------------------------- -------------------- ---------------------
Revenue from contracts with passengers 3,012.3 2,159.4
Revenue from contracts with other partners 40.0 34.4
-------------------------------------------- -------------------- ---------------------
Total revenue from contracts with customers 3,052.3 2,193.8
-------------------------------------------- -------------------- ---------------------
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 assets reported on 30 September 2023 as part of
trade and other receivables amounted to EUR5.0 million (31 March
2023: EUR5.9 million) and the contract liabilities (unearned
revenues) reported as part of deferred income were EUR576.3 million
as at 30 September 2023 (31 March 2023: EUR761.1 million). Out of
the EUR3,012.3 million revenue recognised for the six months ended
30 September 2023 (for the six months ended 30 September 2022:
EUR2,159.4 million), EUR761.1 million (the six months ended 30
September 2022: EUR326.6 million) was included in the contract
liability balance at the beginning of the period.
8. Operating profit/(loss)
Net other expenses
The following charges less gains are included in net other
expenses:
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
EUR million EUR million
-------------------------------------------- --------------------- ----------------------
Gain on sale and leaseback transactions 45.3 41.8
Flight disruption-related expenses (109.4) (89.6)
Overhead-related expenses (42.5) (25.5)
Crew-related expenses (35.5) (27.3)
Expense relating to short-term leases (2.3) (2.8)
Impairment reversal for receivables - -
Expense relating to variable lease payments (0.4) (1.4)
Net other income 35.2 6.9
-------------------------------------------- --------------------- ----------------------
Net other expenses (109.5) (97.9)
-------------------------------------------- --------------------- ----------------------
Overhead-related expenses include fees for legal support,
professional services, consulting and IT-related services.
Net other income is mainly related to credits received from
suppliers and to income and expenses from cargo operations.
Inventories
Inventories totaling EUR12.9 million were recognised as
maintenance materials and repairs expenses in the period (the six
months ended 30 September 2022: EUR7.0 million).
Emission Trade Schemes amounted to EUR185.5 million at 30
September 2023 (31 March 2023: EUR262.5 million). The decrease is
due to the ETS settlement in April 2023.
9. Net financing expense
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
EUR million EUR million
------------------------------ --------------------- ----------------------
Interest income 39.0 3.1
------------------------------ --------------------- ----------------------
Financial income 39.0 3.1
------------------------------ --------------------- ----------------------
Interest expenses:
Convertible debt (0.9) (0.9)
IFRS 16 lease liability (57.5) (43.8)
JOLCO and FTL lease liability (16.5) (7.7)
Unsecured debt (6.6) (6.6)
Secured debt (9.3) -
Other (1.2) (0.8)
------------------------------ --------------------- ----------------------
Financial expenses (92.0) (59.8)
------------------------------ --------------------- ----------------------
Net foreign exchange loss (19.7) (269.2)
------------------------------ --------------------- ----------------------
Net financing expense (72.7) (325.9)
------------------------------ --------------------- ----------------------
Interest income and expense include interest on financial
instruments. Interest income is earned on cash and cash equivalents
and short-term deposits.
Net foreign exchange loss in amount of EUR52.4 million for the
six months ended 30 September 2023 (the six months ended 30
September 2022: EUR274.7 million) relates to remeasurement of lease
liabilities denominated in currencies different from EUR,
predominantly in USD which is offset by a net foreign exchange gain
of EUR25.4 million on cash and cash equivalents denominated in
foreign currency. During H1 F24 the USD/EUR exchange rate decreased
from 1.09 USD/EUR at 31 March 2023 to 1.06 USD/EUR at 30 September
2023 which resulted in an increase in lease liability and related
recognition of foreign exchange loss.
10. Income tax expense
The income tax charge for the six months ended 30 September 2023
was EUR49.5 million (the six months ended 30 September 2022: EUR5.4
million tax credit). The increase in tax charge is mainly
attributable to the positive income of the period compared to the
loss position in the prior period.
The effective income tax rate for the six months ended 30
September 2023 is 11.0 per cent (the six months ended 30 September
2022: 1.4 per cent). The tax charge or credit for the period was
calculated based on the estimated annual effective income tax rate
of the Group.
Deferred tax positions
Deferred tax assets decreased from EUR50.6 million to EUR18.6
million and deferred tax liabilities increased from EUR3.2 million
to EUR12.4 million in the current period (between 31 March and 30
September 2023). The changes in the deferred tax position are
mainly caused by changes in the balances related to hedging, ETS
liability and JOLCO-financed assets, which are sources of temporary
differences.
The amendments of IAS 12 have no material impact on the net
deferred tax balances of the Group, as the exemption for deferred
tax recognition in relation to leases was not applied at initial
recognition.
