WIZZ
AIR HOLDINGS PLC - UNAUDITED RESULTS FOR THE 12 MONTHS TO 31
MARCH 2024
WIZZ
AIR RETURNS TO PROFIT IN F24; DELIVERS IMPROVED ASSET UTILIZATION
AND ON-TIME PERFORMANCE; ENCOURAGING START TO F25
LSE:
WIZZ
Geneva, 23 May
2024: Wizz Air Holdings Plc ("Wizz
Air" or "the Company") one of the most sustainable European
airlines, today announces its unaudited results for the full year
ended 31 March
2024 ("F24").
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|
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|
|
|
Full year to 31 March
|
2024
|
2023
|
Change
|
|
Passengers carried
|
62,015,792
|
51,071,836
|
21.4%
|
|
Total revenue (€
million)
|
5,073.1
|
3,895.7
|
30.2%
|
|
EBITDA (€
million)1
|
1,193.2
|
134.3
|
788.5%
|
|
EBITDA Margin
(%)1
|
23.5
|
3.4
|
20.1ppt
|
|
Operating profit/(loss) for the
period (€ million)2
|
437.9
|
(466.8)
|
n.m.
|
|
Unrealised foreign currency gain
(€ million)
|
34.2
|
9.1
|
275.8%
|
|
Profit/(loss) for the period (€
million)2
|
365.9
|
(535.1)
|
n.m.
|
|
RASK (€ cent)
|
4.17
|
3.98
|
4.6%
|
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Fuel CASK (€ cent)
|
1.52
|
2.00
|
(23.7)%
|
|
Ex-fuel CASK (€ cent)
|
2.38
|
2.58
|
(7.8)%
|
|
Total cash (€
million)1,3
|
1,588.9
|
1,529.0
|
3.9%
|
|
Load factor (%)
|
90.1
|
87.8
|
2.4ppt
|
|
Period-end fleet size
|
208
|
179
|
16.2%
|
|
Period-end seat count
(thousand)
|
68,813
|
58,190
|
18.3%
|
1 For
definition of alternative performance measures presented refer to
"Glossary of terms" and "Alternative performance measures (APMS)"
sections of this document. These measures incorporate certain
non-financial information that management believes is useful
when assessing the performance of the Group.
2 n.m.: not meaningful as a
variance is more than (-)100 per cent.
3 Total cash
comprises cash and cash equivalents (31 March 2024:
€728.4 million; 31 March 2023: €1,408.6 million),
short-term cash deposits (31 March 2024:
€751.1 million; 31 March 2023: nil) and total
current and non-current restricted cash (31 March 2024:
€109.4 million; 31 March 2023:
€120.4 million).
HIGHLIGHTS
▶Wizz Air
celebrates 20 years since its first flight, with more than 390
million passengers carried since launch.
▶ASK
capacity 24.5 per cent higher
in F24 vs last year.
▶Record
traffic of 62.0 million passengers in F24 (vs 51.1 million
last year).
▶Unit
revenue (RASK) up 4.6 per cent year-on-year, with
ticket RASK +11.2 per cent and
ancillary -2.6 per cent.
▶Full
year revenue impact from Israel and wider region crisis circa €80
million.
▶Unit
cost (CASK) down by 14.8 per cent year-on-year,
with fuel CASK -23.7 per cent and ex-fuel
-7.8 per
cent.
▶EBITDA
up significantly to €1.2 billion, in line
with strong pre-pandemic performance.
▶Total
cash balance at €1.59 billion, after repayment of a €500 million EMTN
bond.
▶Significant improvement in operational metrics with operating
fleet utilization at 12:25 hours
vs 11:08 hours last year and with 65.3 per cent on-time
performance, up from 56.2 per cent:
▶Maturing
network with lower share of capacity operated on routes
younger than three years (-7 percentage points vs last
year).
▶Navigating GTF engine disruption: 45x aircraft-on-ground
at F24-end; 47x as of 17 May 2024; Significant OEM
compensation received for F24; Expect circa 50x aircraft
grounded by end of H1 of fiscal F25.
▶Received
delivery of 39 new A321neos; finalized 13 lease extensions and
secured 11 more; received 20 GTF spare engines in F24 and advancing
8-10 more in H1 F25.
▶Close to
flat YoY capacity projections for H1 F25 and full F25.
▶Reported
CO2 emissions at 52.0 grams per passenger/km for the
rolling 12 months to 31 March 2024 (vs 53.8 grams for
F23) and set aspirational goal to use 10 per cent SAF by 2030.
Improved to "B" score in the 2023 climate ranking by CDP, a
two-band improvement vs Wizz Air's 2022 score.
▶Trading
in the financial year has been encouraging, with sustained demand
and positive booking momentum for the summer.
József Váradi, Wizz Air Chief
Executive Officer commented on the results:
"Sustained healthy demand for air travel across our markets
was a defining feature of F24, signalling that the surge witnessed
post pandemic has evolved into a longer-term trend in consumer
behaviour. Wizz Air has been strongly positioned for this trend as
reflected in our performance for the year.
We placed a sharp focus on
increasing utilisation, improving load factors and lowering unit
costs (fuel and ex-fuel), and continued to invest in our
operations. Our efforts saw us carry a record number of passengers
during the year, return to profitability and reduce financial
leverage while maintaining our total cash
position.
We responded rapidly to challenges
during the year by flexing resources and commercial arrangements,
and quickly redeploying capacity where needed, as renewed
geopolitical instability emerged.
We also faced unprecedented supply
chain disruption due to mandatory engine material inspections
affecting our neo aircraft fleet.
Despite these challenges, our
8,000-strong workforce delivered an exceptional service, reflected
across operational, financial and people metrics. I would like to
thank each one of our employees for embodying the WIZZ spirit
through their perseverance, dedication, passion and commitment in
F24."
Commenting on the outlook and
current trading for the Company, József Váradi added:
"While
some of the external challenges we experienced throughout F24,
including groundings due to GTF engine inspections and geopolitical
instability, are expected to persist in the coming year, we have
proven that our model is agile, highly resilient and well
positioned to mitigate the impact of these ongoing issues. This
includes the current scale and diversity of our network, which
means we are incredibly well placed to react quickly to issues as
they arise.
While our capacity expectations
for the year have been moderated in response to these changes in
the operating environment, new aircraft deliveries persist, and our
efforts to drive productivity and utilisation continue to deliver
results. As we enter F25, demand for air travel remains robust,
with no sign of abating in the near term, supporting a higher yield
environment as capacity across the whole industry remains
constrained.
Our current trading indicators are
positive, with selling load factors trending higher year on year in
the first two fiscal quarters and unit revenue (RASK) performing
equally well.
We will continue to use the levers
available to us to mitigate challenges in our sector, while
relentlessly moving forward with the execution of our growth
strategy, operating one of the most sustainable fleets in the
industry and delivering value for all of our
stakeholders."
NEAR TERM AND FULL YEAR
OUTLOOK
The near-term and full-year
outlook is summarised as follows:
▶Capacity
(ASKs): H1 F25 and F25 flat YoY;
▶Load
factors: F25 92%;
▶Revenue:
F25 RASK up high single digit YoY;
▶Cost:
F25 ex-fuel CASK up high single digits YoY; and F25 fuel CASK
'flattish' YoY;
▶Net
income: F25 in the range of €500-600 millions, at current FX
rates;
▶Group
Corporate Effective Tax Rate (ETR): 14%.
SUMMARY OF F24 FINANCIAL
RESULTS
▶Total
revenue increased by 30.2 per cent to
€5,073.1 million, compared to €3,895.7 million
in F23.
▶Fuel
expenses decreased by 5.0 per cent to
€1,855.7 million, compared to €1,954.4 million
in F23.
▶Operating expenses (excluding
fuel) increased by 15.4 per cent to
€2,779.5 million, compared to €2,408.1 million
in F23.
▶EBITDA
grew substantially to €1,193.2 million, an increase
of €1,058.9 million vs F23.
▶Operating profit was €437.9 million compared
to an operating loss of €466.8 million in
F23.
▶Net
financing expenses decreased by 1.1 per
cent to €96.8 million, compared to €97.9 million recorded
in F23.
▶Net
foreign exchange gain for F24 was €19.4 million, compared to a
gain of €16.6 million in F23.
▶The
Company recorded income tax credit of €24.8 million
in F24 compared to the €29.5 million credit
in F23.
▶Wizz Air
reported a net profit of €365.9 million
(F23: loss €535.1 million), returning to a full
fiscal year of profitable operations.
▶At 31
March 2024, the Group held total cash of €1,588.9 million
(including cash and cash equivalents of
€728.4 million, €751.1 million of short-term cash
deposits and €109.4 million of restricted cash), compared to
€1,529.0 million in F23.
REVENUE AND COST
HIGHLIGHTS
Total
revenue increased driven by increases in capacity
and load factor:
▶Passenger ticket
revenue increased by 38.5 per cent to
€2,804.2 million.
▶Ancillary revenue increased by 21.3 per
cent to €2,268.9 million.
▶Total
unit revenue increased by 4.6 per cent to
€4.17 cents per available seat kilometre (ASK).
▶Ticket
RASK increased by 11.2 per cent to
€2.30 cent, reflecting a stronger load factor year-on-year and
favourable pricing environment, specifically during the peak
periods.
▶Ancillary RASK decreased by 2.6 per cent
to €1.86 cent, mainly driven by the impact of Israel-Hamas
war, denting demand in markets with high ancillary
spend.
Total operating
expenses increased by 6.3 per cent to
€4,635.2 million in F24 from €4,362.5 million
in F23:
▶Total
CASK decreased to €3.90 cent in F24 from
€4.58 cent in F23.
▶Ex-fuel
CASK decreased by 7.8 per cent to
€2.38 cent in F24 from €2.58 cent in F23,
reflecting improved aircraft utilization and on-time performance,
various savings in navigation and maintenance lines plus the effect
of supplier compensation and gains from multiple spare engine
financing in the last fiscal quarter (spare engines advanced to
support GTF engine inspections).
▶Fuel
CASK decreased by 23.7 per cent to
€1.52 cent in F24, driven mainly by lower fuel charges,
improved efficiency (expressed in metric tonnes per ASK: -1.6 per
cent YoY) and additional benefit from the prospective
rebalancing of free EU ETS emission quotas amongst industry
players.
GTF ENGINE UPDATE
As of 17 May 2024, Wizz Air had 47
aircraft on the ground as a result of GTF engine-related matters.
The Company is expecting circa 50 aircraft to be grounded by the
end of the first half of fiscal F25 (approximately one year since
the first aircraft was grounded in September 2023). We continue to
maintain our assumption for the average expected shop visit time
needed to return engines back to service of circa 300 days. In the
meantime, more spare engine deliveries have been advanced and we
are expecting further 8-10 new spare engine deliveries, most of
which should be delivered by the end of June 2024. The total number
of spare engines should exceed 50 by the end of this summer. Wizz
Air has actively managed its fleet to minimise the impact of
grounding, deploying the neo fleet to longer sectors, extending
existing leases, securing third-party aircraft and advancing
additional spare engines. As announced previously, we have secured
an OEM support package (including compensation for grounded
aircraft) and we expect to secure future compensation on similar
terms for Q4 F25 and beyond.
GEOPOLITICAL CRISIS IN
THE MIDDLE EAST
Wizz Air cancelled circa 6 per
cent of its planned capacity for Q3 in early October, as the crisis
emerged in Israel. Affected capacity was redeployed across the
network at short notice, which contributed to lower load factors in
the period. The conflict also impacted seasonal demand for travel
to the nearby markets of Jordan and Egypt, whose capacity was also
partially redeployed, accounting for an additional 3 per cent of
the overall redeployed capacity. In Q4, these changes continued to
weigh on load factors. The impact on full year Group revenue was
circa €80 million. After careful consideration, we decided to
restart operations to Tel Aviv in the last quarter of the year, and
demand has been building steadily since. We continue to monitor
developments in the region closely, with operational decisions
driven solely by safety considerations.
OUR DIVERSIFIED GEOGRAPHIC
FOOTPRINT AS A COMPETITIVE ADVANTAGE
In F24, despite industry-wide
challenges, we continued to evolve our network. Our network now spans 924 routes, to 200 destinations in
more than 50 countries, operated across our four
airlines.
We continued to build on our
strong presence in our operating markets, including maintaining
Wizz Air's dominant position in our core CEE countries. Wizz
Air grew its market share to 27 per cent (+3 per cent points vs
F23) in CEE. In Western Europe, we continued to provide a
differentiated offer and act as a challenger to established peers
across selected routes where we can offer a distinct price
advantage. At London Luton, we are now the second largest
airline, and have converted to
operating an all Airbus A321neo fleet there one year earlier than
planned. In F25, our Italian bases in Rome and Milan
will see the largest schedule deployed to date.
Our Middle East route network is
maturing as expected, and in line with the profile of our CEE
network development. During the year, we added a further two
aircraft in Abu Dhabi, exceeding initial fleet size expectations
there.
FLEET DEVELOPMENTS
▶During F24 Wizz Air took delivery of 39 new A321neo
aircraft, and 12 A320ceo aircraft were redelivered, ending the
fiscal year with a total fleet of 208 aircraft: 40x
A320ceo, 41x A321ceo, 6x A320neo and 121x
A321neo.
▶During F24 delivered aircraft were financed through
30 sale and leaseback arrangements and 9 Japanese Operating Leases
with Call Options (JOLCOs).
▶Wizz Air
is extending leases for eleven additional aircraft from the
existing fleet (on top of thirteen completed). The lease
extensions range between two and four years and are being agreed at
both discounted and original lease rates.
▶Wizz Air
also secured three former Wizz Air aircraft on dry lease (to be
delivered in F25), while also adding eight wet leased aircraft for
periods ranging from six to twelve months, providing additional
capacity in F25.
▶The
average age of the fleet currently stands at 4.3 years,
the youngest fleet among major European airlines, while the average
number of seats per aircraft has climbed to 224 as at
March 2024.
▶The
share of new "neo" technology aircraft within Wizz Air's fleet has
increased to 61 per cent by the end of F24.
▶During
F25 we expect 27 new A321neo aircraft deliveries, including a first
XLR, three A320ceo aircraft on dry lease while nine A320ceo
aircraft will be returned to lessors and will exit the
fleet.
▶As
at 31 March 2024, Wizz Air's delivery backlog comprises a firm
order for 13x A320neo, 266x A321neo and 47x A321XLR aircraft, a
total of 326 aircraft.
▶The
table below provides fleet composition for the past, present and
coming fiscal year, including effected lease extensions and dry
leases. Figures reflect Airbus contractual delivery timelines. F25
includes Airbus communicated delivery delays, whereas F26 does not.
The Company expects 30-35 aircraft to be delayed in F26.
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March
2024
|
March
2025
|
March
2026
|
|
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Actual
|
Planned
|
Planned1
|
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A320ceo (180/186 seats) (9x
extensions)
|
40
|
34
|
21
|
|
A320neo (186 seats)
|
6
|
6
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9
|
|
A321ceo (230 seats) (4x+11x
extensions)
|
41
|
41
|
40
|
|
A321neo (239 seats)
|
121
|
147
|
219
|
|
A321neo XLR (239 seats)
|
-
|
1
|
10
|
|
Fleet size (with finalised
extensions)
|
208
|
229
|
299
|
1 The Company expects 30-35
aircraft to be delayed.
FINANCIAL UPDATE
▶During
F24 Wizz Air continued to apply its jet fuel and foreign currency
hedging policy. As of 17 May 2024, using jet fuel zero-cost collars
and jet fuel swaps, Wizz Air has a hedge coverage
of 59 per cent for its jet fuel needs for the F25 using
mostly zero-cost collars at a price of 750.0/859.0 $/mT
and jet fuel swap at a price of 811.0 $/mT. For F26, the
coverage is 10 per cent at the price
of 737.0/850.0 $/mT. The jet fuel-related EUR/USD FX
coverage stands at 62 per cent for F25
at 1.0790/1.1222, while the coverage for F26 stands
at 11 per cent
at 1.0820/1.1249 rates.
▶In the
second half of fiscal F24 Wizz Air repaid one of its
two outstanding €500 million bonds, issued under the €3
billion EMTN programme. Following the bond repayment, Wizz Air
renewed the EMTN programme.
▶Fitch
Ratings has affirmed Wizz Air Holdings Plc's long-term issuer
default rating and senior unsecured rating at 'BBB-'.
▶The
outstanding balance on the PDP facility at the end of March
2024 stands at $222.9 million (31 March 2023: $274.3
million).
▶The
Company signed a repurchase agreement for its inventory of EU
emissions trading scheme credits, receiving €253.6
million. The inventory must be repurchased from the
counterparty by September 2024.
▶During
the year, Wizz Air secured further EUR currency leases. It has
signed more finance-type leases (in addition to JOLCO), becoming
effective with F25 deliveries. Like JOLCO, these leases offer the
option to purchase the aircraft during the lease, are recognized as
aircraft assets on balance sheet and depreciate over aircraft's
useful life, as opposed to its lease term.
▶Wizz Air
received 20x GTF spare engines in F24 and is advancing
a further 8-10x in F25 to limit the grounding of
the NEO aircraft fleet (total GTF spare pool to exceed 50x by
the end of summer 2024).
▶Net
debt1 at the end of 31
March 2024 was €4,790.2 million vs €3,892.8 million at
the end of 31 March 2023, while the Company's leverage
ratio1 (net debt to
EBITDA) decreased from 29.0 at F23 year end
to 4.0. Over the same period, liquidity1 reduced to 29.2% per cent from 36.2 per cent
.
▶The
Company received OEM compensation from Pratt & Whitney related
to the GTF engine issues. The compensation relates to costs
incurred in the period ended 31 March 2024 and is presented
within net other income/(expense) in the
consolidated statement of comprehensive income.
1 For further definition of
non-financial measures presented refer to "Glossary of terms" and
"Alternative performance measures (APMS)" sections of this
document.
ESG UPDATE
Environment
In the fiscal year 2024 Wizz Air
achieved further progress on the sustainability agenda:
▶Reduced
CO2 emissions per passenger kilometre
to 52.0 grammes in F24 (vs 53.8 grammes in
F23).
▶Wizz Air
took a significant step by investing in SAF companies, first
Firefly, then CleanJoule, and partnering with various SAF
suppliers.
▶We
adopted an aspirational goal to fuel our flights with a 10 per
cent sustainable aviation fuel blend by 2030.
▶During
the year we performed fully electric turns of
aircraft in Rome Fiumicino and Budapest airports.
The efforts have not gone
unnoticed, Wizz Air has won several industry awards for our
outstanding performance:
▶Most
Sustainable Low-Cost Airline title for the third consecutive year
at the World Finance Sustainability Awards 2023.
▶Global
Environmental Sustainability Airline Group of the Year for the
second consecutive year at the CAPA Aviation
Summit.
▶Strategic Investment of the Year - Europe at the 2023 SAF
Investor Awards, for its investment in Firefly.
▶Improved
to "B" score in the 2023 climate ranking by CDP, reaching
"management level", a two-band improvement vs Wizz Air's 2022
score.
People
▶Wizz Air
is an ethnically diverse and inclusive professional organisation
with over 109 nationalities within its employee base
(84 in cabin crew, 60 in the flight crew
and 61 in the office).
▶In F24, Wizz Air conducted its seventh employee
engagement survey. Company wide engagement score reached 7.1,
making a notable increase of 0.7 compared to previous
year.
Governance
▶Phit
Lian Chong was appointed to the Board as a non-executive director
in July 2023 and subsequently to the Audit and Risk Committee in
January 2024.