Deferred tax related to leases:
RoU assets Lease liabilities
------------------------------------------------------------- -----------------------------------------------------------
Deferred tax Deferred tax Deferred tax Deferred tax
assets liabilities assets liabilities
EUR million EUR million EUR million EUR million
---------- ---------------------------- ------------------------------- -------------------------- -------------------------------
31 March
2022 1.4 (79.8) 81.8 -
---------- ---------------------------- ------------------------------- -------------------------- -------------------------------
31 March
2023 2.6 (154.3) 171.7 -
---------- ---------------------------- ------------------------------- -------------------------- -------------------------------
30
September
2023 1.5 (151.8) 161.3 -
---------- ---------------------------- ------------------------------- -------------------------- -------------------------------
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, the tax residency of Wizz Air Hungary Ltd.
changed from Swiss to Hungarian from F24 onwards.
Global minimum tax
On 20 December 2021, the OECD released a framework for Pillar
Two Model Rules which aims to introduce a global minimum corporate
tax rate of 15 per cent applicable to multinational enterprise
groups with global revenue over EUR750 million. On 15 December
2022, the EU Council formally adopted the EU minimum tax directive
by written procedure and rules are expected to apply for accounting
periods starting on or after 31 December 2023 (i.e. the year ending
31 March 2025 for the Group). Management is monitoring the status
of implementation to understand the potential impact on the Group's
future tax position. The Group does not account for deferred tax on
Pillar Two top-up taxes and, therefore, there was no impact on the
recognition and measurement of deferred tax balances.
11. Earnings and loss per share
Basic earnings and loss per share
Basic earnings per share is calculated by dividing the profit or
loss attributable to equity holders of the Group by the weighted
average number of Ordinary Shares in issue during each period.
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
---------------------------------------------- -------------------- ---------------------
Profit/(loss) for the six months, EUR million 405.1 (374.8)
Weighted average number of Ordinary Shares in
issue, thousands 103,310 103,158
---------------------------------------------- -------------------- ---------------------
Basic earnings/(loss) per share, EUR 3.92 (3.63)
---------------------------------------------- -------------------- ---------------------
There were no Convertible Shares in issue at 30 September 2023
(30 September 2022: nil).
Diluted earnings and loss per share
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 period 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.
Six months Six months
ended 30 Sep ended 30 Sep
2023 2022
------------------------------------------------- --------------------- ---------------------
Profit/(loss) for the six months, EUR million 405.1 (374.8)
Interest expense on convertible debt (net of 0.9 -
tax), EUR million
------------------------------------------------- ===================== =====================
Profit/(loss) used to determine diluted earnings
per share 406.0 (374.8)
------------------------------------------------- --------------------- ---------------------
Weighted average number of Ordinary Shares in
issue, thousands 103,310 103,158
Adjustment for assumed conversion on convertible 24,396 -
instruments, thousands
------------------------------------------------- --------------------- ---------------------
Weighted average number of Ordinary Shares for
diluted earnings per share, thousands 127,706 103,158
------------------------------------------------- --------------------- ---------------------
Diluted earnings/(loss) per share, EUR 3.18 (3.63)
------------------------------------------------- --------------------- ---------------------
There is no difference between the basic and diluted loss per
share for H1 F23 as potential Ordinary Shares are anti-dilutive due
to incurred loss.
12. Property, plant and equipment
Advances
Advances paid
Land Aircraft Aircraft Fixtures paid for aircraft RoU assets RoU
and maintenance assets and for maintenance aircraft assets
buildings assets and parts fittings aircraft* assets and spares other Total
EUR EUR EUR EUR EUR
million EUR million million million million EUR million EUR million million EUR 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 33.2 483.5 1.2 271.2 33.3 389.3 7.2 1,219.0
Disposals - (90.5) (6.5) (0.2) (248.1) - (112.1) - (457.4)
Transfers - 25.0 - - - (25.0) - - -
FX
translation
effect - 1.7 (5.9) - - (0.7) (15.1) - (20.0)
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 30
September
2022 25.9 343.4 1,161.4 12.3 757.4 232.2 3,676.2 23.3 6,232.1
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 1 April
2023 25.9 428.6 1,298.3 12.2 810.0 208.2 3,920.6 27.3 6,731.1
Additions 0.8 110.9 278.4 0.4 159.3 38.2 374.6 0.1 962.7
Disposals - (134.8) (5.2) - (218.5) - (216.3) (0.1) (574.9)
Transfers - 46.5 - - - (46.5) - - -
FX
translation
effect - 2.0 1.4 - - 0.1 4.6 - 8.1
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 30
September
2023 26.7 453.2 1,572.9 12.6 750.8 200.0 4,083.5 27.3 7,127.0
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
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
period 0.8 49.2 26.4 0.9 - - 196.9 1.3 275.5
Disposals - (90.1) (0.3) (0.2) - - (111.7) - (202.3)
FX
translation
effect - 0.9 (0.1) - - - (3.8) - (3.0)
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 30
September
2022 5.3 223.4 109.8 8.3 - - 1,574.1 8.5 1,929.4
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 1 April
2023 6.0 242.4 128.6 8.4 - - 1,669.8 9.9 2,065.1
Depreciation
charge for
the
period 0.8 72.3 46.7 0.9 - - 224.6 1.5 346.8
Disposals - (130.5) (1.8) - - - (214.3) - (346.6)
FX
translation
effect - (0.7) (0.7) - - - (0.9) - (2.3)
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 30
September
2023 6.8 183.5 172.8 9.3 - - 1,679.2 11.4 2,063.0
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
Net book
amount
At 1 April
2022 21.3 110.6 606.5 3.7 734.4 224.6 1,921.4 8.9 3,631.4
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 30
September
2022 20.6 120.0 1,051.6 4.0 757.4 232.2 2,102.2 14.8 4,302.8
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 1 April
2023 19.9 186.2 1,169.7 3.8 810.0 208.2 2,250.8 17.4 4,666.0
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
At 30
September
2023 19.9 269.7 1,400.1 3.3 750.8 200.0 2,404.3 15.9 5,064.0
------------- --------- ------------ ---------- -------- ---------- ------------ ----------------- --------- ---------------
* 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 are not classified as leases under IFRS 16 and
treated as aircraft assets and parts (as if there were no sale at
all). Additions to aircraft assets and parts also include two
purchased aircraft that were previously leased by the Group.
Other right-of-use (RoU) assets include leased buildings and
simulator equipment. Please refer to Note 16 for details on lease
liabilities.
Additions to aircraft maintenance assets were fixed assets
created primarily against provision, 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 period, 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. In F23, the Group entered into a PDP financing loan
agreement denominated in US Dollars ($), according to which PDPs in
the amount of $159.2 million is pledged as collateral (see Note 16
).
The Group has reviewed the expected useful economic lives
attributed to its leased aircraft fleet and notes that the duration
of its leases is significantly less than the current expected life
of the aircraft. No change as a result of climate change has been
made.
Impairment assessment
No new impairment triggers for the Group's aircraft fleet, which
comprises a single cash-generating unit (CGU), in the period have
been identified. Nonetheless, an impairment risk review assessment
was performed for the Group's aircraft fleet CGU that includes
virtually all property, plant and equipment, and also the
intangible assets of the Group. The recoverable amount of that CGU
was estimated by value in use calculations based on cash flow
projections in the plan approved by the Board for the following
three financial years up to and including March 2026.
Management's assessment of future trends includes trading and
other assumptions - such as fleet size, passenger numbers, load
factors, commodity prices and foreign exchange rates - based on
external and internal inputs, as well as climate change risks and
opportunities outlined in the TCFD disclosure in the Group's 2023
Annual Report and Accounts. Key assumptions for the jet fuel price
and USD exchange rate were the following:
2024 2025 2026
====================================== ===================== ========================== =======================
Jet fuel price (EUR per metric tonne) 879.0 901.0 920.0
USD/EUR exchange rate 1.09 1.05 1.05
-------------------------------------- --------------------- -------------------------- -----------------------
Cash flow projections of the approved plan were extrapolated
beyond March 2026 for a period of 12 years in total to cover all
lease terms in the existing aircraft fleet. A pre-tax discount rate
of 10.6 per cent (31 March 2023: 10.1 per cent) was derived from
the weighted average cost of capital of the Group. The risk of
significant adverse changes in cash flows was taken into account by
calculating and weighting management's base case approved plan with
a downside scenario that is consistent with that used in the
Group's going concern assessment. Sensitivity analysis was
performed by management to assess the impact of changes in its
trading assumptions and the key assumptions detailed above. As a
result of this risk review, management did not identify any risk of
an impairment.
Aircraft in Ukraine
Three airframes remained grounded in Ukraine after the
successful repatriation of one aircraft and all the engines. The
above impairment assessment included those three airframes with a
total net book value of EUR24.3 million. Based on photographic and
local employee information these airframes are in good condition
and have not been damaged in the conflict. Whilst not a separate
CGU, cash flow projections were estimated for these aircraft based
on the average cash contribution generated per aircraft in the
Group's fleet adjusted for a downward scenario according to the
plans and calculations described above, and the cost of planned
maintenance of the particular aircraft. Management's working
assumption is that these aircraft will be returned to the fleet
before the summer season in 2024; however, delays to the date until
the aircraft can be returned to the fleet can cause a significant
but not material change to their estimated recoverable amount. If
the aircraft do not return into service for a prolonged period of
time, then additional consideration will be needed in upcoming
reporting cycles.