▶The
Company welcomed four executives during the year, Silvia Mosquera
as Executive Vice President and Group Chief Commercial Officer,
Boris Rogoff as Central Operations Officer, Janos Pal as Revenue
Officer, and Ervin Banyai as Digital Officer.
OTHER DEVELOPMENTS
▶Wizz Air
celebrated 20 years since its first flight on 19 May 2004 from
Katowice, Poland to London, Luton UK. Today, Wizz Air is the #1
airline in CEE with a total market share of 27 per
cent.
▶During the past quarter Wizz Air moved to a bigger
and new headquarter office in Budapest, that offers
optionality to add further space in the coming years as
the company pursues a fleet of 500 aircraft by the
end of the decade.
▶Wizz Air
announced the May 2024 opening of its second training center in
Rome. The training center will house three full-flight
simulators with capacity to train over 4800 Wizz Air pilots
yearly.
- Ends
-
ABOUT WIZZ AIR
Wizz Air is one of the most
sustainable European ultra-low-cost airline and operates a fleet
of 210 Airbus A320 and A321 aircraft. A team of
dedicated aviation professionals delivers superior service and very
low fares, making Wizz Air the preferred choice of 62 million
passengers in the fiscal year ended 31 March 2024. Wizz
Air is listed on the London Stock Exchange under the ticker WIZZ.
The company was recently named the World's Top 5 Safest Low-Cost
Airlines 2024 by airlineratings.com, the world's only safety and
product rating agency, and named Airline of the Year by Air
Transport Awards in 2019 and in 2023. Wizz Air has also been
recognised as the "Most Sustainable Low-Cost Airline" within the
World Finance Sustainability Awards in 2021-2023 and the "Global
Environmental Sustainability Airline Group of the Year" by the
CAPA-Centre for Aviation Awards for Excellence
2022-2023.
For more information:
Investors: Mark Simpson, Wizz
Air +36 1 777 9407
Media:
Tamara Vallois, Wizz
Air +36 1 777 9324
James McFarlane / Eleni Menikou/
Charles Hirst, MHP Group: +44 (0) 20 3128
8100
Certain information provided in
this Press Release pertains to forward-looking statements
and is subject to significant risks and uncertainties that may
cause actual results to differ materially. It is not feasible to
enumerate all the factors and specific events that could impact the
outlook and performance of an airline group operating across
Europe, the Middle East, and beyond, as Wizz Air does. Some of the
factors that are susceptible to change and could notably influence
Wizz Air's anticipated results include,demand for aviation
transport services, fuel costs, competition from both new and
established carriers, availability of Pratt and Whitney GTF
engines, turnaround times at Engine Shops, expenses related to
environmental, safety, and security measures, the availability of
suitable insurance coverage, actions taken by governments and
regulatory agencies, disruptions caused by weather conditions, air
traffic control strikes, revenue performance and staffing issues,
delivery delays of contracted aircraft, fluctuations in exchange
and interest rates, airport access and fees, labour relations, the
economic climate within the industry, passengers' inclination to
travel, social, and political factors, including global pandemics,
and unforeseen security incidents.
FINANCIAL REVIEW
In F24, Wizz Air reported a
net profit of €365.9 million, returning to a full fiscal year
of profitable operations as it carried a
record 62.0 million passengers
(F23: 51.1 million). It was also a year in which Wizz Air
delivered markedly improved operations, increasing on-time
performance, aircraft utilisation and staff productivity. As the
industry continued its post-COVID-19 recovery, Wizz Air recorded
its third consecutive year of record capacity year-on-year growth,
adding 24.5 per cent more capacity
vs F23.
Total revenue increased
by 30.2 per cent year on year, and unit revenue grew
by 4.6 per cent, demonstrating that our choice of markets
and fleet allocation programme are delivering amid another year of
record capacity growth. We captured demand well across both
the mature and maturing segments of our network, absorbing
operational disruptions, including the emergence of the
Israel-Hamas war in October of last year.
The resilience of the business was
further tested with the grounding of a portion of our neo fleet for
mandatory engine inspections. Despite the grounding of nearly a
quarter of our fleet at the beginning of the fourth quarter, as a
result of timely and decisive action in response to this challenge,
we are confident that, in the current year, we will be able to
operate capacity comparable to last year. We expect to achieve this
through a combination of new aircraft deliveries, existing fleet
lease extensions, securing additional aircraft capacity from the
market and delivering higher utilisation.
The grounding of our neo fleet
contributed to cost pressures, compounding the challenges of an
already strained supply chain. However, we moved swiftly to secure
a comprehensive support and compensation package from the OEM,
mitigating the operational and financial impact on the
business.
During the year, flight disruption
charges were elevated, exacerbated by supply chain and geopolitical
events. This further validates our resolution to continue to invest
in both our operations and the customer experience, as the business
continues to expand and to ensure greater resilience in the face of
challenges. In terms of broader cost trends during F24, the
structural advantages of operating a young fuel-efficient fleet
(age 4.3 years) with high-density seating
(224 average seat count), and our ultra-low-cost business
model, were evident in our positive results. We
delivered 7.8 per cent lower unit ex-fuel costs year on
year, reaching €2.38 cents per ASK.
Total fuel costs, including the
cost of carbon and the impact of hedging, were 5.0 per
cent lower year on year, while fuel CASK decreased
by 23.7 per cent, as market prices came down compared to
the previous year. We also saw an improvement in fuel efficiency,
measured in fuel consumption/ASK, which reduced
by 1.6 per cent year on year. Our policies of hedging jet
fuel and related foreign currency have equally protected the
business well during the year, and we continue to take a considered
approach to hedging going forward. During the year, we secured
further EUR currency leases and have introduced new fleet ownership
structures (in addition to JOLCO) that will impact deliveries in
the current fiscal year.
The macro variables with
significant influence on the financial performance of the
Group:
|
|
|
|
|
|
|
F24
|
F23
|
Change
|
|
Average jet fuel price ($/metric
tonne, including into-plane premium and impact of effective
hedges)
|
1,000
|
1,218
|
(17.9)%
|
|
Average EUR/USD rate (including
impact of effective hedges)
|
1.08
|
1.04
|
4.2%
|
|
Year-end EUR/USD rate
|
1.08
|
1.08
|
0.0%
|
Financial overview
Summary consolidated statement of
comprehensive income
|
|
|
|
|
|
€ million
|
F24
|
F23
|
Change
|
|
Total revenue
|
5,073.1
|
3,895.7
|
30.2%
|
|
Fuel costs
|
(1,855.7)
|
(1,954.4)
|
(5.0)%
|
|
Operating expenses excluding fuel
costs
|
(2,779.5)
|
(2,408.1)
|
15.4%
|
|
Total operating
expenses
|
(4,635.2)
|
(4,362.5)
|
6.3%
|
|
Operating profit/(loss)
|
437.9
|
(466.8)
|
n.m.
|
|
Operating margin
|
8.6%
|
(12.0)%
|
n.m.
|
|
Net financing expense
|
(96.8)
|
(97.9)
|
(1.1)%
|
|
Profit/(loss) before income
tax
|
341.1
|
(564.6)
|
n.m.
|
|
Income tax credit
|
24.8
|
29.5
|
(16.1)%
|
|
Profit/(loss) for the
year
|
365.9
|
(535.1)
|
n.m.
|
n.m.: not meaningful as a variance
is more than (-)100 per cent.
Earnings/(loss) per
share
|
|
|
|
|
|
Earnings/(loss) per share, EUR
(Note 8)
|
F24
|
F23
|
Change
|
|
Basic earnings/(loss) per share,
€
|
3.64
|
(5.07)
|
8.71
|
|
Diluted earnings/(loss) per share
(€/share)
|
2.96
|
(5.07)
|
8.03
|
Financial performance
Revenue
The following table sets out an
overview of revenue streams for F24 and F23 and
the percentage change in those items:
|
|
|
|
|
|
|
|
|
F24
|
F23
|
|
|
|
Total
(€
million)
|
Percentage of total revenue
|
Total
(€
million)
|
Percentage of total revenue
|
Percentage change
|
|
|
|
|
|
|
|
|
Passenger ticket
revenue1
|
2,804.2
|
55.3%
|
2,024.9
|
52.0%
|
38.5%
|
|
Ancillary
revenue1
|
2,268.9
|
44.7%
|
1,870.8
|
48.0%
|
21.3%
|
|
Total revenue
|
5,073.1
|
100.0%
|
3,895.7
|
100.0%
|
30.2%
|
1.For
further definition of non-financial measures presented refer to the
"Glossary of terms" and "Alternative performance
measures (APMs)" sections of this
document.
Total
revenue increased by 30.2 per cent to
€5,073.1 million in F24 from €3,895.7 million
in F23 driven mainly by the
capacity increase year on year and a stronger load
factor, supported by sustained customer demand. Passenger
ticket revenue increased by 38.5 per cent to
€2,804.2 million in F24 from
€2,024.9 million in F23, and ancillary
revenue increased by 21.3 per cent to
€2,268.9 million in F24 from €1,870.8 million
in F23. RASK increased by 4.6 per cent
to 4.17 Euro cents
in F24 from 3.98 Euro cents in F23. Ticket
RASK increased by 11.2 per cent
to 2.30 Euro cents in F24, reflecting improved load
factor year on year and a favourable pricing environment,
specifically during the peak periods. Ancillary
RASK decreased by 2.6 per cent
to 1.86 Euro cents, mainly
driven by the impact of the Israel-Hamas war denting demand in
markets with high ancillary spend.
Operating expenses
Total operating
expenses increased by 6.3 per cent to
€4,635.2 million in F24 from €4,362.5 million
in F23. Total CASK decreased to 3.90 Euro
cents in F24 from 4.58 Euro cents in F23,
driven mainly by lower fuel charges in the period along with Sale
and Lease Back gains and supplier compensations in the other
expense line. Ex-fuel CASK decreased by 7.8 per
cent to 2.38 Euro cents
in F24 from 2.58 Euro cents in F23,
reflecting improved aircraft utilisation and on-time performance,
various savings in navigation and maintenance lines plus the effect
of supplier compensations and gains from multiple spare engine
financing in the last fiscal quarter (spare engines advanced to
support GTF engine inspections).
The following table sets out
for F24 and F23 the expenses relevant for the
CASK measure and the percentage changes in those
expenses:
|
|
|
|
|
|
|
|
|
|
|
F24
|
F23
|
|
|
|
Total
(€
million)
|
Percentage
of total
operating expenses
|
Unit
cost (€cts/ASK)
|
Total
(€
million)
|
Percentage of total operating expenses
|
Unit
cost (€cts/ASK)
|
Percentage change of total cost
|
|
Staff costs
|
507.8
|
11.0%
|
0.42
|
373.9
|
8.6%
|
0.38
|
35.8%
|
|
Fuel costs
|
1,855.7
|
40.0%
|
1.52
|
1,954.4
|
44.8%
|
2.00
|
(5.0%)
|
|
Distribution and
marketing
|
117.1
|
2.5%
|
0.10
|
91.5
|
2.1%
|
0.09
|
27.9%
|
|
Maintenance materials and
repairs
|
285.0
|
6.1%
|
0.23
|
237.0
|
5.4%
|
0.24
|
20.3%
|
|
Airport, handling and
en-route charges
|
1,210.1
|
26.1%
|
0.99
|
963.2
|
22.1%
|
0.99
|
25.6%
|
|
Depreciation and
amortisation
|
755.3
|
16.3%
|
0.62
|
601.1
|
13.8%
|
0.61
|
25.7%
|
|
Net other
(income)/expense
|
(95.8)
|
(2.1%)
|
(0.08)
|
141.3
|
3.2%
|
0.14
|
(167.8%)
|
|
Total operating
expenses
|
4,635.2
|
100.0%
|
3.81
|
4,362.5
|
100.0%
|
4.46
|
6.3%
|
|
Net cost from financial income and
expense
|
116.2
|
|
0.10
|
114.5
|
|
0.12
|
1.5%
|
|
Total
|
4,751.4
|
|
3.90
|
4,476.9
|
|
4.58
|
6.1%
|
Staff costs were
€507.8 million in F24, up by 35.8 per cent from
€373.9 million in F23, reflecting 16.4 per
cent increase in staff numbers, higher aircraft
utilization and the cost-of-living adjustments to salaries
year on year.
Fuel
costs decreased by 5.0 per cent to
€1,855.7 million in F24 from €1,954.4 million
in F23 and fuel
CASK decreased by 23.7 per cent
to 1.52 Euro cents
in F24 from 2.00 Euro cents
in F23. The average fuel price, including hedging impact
and into-plane premium, decreased by 17.9 per
cent to $1,000 per metric tonne in F24 from
$1,218 per metric tonne in F23. In addition to fuel price
impact, fuel consumption (metric tonnes per
ASKs) decreased by 1.6 per cent year-on-year,
as the share of neo (more fuel-efficient aircraft variant) in the
fleet reached 61.1 per cent
Distribution and marketing
costs increased by 27.9 per cent to
€117.1 million in F24 from €91.5 million
in F23 tracking in line with
the revenue increase during the
period.
Maintenance, materials and repair
costs increased by 20.3 per cent to
€285.0 million in F24 from €237.0 million
in F23, due to larger fleet and greater number of
maintenance events.
Airport, handling and en-route
charges increased by 25.6 per cent to
€1,210.1 million
in F24 from €963.2 million in F23,
reflecting the increase in passenger numbers versus last
year.
Depreciation and amortisation
charges increased by 25.7 per cent to
€755.3 million in F24, up from €601.1 million
in F23, driven mainly by larger fleet and
the increased aircraft utilisation (operational
utilization in F24 was 12:25 hours
versus 11:08 hours in F23).
Net
other income of €95.8 million in F24,
compared to a
€141.3 million expense in F23, consists
mainly of: gains on aircraft and engine sale and leaseback
transactions of €244.8 million, credits and compensation
received from suppliers of €198.6 million, flight disruption
related expenses of €186.9 million and various expenses
related to crew and overheads amounting to €66.4 million and
€83.2 million, respectively. For further details, please refer
to Note 5.
Net financing income and
expense
The following table sets out an
overview of net financing expenses
for F24 and F23 and the percentage change in
those items:
|
|
|
|
|
|
€ million
|
F24
|
F23
|
Change
|
|
Net financial expense
|
(116.2)
|
(114.5)
|
1.5%
|
|
Net foreign exchange
gains
|
19.4
|
16.6
|
16.8%
|
|
Net financing expense
|
(96.8)
|
(97.9)
|
(1.1)%
|
Net financing
expenses decreased by 1.1 per cent to
€96.8 million in F24 from €97.9 million
in F23, of which:
▶Financial income represents
an increase of 287.2 per cent on the back of an
increase in short-term cash deposits and higher interest rate
environment in F24.
▶Financial expenses increased by 45.4 per
cent driven by the interest charges related to lease liabilities
under IFRS 16 connected to the increased fleet size and the higher
interest rate environment, PDP financing and ETS
repurchasing.
▶Net
foreign
exchange gains increased by 16.8 per cent
due to a more favourable EUR/USD exchange environment
during F24. The unrealized portion of the foreign
exchange gain, mainly driven by revaluation of US Dollar
denominated lease liabilities, amounted to
€34.2 million gain in F24, compared to a
€9.1 million gain in F23.
Taxation
The Group recorded an income tax
credit of €24.8 million in F24 compared to the
€29.5 million credit in F23. The effective rate for the
Group in F24 was negative 7.3 per cent compared
to 5.2 per cent in F23. The main components of the
tax credit in F24 were changes in deferred tax assets, partially offset
by corporate income tax and local business tax charges in
Hungary. For further details please refer to
Note 7.
Profit for the year
The Group earned a
net profit of €365.9 million
in F24,
compared to the net loss of €535.1 million
in F23.
Other comprehensive income and
expenses
In F24 the Group had
other comprehensive income of €129.4 million
compared to an expense of €88.8 million in F23.
The change is mainly attributable to the favourable impact of fair
values of the Group's open hedge positions in F24.
Return on capital employed and
capital structure
Return on capital employed
(ROCE)1 is a
non-statutory performance measure commonly used to measure the
financial returns that a business achieves on the capital it uses.
ROCE for F24 was 11.1 per cent, compared
to (13.5) per cent for the previous year.
Two rating agencies, Fitch and
Moody's, have issued updates during the third quarter with Fitch
maintaining Wizz Air's BBB- investment grade profile with negative
outlook, while Moody's issued a Ba1 rating with stable
outlook.
The Company's leverage
ratio1 is 4.0 at the end of
the 2024 financial year, while
liquidity1 decreased
to 29.2 per cent from 36.2 per cent at the end
of the 2023 financial year partially as a result of the
Company repaying its January 2024 maturity €500 million bond
obligation from cash on hand.
|
|
|
|
|
|
|
F24
|
F23
|
Change
|
|
ROCE
|
11.1%
|
(13.5)%
|
24.6
ppt
|
|
Leverage ratio
|
4.0
|
29.0
|
(25.0)
ppt
|
|
Liquidity
|
29.2%
|
36.2%
|
(7.0)
ppt
|
1.For
definitions of non-financial measures presented refer to the
"Glossary of terms" and "Alternative performance measures (APMs)"
sections of this document.
Cash flows and financial
position
Summary statement of cash
flows
The following table sets out
selected cash flow data and the Group's cash and cash equivalents
for F24 and F23:
|
|
|
|
|
|
€ million
|
F24
|
F23
|
Change
|
|
Net cash generated by operating
activities
|
676.8
|
421.9
|
60%
|
|
Net cash (used in)/generated by
investing activities
|
(360.0)
|
532.9
|
n.m.
|
|
Net cash used in financing
activities
|
(1,016.1)
|
(311.2)
|
227%
|
|
Net (decrease)/increase in cash
and cash equivalents
|
(699.3)
|
643.7
|
n.m.
|
|
Cash and cash equivalents at the
beginning of the year
|
1,402.6
|
766.6
|
83%
|
|
Effect of exchange rate
fluctuations on cash and cash equivalents
|
13.1
|
(7.7)
|
n.m.
|
|
Cash and cash equivalents at the
end of the year
|
716.4
|
1,402.6
|
(49%)
|
n.m.: not meaningful as a variance
is more than (-)100 per cent.
Cash flows from operating
activities
The majority of Wizz Air's cash
inflows from operating activities are derived from the sale of
passenger tickets and ancillary services. Net cash flows from
operating activities are also affected by movements in working
capital items.
Cash generated by operating
activities increased from €421.9 million
in F23 to €676.8 million in F24 primarily driven by the
following factors:
▶Operating cash flows before adjusting for changes in working
capital improved by €892.0 million year on year
driven by the market recovery and increase in demand.
▶Changes
in working capital deteriorated by €626.7 million, primarily due
to stabilised trading conditions. This stability led to smaller
fluctuation in unearned revenue (tickets paid by passengers for
future flights), following a significant increase in post-COVID
activity. Additionally, there were higher levels of trade and other
receivables (payments pending for collection on tickets sold) and
accrued credits from key suppliers.
Cash flows from investing
activities
Investing activities resulted in
€360.0 million net cash used
in F24,
compared to €532.9 million net cash generated in F23, due to the
following:
▶The net
cash flows from advances paid and refunded in relation to aircraft
deliveries increased by €121.8 million from a
€12.1 million cash outflow in F23 to a €109.7 million cash inflow
in F24.
▶Cash
outflows due to the increase in short-term cash deposits was
€748.5 million in F24 compared to the cash inflow
in the amount of €450.0 million due to the decrease in cash
deposits in F23.
▶Net cash
flows from the purchase and sale of tangible and intangible assets
including sale and leaseback transactions increased by
€130.7 million from €77.60 million cash inflow
in F23 to €208.3 million cash inflow in F24.
Cash flows from financing
activities
Net cash
outflow from financing activities increased from
€311.2 million (F23) to €1,016.1 million in F24. The
principal elements of the F24 outflow were as
follows:
▶Repayments of loans and other types of financing and interest
on them amounting to
€1,499.0 million (F23:
€619.7 million) which includes bond repayment and interest
payment on the bond of €511.8 million (F23:
€11.8 million interest), less proceeds from new loans and
other types of financing of €482.9 million (F23:
€308.5 million) comprising aircraft
and engine financing of €228.9 million (F23: €308.5 million) and a borrowing secured with emission
trading scheme (ETS) units of €254.0 million (F23: nil).
Summary consolidated statement of
financial position
The following table sets out
summary statements of the financial position of the Group
for F24 and F23:
|
|
|
|
|
|
€ million
|
F24
|
F23
|
Change
|
|
ASSETS
|
|
|
|
|
Property, plant and
equipment
|
5,815.0
|
4,666.0
|
1,149.0
|
|
Restricted cash1
|
109.4
|
120.4
|
(11.0)
|
|
Derivative financial
instruments1
|
36.9
|
1.2
|
35.7
|
|
Trade and other
receivables1
|
706.7
|
411.4
|
295.3
|
|
Short-term cash
deposits
|
751.1
|
-
|
751.1
|
|
Cash and cash
equivalents
|
728.4
|
1,408.6
|
(680.2)
|
|
Other assets1
|
547.4
|
426.8
|
120.6
|
|
Total assets
|
8,694.9
|
7,034.4
|
1,660.5
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
EQUITY
|
|
|
|
|
Equity
|
145.7
|
(357.9)
|
503.6
|
|
LIABILITIES
|
|
|
|
|
Trade and other
payables1
|
1,022.4
|
945.4
|
77.0
|
|
Borrowings (incl. convertible
debt)1
|
6,269.7
|
5,301.4
|
968.3
|
|
Deferred income1
|
944.6
|
873.6
|
71.0
|
|
Derivative financial
instruments1
|
0.7
|
108.4
|
(107.7)
|
|
Provisions1
|
274.3
|
156.1
|
118.2
|
|
Other
liabilities1
|
37.5
|
7.3
|
30.2
|
|
Total liabilities
|
8,549.2
|
7,392.3
|
1,156.9
|
|
Total equity and
liabilities
|
8,694.9
|
7,034.4
|
1,660.5
|
1 Including
both current and non-current asset and liability balances,
respectively.
Property, plant and equipment
increased by €1,149.0 million as at 31 March
2024 compared
to 31 March 2023, primarily driven by the investment made in JOLCO financed
aircraft and sale and leaseback financed right-of-use assets (see
also Note 9).
Restricted cash (current and
non-current) decreased by €11.0 million as
at 31 March 2024 compared to the year before. The majority of this
balance is linked to Wizz Air's aircraft lease contracts, being
cash deposits behind letters of credit issued by Wizz Air's banks
related primarily to lease security deposits and maintenance
reserves.
Derivative financial assets
(current and non-current) increased by €35.7 million as
at 31 March 2024 compared to 31 March 2023 (see also
Notes 2 and 10). These balances are related to fuel
hedge instruments.
Trade and other receivables
increased by €295.3 million as at 31 March 2024 compared
to 31 March 2023. This was primarily driven by an increase in
trade receivables as a result of increased sales and operational
level.
Cash and cash equivalents amounted
to €728.4 million at 31 March 2024 (2023:
€1,408.6 million), and short-term cash deposits to
€751.1 million at 31 March 2024 (2023:
€nil).
Borrowings (including convertible
debt) increased by €968.3 million as at 31 March
2024 compared to 31 March 2023. The increase was
primarily driven by lease liabilities recognised during the fiscal
year, and financing against aircraft pre-delivery payments (see
Note 11).
Deferred income increased by
€71.0 million as at 31 March 2024 compared
to 31 March 2023 (see Note 12). This was primarily
driven by an increase in unearned revenue and in deferred supplier
credits.
Derivative financial liabilities
(current and non-current) decreased by €(107.7) million as
at 31 March 2024 compared to 31 March 2023 (see
Notes 2 and 10). These balances are related to fuel
hedge instruments.
Provisions increased by
€118.2 million as at 31 March 2024 compared
to 31 March 2023, in line with the planned aircraft
maintenance schedule (see Note 13).
In F24, the Group's financial position
returned to positive, marking a significant recovery. This
turnaround was driven by stabilized trading conditions, increased
post-COVID activity, and substantial capacity growth. These factors
contributed to improved cash flows and a stronger financial
foundation, positioning the Group for sustained growth and
resilience.
Hedging strategy
Wizz Air operates under a clear
set of treasury policies approved by the Board and supervised by
the Audit and Risk Committee. The Hedging Policy's objective is to
establish a framework to identify, report and manage foreign
currency and fuel exposures aiming to provide greater certainty and
protection to the value of the Group's net income, net equity and
related cash flows that are exposed to possible adverse movements
in foreign currency exchange rates and jet fuel prices. This is
achieved through disciplined programmatic and discretionary
layering for a set time horizon (18 months) with regular rollover
maintaining hedge coverage levels.
The hedges under the Hedging
Policy will be rolled forward quarterly, 18 months out, with
coverage levels over time reaching indicatively between 65 per cent
for the first quarter of the hedging horizon and 15 per cent for
the last quarter of the hedging horizon. Hedging instruments are
zero cost collars mostly but also Jet Fuel swaps are used for
shorter dated exposures. In line with the Hedging Policy, Wizz Air
also hedges its fuel consumption-related US Dollar exposure in a
similar fashion. Hedge coverages as of 17th May 2024 are set out
below:
Fuel hedge coverage
|
|
|
|
|
Period covered
|
F25
|
F26
|
|
|
11
months
|
7
months
|
|
Exposure in metric tonnes
('000)
|
1,655.1
|
1,811.7
|
|
Coverage in metric tonnes
('000)
|
981.0
|
185.0
|
|
Hedge coverage for the
period
|
59%
|
10%
|
|
Coverage by hedge
types:
|
|
|
|
Zero-cost collars in metric tonnes
('000)
|
934.0
|
185.0
|
|
Weighted average
ceiling
|
$859.0
|
$850.0
|
|
Weighted average floor
|
$750.0
|
$737.0
|
|
SWAP in metric tonnes
('000)
|
47.0
|
-
|
|
Weighted average price
|
$811.0
|
-
|
Foreign exchange hedge
coverage
|
|
|
|
|
Period covered
|
F25
|
F26
|
|
|
11
months
|
7
months
|
|
Exposure (million)
|
$1,353.0
|
$1,437.0
|
|
Coverage (million)
|
$845.0
|
$152.0
|
|
Hedge coverage for the
period
|
62%
|
11%
|
|
Weighted average
ceiling
|
$1.1222
|
$1.1249
|
|
Weighted average floor
|
$1.0790
|
$1.0820
|
STRATEGIC REPORT
KEY STATISTICS
|
|
|
|
|
|
|
F24
|
F23
|
Change
|
|
CAPACITY
|
|
|
|
|
Number of aircraft at end of
period*
|
208
|
179
|
16.2%
|
|
Number of operating aircraft at
end of period*
|
160
|
179
|
(10.6%)
|
|
Equivalent aircraft*
|
190.8
|
163.8
|
16.5%
|
|
Equivalent operating
aircraft*
|
176.4
|
163.8
|
7.7%
|
|
Utilisation (block hours per
aircraft per day)
|
11:29
|
11:08
|
3.1%
|
|
Utilisation (block hours per
operating aircraft per day)
|
12:25
|
11:08
|
10.2%
|
|
Total block hours
|
802,346
|
666,476
|
20.4%
|
|
Total flight hours
|
699,837
|
580,863
|
20.5%
|
|
Revenue departures
|
309,594
|
267,707
|
15.6%
|
|
Average departures per day per
aircraft
|
4.43
|
4.48
|
(1.1%)
|
|
Seat capacity
|
68,813,271
|
58,190,317
|
18.3%
|
|
Average aircraft stage length
(km)
|
1,769
|
1,680
|
5.3%
|
|
Total ASKs ('000 km)
|
121,749,697
|
97,779,087
|
24.5%
|
|
OPERATING DATA
|
|
|
|
|
RPKs (revenue passenger
kilometres) ('000 km)
|
109,962,210
|
86,807,338
|
26.7%
|
|
Load factor (%)
|
90.1%
|
87.8%
|
2.6%
|
|
Number of passenger
segments
|
62,015,792
|
51,071,836
|
21.4%
|
|
Fuel price (US$ per tonne,
including hedging impact and into-plane premium)
|
1,000
|
1,218
|
(17.9%)
|
|
Foreign exchange rate (US$/€
including hedging impact)
|
1.09
|
1.04
|
4.8%
|
* In F23
aircraft at end of period includes 3 Ukraine aircraft that were
considered operational during F23 and therefore were also
included in operating aircraft at end of period. In F24 aircraft at
end of period includes 3 Ukraine aircraft although these aircraft
are now excluded from operating aircraft at end of
period.
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH
2024 (unaudited)
|
|
|
|
|
|
|
Note
|
2024
|
2023
|
|
|
|
€
million
|
€
million
|
|
Passenger ticket
revenue
|
4
|
2,804.2
|
2,024.9
|
|
Ancillary revenue
|
4
|
2,268.9
|
1,870.8
|
|
Total revenue
|
4
|
5,073.1
|
3,895.7
|
|
Staff costs
|
|
(507.8)
|
(373.9)
|
|
Fuel costs
|
|
(1,855.7)
|
(1,954.4)
|
|
Distribution and
marketing
|
|
(117.1)
|
(91.5)
|
|
Maintenance materials and
repairs
|
|
(285.0)
|
(237.0)
|
|
Airport, handling and en-route
charges
|
|
(1,210.1)
|
(963.2)
|
|
Depreciation and
amortisation
|
|
(755.3)
|
(601.1)
|
|
Net other
income/(expense)
|
5
|
95.8
|
(141.3)
|
|
Total operating
expenses
|
|
(4,635.2)
|
(4,362.5)
|
|
Operating profit/(loss)
|
|
437.9
|
(466.8)
|
|
Financial income
|
6
|
80.5
|
20.8
|
|
Financial expenses
|
6
|
(196.7)
|
(135.3)
|
|
Net foreign exchange
gains
|
6
|
19.4
|
16.6
|
|
Net financing expense
|
6
|
(96.8)
|
(97.9)
|
|
Profit/(loss) before tax
income
|
|
341.1
|
(564.6)
|
|
Income tax credit
|
7
|
24.8
|
29.5
|
|
Net profit/(loss) for the
year
|
|
365.9
|
(535.1)
|
|
Net profit/(loss) for the year
attributable to:
|
|
|
|
|
Non-controlling
interests
|
|
(10.7)
|
(12.1)
|
|
Owners of Wizz Air Holdings
Plc
|
|
376.6
|
(523.0)
|
|
Other comprehensive
income/(expense) - items that may be subsequently reclassified to
profit or loss:
|
|
|
|
|
Change in fair value of cash flow
hedging reserve, net of tax
|
|
64.6
|
(102.7)
|
|
Cash flow hedging reserve recycled
to profit or loss
|
|
22.4
|
33.2
|
|
Cost of hedging
|
|
43.0
|
(30.0)
|
|
Cost of hedging recycled to profit
or loss
|
|
-
|
6.0
|
|
Currency translation
differences
|
|
(0.6)
|
4.7
|
|
Other comprehensive
income/(expense) for the year, net of tax
|
|
129.4
|
(88.8)
|
|
Total comprehensive
income/(expense) for the year
|
|
495.3
|
(623.9)
|
|
Total comprehensive
income/(expense) for the year attributable to:
|
|
|
|
|
Non-controlling
interests
|
|
(10.8)
|
(11.5)
|
|
Owners of Wizz Air Holdings
Plc
|
|
506.1
|
(612.4)
|
|
|
|
|
|
|
Basic earnings/(loss) per share
(€/share)
|
8
|
3.64
|
(5.07)
|
|
Diluted earnings/(loss) per share
(€/share)
|
8
|
2.96
|
(5.07)
|
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AT 31 MARCH
2024 (unaudited)
|
|
|
|
|
|
|
Note
|
2024
|
2023
|
|
|
|
€
million
|
€
million
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
9
|
5,815.0
|
4,666.0
|
|
Intangible assets
|
|
92.7
|
76.7
|
|
Restricted cash
|
2
|
54.0
|
56.7
|
|
Deferred tax assets
|
|
109.1
|
50.6
|
|
Derivative financial
instruments
|
10
|
3.9
|
0.2
|
|
Trade and other
receivables
|
14
|
37.1
|
21.4
|
|
Investments in
associates
|
|
5.7
|
-
|
|
Investments in other
entities
|
2
|
1.6
|
-
|
|
Total non-current
assets
|
|
6,119.1
|
4,871.7
|
|
Current assets
|
|
|
|
|
Inventories
|
|
333.6
|
295.6
|
|
Trade and other
receivables
|
14
|
669.6
|
390.1
|
|
Current tax assets
|
|
4.7
|
3.8
|
|
Derivative financial
instruments
|
10
|
33.0
|
1.0
|
|
Restricted cash
|
2
|
55.4
|
63.7
|
|
Short-term cash
deposits
|
2
|
751.1
|
-
|
|
Cash and cash
equivalents
|
2
|
728.4
|
1,408.6
|
|
Total current assets
|
|
2,575.8
|
2,162.8
|
|
Total assets
|
|
8,694.9
|
7,034.4
|
|
EQUITY AND LIABILITIES
Equity attributable to owners of
the parent
|
|
|
|
|
Share capital
|
|
-
|
-
|
|
Share premium
|
|
381.2
|
381.2
|
|
Reorganisation reserve
|
|
(193.0)
|
(193.0)
|
|
Equity part of convertible
debt
|
|
8.3
|
8.3
|
|
Cash flow hedging
reserve
|
|
13.8
|
(73.2)
|
|
Cost of hedging reserve
|
|
19.0
|
(24.0)
|
|
Cumulative translation
adjustments
|
|
2.8
|
3.3
|
|
Accumulated losses
|
|
(48.7)
|
(433.6)
|
|
Capital and reserves attributable
to the owners of Wizz Air Holdings Plc
|
|
183.4
|
(331.0)
|
|
Non-controlling
interests
|
|
(37.7)
|
(26.9)
|
|
Total equity
|
|
145.7
|
(357.9)
|
|
Non-current liabilities
|
|
|
|
|
Borrowings
|
11
|
5,159.7
|
4,000.5
|
|
Convertible debt
|
2,17
|
25.4
|
25.7
|
|
Deferred income
|
12
|
147.2
|
103.3
|
|
Deferred tax
liabilities
|
|
-
|
3.2
|
|
Derivative financial
instruments
|
|
-
|
4.2
|
|
Trade and other
payables
|
14
|
97.2
|
59.1
|
|
Provisions for other liabilities
and charges
|
13
|
144.3
|
76.3
|
|
Total non-current
liabilities
|
|
5,573.8
|
4,272.3
|
|
Current liabilities
|
|
|
|
|
Trade and other
payables
|
14
|
925.2
|
886.3
|
|
Current tax liabilities
|
|
37.5
|
4.1
|
|
Borrowings
|
11
|
1,084.3
|
1,275.0
|
|
Convertible debt
|
2,17
|
0.3
|
0.3
|
|
Derivative financial
instruments
|
10
|
0.7
|
104.2
|
|
Deferred income
|
12
|
797.4
|
770.3
|
|
Provisions for other liabilities
and charges
|
13
|
130.0
|
79.8
|
|
Total current
liabilities
|
|
2,975.4
|
3,120.0
|
|
Total liabilities
|
|
8,549.2
|
7,392.3
|
|
Total equity and
liabilities
|
|
8,694.9
|
7,034.4
|
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
FOR THE YEAR
ENDED 31 MARCH
2024 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
Share
premium
|
Reorganisation reserve
|
Equity
part of convertible debt
|
Cash
flow hedging reserve
|
Cost of
hedging reserve
|
Cumulative translation adjustments
|
Accumulated losses
|
Total
|
Non-controlling interest
|
Total
equity
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Balance at 1 April 2023
|
-
|
381.2
|
(193.0)
|
8.3
|
(73.2)
|
(24.0)
|
3.3
|
(433.6)
|
(331.0)
|
(26.9)
|
(357.9)
|
|
Comprehensive
income/(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the
year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
376.6
|
376.6
|
(10.7)
|
365.9
|
|
Other comprehensive
income/(expense)
|
-
|
-
|
-
|
-
|
87.0
|
43.0
|
(0.5)
|
-
|
129.5
|
(0.1)
|
129.4
|
|
Total comprehensive
income/(expense) for the year
|
-
|
-
|
-
|
-
|
87.0
|
43.0
|
(0.5)
|
376.6
|
506.1
|
(10.8)
|
495.3
|
|
Transactions with
owners:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
8.3
|
8.3
|
-
|
8.3
|
|
Total transactions
with owners
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
8.3
|
8.3
|
-
|
8.3
|
|
Balance at 31 March
2024
|
-
|
381.2
|
(193.0)
|
8.3
|
13.8
|
19.0
|
2.8
|
(48.7)
|
183.4
|
(37.7)
|
145.7
|
FOR THE YEAR ENDED 31 MARCH
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
Share
premium
|
Reorganisation reserve
|
Equity
part of convertible debt
|
Cash
flow hedging reserve
|
Cost of
hedging reserve
|
Cumulative translation adjustment
|
Retained
earnings/(Accumulated losses)
|
Total
|
Non-controlling interest
|
Total
equity
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Balance at 1 April 2022
|
-
|
381.2
|
(193.0)
|
8.3
|
(3.8)
|
-
|
(0.7)
|
87.3
|
279.3
|
(15.4)
|
263.9
|
|
Comprehensive
(expense)/income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(523.0)
|
(523.0)
|
(12.1)
|
(535.1)
|
|
Other comprehensive
(expense)/income
|
-
|
-
|
-
|
-
|
(69.5)
|
(24.0)
|
4.1
|
-
|
(89.4)
|
0.6
|
(88.8)
|
|
Total comprehensive
(expense)/income for the year
|
-
|
-
|
-
|
-
|
(69.5)
|
(24.0)
|
4.1
|
(523.0)
|
(612.4)
|
(11.5)
|
(623.9)
|
|
Transactions with
owners:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2.2
|
2.2
|
-
|
2.2
|
|
Total transactions
with owners
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2.2
|
2.2
|
-
|
2.2
|
|
Balance at 31 March
2023
|
-
|
381.2
|
(193.0)
|
8.3
|
(73.2)
|
(24.0)
|
3.3
|
(433.6)
|
(331.0)
|
(26.9)
|
(357.9)
|
CONSOLIDATED STATEMENT OF CASH
FLOWS
FOR THE YEAR
ENDED 31 MARCH
2024 (unaudited)
|
|
|
|
|
|
|
|
2024
|
2023
|
|
|
Note
|
€
million
|
€
million
|
|
Cash flows from operating
activities
|
|
|
|
|
Profit/(loss) before income
tax
|
|
341.1
|
(564.6)
|
|
Adjustments for:
|
|
|
|
|
Depreciation
|
9
|
736.1
|
587.6
|
|
Amortisation
|
|
19.2
|
13.5
|
|
Financial income
|
6
|
(80.5)
|
(20.8)
|
|
Financial expenses
|
6
|
196.7
|
135.3
|
|
Unrealised fair value
(gains)/losses on derivative financial instruments
|
|
(8.9)
|
8.2
|
|
Unrealised foreign currency
gains
|
|
(34.2)
|
(9.1)
|
|
Realised non-operating foreign
currency losses/(gains)
|
|
7.2
|
(13.2)
|
|
Gain on sale of property, plant
and equipment
|
|
(244.8)
|
(99.7)
|
|
Share-based payment
charges
|
|
8.3
|
2.2
|
|
Other non-cash operating
income
|
|
(12.2)
|
(3.4)
|
|
|
|
928.0
|
36.0
|
|
|
|
|
|
|
Changes in working
capital
|
|
|
|
|
Increase in trade and other
receivables
|
|
(301.5)
|
(186.1)
|
|
Decrease in restricted
cash
|
|
12.3
|
48.3
|
|
Increase in inventory
|
|
(35.9)
|
(226.4)
|
|
(Decrease)/increase in
provisions
|
|
(2.8)
|
8.0
|
|
Increase in trade and other
payables
|
|
70.2
|
316.7
|
|
Increase in deferred
income
|
12
|
23.9
|
432.4
|
|
|
|
(233.8)
|
392.9
|
|
|
|
|
|
|
Cash generated by operating
activities before tax
|
|
694.2
|
428.9
|
|
Income taxes paid
|
|
(17.4)
|
(7.0)
|
|
Net cash generated by operating
activities
|
|
676.8
|
421.9
|
|
Cash flows from investing
activities
|
|
|
|
|
Purchase of aircraft maintenance
assets
|
|
(107.6)
|
(69.7)
|
|
Purchase of tangible and
intangible assets
|
|
(230.6)
|
(94.7)
|
|
Proceeds from the sale of tangible
assets
|
|
546.5
|
242.0
|
|
Advances paid for
aircraft
|
9
|
(370.7)
|
(475.5)
|
|
Refund of advances paid for
aircraft
|
9
|
480.4
|
463.4
|
|
Interest received
|
|
77.8
|
17.4
|
|
(Increase)/decrease in short-term
cash deposits
|
|
(748.5)
|
450.0
|
|
Payment for acquisition of
investments
|
|
(7.3)
|
-
|
|
Net cash (used in)/generated by
investing activities
|
|
(360.0)
|
532.9
|
|
Cash flows from financing
activities
|
|
|
|
|
Proceeds from new
loans*
|
|
67.9
|
63.0
|
|
Repayment of loans*
|
|
(580.4)
|
(492.5)
|
|
Interest paid - loans - IFRS 16
lease liability
|
|
(124.4)
|
(97.7)
|
|
Interest paid - loans - JOLCO and
FTL
|
|
(15.7)
|
(14.8)
|
|
Repayment of unsecured
debt
|
|
(500.0)
|
-
|
|
Proceeds from secured
debt
|
|
415.0
|
245.5
|
|
Repayment of secured
debt
|
|
(248.4)
|
-
|
|
Interest paid - unsecured
debt
|
|
(11.8)
|
(11.8)
|
|
Interest paid - secured
debt
|
|
(14.5)
|
(0.2)
|
|
Interest paid - other
|
|
(3.8)
|
(2.7)
|
|
Net cash used in financing
activities
|
|
(1,016.1)
|
(311.2)
|
|
Net (decrease)/increase in cash
and cash equivalents
|
|
(699.3)
|
643.7
|
|
Cash and cash equivalents at the
beginning of the year**
|
|
1,402.6
|
766.6
|
|
Effect of exchange rate
fluctuations on cash and cash equivalents
|
|
13.1
|
(7.7)
|
|
Cash and cash equivalents at the
end of the year**
|
|
716.4
|
1,402.6
|
* Mostly
JOLCO/FTL and IFRS 16 leases.