13. Trade and other receivables
31 Mar 2023
30 Sep
2023 (restated)
EUR million EUR million
================================================== ================= ==================
Non-current
Receivables from lessors 8.6 9.1
Other receivables 11.8 12.3
================================================== ================= ==================
Non-current trade and other receivables 20.4 21.4
================================================== ================= ==================
Current
Trade receivables * 206.0 170.0
================================================== ================= ==================
Receivables from lessors 16.2 15.5
Other receivables 20.1 27.2
================================================== ================= ==================
Total current other receivables 36.3 42.7
================================================== ================= ==================
Prepayments, deferred expenses and accrued income
* 283.5 177.3
================================================== ================= ==================
Current trade and other receivables 525.8 390.1
================================================== ================= ==================
Total trade and other receivables 546.2 411.5
-------------------------------------------------- ----------------- ------------------
*Current trade receivables at 31 March 2023 now total EUR170.0
million (previously EUR233.8 million) and prepayments, deferred
expenses and accrued income at 31 March 2023 now total EUR177.3
million (previously EUR113.5 million) following the
reclassification of prepayment balances made to vendors. The change
had no impact on the statement of financial position.
Receivables from lessors (both current and non-current)
represent the deposits provided by the Group to lessors as security
in relation to lease contracts and in relation to the funding of
future maintenance events.
Trade receivables included EUR118.0 million of receivables from
contracts with customers (at 31 March 2023: EUR127.0 million).
Total trade and other receivables as at 30 September 2023
included financial instruments in the amount of EUR399.3 million
(31 March 2023: EUR270.4 million).
Impairment of trade and other receivables
30 Sep
2023 31 Mar 2023
EUR million EUR million
----------------------------------- ================= ==================
Impaired receivables
- trade receivables (3.5) (3.5)
Allowances on impaired receivables
- other receivables (0.6) (0.5)
----------------------------------- ----------------- ------------------
The Group recorded EUR2.1 million of receivables from Warsaw
Modlin Airport during 2013 as compensation for damages which was
immediately impaired in full. However, the Group is legally
claiming the full amount in court. The compensation claimed by the
Group, plus interest, was awarded by the District Court of Warsaw
in June 2018. However, the airport appealed against the decision,
which is currently pending. There was no transaction regarding this
receivable in the first half of this financial year.
14. Trade and other payables
30 Sep
2023 31 Mar 2023
EUR million EUR million
===================================== ================== ==================
Non-current liabilities
Accrued expenses 57.2 59.1
Other payables - -
------------------------------------- ================== ==================
Non-current trade and other payables 57.2 59.1
------------------------------------- ------------------ ------------------
Current liabilities
Trade payables 202.1 173.7
Payables to passengers 81.8 95.2
Other trade payables 35.7 34.0
Accrued expenses 686.2 583.4
===================================== ================== ==================
Current trade and other liabilities 1,005.8 886.3
===================================== ================== ==================
Total trade and other payables 1,063.0 945.4
------------------------------------- ------------------ ------------------
Payables to passengers include the refunds made in credits which
can be used by customers for rebooking tickets for later dates or
can be requested to be refunded by the Group in cash and other
liabilities towards customers. Credits not eligible for cash refund
are classified as deferred income.
Accrued expenses mainly include accruals for operating expenses
such as airport and ground handling, fuel, ETS allowances, en-route
and navigation, crew and maintenance-related expenses and
liabilities for EU regulation (EC) No. 261/2004 (EU261)
compensation to customers in the amount of EUR11.8 million (31
March 2023: EUR11.2 million), refund made to passengers beyond the
original paid value.
Total trade and other payables as at 30 September 2023 included
financial instruments in the amount of EUR875.0 million (31 March
2023: EUR705.5 million).