** Cash and
cash equivalents at 31 March 2024 include
€359.4 million (€197.3 million at 31 March 2023;
€235.6 million at 31 March 2022)
of cash at bank and €145.6 million (€1,211.3 million
at 31 March 2023; €531.0 million at 31 March 2022)
of cash deposits maturing within three months of inception, €223.4
million money market fund (€nil at 31 March 2023; €nil at 31 March
2022) and overdrafts (repayable on demand)
of €12.0 million (€6.0 million at 31 March 2023 and
€nil at 31 March 2022), which are an integral part of the
Group's cash management activities.
NOTES FORMING PART OF THE
CONDENSED FINANCIAL STATEMENTS
1. Material accounting policies
and basis of preparation
The material accounting policies
applied in the presentation of these condensed consolidated
financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise
stated.
Basis of preparation
These condensed consolidated
financial statements combine the financial information of the
Company and its subsidiaries. The unaudited condensed consolidated
financial statements have been prepared and approved by the
Directors in accordance with International Financial Reporting
Standards as adopted by the EU ("Adopted IFRSs") and IFRS
Interpretations Committee guidance.
The condensed consolidated
financial statements are presented in Euro (EUR or
€).
The Company has a policy of
rounding each amount and percentage individually from the fully
accurate number to the figure disclosed in the condensed
consolidated financial statements. As a result, some amounts and
percentages do not total - though such differences are all
trivial.
The accounting policies applied
are consistent with those adopted and disclosed in the Group's most
recently published consolidated financial statements for the year
ended 31 March 2023.
The condensed consolidated
financial statements have been prepared under the historical cost
convention, as modified by the revaluation of financial assets and
financial liabilities (including derivative instruments) at fair
value through profit or loss.
The preparation of the condensed
consolidated financial statements in conformity with adopted IFRS
legislates the use of certain critical accounting estimates and
requires management to exercise judgments in the process of
applying the Group's accounting policies. The areas involving a
high degree of judgment or complexity or areas where assumptions
and estimates involving significant uncertainty that have a
risk of causing material adjustment to the carrying value of assets
and liabilities in the coming year are disclosed in
Note 3.
This preliminary announcement does
not constitute the Group's full financial statements for the year
ended 31 March 2024. The Group's full financial statements will be
approved by the Board of Directors and reported on by the auditors
in June 2024. Accordingly, the financial information for 2024 is
presented unaudited in this preliminary announcement.
Going concern
At 31 March 2024, the Group
held total cash of €1,588.9 million (including cash and cash
equivalents of €728.4 million, €751.1 million of
short-term cash deposits and €109.4 million of restricted
cash), while net current liabilities were
€399.6 million (including deferred income of
€797.4 million) and net assets were €145.7 million. The
Group's contractual undiscounted external borrowings comprise:
€500.0 million of bonds maturing in January 2026;
€206.8 million of PDP financing from Carlyle Aviation Partners
Group (see Notes 2 and 11) that is repayable by July
2025; €253.6 million of ETS financing from Standard Chartered Bank
repayable in September 2024; and convertible debt with a balance of
€25.7 million. In addition, borrowings include a carrying
amount of €5,255.3 million from lease contracts accounted for
under IFRS 16 and liabilities related to JOLCO and FTL contracts
(see Note 11). None of these borrowings contain any financial
covenants. The Group also receives payment for ticket and ancillary
revenue in advance through arrangements with various card acquirors
which are subject to typical capacity and security limits. Two
ratings agencies, Fitch and Moody's issued updates during the third
quarter with Fitch maintaining Wizz Air's BBB- investment grade
profile with negative outlook, while Moody's issued a Ba1 rating
with stable outlook.
The Group operates using a
three-year planning cycle. The Directors have reviewed their latest
financial forecasts for a period of 18 months from the date of
releasing the preliminary financial statements including plans to
finance committed future aircraft deliveries (see Note 15) due
within this period that are currently unfinanced and taking into
account available committed financing for aircraft. Aircraft
deliveries represent the Group's primary capital expenditure during
this period, which the group intends to finance through various
forms of sale and leaseback or other fleet financing arrangements,
consistent with its past practices. While such financing remains
uncommitted, the vendor additionally offers committed backstop
financing. This backstop financing would cover a substantial
portion, though not all, of the expenditure if the Group chooses to
utilize it. After making enquiries and testing the assumptions
against different forecast scenarios including a severe but
plausible (downside) scenario (see below), the Directors have
satisfied themselves that the Group is expected to be able to meet
its commitments and obligations as they fall due for a period of at
least the next twelve months from the date of the release of the
preliminary report.
These enquiries and the testing
performed in reaching this conclusion included the review of a base
case model that projects the cashflows of the business. The base
case model is derived from our contracted fleet plan which includes
notified aircraft delivery delays. We then overlay our
forecast for
aircraft groundings prepared by
our maintenance team given our GTF engine related supply chain
issues as well as our contracted wet lease aircraft commitments to
mitigate these issues. These building blocks determine our
available fleet for the going concern period to which we apply a
utilisation assumption that is consistent with our actual
utilisation in F24. We then build our network plan and make
appropriate revenue, cost, compensation, working capital and
financing assumptions to develop the base case cash
flows.
This base case was then flexed to
produce a downside forecast that assumes lower demand leading to a
5% reduction in RASK, 10% higher fuel cost per metric tonne, 5c
stronger USD compared to EUR and exclusion of any supply chain
related compensation that is forecast to continue for the full
going concern period but not yet contracted. These downside
forecast assumptions were modelled cumulatively across the full
going concern period. The downside case also excludes any assumed
financing for our currently unfinanced aircraft deliveries (see
Note 15). Mitigating actions in relation to the unfinanced
aircraft were also considered in preparation of the downside case
used for the going concern assessment.
The Directors also considered the
impact of climate change over the time period and concluded that it
is unlikely that material physical or transition risks will
arise over this period. As part of our base and downside forecasts,
we considered the impact of higher pricing for ETS levied in Europe
and the UK as well as costs of CORSIA implementation. Combined with
changes in the amount of "free" ETS credits, this reflects in
general our expected cost increases of carbon emissions. The use of
sustainable aviation fuel (SAF) with traditional fuel will likely
impact the average cost of jet fuel and was modelled as part of the
downside forecast by way of increased fuel pricing.
In preparing the base and downside
forecasts, the Directors also considered the requirements of
security levels in its card acquirer contracts and took into
account the impact of the wars in Ukraine and Gaza and the three
aircraft stranded in Ukraine (see Note 9). Whilst our plans
include continuing to fly to Israel, the potential impact of
reallocating capacity to other routes if required is known. The
Directors therefore concluded that no material adverse impact
on future cash flows is likely to result from these items. The
Directors have also assumed that there will be no further
significant disruption of the magnitude experienced in recent
financial years.
In this downside scenario, whilst
there was a significant reduction in liquidity, headroom on the
security levels of the card acquirer contracts was maintained.
Accordingly, the Directors concluded it is appropriate to retain
the going concern basis of accounting in preparing the financial
statements.
2. Financial risk
management
Financial risk factors
The Group is exposed to market
risks relating to fluctuations in commodity prices, interest rates
and currency exchange rates. The objective of financial risk
management at Wizz Air is to minimise the impact of commodity
price, interest rate and foreign exchange rate fluctuations on the
Group's earnings, cash flows and equity. To manage commodity and
foreign exchange risks, Wizz Air uses foreign currency and jet fuel
zero-cost collar contracts.
Risk management is carried out by
the treasury department under policies approved by the Board of
Directors. The Board provides written principles for overall risk
management, as well as written policies covering specific areas,
such as foreign exchange risk, fuel price risk, credit risk, use of
derivative financial instruments, adherence to hedge accounting,
and hedge coverage levels. The Board has mandated the Audit and
Risk Committee of the Board to supervise the hedging activity of
the Group and the compliance with the policies approved by the
Board.
Risk analysis
Market risks
Wizz Air operates under a clear
set of treasury policies approved by the Board and supervised by
the Audit and Risk Committee.
Given the sustained and ongoing
volatility in commodity prices, Wizz Air kept its systematic jet
fuel hedging policy and maintained hedge coverage in line with the
policy and its peers. The hedges under the hedge policy will be
rolled forward quarterly, 18 months out, with coverage levels over
time reaching indicatively between 65 per cent for the first
quarter of the hedging horizon and 15 per cent for the last quarter
of the hedging horizon. In line with the hedging policy, Wizz Air
also hedges its fuel consumption-related US Dollar exposure in a
similar fashion.
Foreign currency risk
The Group is exposed to foreign
currency risk on sales, purchases and commitments that are
denominated in a currency other than the functional currency of its
operating entities. The foreign currency exposure of the Group is
predominantly attributable to: (i) only a small portion of the
Group's revenues are denominated in or linked to the USD while a
significant portion of the Group's expenses are USD denominated,
including fuel and aircraft leases; and (ii) there are
various
currencies in which the Group has
significantly more revenues than expenses, primarily the British
Pound (GBP) and - to a smaller extent - the Polish Zloty (PLN) and
the Romanian Leu (RON).
EUR/USD foreign currency rate is
the most significant underlying foreign currency exposure to the
Group.
The table below analyses the
financial instruments by the currencies of future receipts and
payments as follows:
|
|
|
|
|
|
|
|
EUR
|
USD
|
Other
|
Total
|
|
At 31 March 2024
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Financial assets
|
|
|
|
|
|
Trade and other
receivables
|
315.3
|
156.7
|
99.2
|
571.2
|
|
Investments in other
entities
|
-
|
1.6
|
-
|
1.6
|
|
Derivative financial
assets
|
-
|
36.8
|
-
|
36.8
|
|
Cash and cash
equivalents
|
138.4
|
523.8
|
66.2
|
728.4
|
|
Short-term cash
deposits
|
154.0
|
597.1
|
-
|
751.1
|
|
Restricted cash
|
3.1
|
103.4
|
2.9
|
109.4
|
|
Total financial assets
|
610.8
|
1,419.4
|
168.3
|
2,198.5
|
|
Financial liabilities
|
|
|
|
|
|
Unsecured debt*
|
511.6
|
-
|
-
|
511.6
|
|
Secured debt
|
257.5
|
205.7
|
-
|
463.2
|
|
IFRS 16 aircraft and engine lease
liability
|
637.4
|
2,947.4
|
-
|
3,584.8
|
|
IFRS 16 other lease
liability
|
16.8
|
-
|
10.3
|
27.1
|
|
JOLCO and FTL lease
liability
|
1,122.4
|
401.9
|
119.1
|
1,643.4
|
|
Loans from non-controlling
interests
|
-
|
13.9
|
-
|
13.9
|
|
Convertible debt
|
25.7
|
-
|
-
|
25.7
|
|
Trade and other
payables
|
461.4
|
93.7
|
197.2
|
752.3
|
|
Derivative financial
liabilities
|
-
|
0.7
|
-
|
0.7
|
|
Deferred income
|
4.8
|
-
|
-
|
4.8
|
|
Total financial
liabilities
|
3,037.6
|
3,663.3
|
326.6
|
7,027.5
|
|
Net financial
liabilities
|
(2,426.8)
|
(2,243.9)
|
(158.3)
|
(4,828.9)
|
|
|
|
|
|
|
|
|
EUR
|
USD
|
Other
|
Total
|
|
At 31 March 2023
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Financial assets
|
|
|
|
|
|
Trade and other
receivables
|
193.4
|
65.4
|
11.6
|
270.4
|
|
Derivative financial
assets
|
-
|
1.2
|
-
|
1.2
|
|
Cash and cash
equivalents
|
964.4
|
373.0
|
71.2
|
1,408.6
|
|
Restricted cash
|
0.7
|
119.3
|
0.4
|
120.4
|
|
Total financial assets
|
1,158.5
|
558.9
|
83.2
|
1,800.6
|
|
Financial liabilities
|
|
|
|
|
|
Unsecured debt*
|
1,005.5
|
-
|
-
|
1,005.5
|
|
Secured debt
|
-
|
250.0
|
-
|
250.0
|
|
IFRS 16 aircraft and engine lease
liability
|
405.1
|
2,371.4
|
-
|
2,776.5
|
|
IFRS 16 other lease
liability
|
5.7
|
-
|
12.8
|
18.5
|
|
JOLCO and FTL lease
liability
|
850.8
|
288.4
|
72.0
|
1,211.2
|
|
Loans from non-controlling
interests
|
-
|
13.8
|
-
|
13.8
|
|
Convertible debt
|
26.0
|
-
|
-
|
26.0
|
|
Trade and other
payables
|
558.1
|
68.7
|
78.8
|
705.6
|
|
Derivative financial
liabilities
|
-
|
108.4
|
-
|
108.4
|
|
Deferred income
|
4.8
|
-
|
-
|
4.8
|
|
Total financial
liabilities
|
2,856.0
|
3,100.7
|
163.6
|
6,120.2
|
|
Net liabilities
|
(1,697.5)
|
(2,541.8)
|
(80.4)
|
(4,319.6)
|
* Unsecured
debt represents the European Mid Term Note and bank
overdrafts.
Trade and other receivables in
this table, and also in the other disclosures in this Note, exclude
balances that are not financial instruments, being prepayments,
deferred expenses and part of other receivables. Similarly,
trade and other payables and deferred income in this table, and
also in the other disclosures in this Note, exclude balances that
are not financial instruments, being part of accruals and other
payables.
Commodity risks
One of the most significant costs
for the Group is jet fuel. The price of jet fuel can be volatile
and can directly impact the Group's financial performance. See
further details regarding jet fuel at market risks and hedge
transactions within this Note.
The Group is also exposed to price
risk related to Emissions Trading System (ETS) schemes. In order to
comply with regulations, ETS allowances must be purchased and
surrendered on a yearly basis. To reduce the exposure to price
volatility and inflation, the Group enters into spot and forward
purchase transactions. As at 31 March 2024, all requirements
for calendar year 2023 and 100 per cent of total forecast
requirements for calendar year 2024 were covered. This
coverage includes forward purchase agreements to the value of
€219.2 million. These forward purchase agreements qualify for the
own use exemption and therefore are not accounted for as a
financial instrument under IFRS 9.
Interest rate risk
The Group's objective is to reduce
cash flow risk arising from the fluctuation of interest rates on
financing.
The Group has a small portion of
future commitments under certain lease contracts that are based on
floating interest rates. The PDP refinancing credit
facility (See Note 11) is a variable rate loan,
which is expected to be gradually settled over one and a half year.
The floating nature of these interest charges exposes the Group to
interest rate risk. Interest rates charged on Eurobond, convertible
debt liabilities and on the majority of the leases to finance the
aircraft are not sensitive to interest rate movements as they are
fixed until maturity.
The Group has not used financial
derivatives to hedge its interest rate risk during the
year.
The Group has floating rate
instruments within restricted cash, but given their short-term
(within three months) maturity, the interest rates are not expected
to move significantly during this short period.
Hedge transactions during the
year
The Group uses zero-cost collar
instruments to hedge its jet fuel-related foreign exchange
exposures and jet fuel price exposures. In order to ensure economic
relationship, the Group enters into hedge relationships where
critical terms of the hedging instrument match exactly with that of
the hedged item.
The gains and losses arising from
hedge transactions during the year were as follows:
Foreign exchange hedge:
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Gain recognised within fuel
costs
|
|
|
|
Effective cash flow
hedge
|
1.9
|
-
|
|
Total gain recognised within fuel
costs
|
1.9
|
-
|
Fuel hedge:
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
(Loss)/gain recognised within fuel
costs
|
|
|
|
Effective hedge
|
(24.3)
|
(33.2)
|
|
Cost of hedging recycled to profit
or loss
|
-
|
(6.0)
|
|
Total loss recognised within fuel
costs
|
(24.3)
|
(39.2)
|
Hedge year-end open
positions
The Group measures its derivative
financial instruments at fair value, as calculated by management
using an independent derivative valuation platform. Such fair
values might change materially within the near future but these
changes would not arise from assumptions made by management or
other sources of estimation uncertainty at the end of the period
but from the movement of market prices. The fair value calculation
is most sensitive to movements in the jet fuel and foreign currency
spot prices, their implied volatility and respective
yields.
At the end of the year, the Group
had the following open hedge positions:
Foreign exchange hedges with
derivatives:
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
At 31 March 2024
|
Notional
amount
US$
million
|
Non-current
assets
€
million
|
Current
assets
€
million
|
Non-current
liabilities
€
million
|
Current
liabilities
€
million
|
Net
asset
€
million
|
|
Effective cash flow hedge
positions
|
801.0
|
0.7
|
7.9
|
-
|
(0.5)
|
8.1
|
|
Total foreign exchange
hedges
|
801.0
|
0.7
|
7.9
|
-
|
(0.5)
|
8.1
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
At 31 March 2023
|
Notional
amount
US$
million
|
Non-current
assets
€
million
|
Current
assets
€
million
|
Non-current
liabilities
€
million
|
Current
liabilities
€
million
|
Net
liability
€
million
|
|
Effective cash flow hedge
positions
|
312.0
|
-
|
-
|
-
|
(0.4)
|
(0.4)
|
|
Total foreign exchange
hedges
|
312.0
|
-
|
-
|
-
|
(0.4)
|
(0.4)
|
For the movements in other
comprehensive income, refer to the consolidated statement of
changes in equity.
The open foreign currency cash
flow hedge positions at year end can be analysed according to the
maturity periods and price ranges of the underlying hedge
instruments as follows:
EUR/USD foreign exchange
hedge:
|
|
|
|
|
|
F25
|
F26
|
|
At 31 March 2024
|
12
months
|
6
months
|
|
Maturity profile of notional
amount (million)
|
$686.0
|
$115.0
|
|
Weighted average
ceiling
|
$1.1303
|
$1.1304
|
|
Weighted average floor
|
$1.0867
|
$1.0873
|
|
|
|
|
|
|
F24
|
F25
|
|
At 31 March 2023
|
12
months
|
6
months
|
|
Maturity profile of notional
amount (million)
|
$312.0
|
-
|
|
Weighted average
ceiling
|
$1.1154
|
-
|
|
Weighted average floor
|
$1.0724
|
-
|
Foreign exchange hedge with
non-derivatives:
Non-derivatives, such as cash, are
existing financial assets or liabilities that hedge highly probable
foreign currency cash flows in the future and therefore act as a
natural hedge.
Fuel hedge with
derivatives:
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
At 31 March 2024
|
'000
metric
tonnes
|
Non-current
assets
€
million
|
Current
assets
€
million
|
Non-current
liabilities
€
million
|
Current
liabilities
€
million
|
Net
asset
€
million
|
|
Effective cash flow hedge
positions
|
987.0
|
3.1
|
25.1
|
-
|
(0.3)
|
28.0
|
|
Total fuel hedge
|
987.0
|
3.1
|
25.1
|
-
|
(0.3)
|
28.0
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
At 31 March 2023
|
'000
metric tonnes
|
Non-current
assets
€
million
|
Current
assets
€
million
|
Non-current
liabilities
€
million
|
Current
liabilities
€
million
|
Net
liability
€
million
|
|
Effective cash flow hedge
positions
|
1,258.5
|
0.2
|
1.0
|
(4.2)
|
(103.8)
|
(106.8)
|
|
Total fuel hedge
|
1,258.5
|
0.2
|
1.0
|
(4.2)
|
(103.8)
|
(106.8)
|
For the movements in other
comprehensive income, refer to the consolidated statement of
changes in equity.
The fuel hedge positions at year
end can be analysed according to the maturity periods and price
ranges of the underlying hedge instruments as follows:
|
|
|
|
|
|
F25
|
F26
|
|
At 31 March 2024
|
12
months
|
6
months
|
|
Maturity profile ('000 metric
tonnes)
|
841.0
|
146.0
|
|
Blended capped rate
|
$860.0
|
$844.0
|
|
Blended floor rate
|
$751.0
|
$732.0
|
|
|
|
|
|
|
F24
|
F25
|
|
At 31 March 2023
|
12
months
|
6
months
|
|
Maturity profile ('000 metric
tonnes)
|
1,081.0
|
177.5
|
|
Blended capped rate
|
$994.0
|
$884.0
|
|
Blended floor rate
|
$864.0
|
$767.0
|
Effects of hedge accounting on the
financial position and performance
The effects of the foreign
exchange hedges on the Group's financial position and performance
are as follows:
|
|
|
|
|
|
2024
|
2023
|
|
Zero-cost collars
|
|
|
|
Carrying amount net
asset/(liability) (€ million)
|
8.1
|
(0.4)
|
|
Notional amount (US$
million)
|
801.0
|
312.0
|
|
Maturity date
|
April
2024- August 2025
|
April
2023- March 2024
|
|
Hedge ratio
|
1:1
|
1:1
|
|
Change in fair value of
outstanding hedging instruments (€ million)
|
4.6
|
-
|
|
Change in value of hedged item
used to determine hedge effectiveness (€ million)
|
(4.6)
|
-
|
The effects of the fuel hedges on
the Group's financial position and performance are as
follows:
|
|
|
|
|
|
2024
|
2023
|
|
Zero-cost collars
|
|
|
|
Carrying amount net
asset/(liability)
|
28.0
|
(106.8)
|
|
Notional amount ('000 metric
tonnes)
|
987.0
|
1,006.9
|
|
Maturity date
|
April
2024- August 2025
|
April
2023- October 2024
|
|
Hedge ratio
|
1:1
|
1:1
|
|
Change in fair value of
outstanding hedging instruments (€ million)
|
12.4
|
(83.2)
|
|
Change in value of hedged item
used to determine hedge effectiveness (€ million)
|
(12.4)
|
83.2
|
Hedge
effectiveness
The effectiveness of hedges is
tested both prospectively to determine the appropriate accounting
treatment of open positions. Prospective testing of open hedges
requires making certain estimates, the most significant one being
for the future expected level of the business activity (primarily
the utilisation of fleet capacity) of the Group. Building on these
estimations of the future, management makes a judgment on the
accounting treatment of open hedging instruments. Hedge accounting
for jet fuel and foreign currency cash flow hedges is discontinued
where the "highly probable" forecast criterion is not met in
accordance with the requirements of IFRS 9.
There was no discontinued hedging
relationship during the financial year
ended 31 March
2024 and during the financial year
ended 31 March 2023.
None of the hedge counterparties
had a material change in their credit status that would have
influenced the effectiveness of the hedging
transactions.
Sensitivity analysis
The table below shows the
sensitivity of the Group's profits to various market risks for the
current and the prior year, excluding any hedge impacts.
|
|
|
|
|
|
2024
|
2023
|
|
|
Difference in profit after tax
€
million
|
Difference in profit after tax
€
million
|
|
Fuel price sensitivity
|
|
|
|
Fuel price $100 higher per metric
tonne
Fuel price $100 lower per metric
tonne
|
-167.1
+167.1
|
-142.4
+142.4
|
|
FX rate sensitivity
(USD/EUR)
|
|
|
|
FX rate 0.05 higher (meaning EUR
stronger)
FX rate 0.05 lower
|
+204
-221.3
|
+208.9
-269.0
|
|
FX rate sensitivity
(GBP/EUR)
|
|
|
|
FX rate 0.03 higher (meaning EUR
stronger)
FX rate 0.03 lower
|
-16.8
+18.0
|
-11.6
+12.4
|
|
Interest rate sensitivity
(EUR)
|
|
|
|
Interest rate is higher by 100
bps
Interest rate is lower by 100
bps
|
+16.4
-16.7
|
+14.1
-13.9
|
The Group is primarily exposed to
changes in EUR/USD foreign exchange rate. The sensitivity of profit
or loss to changes in the exchange rates arises mainly from USD
lease liabilities and jet fuel-related USD exposure.
The interest rate sensitivity
calculation above considers the effects of varying interest rates
on the interest income on bank deposits and floating rate
leases.
The table below shows the
sensitivity of the Group's other comprehensive income to various
market risks for the current and the prior year. These
sensitivities relate to the impact of the market risks on the
balance of the cash flow hedging reserve (which includes gains and
losses related to open cash flow hedges both for foreign exchange
rates and jet fuel price).
|
|
|
|
|
|
2024
|
2023
|
|
|
Difference
€
million
|
Difference
€
million
|
|
Fuel price sensitivity
|
|
|
|
Fuel price $100 higher per metric
tonne
Fuel price $100 lower per metric
tonne
|
-91.0
+91.0
|
-114.3
+114.3
|
|
FX rate sensitivity
(USD/EUR)
|
|
|
|
FX rate 0.05 higher (meaning EUR
stronger)
FX rate 0.05 lower
|
+1.6
-1.6
|
-5.1
+5.1
|
|
Fuel volume sensitivity (metric
tonnes)
|
|
|
|
100,000 metric tonnes reduction in
forecast fuel purchases
100,000 metric tonnes increase in
forecast fuel purchases
|
+3.7
-3.7
|
-7.8
+7.8
|
The sensitivity analyses
for 2024 above were performed with reference to the
following market rates, as the base case:
▶for
profits, annual average rates: jet fuel price $978 per metric
tonne; EUR/USD FX rate 1.08; EUR/GBP FX rate 0.86; and
▶for
other comprehensive income, year-end spot rates: jet fuel price
$846.5 per metric tonne; EUR/USD FX rate 1.08.
Liquidity risks
Prudent liquidity risk management
implies maintaining sufficient cash and the availability of
funding. Financial year 2024 had an extremely challenging
environment of tight financial conditions, high inflation, high
energy prices and heightened geopolitical risk in some of the
markets we serve. These challenges impacted our supply chain,
operational capacity and the liquidity position of the Group. As a
response, a number of actions are being taken to improve costs and
liquidity, the most important ones being:
▶continuing to ensure that the flights that are operated
deliver positive cash contributions;
▶securing
nearly all lease financing for aircraft delivery positions until
December 2024;
▶working
with suppliers to reduce contracted rates and improve payment
terms;
▶reducing
discretionary spending and suspending non-essential capital
expenditures;
▶extending the EMTN programme in January 2024 following the
repayment of €500 million bond and effectively reducing the
liability to a 4 year €500 million bond which was issued in January
2022;
▶redrawing PDP financing from the credit facility that was
contracted in February 2023 and is available for a maximum of three
years (see
Note 11);
▶entering
into an ETS repurchase agreement with Standard Chartered whereby
Wizz Air monetised its ETS allowance inventory (3.3 million units)
at spot price, receiving €253.6 million, in exchange for a
commitment to repurchase the units at a fixed price in
mid-September 2024 before surrendering them for calendar year 2023;
and
▶working
with acquiring banks to expand our ticket sales capacity. These
banks will share a portion of the credit risk for paid tickets that
have not been flown without requiring to provide
collateral.
As a result of these measures, the
Group is confident in its ability to maintain sufficient liquidity
in case of further unexpected events or increases in commodity
prices. For further notes, refer to the going concern assessment
under Note 1.
The Group invested excess cash
primarily in USD and EUR denominated short-term time deposits with
high-quality bank counterparties.
See table in
Note 11 that analyses the carrying amount of the Group's
borrowings into relevant maturity groupings based on the remaining
period at the statement of financial position date.
The Group has obligations under
financial guarantee contracts. The most significant financial
guarantee contracts relate to aircraft leases, hedging, EMTN notes,
PDP financing and Convertible Notes. For these items, the
respective underlying liabilities are reflected under the
appropriate line of the financial liabilities part of the table
above (for leases, the liability is presented under borrowings).
Since the liability itself is already reflected in the table, it
would not be appropriate to also include the financial guarantee
provided by another Group entity for the same
obligation.
Management does not expect that
any payment under these guarantee contracts will be required by the
Company.
Credit risk
Credit risk is the risk of
financial loss to the Group if a customer or counterparty to a
financial instrument fails to meet its contractual obligations. The
Group's exposure to credit risk from individual customers is
limited as the large majority of the payments for flight tickets
are collected before the service is provided.
However, the Group has significant
banking, hedging, aircraft manufacturer and card-acquiring
relationships that represent counterparty credit risk. The Group
analysed the creditworthiness of the relevant business partners in
order to assess the likelihood of non-performance of liabilities
and therefore assets due to the Group. The credit quality of the
Group's financial assets is assessed by reference to external
credit ratings (published by Standard & Poor's or similar
institutions) of the counterparties as follows:
|
|
|
|
|
|
|
|
|
A
|
A-
|
Other
|
Unrated
|
Total
|
|
At 31 March 2024
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Financial assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
449.0
|
1.2
|
265.5
|
12.8
|
728.4
|
|
Short-term cash
deposits
|
751.1
|
-
|
-
|
-
|
751.1
|
|
Restricted cash
|
109.4
|
-
|
-
|
-
|
109.4
|
|
Trade and other
receivables
|
5.1
|
5.8
|
3.8
|
556.4
|
571.1
|
|
Derivative financial
assets
|
21.0
|
12.1
|
3.8
|
-
|
36.9
|
|
Investments in other
entities
|
-
|
-
|
-
|
1.6
|
1.6
|
|
Total financial assets
|
1,335.5
|
19.0
|
273.1
|
570.9
|
2,198.5
|
|
|
|
|
|
|
|
|
|
A
|
A-
|
Other
|
Unrated
|
Total
|
|
At 31 March 2023
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Financial assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,398.6
|
0.3
|
2.9
|
6.8
|
1,408.6
|
|
Restricted cash
|
120.4
|
-
|
-
|
-
|
120.4
|
|
Trade and other
receivables
|
20.8
|
0.4
|
-
|
249.2
|
270.4
|
|
Derivative financial
assets
|
0.9
|
0.3
|
-
|
-
|
1.2
|
|
Total financial assets
|
1,540.7
|
1.0
|
2.9
|
256.0
|
1,800.6
|
From the unrated category within
trade and other receivables, the Group has €25.8 million (2023:
€21.0 million) receivables from different aircraft lessors in
respect of maintenance reserves and lease security deposits
paid. However, given that the Group physically possesses the
aircraft owned by the lessors and that the Group has significant
future lease payment obligations towards the same lessors,
management does not consider the credit risk on maintenance reserve
receivables to be material. Most of the remaining balance in this
category in both years relates to ticket sales receivables from
customers and non-ticket revenue receivables from business
partners. These balances are spread between a significant number of
counterparties and the credit performance in these channels has
historically been good.
Based on the information above,
management does not consider the counterparty risk of any of the
counterparties to be material and therefore no fair value
adjustment was applied to the respective cash or receivable
balances.
Fair value estimation
The Group classifies its financial
instruments based on the technique used for determining fair value
into the following categories:
Level 1: Fair value is determined
based on quoted prices (unadjusted) in active markets for identical
assets or liabilities.
Level 2: Fair value is determined
based on inputs other than quoted prices that are observable for
the asset or liability, either directly or indirectly.
Level 3: Fair value is determined
based on inputs that are not based on observable market data (that
is, on unobservable inputs).
The following table presents the
Group's financial assets and liabilities that are measured at fair
value at 31 March 2024:
|
|
|
|
|
|
|
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Assets
|
|
|
|
|
|
Investments in other
entities
|
-
|
-
|
1.6
|
1.6
|
|
Derivative financial
instruments
|
-
|
36.9
|
-
|
36.9
|
|
|
-
|
36.9
|
1.6
|
38.5
|
|
Liabilities
|
|
|
|
|
|
Derivative financial
instruments
|
-
|
0.7
|
-
|
0.7
|
|
|
-
|
0.7
|
-
|
0.7
|
The following table presents the
Group's financial assets and liabilities that are measured at fair
value at 31 March 2023:
|
|
|
|
|
|
|
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Assets
|
|
|
|
|
|
Derivative financial
instruments
|
-
|
1.2
|
-
|
1.2
|
|
|
-
|
1.2
|
-
|
1.2
|
|
Liabilities
|
|
|
|
|
|
Derivative financial
instruments
|
-
|
108.4
|
-
|
108.4
|
|
|
-
|
108.4
|
-
|
108.4
|
The Group measures its derivative
financial instruments at fair value, calculated by a third-party
front office system that falls into the Level 2 category. The front
office platform provides comprehensive risk management
capabilities, using generally accepted valuation techniques,
principally the Black-Scholes model and discounted cash flow
models. The fair value of investments in other entities is
estimated using Level 3 methodology.
All the other financial assets and
financial liabilities are measured at amortised cost.
Capital management
The Group's objectives when
managing capital are: (i) to safeguard the Group's ability to
continue as a going concern in order to provide returns for
Shareholders and benefits for other stakeholders; (ii) to secure
funds at competitive rates for its future aircraft acquisition
commitments (see Note 15); and (iii) to maintain an
optimal capital structure to reduce the overall cost of
capital.
The current sources of capital for
the Group are equity as presented in the statement of financial
position, bonds and other borrowings (see Note 11), as
well as, to a smaller extent, convertible debt.
Wizz Air's strategy is to hold
significant cash and liquid funds to mitigate the impact of
potential business disruption events and to invest in opportunities
as they come along in an increasingly volatile market environment.
Accordingly, the Group has so far retained all profits and paid no
dividends and financed all its aircraft and most of its spare
engine acquisitions through sale and leaseback agreements. The
Group furthered its financing options through the establishment in
January 2021 of a €3.0 billion European Mid Term Note (EMTN)
programme and issuance of its debut bond by Wizz Air Finance
Company B.V., unconditionally and irrevocably guaranteed
by Wizz Air Holdings Plc. Following 2024 bond repayment, Wizz
Air renewed the EMTN programme. In addition, the Group entered into
a PDP refinancing credit facility which is available for a maximum
of three years and also entered into a repurchasing agreement
utilising its large inventory of ETS units.
The existing aircraft orders of
the Group create a need for raising significant amounts of capital
in the following years. The strategy of the Group is to ensure that
it has access to various forms of long-term financing, which in
turn allows the Group to further reduce its cost of capital and the
cost of ownership of its aircraft fleet.
3. Critical accounting estimates
and judgements made in applying the Group's accounting
policies
a.Maintenance policy
The estimations and judgments
applied in the context of the maintenance accounting policy of the
Group impact the balance of: (i) property, plant and equipment
(and, within that, aircraft maintenance assets, as detailed in
Note 9); and (ii) aircraft maintenance provisions (as detailed
in Note 13).
Estimate: For aircraft held under
lease agreements, provision is made for the minimum unavoidable
costs of specific future maintenance obligations required by the
lease at the time when such obligation becomes certain. The amount
of the provision involves making estimates of the cost of the heavy
maintenance work that is required to discharge the obligation,
including any end-of-lease costs. A 5 per cent increase in the
planned costs of heavy maintenance works at the 31 March
2024 year end would increase the balance of both aircraft
maintenance assets and aircraft maintenance provisions by €13.1
million.
Estimate: The cost of heavy
maintenance is capitalised and recognised as a tangible fixed asset
(and classified as an "aircraft maintenance asset") at the earlier
of: (a) the time the lease re-delivery condition is no longer
met; or (b) when maintenance, including enhancement, is carried
out. The calculation of the depreciation charge on such assets
involves making estimates primarily for the future utilisation of
the aircraft. A 9 per cent change in the F25 forecast
aircraft utilisation would result in the same average utilisation
as in F24. This would cause a €2.6 million decrease in the
balance of aircraft maintenance assets.