15. Provisions for other liabilities and charges
Aircraft
maintenance Other Total
EUR million EUR million EUR million
--------------------------------------- ------------------ ------------------ ------------------
At 31 March 2022 88.8 18.3 107.1
--------------------------------------- ------------------ ------------------ ------------------
Non-current provisions 43.0 0.9 43.9
Current provisions 45.8 17.4 63.2
--------------------------------------- ------------------ ------------------ ------------------
Capitalised within property, plant and
equipment 37.8 - 37.8
Charged to comprehensive income 6.0 91.0 97.0
Used during the period (19.7) (36.4) (56.1)
--------------------------------------- ------------------ ------------------ ------------------
At 30 September 2022 112.9 72.9 185.8
--------------------------------------- ------------------ ------------------ ------------------
Non-current provisions 28.7 0.9 29.6
Current provisions 84.2 72.0 156.2
--------------------------------------- ------------------ ------------------ ------------------
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 103.1 - 103.1
Charged to comprehensive income (6.0) 9.4 3.4
Used during the period (38.7) (0.9) (39.6)
FX translation effect 4.8 - 4.8
--------------------------------------- ------------------ ------------------ ------------------
At 30 September 2023 211.9 15.8 227.7
--------------------------------------- ------------------ ------------------ ------------------
Non-current provisions 95.3 0.1 95.4
Current provisions 116.6 15.7 132.3
--------------------------------------- ------------------ ------------------ ------------------
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. 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.
16. Borrowings
30 Sep
2023 31 Mar 2023
EUR million EUR million
--------------------------------------------- ================ =================
Lease liability under IFRS 16 480.9 444.2
Liability related to JOLCO and FTL contracts 85.5 74.1
Unsecured debts 505.2 506.7
Secured debt 117.9 250.0
--------------------------------------------- ================ =================
Total current borrowings 1,189.5 1,275.0
--------------------------------------------- ================ =================
Lease liability under IFRS 16 2,578.5 2,350.9
Liability related to JOLCO and FTL contracts 1,312.6 1,137.0
Unsecured debt 501.7 498.8
Loans from non-controlling interests 14.2 13.8
--------------------------------------------- ================ =================
Total non-current borrowings 4,407.0 4,000.5
--------------------------------------------- ================ =================
Total borrowings 5,596.5 5,275.5
--------------------------------------------- ---------------- -----------------
On 19 January 2021, Wizz Air Finance Company B.V., a 100 per
cent owned subsidiary of Wizz Air Holdings Plc, issued a EUR500.0
million 1.35 per cent Eurobond, fully and irrevocably guaranteed by
the Company, under the EUR3,000.0 million EMTN programme with a
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 EUR500.0 million 1.00 per cent Eurobond,
fully and irrevocably guaranteed by the Company, under the
EUR3,000.0 million EMTN programme with a maturity in January 2026.
These Eurobonds do not contain any financial covenants.
In February 2023, the Group entered into a PDP financing loan
agreement, according to which a part of the PDPs made has 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. At 30 September 2023 $125.1 million is borrowed, and
PDPs in the amount of $159.2 million are collateralised. The Group
has an obligation to repay the financed amount, its interest and
other costs related to the transaction within one year. 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. There were no defaults during the
six-month period ended on 30 September 2023 and the six months
period ended on 30 September 2022. The PDP refinancing credit
facility is available for further financing for a maximum of three
years and does not contain any financial covenants.
The maturity profile of borrowings as at 30 September 2023 is as
follows:
IFRS 16
aircraft
and engine IFRS 16 JOLCO and Loans from
lease other lease FTL lease Unsecured Secured non-controlling
liability liability liability debt debt interests Total
EUR million EUR million EUR million EUR million EUR million EUR million EUR million
----------- -------------- --------------- --------------- --------------- --------------- --------------- --------------
Payments
due:
Within one
month 33.9 0.2 - 0.7 10.9 - 45.7
Between one
and three
months 76.3 0.4 21.4 - 43.9 - 142.0
Between
three
months and
one year 368.6 1.6 64.1 504.5 63.1 - 1,001.9
Between one
and two
years 458.2 6.0 92.1 - - - 556.3
Between two
and three
years 399.8 1.9 92.9 501.7 - - 996.3
Between
three
and four
years 324.1 1.5 95.3 - - - 420.9
Between
four
and five
years 278.8 1.6 97.8 - - - 378.2
In more
than
five years 1,102.1 4.4 934.5 - - 14.2 2,055.2
----------- -------------- --------------- --------------- --------------- --------------- --------------- --------------
Total
borrowings 3,041.8 17.6 1,398.1 1,006.9 117.9 14.2 5,596.5
----------- -------------- --------------- --------------- --------------- --------------- --------------- --------------
The maturity profile of borrowings as at 31 March 2023 is as
follows:
IFRS 16
aircraft
and engine IFRS 16 JOLCO and Loans from
lease other lease FTL lease Unsecured Secured non-controlling
liability liability liability debt debt interests Total
EUR million EUR million EUR million EUR million EUR million EUR million EUR 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
In 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
----------- -------------- --------------- --------------- --------------- --------------- --------------- --------------
17. Deferred income
30 Sep
2023 31 Mar 2023
EUR million EUR million
======================== ================= ==================
Non-current liabilities
Deferred income 117.1 103.3
======================== ----------------- ------------------
Current liabilities
Unearned revenue 576.3 761.1
Other 9.3 9.2
======================== ----------------- ------------------
585.6 770.3
------------------------ ----------------- ------------------
Total deferred income 702.7 873.6
------------------------ ----------------- ------------------
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 and credits provided to passengers with no cash
conversion option in the amount of EUR22.7 million (at 31 March
2023: EUR19.4 million). Unearned revenue decreased primarily due to
seasonality having lower volume of bookings than before summer
season.