The basis of these estimates is
reviewed annually at least, and also when information becomes
available that is capable of causing a material change to an
estimate, such as renegotiation of end-of-lease return conditions,
increased or decreased utilisation of the assets, or changes in the
cost of heavy maintenance services.
Judgment: On a lease-by-lease
basis, the Group makes a judgment whether it would perform future
maintenance that would impact the condition of the respective
aircraft or spare engine asset in a way that eliminates the need
for paying compensation to the lessor on the re-delivery of the
leased asset. When such maintenance is not expected, then accrual
is made for the compensation due to the lessor in line with the
terms of the respective lease contract.
Judgment: The policy adopted by
the Group, as summarised above, is only one of the policies
available under IFRS in accounting for heavy maintenance for
aircraft held under lease agreements. A principal alternative
policy involves recognising provisions for future maintenance
obligations in accordance with hours flown or similar measure, and
not only when lease re-delivery conditions are not met. In the
judgment of the Directors, the policy adopted by the Group, whereby
provisions for maintenance are recognised only when lease
re-delivery conditions are not met, provides the most reliable and
relevant information about the Company's obligations to incur major
maintenance expenditure on leased aircraft and at the same time it
best reflects the fact that an aircraft has lower maintenance
requirements in the early years of its operation. The average age
of the Group's aircraft fleet at 31 March
2024 was 4.3
years (31 March 2023: 4.6
years). Given the policy adopted, we
currently do not consider that the impact of climate change has a
material impact on the maintenance provision.
b.Hedge
and derivative accounting
Estimate: The asset and liability
balances at year end related to open hedge instruments can be
material. The fair value of derivatives is estimated by a
third-party front office system as per their industry practice. As
required, the fair values ascribed to those instruments are
verified also by management using high-level models. These
estimations are performed based on market prices observed at year
end and, therefore, according to paragraph 128 of IAS 1, do not
require further disclosure. Such fair values might change
materially within the next financial year but these changes would
not arise from assumptions made by management or other sources of
estimation uncertainty at the end of the year but from the movement
of market prices. The fair value calculation is most sensitive to
movements in the jet fuel and foreign currency spot prices, their
implied volatility and respective yields. A sensitivity analysis
for the jet fuel price and for the FX rate on most relevant
currency pairs is included in Note 2.
Estimate and judgment: The
effectiveness of hedges is evaluated prospectively to ascertain the
suitable accounting treatment for hedge gains and losses.
Additionally, designated hedging relationships undergo
retrospective assessment for ineffectiveness, with any ineffective
portion subsequently recognized in the Statement of Profit and
Loss. Prospective testing of open hedges requires making certain
estimates, the most significant one being for the future expected
level of the business activity (primarily the utilisation of fleet
capacity) of the Group, which is supported by the models used to
prepare going concern assessments.
Building on these estimations of
the future, management exercises judgment on the appropriate
accounting treatment, considering the alignment of hedge
instruments with the Group's risk management objectives and
strategies. Hedge accounting for jet fuel and foreign currency cash
flow hedges is discontinued where the "highly probable" forecast
criterion was not met in accordance with the requirements of IFRS
9.
None of the hedge counterparties
had a material change in their credit status that would have
influenced the effectiveness of the hedging
transactions.
c.Net
presentation of government taxes and other similar
levies
The Group's accounting policy
stipulates that where charges levied by airports or government
authorities on a per passenger basis represent a government tax in
fact or in substance, then such amounts are presented on a net
basis in the statement of comprehensive income (netted against
revenue).
Judgment: Management reviews all
passenger-based charges levied by airports and government
authorities to ensure that any amounts recovered from passengers in
respect of these charges are appropriately classified within the
statement of comprehensive income. Given the variability of these
charges and the number of airports and jurisdictions within which
the Group operates, the assessment of whether these items
constitute taxes in nature is an inherently complex area for some
airports, requiring a level of judgment.
d.Accounting for aircraft and spare engine assets
Judgment: When the Group acquires
new aircraft and spare engines, it applies the following critical
judgments in determining the acquisition cost of these
assets:
▶engine
contracts typically include the selection of an engine type to be
installed on future new aircraft, a commitment to purchase a
certain number of spare engines, and lump-sum (i.e. not per engine)
concessions from the manufacturer. Management recalculates the unit
cost of engines by allocating lump-sum credits over all engines
ordered and by adjusting costs between installed and spare engines
in a way that ensures that identical physical assets have an equal
acquisition cost; and
▶aircraft
acquisition costs are recalculated to reflect the impacts of: (i)
any adjustment on the cost of installed engines (as above); and
(ii) concessions received from the manufacturers of other aircraft
components under selection agreements. Such acquisition cost has
relevance also for leased aircraft when calculating the amount of
total gain or loss on the respective sale and leaseback
agreement.
e.Accounting for leases
Judgment: Some of the Group's
lease contracts contain options to extend the lease term for a
period of one to two years. The extension option is taken into
account in the measurement of the lease liability only when the
Group is reasonably certain that it would later exercise the
option. Such judgment is made lease by lease, and is relevant both
at inception, for the initial measurement of the lease liability,
and also for a subsequent remeasurement of the lease liability if
the initial judgment is revised at a later date.
Judgment: The Group takes the view
that, as a lessee, it is not able to readily determine the interest
rate implicit in its lease contracts. Therefore, it applies its
incremental borrowing rate for discounting future lease
payments.
The estimations made by management
in accounting for leases do not materially impact the asset and
liability balances of the Group. The majority of aircraft and spare
engine assets are leased and as such their period of depreciation
is the shorter of their useful economic lives and lease duration.
As these assets are new at the inception of the lease and typically
have a useful economic life of at least twice the duration of the
lease, no further estimation has been required.
f.Revenue
from contracts with other partners
Revenue from contracts with other
partners relates to commissions on the sale of on-board catering,
accommodation, car rental, travel insurance, bus transfers, premium
calls and co-branded cards.
Judgment: The Group considers that
it is an agent (as opposed to principal) in relation to all its
contracts with other partners. Accordingly, Wizz Air recognises
revenue from these contracts on a net (commission)
basis.
Out of these contracts, the
provision of on-board catering services is the most significant in
value and it is also the most complex from the perspective of
making the "agent versus principal" assessment/judgment. The
Company's judgment is that it is an agent that was based on the
facts that it is the partner that: (i) enters into contracts with
the passengers/customers and bears the liability towards them for
delivering the products and services; (ii) defines the majority of
the product portfolio, manages the inventory, is responsible for
product availability/outage, has title to the inventory and bears
the risk of loss; and (iii) has discretion in establishing prices.
The difference on this contract between gross sales and net
commission revenue (as recognised in the statement of comprehensive
income) was €55.9 million (2023: €49.2 million).
4. Revenue
The split of total revenue
presented in the consolidated statement of comprehensive income,
being passenger ticket revenue and ancillary revenue, is a non-IFRS
measure (or alternative performance measure). The existing revenue
presentation is considered relevant for the users of the financial
statements because: (i) it mirrors disclosures presented outside of
the financial statements; and (ii) it is regularly reviewed by the
Chief Operating Decision Maker for evaluating financial performance
of the (now only one) operating segment.
Revenue from contracts with
customers can be disaggregated as follows based on IFRS
15:
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Revenue from contracts with
passengers
|
4,994.6
|
3,833.7
|
|
Revenue from contracts with other
partners
|
78.5
|
62.0
|
|
Total revenue from contracts with
customers
|
5,073.1
|
3,895.7
|
These two categories represent
revenues that are distinct from a nature, timing and risks point of
view. Revenue from contracts with other partners relates to
commissions on the sale of on-board catering, accommodation, car
rental, travel insurance, bus transfers, premium calls and
co-branded cards, where the Group acts as an agent.
The contract costs reported at 31
March 2024 as part of trade and other receivables amounted to
€6.4 million (31 March 2023: €5.9 million) and the
contract liabilities (unearned revenues) reported as part of
deferred income were €790.3 million (31 March 2023:
€761.1 million). Out of the €4,994.6 million revenue from
contracts with passengers recognised in F24 (2023:
€3,833.7 million), €761.1 million (2023:
€326.6 million) was included in the contract liability balance
at the beginning of the year (see unearned revenue in
Note 12).
5. Operating
profit/(loss)
Net other
income/(expense)
The following categories of
transactions are included in net other
income/(expenses):
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Gain on sale and leaseback
transactions
|
244.8
|
99.7
|
|
Credits and compensation received
from suppliers*
|
198.6
|
40.1
|
|
Flight disruption-related
expenses
|
(186.9)
|
(130.6)
|
|
Crew-related expenses
|
(66.4)
|
(69.6)
|
|
Overhead-related
expenses
|
(83.2)
|
(62.3)
|
|
Expense relating to short-term
leases
|
(3.5)
|
(8.4)
|
|
Expense relating to variable lease
payments
|
(0.6)
|
(3.0)
|
|
Auditors' remuneration
|
(2.6)
|
(1.7)
|
|
Impairment reversal for
receivables
|
0.7
|
0.2
|
|
Net other expense*
|
(5.1)
|
(5.7)
|
|
Net other
income/(expense)
|
95.8
|
(141.3)
|
*Net other expense has been
further detailed to separately display credits and compensation
received from suppliers.
Credits and compensation received
from suppliers related to incentives and compensation received from
Original Equipment Manufacturers (OEMs) and other
suppliers.
Overhead-related expenses include
fees for legal support, professional services, consulting and
IT-related services.
Net other expense is mainly
related to income and expenses from cargo operations.
6. Net financing income and
expense
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Interest income
|
80.5
|
20.8
|
|
Financial income
|
80.5
|
20.8
|
|
Interest expenses on:
|
|
|
|
Convertible debt
|
(1.8)
|
(1.7)
|
|
IFRS 16 lease liability
|
(123.8)
|
(97.9)
|
|
JOLCO and FTL lease
liability
|
(34.3)
|
(18.8)
|
|
Unsecured debt
|
(11.8)
|
(13.3)
|
|
Secured debts
|
(22.3)
|
(2.0)
|
|
Other
|
(2.7)
|
(1.5)
|
|
Financial expenses
|
(196.7)
|
(135.3)
|
|
Net foreign exchange
gains
|
19.4
|
16.6
|
|
Net financing expense
|
(96.8)
|
(97.9)
|
Interest income and expense
include interest on financial instruments. Interest income is
earned on cash and cash equivalents, short-term deposits and
restricted cash.
Net foreign exchange gain in
amount of €8.8 million (2023: €5.4 million gain) relates to the
remeasurement of lease liabilities denominated in
USD (Note 2).
7. Income tax credit
Recognised in the consolidated
statement of comprehensive income:
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Current tax on profit for the
year
|
39.8
|
1.0
|
|
Adjustment for current tax of
prior years
|
0.7
|
(1.1)
|
|
Other income-based taxes for the
year
|
7.9
|
9.7
|
|
Adjustment for income-based taxes
of prior years
|
1.5
|
0.1
|
|
Total current tax
expense
|
49.9
|
9.7
|
|
Decrease in deferred tax
liabilities
|
(3.2)
|
(0.2)
|
|
Increase in deferred tax
assets
|
(71.5)
|
(39.0)
|
|
Total deferred tax
credit
|
(74.7)
|
(39.2)
|
|
Total tax credit
|
(24.8)
|
(29.5)
|
|
|
|
|
The Company, that is Wizz Air
Holdings Plc, has a local corporate tax rate of 13.97 per cent
(2023: 13.97 per cent). The tax rate relates to Switzerland, where
the Company is tax resident, but does not have any commercial
operations. The current tax expense significantly increased
compared to the prior year due to the swing from a loss before tax
for the Group to a profit before tax. The increase in deferred tax
assets more than offset the increase in current taxes and turned
the total tax charge of the Group into a total tax credit. The
increase in deferred tax assets was mainly attributable to the
recognition of new deferred tax assets as explained in the tax
reconciliation table below.
Out of the total deferred tax
benefit of €39.0 million in F23, €29.7 million (shown also in
the tax reconciliation table below) is a one-off credit impact
attributable to the change of the tax residency of Wizz Air Hungary
Ltd. from Switzerland to Hungary effective from 1 April 2023, as
temporary differences are being reversed at a higher tax rate in
F24 and beyond.
Reconciliation of effective tax
rate
The tax credit for the year
(including both current and deferred tax charges and credits) is
different to the Company's standard rate of corporation tax of
13.97 per cent (2023: 13.97 per cent). The difference is
explained below.
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Profit/(loss) before
tax
|
341.0
|
(564.6)
|
|
Tax at the corporation tax rate of
13.97 per cent (2023: 13.97 per cent)
|
47.6
|
(78.9)
|
|
Adjustment for current tax of
prior years
|
0.7
|
(1.1)
|
|
Adjustment for income-based taxes
of prior years
|
1.5
|
0.1
|
|
Effect of the change of tax
residency of Wizz Air Hungary Ltd. from 1 April 2023
|
-
|
(29.7)
|
|
Effect of different tax rates of
subsidiaries versus the parent company
|
(25.4)
|
55.3
|
|
Effect of current year losses not
being eligible for utilisation against taxable profits in future
years
|
-
|
15.1
|
|
Effect of newly recognised
deferred tax assets
|
(44.0)
|
-
|
|
Tax losses utilised for which no
previous deferred tax was recognised
|
(13.1)
|
-
|
|
Other income-based foreign
tax
|
7.9
|
9.7
|
|
Total tax credit
|
(24.8)
|
(29.5)
|
|
Effective tax rate
|
(7.3)%
|
5.2%
|
The Company paid
€17.4 million of tax in the year (2023: €6.8
million).
Other income-based foreign tax
represents the local business tax and the "innovation contribution"
payable in Hungary in F24 and F23 by the
Hungarian subsidiaries of the Group, primarily Wizz Air Hungary
Ltd. Hungarian local business tax and innovation contribution are
levied on an adjusted profit basis.
In F23, the Group did not
recognise deferred tax assets for most of its tax loss
carry-forwards. Such tax losses were incurred primarily by Wizz Air
Hungary Ltd. during F21-F23. In F24, all of Wizz Air Hungary Ltd.'s
tax loss carry-forwards were utilised at 9 per cent tax rate,
resulting in a decrease in the tax charge of the Group by €13.1
million this year.
A deferred tax asset has now been
recognised following an intra-group sale of aircraft purchase
rights between two subsidiaries of the Group. These rights have no
carrying value in the statement of financial position of the Group
but have a carrying value (in the form of intangible asset) in the
books of the buyer subsidiary in its local GAAP financial
statements, which has been partly amortised by the end of F24 but
will mostly be amortised in future years. While the profit from the
intra-group sale was recognised by the seller subsidiary and was
subject to tax in F22, the buyer subsidiary will recognise most of
the corresponding expenses (from the intangible asset) in future
years, including deduction for tax purposes, that will reduce the
current tax charge of the Group in those years.
The effect of different tax rates
of subsidiaries is a composition of impacts primarily in Hungary,
the UK and Malta, relating to the airline subsidiaries of the Group
other than in the UAE where there is currently no corporate
tax.
Global minimum tax
On 20 December 2021, the OECD
released a framework for Pillar Two Model Rules which will
introduce a global minimum corporate tax rate of 15 per cent
applicable to multinational enterprise groups with global revenue
over €750 million. On 15 December 2022, the EU Council formally
adopted the EU minimum tax directive and the rules should apply in
the EU for accounting periods starting on or after 31 December 2023
(i.e. the year ending 31 March 2025 for the Group). Switzerland,
Hungary, the UK and Malta have implemented the minimum tax rules,
but with various exemptions still applicable in the accounting
periods starting in 2024. As a result, in F25 the income of the
Malta and Abu Dhabi airline subsidiaries of the Group will not be
subject to global minimum tax, although Abu Dhabi is introducing
tax at 9%, which will apply from F25. The income of the UK
subsidiary will be subject to minimum tax
but this will not result in an
increased tax burden since the tax rate in the UK is above 15 per
cent. For profits generated by the Hungarian subsidiaries of the
Group, additional global minimum tax liabilities will apply
from F25 and it is estimated that the effective tax rate on
these profits will approximate 15 per cent
in F25.
The assessment by management of
the detailed minimum tax rules is still in progress but it is
expected that beyond F25 substantially all profits
of the Group will be subject to minimum tax and the effective tax
rate of the Group will approximate 15 per
cent.
In line with the exception
introduced by a 2023 amendment of IAS 12, 'Income Taxes', the Group
does not account for deferred taxes on "Pillar Two income taxes"
but will account for such taxes as a current tax when incurred in
the future. Therefore, the minimum tax rules had no impact on the
recognition and measurement of deferred tax balances at 31 March
2024, and hence on the total tax charge in the year.
Tax residency change
Wizz Air Hungary Ltd. moved its
place of effective management from Switzerland to Hungary with an
effective date of 1 April 2023. As a consequence, its tax residency
is Hungarian from F24 onwards.
Recognised in the statement of
other comprehensive income
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Deferred tax related to movements
in cash flow hedging reserve
|
(13.2)
|
9.9
|
|
Total tax
(charge)/credit
|
(13.2)
|
9.9
|
Interpretation 23, 'Uncertainty
over Income Tax Treatments' (IFRIC 23)
The Group has open tax periods in
a number of jurisdictions involving uncertainties of different
nature and materiality. The Group assessed the impact of
uncertainty of each of its open tax positions in line with the
requirements of IFRIC 23. The outcome of this
assessment F24 balance of €0.1 million at the end of both
F24 and F23. For all other tax returns, the Group concluded that it
was probable that the tax authority would accept the uncertain tax
treatment that has been taken or is expected to be taken in those
tax returns and therefore accounted for income taxes consistently
with that tax treatment. The final liabilities, as later assessed
by the tax authorities, are not expected to materially vary from
the amounts that have been recognised by the Group.
8. Earnings/(loss) per
share
Basic earnings/(loss) per
share
Basic earnings or loss per share
is calculated by dividing the profit or loss attributable to equity
holders of the Company by the weighted average number of Ordinary
Shares in issue during each year.
|
|
|
|
|
|
2024
|
2023
|
|
Profit/(loss) for the year, €
million
|
376.6
|
(523.0)
|
|
Weighted average number of
Ordinary Shares in issue
|
103,329,836
|
103,210,067
|
|
Basic earnings/(loss) per share,
€
|
3.64
|
(5.07)
|
There were no Convertible Shares
in issue at 31 March
2024 (2023:
nill).
Diluted earnings/(loss) per
share
There is no difference between the
basic and diluted loss per share for F23 as potential Ordinary
Shares are anti-dilutive due to incurred loss.
Diluted earnings per share is
calculated by adjusting the weighted average number of Ordinary
Shares in issue with the weighted average number of Ordinary Shares
that could have been issued in the respective period as a result of
the conversion of the following convertible instruments of the
Group:
▶ Convertible Shares;
▶ Convertible Notes; and
▶ Employee share options (vested share options are
included in the calculation).