The contract liabilities (unearned revenue) of EUR576.3 million
existing at 30 September 2023 (at 31 March 2023: EUR761.1 million)
will become revenue during the upcoming twelve months (subject to
further cancellations that might happen after the period end).
18. Capital commitments
At 30 September 2023 the Group had the following capital
commitments:
A commitment to purchase 347 Airbus aircraft of the A320 family
in the period 2023-2029. The total commitment is valued at US$50.6
billion (EUR47.7 billion) based on list prices last published in
2018 and escalated annually until the reporting date based on
contract terms (31 March 2023: US$42.2 billion (EUR38.8 billion) to
purchase 290 Airbus aircraft of the A320 family in the period
2023-2028 and US$11.0 billion (EUR10.1 billion) in relation to 75
A321neo aircraft as approved by shareholders in August 2023). As at
the date of approval of this document out of the 347 aircraft 21
are to be delivered in H2 F24 and for 16 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.
A commitment to purchase 18 IAE "neo" (GTF) spare engines in the
period 2023-2026. The total commitment is valued at US$381.7
million (EUR359.7 million) at list prices in 2023 US$ terms (31
March 2023: US$572.5 million (EUR525.7 million), valued at 2023
list prices, to purchase 27 IAE "neo" (GTF) spare engines in the
period 2023-2026). As at the date of approval of this document out
of the 18 engines 4 is to be delivered in H2 F24 and it is not
financed yet.
A commitment to purchase 3 Full Flight Simulators. The total
commitment is valued at EUR13.6 million based on contract terms.
Payment is due in installments with EUR4.6 million paid as at 30
September 2023.
19. Contingent liabilities
The Group has certain contingent liabilities in relation to
European Commission state aid investigations and to legal claims
initiated by Carpatair. These matters were explained in Note 33 in
the 2023 Annual Report and Accounts of the Group and there have
been no significant developments in these cases since then.
No provision has been made by the Group in relation to these
cases because there is currently no reason to believe that the
Group will incur charges from these cases.
20. Subsequent events
In FY23 the Group entered into a PDP financing loan facility
(see Note 16 ). 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, aimed at bolstering the Group's liquidity.
Based on a service bulletin in relation to GTF engine
inspections (issued 3 November, 2023), and verification performed
with Pratt & Whitney, the Group is projecting a grounding of 45
aircraft by the end of F24 (including aircraft previously grounded
in September 2023.The Group has agreed an OEM compensation package
for flight disruption costs incurred and expected to be incurred in
respect of the aircraft that have been grounded or are expected to
be grounded. An element of this compensation, which was not
material, relates to costs incurred in the period ended 30
September 2023. These credits are included in net other expenses in
the condensed consolidated interim statement of comprehensive
income.
21. Related parties
The Group has related party relationships with Indigo Hungary LP
and Indigo Maple Hill LP (collectively referred to as "Indigo"
here) and its key management personnel (Directors and
Officers).
There were no related party transactions in the period ended 30
September 2023 that materially affected the financial position or
the performance of the Group during that period and there were no
changes to the related party positions described in the 2023 Annual
Report and Accounts that could have a material effect on the
financial position or performance of the Group in the same
period.
The Group has contracted with a related party of the CEO to
provide IT services with regard to machine learning. The amount
paid for this service for the six months ended on 30 September 2023
was EUR2.1 million (for the six months ended on 30 September 2022:
EUR1.8 million), which happened on an arm's length basis. On 30
September 2023 the outstanding amount payable to the related party
was EUR0.3 million.
Wizz Air invested 2.5 million GBP into Firefly Green Fuels SAF
as Tranche 1 investment in April 2023 resulting in 14.3 per cent
ownership. Tranche 2 investment amounting to 2.5 million GBP is
expected to happen in H2 F24 (to have 25 per cent ownership).
Wizz Air invested 1.7 million USD in Tranche 1 in May 2023 from
4 million USD in total, having 2.5 per cent ownership, as other
investment. The CleanJoule consortium investment was led by Indigo
Partners and GenZero. As part of the consortium's investment,
Frontier Airlines, Wizz Air and Volaris have signed binding
agreements to purchase up to 90 million gallons of SAF from
CleanJoule.
22. Seasonality of operations
The Group's results of operations, like those of most other
airlines in Europe, vary significantly from quarter to quarter
within the financial year. Historically, the Group has had higher
passenger revenue during the summer season in comparison to the
winter season (with the exception of the periods around Christmas,
New Year and Easter) as this is the period during which many
Europeans tend to take their annual holiday. Flight frequency, load
factor and average ticket prices all tend to be higher during such
peak periods compared to other periods of the year.
Glossary of terms and alternative performance measures
(APMS)
Alternative performance measures : Non-IFRS standard performance
measures aiming to introduce the company's performance in line to
the 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.
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 1 month): monthly aircraft utilization 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 1 month): the given period aircraft
utilization equals with the weighted average of monthly aircraft
utilisation based on the month-end fleet counts.
Ancillary revenue : generated revenue from ancillaries
(including other ancillary revenue related items). Rationale - Key
financial indicator for the separation of different revenue lines
(see Notes 6 and 7).
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 kilometers (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 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. This key financial indicator is integral for
evaluating the profitability and effectiveness of capital
utilization.
Calculation: Average equity + Interest-bearing borrowings
(including convertible debt) - Cash and cash equivalents.
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 performance
indicator for commercial planning and controlling, measurement for
operational performance.
Calculation: Number of operated flights divided by scheduled
flights.
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 control 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 Kilometers (ASKs)
during a specific reporting period. Rationale - Fuel CASK provides
an insightful unit fuel cost measurement, representing the cost
incurred for flying one kilometer 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
in a period, calculated as fuel cost (including other fuel cost
related items) divided by the consumption. Rationale - Key
performance indicator for fuel cost controlling.
Equivalent aircraft or average aircraft count : the average
number of aircraft available to Wizz Air within a period. The count
contains spares and aircraft under maintenance. Rationale - Key
performance indicator in aviation business for the measurement of
average fleet and capacity.
Calculation (for 1 month): average from the daily fleet count in
the given month which includes/excludes deliveries and
redeliveries. Calculation (for a longer period than 1 month):
weighted average of the monthly equivalent aircraft numbers based
on the number of days in the given period.
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 amortization. Rationale - This measure serves
as a key financial indicator for the Company, providing insights
into operational profitability.
Calculation: Operating profit/(loss) + Depreciation and
amortization.
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 (EUR million) * 100.
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022
EUR million EUR million
------------------------------ -------------- --------------
Operating profit/(loss) 522.9 (63.8)
Depreciation and amortisation 355.2 281.6
------------------------------ -------------- --------------
EBITDA 878.1 217.8
------------------------------ -------------- --------------
Total revenue (EUR million) 3,052.3 2,193.8
------------------------------ -------------- --------------
EBITDA Margin (%) 28.8 % 9.9 %
------------------------------ -------------- --------------
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
kilometer flown per seat in Wizz Air's fleet. Note that: ex-fuel
cost contains Wizz Air operating costs excludes fuel cost, includes
interest cost and income. 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.
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 utilization strategies.
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 organization's financial leverage and debt
management.
Calculation: Net debt / EBITDA (12 months).
Liquidity : 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.
30 Sep
2023 30 Sep 2022
EUR million EUR million
-------------------------------------------------- ---------------- -----------------
Cash and cash equivalents 1,132.3 1,129.3
Short-term cash deposits 600.5 365.2
Additional data to calculate liquidity
Total revenue for the 6 months ended 30 September 3,052.3 2,193.8
Total revenue for the 6 months ended 31 March 1,702.0 783.1
-------------------------------------------------- ---------------- -----------------
Total revenue for the rolling 12 months 4,754.3 2,976.9
-------------------------------------------------- ---------------- -----------------
Liquidity 36.4 % 50.2 %
-------------------------------------------------- ---------------- -----------------
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 debt : Net debt is defined as 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.
30 Sep
2023 30 Sep 2022
EUR million EUR million
-------------------------------------------- ------------------ ------------------
Non-current liabilities
Borrowings 4,407.0 4,469.0
Convertible debt 25.5 25.7
-------------------------------------------- ------------------ ------------------
Current liabilities
Borrowings 1,189.5 499.3
Convertible debt 0.3 -
-------------------------------------------- ------------------ ------------------
Current assets
Short-term cash deposits 600.5 1,129.3
Cash and cash equivalents 1,132.3 365.2
-------------------------------------------- ------------------ ------------------
Net debt 3,889.5 3,499.5
Additional data to calculate leverage ratio
EBITDA for the 6 months ended 30 September 878.1 217.8
EBITDA for the 6 months ended 31 March (83.5) (187.6)
-------------------------------------------- ------------------ ------------------
Total EBITDA for the rolling 12 months 794.6 30.2
-------------------------------------------- ------------------ ------------------
Leverage ratio 4.9 115.9
-------------------------------------------- ------------------ ------------------
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.