The profit for the year has been
adjusted for the purposes of calculating diluted earnings per share
in respect of the interest charge relating to the debt which could
have been converted into shares.
|
|
|
|
|
Diluted earnings/(loss) per
share
|
2024
|
2023
|
|
Profit/(loss) for the year, €
million
|
376.6
|
(523.0)
|
|
Interest expense on convertible
debt (net of tax), € million
|
1.8
|
-
|
|
Profit/(loss) used to determine
diluted earnings per share, € million
|
378.4
|
(523.0)
|
|
Weighted average number of
Ordinary Shares in issue, thousands
|
103,330
|
103,210
|
|
Adjustment for assumed conversion
on convertible instruments, thousands
|
24,380
|
-
|
|
Weighted average number of
Ordinary Shares for diluted earnings per share,
thousands
|
127,710
|
103,210
|
|
Diluted earnings/(loss) per share,
€
|
2.96
|
(5.07)
|
9. Property, plant and
equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and
buildings
€
million
|
Aircraft
maintenance assets
€
million
|
Aircraft
assets and parts
€
million
|
Fixtures
and
fittings
€
million
|
Advances
paid
for
aircraft*
€
million
|
Advances
paid
for
aircraft maintenance assets
€
million
|
RoU
assets - aircraft and spares
€
million
|
RoU
assets - other
€
million
|
Total
€
million
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
At 1 April 2022
|
25.8
|
374.0
|
690.3
|
11.3
|
734.4
|
224.6
|
3,414.1
|
16.1
|
5,490.6
|
|
Additions
|
0.1
|
106.4
|
652.8
|
1.8
|
481.7
|
69.7
|
745.5
|
11.2
|
2,069.2
|
|
Disposals
|
-
|
(137.2)
|
(38.2)
|
(0.9)
|
(406.1)
|
-
|
(225.0)
|
-
|
(807.4)
|
|
Transfers
|
-
|
85.2
|
-
|
-
|
-
|
(85.2)
|
-
|
-
|
-
|
|
FX translation effect
|
-
|
0.2
|
(6.6)
|
-
|
-
|
(0.9)
|
(14.0)
|
-
|
(21.3)
|
|
At 31 March 2023
|
25.9
|
428.6
|
1,298.3
|
12.2
|
810.0
|
208.2
|
3,920.6
|
27.3
|
6,731.1
|
|
Additions
|
12.3
|
202.0
|
576.9
|
1.1
|
512.7
|
68.7
|
1,048.1
|
11.9
|
2,433.7
|
|
Disposals
|
(0.7)
|
(172.1)
|
(72.7)
|
(0.1)
|
(480.4)
|
-
|
(315.8)
|
(5.4)
|
(1,047.2)
|
|
Transfers
|
-
|
127.0
|
-
|
-
|
-
|
(127.0)
|
-
|
-
|
-
|
|
FX translation effect
|
-
|
(3.9)
|
3.6
|
-
|
-
|
-
|
8.8
|
-
|
8.5
|
|
At 31 March 2024
|
37.5
|
581.6
|
1,806.1
|
13.2
|
842.3
|
149.9
|
4,661.7
|
33.8
|
8,126.1
|
|
Accumulated
depreciation
|
|
|
|
|
|
|
|
|
|
|
At 1 April 2022
|
4.5
|
263.4
|
83.8
|
7.6
|
-
|
-
|
1,492.7
|
7.2
|
1,859.2
|
|
Depreciation charge for the
year
|
1.5
|
117.5
|
59.0
|
1.7
|
-
|
-
|
405.7
|
2.7
|
588.1
|
|
Disposals
|
-
|
(137.2)
|
(14.1)
|
(0.9)
|
-
|
-
|
(225.0)
|
-
|
(377.2)
|
|
FX translation effect
|
-
|
(1.3)
|
(0.1)
|
-
|
-
|
-
|
(3.6)
|
-
|
(5.0)
|
|
At 31 March 2023
|
6.0
|
242.4
|
128.6
|
8.4
|
-
|
-
|
1,669.8
|
9.9
|
2,065.1
|
|
Depreciation charge for the
year
|
1.7
|
156.7
|
92.9
|
1.9
|
-
|
-
|
479.8
|
2.9
|
735.9
|
|
Disposals
|
(0.3)
|
(166.1)
|
(4.3)
|
(0.1)
|
-
|
-
|
(311.0)
|
(4.0)
|
(485.8)
|
|
FX translation effect
|
-
|
(6.1)
|
(0.5)
|
-
|
-
|
-
|
2.5
|
-
|
(4.1)
|
|
At 31 March 2024
|
7.4
|
226.9
|
216.7
|
10.2
|
-
|
-
|
1,841.1
|
8.8
|
2,311.1
|
|
Net book amount
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2024
|
30.1
|
354.7
|
1,589.4
|
3.0
|
842.3
|
149.9
|
2,820.6
|
25.0
|
5,815.0
|
|
At 31 March 2023
|
19.9
|
186.2
|
1,169.7
|
3.8
|
810.0
|
208.2
|
2,250.8
|
17.4
|
4,666.0
|
* Disposals
represent the refunds upon delivery of aircraft of advances
previously paid.
The Group entered into various
financing arrangements in order to finance aircraft including sale
and leaseback, Japanese Operating Lease with Call Option (JOLCO)
and French Tax Lease (FTL) structures. Certain of these
arrangements include Special Purpose Vehicles (SPV) in the
financing structure and in accordance with IFRS 10, where the Group
has control of these entities, these are consolidated in the Group
balance sheet. Aircraft assets and parts leased under JOLCO as part
of sale and leaseback arrangements are not classified as leases
under IFRS 16 and treated as aircraft assets and parts (as if there
were no sale at all).
Other right-of-use (RoU) assets
include leased buildings and simulator equipment. Please refer to
Note 11 for details on lease liabilities.
Additions to aircraft maintenance
assets (2024: €202.0million; 2023: €106.4 million) were
fixed assets created primarily against provision for maintenance,
as the Group's aircraft or their main components no longer met the
relevant return conditions under lease contracts.
Additions to "advances paid to
aircraft maintenance assets" reflect primarily the advance payments
made by the Group to the engine maintenance service provider
under power by the hour agreements.
Additions to "advances paid for
aircraft" represent PDPs made in the year, while disposals in the
same category represent PDP refunds received from the manufacturer
where the respective aircraft or spare engine was leased (i.e. not
purchased) by the Group. During F24 in the statement of
cash flows the cash inflow was €480.4 million "refund of
advances paid for aircraft" and the cash outflow was
€370.7 million "advances paid for aircraft". In F23, the Group
entered into a PDP financing loan agreement denominated in US
Dollars ($), according to which PDPs in the amount of $334.4
million were pledged as collateral as of 31 March 2023 (see
Note 11). As of 31 March 2024, $260.0 million is pledged as
collateral.
The Group has reviewed the
expected useful lives attributed to its leased aircraft fleet and
notes that the duration of its leases is significantly less than
the current expected economic life of an aircraft. No climate risk
that may impact these assets during the lease terms has been
identified. Given this, no change to the expected useful life is
considered necessary as a result of climate change.
Impairment assessment
Landing slots are assets with
indefinite useful life and are to be tested annually for
impairment. An impairment assessment was performed for a single
cash-generating unit (CGU) that includes the whole route network,
virtually all property, plant, equipment, the landing slots and
other intangible assets of the Group.
No indication of impairment of any
of the single CGU's assets was identified. A separate impairment
assessment was performed for the aircraft stranded in Ukraine as
disclosed below.
Aircraft in Ukraine
In February 2022, the airspace of
Ukraine, Russia and Moldova was closed until further notice as a
result of the war in Ukraine. Four of Wizz Air's aircraft were
stranded in Ukrainian territory, one in Lviv and three in
Kyiv.
The aircraft in Lviv, and all six
engines of the aircraft in Kyiv were successfully repatriated.
After attending airframe structural checks and engine inspections
the aircraft and the engines returned to service with no
significant extra repair work required.
The airframes remaining in Kyiv
are in good condition and with no damage, evidenced by photographic
images and local employee information. Maintenance work has been
performed to put parking and storage procedures in place. The total
net book value of the assets is €20.7 million. Since these stranded
assets are not generating cash-inflows, an impairment assessment
was performed.
Management evaluated various
scenarios, including successful repatriation to the fleet, prospect
of recovery under insurance arrangements, selling the assets
in full or in parts to third parties, and continued grounding with
no recovery prospects. In case of successful repatriation it is
assumed that the aircraft can return to the fleet by summer season
2025 and can continue to generate cash inflows. The other scenarios
considered are ranging between full recovery and complete loss of
the asset values. Based on the weighted probability assessment,
management considers the carrying value of the aircraft to be
recoverable from the cash flows generated through the various
scenarios assessed.
10. Derivative financial
instruments
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Assets
|
|
|
|
Non-current derivatives
|
3.9
|
0.2
|
|
Cash flow hedges
|
3.9
|
0.2
|
|
Current derivatives
|
33.0
|
1.0
|
|
Cash flow hedges
|
33.0
|
1.0
|
|
Total derivative financial
assets
|
36.9
|
1.2
|
|
|
|
|
|
Liabilities
|
|
|
|
Non-current derivatives
|
-
|
(4.2)
|
|
Cash flow hedges
|
-
|
(4.2)
|
|
Current derivatives
|
(0.7)
|
(104.2)
|
|
Cash flow hedges
|
(0.7)
|
(104.2)
|
|
Total derivative financial
liabilities
|
(0.7)
|
(108.4)
|
Derivative financial instruments
represent cash flow hedges (see Note 2). The full value of a
hedging derivative is classified as a current asset or liability if
the remaining maturity of the hedged item is less than a
year.
The changes in the net position of
assets and liabilities in respect of open cash flow hedges are
detailed in the consolidated statement of changes in
equity.
The mark-to-market gains
(derivative financial assets) were generated on gains on call
options bought (as part of zero-cost collar instruments) that were
in the money at year end.
The mark-to-market losses
(derivative financial liabilities) were generated on losses on put
options sold (as part of zero-cost collar instruments) that were
out of the money at year end.
11. Borrowings
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Lease liability under IFRS
16
|
563.2
|
444.2
|
|
Unsecured debt
|
12.0
|
506.7
|
|
Secured debt
|
409.4
|
250.0
|
|
Liability related to JOLCO and FTL
contracts
|
99.7
|
74.1
|
|
Total current
borrowings
|
1,084.3
|
1,275.0
|
|
Lease liability under IFRS
16
|
3,048.8
|
2,350.9
|
|
Unsecured debt
|
499.6
|
498.8
|
|
Secured debt
|
53.8
|
-
|
|
Loans from non-controlling
interests
|
13.9
|
13.8
|
|
Liability related to JOLCO and FTL
contracts
|
1,543.6
|
1,137.0
|
|
Total non-current
borrowings
|
5,159.7
|
4,000.5
|
|
Total borrowings
|
6,244.0
|
5,275.5
|
Unsecured debt
On 19 January 2021, Wizz Air
Finance Company B.V., a 100 per cent owned subsidiary of Wizz
Air Holdings Plc, issued a €500.0 million 1.35 per cent Eurobond,
fully and irrevocably guaranteed by the Company, under the €3,000.0
million EMTN programme. The bond was repaid upon maturity in
January 2024. Further to that, on 19 January 2022, Wizz Air Finance
Company B.V., a 100 per cent owned subsidiary of Wizz Air
Holdings Plc, issued a €500.0 million 1.00 per cent Eurobond, fully
and irrevocably guaranteed by the Company, under the €3,000.0
million EMTN programme with a maturity in January 2026. These
Eurobonds do not contain any financial covenants. The EMTN
programme was renewed in January 2024.
Bank overdrafts which are
repayable on demand and are an integral part of cash management
activities are included within unsecured debt in the amount of
€12.0 million (31 March 2023: €6.0 million).
Secured debt
In February 2023, the Group
entered into a PDP financing loan agreement, according to which a
part of the PDPs made have been financed and at the same time
pledged as collateral, through the novation of the PDPs and the
associated aircraft purchase rights to an orphan SPV. In October
2023, the loan facility was extended by an additional US$270.0
million, keeping the total drawdown limit at US$280.6 million. At
31 March 2024, $222.9 million (31 March 2023: $274.3 million) was
borrowed, and PDPs in the amount of $260.0 million (31 March 2023:
$334.4 million) are pledged as collateral.
The loan is subject to a variable
interest rate based on Secured Overnight Financing Rate. The Group
has an obligation to repay the financed amount, its interest and
other costs related to the transaction by July 2025. When all
obligations are settled, the aircraft purchase rights and the PDPs
are automatically re-novated to Wizz Air. In case of default, the
Group bears the potential risk of losing the purchase rights and
the related PDP amounts. The PDP refinancing credit facility is
available for further financing for a maximum of two years and does
not contain any financial covenants.
In December 2023, the Group
entered into an ETS sale and repurchase agreement according to
which EU allowances were sold for €253.6 million with a commitment
to repurchase it in September 2024. The consideration received is
recognised as a financial liability within secured debt. The
difference between the sale price and the repurchase price is
recognised as interest expense over the period between the sale
date and the repurchase date. The facility does not contain any
financial covenants.
The maturity profile of borrowings
as at 31 March 2024 is as follows:
|
|
|
|
|
|
|
|
|
|
|
IFRS 16
aircraft and engine lease liability
|
IFRS 16
other lease liability
|
JOLCO
and FTL lease liability
|
Unsecured debt
|
Secured
debt
|
Loans
from non-controlling interests
|
Total
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Payments due:
|
|
|
|
|
|
|
|
|
Within one month
|
35.8
|
0.2
|
9.6
|
12.0
|
-
|
-
|
57.6
|
|
Between one and three
months
|
70.2
|
0.4
|
18.5
|
-
|
35.3
|
-
|
124.4
|
|
Between three months and one
year
|
454.7
|
1.9
|
71.5
|
-
|
374.1
|
-
|
902.2
|
|
Between one and two
years
|
535.3
|
2.8
|
107.0
|
499.6
|
53.8
|
-
|
1,198.5
|
|
Between two and three
years
|
488.0
|
2.9
|
110.0
|
-
|
-
|
-
|
600.9
|
|
Between three and four
years
|
409.0
|
3.1
|
113.0
|
-
|
-
|
-
|
525.1
|
|
Between four and five
years
|
365.0
|
3.1
|
116.4
|
-
|
-
|
-
|
484.5
|
|
More than five years
|
1,226.8
|
12.7
|
1,097.4
|
-
|
-
|
13.9
|
2,350.8
|
|
Total borrowings
|
3,584.8
|
27.1
|
1,643.4
|
511.6
|
463.2
|
13.9
|
6,244.0
|
The maturity profile of borrowings
as at 31 March 2023 is as follows:
|
|
|
|
|
|
|
|
|
|
|
IFRS 16
aircraft and engine lease liability
|
IFRS 16
other lease liability
|
JOLCO
and FTL lease liability
|
Unsecured debt
|
Secured
debt
|
Loans
from non-controlling interests
|
Total
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Payments due:
|
|
|
|
|
|
|
|
|
Within one month
|
44.9
|
0.2
|
-
|
6.0
|
5.2
|
-
|
56.3
|
|
Between one and three
months
|
68.8
|
0.4
|
18.6
|
-
|
65.0
|
-
|
152.8
|
|
Between three months and one
year
|
328.0
|
1.9
|
55.6
|
500.7
|
179.8
|
-
|
1,066.0
|
|
Between one and two
years
|
415.0
|
2.6
|
77.8
|
-
|
-
|
-
|
495.4
|
|
Between two and three
years
|
385.0
|
2.3
|
79.5
|
498.8
|
-
|
-
|
965.6
|
|
Between three and four
years
|
303.1
|
1.9
|
81.4
|
-
|
-
|
-
|
386.4
|
|
Between four and five
years
|
222.6
|
1.8
|
83.2
|
-
|
-
|
-
|
307.6
|
|
More than five years
|
1,009.1
|
7.4
|
815.1
|
-
|
-
|
13.8
|
1,845.4
|
|
Total borrowings
|
2,776.5
|
18.5
|
1,211.2
|
1,005.5
|
250.0
|
13.8
|
5,275.5
|
The total cash outflow for leases,
including JOLCO and FTL, during F24 was €720.5 million (2023:
€604.9 million). See Note 5 for details on expenses
relating to short-term and variable lease payments, and
Note 9 for details on right-of-use assets.
12. Deferred income
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Non-current liabilities
|
|
|
|
Deferred income
|
147.2
|
103.3
|
|
Current liabilities
|
|
|
|
Unearned revenue
|
790.3
|
761.1
|
|
Other
|
7.1
|
9.2
|
|
|
797.4
|
770.3
|
|
Total deferred income
|
944.6
|
873.6
|
Non-current deferred income
represents the value of benefit for the Group coming from credits
and free aircraft components received from manufacturers and
component suppliers, which will be recognised as a credit (a
decrease to aircraft-related expenses) over the useful life of the
respective asset.
Current deferred income represents
the value of tickets paid by passengers for which the flight
service is yet to be performed ("unearned revenue"), the value of
membership fees paid but not yet recognised, the current part of
the value of supplier credits received and credits provided to
passengers with no cash conversion option in the amount of €17.1
million (31 March 2023: €19.4 million). Unearned revenue increased
due to higher demand and ticket booking made further in
advance.
The contract liabilities (unearned
revenue) of €790.3 million existing at 31 March
2024 (31 March 2023: €761.1 million31 March 2023) will
become revenue during F25 (subject to further
cancellations that might happen after the year end).
13. Provisions for other
liabilities and charges
|
|
|
|
|
|
|
Aircraft
maintenance
|
Other
|
Total
|
|
|
€
million
|
€
million
|
€
million
|
|
At 1 April 2022
|
88.8
|
18.3
|
107.1
|
|
Non-current provisions
|
43.0
|
0.9
|
43.9
|
|
Current provisions
|
45.8
|
17.4
|
63.2
|
|
Transferred to trade and other
payables and deferred income
|
-
|
(13.0)
|
(13.0)
|
|
Capitalised within property, plant
and equipment
|
86.6
|
-
|
86.6
|
|
Charged to profit or
loss
|
7.0
|
4.6
|
11.6
|
|
Used during the year
|
(34.5)
|
(2.5)
|
(37.0)
|
|
FX translation effect
|
0.8
|
-
|
0.8
|
|
At 31 March 2023
|
148.7
|
7.4
|
156.1
|
|
Non-current provisions
|
76.2
|
0.1
|
76.3
|
|
Current provisions
|
72.5
|
7.2
|
79.8
|
|
Capitalised within property, plant
and equipment
|
195.8
|
-
|
195.8
|
|
Charged to profit or
loss
|
-
|
5.3
|
5.3
|
|
Used during the year
|
(81.8)
|
(2.0)
|
(83.8)
|
|
FX translation effect
|
0.9
|
-
|
0.9
|
|
At 31 March 2024
|
263.6
|
10.7
|
274.3
|
|
Non-current provisions
|
144.2
|
0.1
|
144.3
|
|
Current provisions
|
119.4
|
10.6
|
130.0
|
Non-current provisions mainly
relate to future aircraft maintenance obligations of the Group on
leased aircraft and spare engines, falling due typically between
one and five years from the balance sheet date. Current aircraft
maintenance provisions relate to heavy maintenance obligations
expected to be fulfilled in the coming financial year. The amount
of provision reflects management's estimates of the cost of heavy
maintenance work that will be required in the future to discharge
obligations under the Group's lease agreements (see Note 3).
Maintenance provisions in relation to engines and APUs covered by
power by the hour agreements are netted off with the prepayments
made to the maintenance service provider under those agreements in
respect of the same group of engines and APUs.