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.
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
(see Notes 6 and 7).
PDP : 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 is
leased and/or owned at the end of the given period. The count
contains spares and aircraft under maintenance as well. Rationale -
Key performance indicator in aviation business for the measurement
of fleet.
Calculation: Sum of aircraft at the end of the given period.
RASK : RASK is determined by dividing the total revenue by the
total ASK. This measure characterizes the unit net revenue
performance for each kilometer 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.
Return on capital employed (ROCE) : It is 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 utilization.
Six months Six months
ended 30 ended 30
Sep 2023 Sep 2022
EUR million EUR million
---------------------------------- ------------ -------------
Operating loss/profit 119.9 (477.3)
Effective tax rate for the year (1.6) % (0.3) %
---------------------------------- ------------ -------------
Operating loss/profit after tax 118.1 (476.1)
---------------------------------- ------------ -------------
Average Shareholders' equity (16.5) 528.2
Average borrowings 5,308.2 4,197.8
Average cash and cash equivalents (1,130.8) (1,119.7)
Average short-term cash deposits (482.9) (383.5)
---------------------------------- ------------ -------------
Average capital employed 3,678.0 3,222.8
---------------------------------- ------------ -------------
ROCE (%) 3.2 % (14.8) %
---------------------------------- ------------ -------------
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 aviation business,
measurement for aircraft's block hours.
Calculation: Sum of block hours of all sectors (in the given
period).
Total cash is a 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.
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 aviation business,
measurement for aircraft's flight hours.
Calculation: Sum of flight hours of all sectors (in the given
period).
Total revenue : total ticket and ancillary revenue for the given
period. The split of total revenue presented in the condensed
consolidated interim statement of comprehensive income. Rationale -
Key Financial indicator for the Company.
Yield : Yield represents the total revenue generated per Revenue
Passenger Kilometer (RPK). Rationale - This measure is integral for
assessing and controlling commercial performance by quantifying the
revenue derived from each kilometer flown by paying passengers.
Calculation: The total revenue / RPK.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Interim
Financial Report in accordance with applicable law and
regulations.
The Directors confirm that these condensed consolidated interim
financial statements have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial Reporting'
as adopted by the European Union.
The interim management report includes a fair review of the
information required by the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority paragraphs 4.2.7 and 4.2.8, namely:
an indication of important events that have occurred during the
six months ended 30 September 2023 and their impact on the
condensed set of financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year; and
material related party transactions during the six months ended
30 September 2023 and any material changes in the related party
transactions described in the 2023 Annual Report and Accounts of
the Group.
The Directors of Wizz Air Holdings Plc are listed in the 2023
Annual Report and Accounts of the Group.
A list of current Directors is maintained on the Wizz Air
Holdings Plc website: wizzair.com.
This Interim Financial Report was approved by the Board of
Directors and authorised for issue on 9 November 2023 and signed on
its behalf by:
József Váradi
Director
Independent review report to Wizz Air Holdings Plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed Wizz Air Holdings Plc's condensed consolidated
interim financial statements (the "interim financial statements")
in the Interim financial report of Wizz Air Holdings Plc for the 6
month period ended 30 September 2023 (the "period").
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with
International Accounting Standard 34, 'Interim Financial Reporting'
as adopted by the European Union and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
The interim financial statements comprise:
the Condensed consolidated interim statement of financial
position as at 30 September 2023;
the Condensed consolidated interim statement of comprehensive
income for the period then ended;
the Condensed consolidated interim statement of cash flows for
the period then ended;
the Condensed consolidated interim statement of changes in
equity for the period then ended; and
the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim
financial report of Wizz Air Holdings Plc have been prepared in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting' as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' issued by the Financial Reporting Council for use in the
United Kingdom ("ISRE (UK) 2410"). A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on
the review procedures performed in accordance with ISRE (UK) 2410.
However, future events or conditions may cause the group to cease
to continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Interim financial report, including the interim financial
statements, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the Interim
financial report in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority. In preparing the Interim financial report,
including the interim financial statements, the directors are
responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim
financial statements in the Interim financial report based on our
review. Our conclusion, including our Conclusions relating to going
concern, is based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of
this report. This report, including the conclusion, has been
prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
9 November 2023
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END
IR FIFIRLFLAIIV
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