14. Financial
instruments
Fair values
The fair values of the financial
instruments of the Group together with their carrying amounts shown
in the statement of financial position are as follows:
|
|
|
|
|
|
|
|
Carrying
amount
|
Fair
value
|
Carrying
amount
|
Fair
value
|
|
|
31 March
2024
|
31 March
2024
|
31 March
2023
|
31 March
2023
|
|
|
€
million
|
€
million
|
€
million
|
€
million
|
|
Financial asset at fair value
through other comprehensive income
|
1.6
|
1.6
|
-
|
-
|
|
Trade and other receivables due
after more than one year
|
37.1
|
37.1
|
21.3
|
21.3
|
|
Restricted cash
|
109.4
|
109.4
|
120.4
|
120.4
|
|
Derivative financial
assets
|
36.9
|
36.9
|
1.2
|
1.2
|
|
Trade and other receivables due
within one year
|
534.0
|
534.0
|
249.0
|
249.0
|
|
Cash and cash
equivalents
|
728.4
|
728.4
|
1,408.6
|
1,408.6
|
|
Short-term cash
deposits
|
751.1
|
751.1
|
-
|
-
|
|
Trade and other payables due after
more than one year
|
(55.0)
|
(55.0)
|
(59.1)
|
(59.1)
|
|
Trade and other payables due
within one year
|
(697.4)
|
(697.4)
|
(646.4)
|
(646.4)
|
|
Derivative financial
liabilities
|
(0.7)
|
(0.7)
|
(108.4)
|
(108.4)
|
|
Convertible debt
|
(25.7)
|
(25.7)
|
(26.0)
|
(26.0)
|
|
Borrowings
|
(5,269.2)
|
(5,071.0)
|
(4,020.0)
|
(3,408.8)
|
|
Secured debt
|
(463.2)
|
(458.4)
|
(250.0)
|
(250.0)
|
|
Unsecured debt
|
(511.6)
|
(482.3)
|
(1,005.5)
|
(927.1)
|
|
Deferred income
|
(4.8)
|
(4.8)
|
(4.8)
|
(4.8)
|
|
Net balance of financial
instruments (liability)
|
(4,829.1)
|
(4,596.7)
|
(4,319.6)
|
(3,630.0)
|
The fair value of the Eurobonds is
estimated using quoted prices (Level 1), derivatives (Note 2)
and lease liabilities are valued using Level 2 methodology and the
fair value of all other financial assets and financial liabilities
is estimated using Level 3 in the fair value hierarchy.
15. Capital commitments
At 31 March 2024 the Group
had the following contracted capital commitments:
▶A
commitment to purchase 326 Airbus aircraft of the A320 family in
the period 2024-2029. The total commitment is valued at US$48.7
billion (€45.2 billion) based on list prices last published in 2018
and escalated annually until the reporting date based on contract
terms (2023: US$42.2 billion (€38.8 billion) to purchase 290 Airbus
aircraft of the A320 family in the period 2023-2028 and US$11.0
billion (€10.1 billion) in relation to 75 A321neo aircraft as
approved by shareholders in August 2023). At 17 May, out of the 326
aircraft 27 are subject to delivery in F25 and for 15 financing is
already contracted. The Group uses various financing arrangements
in order to finance aircraft including Sale and Leaseback, Japanese
Operating Lease with Call Option (JOLCO) and French Tax Lease (FTL)
structures. In addition, Original Equipment Manufacturer (OEM)
backstop financing may also be available, supplemented by a partial
self-contribution.
▶Wizz Air
Group has committed to purchasing eight IAE "neo" (GTF) spare
engines between 2024 and 2026, valued at US$174.1 million (€161.6
million) based on 2024 list prices. This follows a previous
commitment in 2023 valued at US$572.5 million (€525.7 million),
based on 2023 list prices, to acquire 27 IAE "neo" (GTF) spare
engines over the period 2023-2026. At 17 May, all eight engines are
anticipated to be delivered by F25 and financing is already
contracted for all of them.
▶A
commitment to purchase 3 Full Flight Simulators. The total
commitment is valued at €13.6 million based on contract terms.
Payment is due in instalments with €6.4 million paid as at 31 March
2024.
16. Contingent
liabilities
Legal disputes
European Commission state aid
investigations
Between 2011 and 2015, the
European Commission has initiated state aid investigations with
respect to certain arrangements made between Wizz Air and the
following airports, respectively: Timişoara, Cluj-Napoca, Târgu
Mureş, Beauvais and Girona. In the context of these investigations,
Wizz Air has submitted its legal observations and supporting
economic analyses of the relevant arrangements to the European
Commission, which are currently under review. The European
Commission has given notice that the state aid investigations
involving Wizz Air will be assessed on the basis of the new "EU
guidelines on state aid to airports and airlines" which were
adopted by the European Commission on 20 February 2014. Where
relevant, Wizz Air has made further submissions to the European
Commission in response to this notification. In relation to the
Timişoara arrangements, the European Commission confirmed on 24
February 2020 that the arrangements did not constitute state aid.
We are awaiting decisions in relation to the other airport
arrangements mentioned herein above. Ultimately, an adverse
decision by the European Commission could result in a repayment
order for the recovery from Wizz Air of any amount determined by
the European Commission to constitute illegal state aid. None of
these ongoing investigations are expected to lead to exposure that
is material to the Group.
No provision has been made by the
Group in relation to these issues because there is currently no
reason to believe that the Group will incur charges from these
cases.
17. Related parties
Identity of related
parties
Related parties are:
▶Indigo
Hungary LP and Indigo Maple Hill LP (collectively referred to as
"Indigo" here), because of its shareholding and its
appointment of two Directors to the Board of Directors (all in
service at 31 March 2024); and
▶Key
management personnel (Directors and Officers).
Indigo, Directors and Officers
altogether held 25.7 per cent of the ordinary shares of the Company
at 31 March 2024 (2023: 25.6 per cent).
Transactions with related
parties
Transactions with
Indigo
At 31 March 2024 Indigo held
24,684,895 Ordinary Shares, equal to 23.9 per cent of the Company's
issued share capital (2023: 24,684,895 Ordinary Shares, 23.9 per
cent).
Indigo has an interest in
convertible debt instruments issued by the Company. The Company's
liability to Indigo, including principal and accrued interest, was
€25.7 million at 31 March 2024 (2023:
€26.0 million).
During the year
ended 31 March
2024 the Company entered into
transactions with Indigo as follows:
▶the
Company recognised interest expense on convertible debt instruments
held by Indigo in the amount of €1.8 million (2023:
€1.7 million).
Transactions with key management
personnel
Officers (members of executive
management) and Directors of the Board are considered to be key
management personnel. The compensation of key management personnel,
including Non-Executive Directors, is as follows:
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Salaries and other short-term
employee benefits
|
9.7
|
9.1
|
|
Social security costs
|
1.1
|
1.2
|
|
Share-based payments
|
7.1
|
6.3
|
|
Total key management compensation
expense
|
17.9
|
16.6
|
There were no termination benefits
paid to any key management personnel in the year or the prior
year.
There were no post-employment
benefits or other long-term benefits provided to any key management
personnel in the year or the prior year.
There were no material
transactions with related parties during the financial year except
as indicated below.
The Group has contracted with
companies that are related to the CEO. The total paid for such
goods and services in F24 was €3.4 million. The main
service purchased was to provide machine learning capabilities with
regard to ticket and ancillary sales. The amount paid for this
service in F24 was €3.3 million (2023: €2.5 million),
which in the judgement of the Board was not material. On 31
March 2024, the outstanding amount payable to the related party was
€0.4 million.
18. Subsequent events
Based on the assessment conducted,
no material subsequent events have been identified that would
necessitate disclosure in the financial statements for the
reporting period.
Glossary of terms
Definitions:
Aircraft
utilisation/utilisation: the number of
hours of one aircraft is in operation on one day. Rationale - Key
performance indicator in aviation business, measurement for one-day
aircraft productivity.
Calculation (for one month):
monthly aircraft utilisation equals total block hours divided by
number of days in the month divided by the equivalent aircraft
number divided by 24 hours. Calculation (for a longer period than
one month): the given period aircraft utilisation equals with the
weighted average of monthly aircraft utilisation based on the
month-end fleet counts.
Ancillary revenue per
passenger: ancillary revenue divided by
the number of passengers (PAX) in the given period, which gives the
ancillary performance per one passenger. Rationale - Key
performance indicator for revenue performance
measurement.
Calculation: ancillary
revenue/PAX.
Available seat kilometres
(ASK)/total ASKs: the number of seats
available for scheduled passengers multiplied by the number of
kilometres those seats were flown. Rationale - Key performance
indicator for capacity measurement.
Calculation: seats on
aircraft*stage length.
Average aircraft stage length
(km): average distance that an aircraft
flies between the departure and arrival airport. Rationale - Key
performance indicator for measurement of capacity and
productivity.
Calculation: average stage length
of the revenue sectors in the given period
(ASKs/capacity).
Average departures per aircraft
per day: the number of departures one
aircraft performs in a day in the given period. Rationale - Key
performance indicator for revenue generation/utilisation of
assets.
Calculation: total number of
revenue sectors per number of days (in the given period) per
equivalent aircraft number.
CASK (total unit
cost): total cost per ASK, where cost is
defined as operating expenses and financial expenses net of
financial income. Rationale - Key performance indicator for
divisional cost control.
Calculation: total operating
expenses+financial income+financial expenses/total of ASKs
(km)*100.
Completion factor or
rate: per cent of operated flights
compared to the scheduled flights. Rationale - Key operational
performance indicator for the measurement of scheduled flight
completion.
Calculation: number of operated
flights/number of scheduled flights.
Equivalent aircraft or average
aircraft count: the average number of
aircraft available to Wizz Air within a period. The count contains
spare aircraft, aircraft under maintenance and parked aircraft.
Rationale - Key performance indicator in aviation business for the
measurement of average aircraft available for flying and
capacity.
Calculation (for one month):
average from the daily fleet count in a given month which
includes/excludes deliveries and redeliveries. Calculation (for a
longer period than one month): weighted average of the monthly
equivalent aircraft numbers based on the number of days in the
given period.
Equivalent operating aircraft or
average operating aircraft count: the
average number of operating aircraft available to Wizz Air within a
period. The count includes all aircraft except those parked.
Rationale - Key performance indicator in aviation business for the
measurement of average fleet and capacity.
Calculation (for one month):
average from the daily operating fleet count in the given month
which includes/excludes deliveries and redeliveries. Calculation
(for a longer period than one month): weighted average of the
monthly equivalent operating aircraft numbers
based on the number of days in the given period.
Ex-fuel CASK (ex-fuel unit
costs): this measure is computed by
dividing the total ex-fuel cost by the total ASKs within a given
timeframe. Ex-fuel CASK defines the unit ex-fuel cost for each
kilometre flown per seat in Wizz Air's fleet. Note that: total
ex-fuel cost consists of total operating expenses and net cost from
financial income and expense but does not contain fuel costs.
Rationale - It serves as an essential performance indicator for
overseeing divisional cost control. The rationale for employing
this metric is rooted in its ability to gauge and manage non-fuel
operating expenses effectively.
Calculation: total ex-fuel cost
(EUR)/total of ASKs (km)*100.
Foreign exchange
rate: average foreign exchange rate, plus
any hedge deal for the given period, calculated with a weighted average method. Rationale - Key performance indicator for Fuel Controlling
and Treasury teams.
Fuel CASK (fuel unit
cost): this metric is calculated by
dividing the total fuel costs (plus additional fuel consumption
related costs) by the sum of available seat kilometres (ASKs)
during a specific reporting period. Rationale - Fuel CASK provides
an insightful unit fuel cost measurement, representing the cost
incurred for flying one kilometre per seat within Wizz Air's fleet.
The rationale behind the use of this measure lies in its
effectiveness as a critical performance indicator for the control
and management of fuel expenses.
Calculation: total fuel cost
(EUR)/total of ASKs (km)*100.
Fuel price (average US$ per
tonne): average fuel price within a
period, calculated as fuel cost
(including other fuel cost-related items) divided by the
consumption. Rationale - Key performance
indicator for fuel cost controlling.
JOLCO (Japanese Tax Lease) and
French Tax Lease: special forms of
structured asset financing, involving local tax benefits for
Japanese and French investors, respectively. Rationale - These
measures are employed to encapsulate specific lease contracts that
facilitate enhanced cash utilisation strategies.
Load factor (%): the number of seats sold (PAX) divided by the number of
seats available on the aircraft (capacity). Rationale - Key
performance indicator for commercial and revenue
controlling.
Calculation: the number of seats
sold, divided by the number of seats available.
Net fare (total revenue per
passenger): average revenue per one
passenger calculated by total revenue divided by the number of
passengers (PAX) during a specified period. Rationale - This metric
is a crucial performance indicator for commercial control, offering
insights into the overall revenue generated per
passenger.
Calculation: total
revenue/PAX.
Operating aircraft
utilisation: the number of hours that one
operating aircraft is in operation on one day. Rationale - Key
performance indicator in aviation business, measurement for one-day
aircraft productivity.
Calculation (for one month):
average daily operating aircraft utilisation in a month equals
total monthly block hours divided by number of days in the month
divided by the equivalent operating aircraft number divided by 24
hours. Calculation (for a longer period than one month): the given
period operating aircraft utilisation equals the weighted average
of monthly operating aircraft utilisation based on the month-end
operating aircraft counts.
Passengers (alternative names:
passengers carried, PAX): passengers
who bought a ticket (thus making revenue for the Company) for a
revenue sector. Rationale - Key performance indicator for
Commercial controlling team.
Calculation: sum of number of
passengers of all revenue sectors.
PDP:
refers to the pre-delivery payments made under the Group's aircraft
purchase agreements. These payments signify contractual commitments
designed to support fleet expansion and growth.
Period-end fleet size or number of
aircraft at end of period: the number of
aircraft that Wizz Air has in its fleet and that are leased and/or
owned at the end of the given period. The count contains spare
aircraft, aircraft under maintenance and parked aircraft. Rationale
- Key performance indicator in aviation business for the
measurement of fleet.
Calculation: sum of aircraft at
the end of the given period.
Period-end operating
aircraft: the number of operating aircraft
that Wizz Air has in its fleet and that are leased and/or owned at
the end of the given period. The count includes all aircraft except
those parked. Rationale - Key performance indicator in aviation
business for the measurement of operating aircraft at a period
end.
Calculation: sum of operating
aircraft at the end of the given period.
RASK:
RASK is determined by dividing the total revenue by the total ASK.
This measure characterises the unit net revenue performance for
each kilometre flown per seat within Wizz Air's fleet. Rationale -
It serves as a pivotal performance indicator for commercial
control, providing insights into the revenue generation
efficiency.
Calculation: total revenue
(EUR)/total of ASKs (km)*100.
Revenue departures or
sectors: flight between departure and
arrival airport where Wizz Air generates revenue from ticket sales.
Rationale - Key performance indicator in revenue generation
controlling.
Calculation: sum of departures of
all sectors.
Revenue
passenger kilometres (RPK): the number of seat kilometres
flown by passengers who paid for their tickets. Rationale - Key
performance indicator for revenue measurement.
Calculation: number of
passengers*stage length.
Seat
capacity/capacity: the total number of
available (flown) seats on aircraft for Wizz Air within a given
period (revenue sectors only). Rationale - Key performance
indicator for capacity measurement.
Calculation: sum of capacity of
all revenue sectors.
Ticket revenue per
passenger: passenger ticket revenue
divided by the number of passengers (PAX) in the given period.
Rationale - Key performance indicator for measurement of revenue
performance.
Calculation: passenger ticket
revenue/PAX.
Total
block hours: each hour from the
moment an aircraft's brakes are released at the departure airport's
parking place for the purpose of starting a flight until the moment
the aircraft's brakes are applied at the arrival airport's parking
place. Rationale - Key performance indicator in the airline
business for the measurement of capacity and completed block hours
by aircraft.
Calculation: sum of block hours of
all sectors (in the given period).
Total flight
hours: each hour from the moment the
aircraft takes off from the runway for the purposes of flight until
the moment the aircraft lands at the runway of the arrival airport.
Rationale - Key performance indicator in the airline business for
the measurement of capacity and flown flight hours by
aircraft.
Calculation: sum of flight hours
of all sectors (in the given period).
Yield:
represents the total revenue generated per revenue passenger
kilometre (RPK). Rationale - This measure is integral for assessing
and controlling commercial performance by quantifying the revenue
derived from each kilometre flown by paying passengers.
Calculation: the total
revenue/RPK.
Alternative performance measures
(APMs):
Alternative performance measures
are non-IFRS standard performance measures aiming to introduce the
Company's performance in line with management's requirements. The
existing presentation is considered relevant for the users of the
financial statements because: (i) it mirrors disclosures presented
outside of the financial statements; and (ii) it is regularly
reviewed by the Chief Operating Decision Maker for evaluating the
financial performance of its single operating segment.
Ancillary
revenue: generated revenue from
ancillaries (including other ancillary revenue-related items).
Rationale - Key financial indicator for the separation of different
revenue lines.
Average capital
employed: average capital employed is the
sum of the annual average equity and interest-bearing borrowings
(including convertible debt), less annual average cash and cash
equivalents, and short-term cash deposits. Rationale - This key
financial indicator is integral for evaluating the profitability
and effectiveness of capital utilisation.
Calculation: average
equity+interest-bearing borrowings (including convertible
debt)-cash and cash equivalents-short-term cash
deposits.
Earnings before interest, tax,
depreciation and amortisation (EBITDA):
EBITDA represents the profit or loss before accounting for net
financing costs or gains, income tax expenses or credits, and
depreciation and amortisation. Rationale - This measure serves as a
key financial indicator for the Company, providing insights into
operational profitability.
Calculation: operating
profit/(loss)+depreciation and amortisation.
EBITDA margin %: EBITDA margin % is computed by dividing EBITDA by total
revenue in millions of Euros.Rationale - This metric presents
EBITDA as a percentage of total net revenue and offers valuable
financial insights for the Company's performance
assessment.
Calculation: EBITDA/total revenue
(€ million)*100.
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Operating profit/(loss)
|
437.9
|
(466.8)
|
|
Depreciation and
amortisation
|
755.3
|
601.1
|
|
EBITDA
|
1,193.2
|
134.3
|
|
Total revenue
|
5,073.1
|
3,895.7
|
|
EBITDA margin (%)
|
23.5%
|
3.4%
|
Leverage ratio: the leverage ratio is computed by dividing net debt by the
last twelve months' EBITDA. Rationale - It serves as a crucial key
financial indicator for the Group, facilitating an assessment of
the organisation's financial leverage and debt
management.
Calculation: please see in the
table under the definition of net debt.
Liquidity: represents cash, cash equivalents and short-term cash
deposits, expressed as a percentage of the last twelve months'
revenue. Rationale - This key financial indicator offers a
comprehensive view of the Group's cash position and financial
stability.
Calculation: please see the table
below.
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
€
million
|
€
million
|
|
Cash and cash
equivalents
|
728.4
|
1,408.6
|
|
Short-term cash
deposits
|
751.1
|
-
|
|
Total revenue
|
5,073.1
|
3,895.7
|
|
Liquidity
|
29.2%
|
36.2%
|
Net debt:
interest-bearing borrowings (including convertible debt) less cash
and cash equivalents. Rationale - Plays a pivotal role as a key
financial indicator, offering valuable information regarding the
Group's financial liquidity and leverage position.
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
€
million
|
€
million
|
|
Non-current liabilities
|
|
|
|
Borrowings
|
5,159.7
|
4,000.5
|
|
Convertible debt
|
25.4
|
25.7
|
|
Current liabilities
|
|
|
|
Borrowings
|
1,084.3
|
1,275.0
|
|
Convertible debt
|
0.3
|
0.3
|
|
Current assets
|
|
|
|
Short-term cash
deposits
|
751.1
|
-
|
|
Cash and cash
equivalents
|
728.4
|
1,408.6
|
|
Net debt
|
4,790.2
|
3,892.8
|
|
EBITDA
|
1,193.2
|
134.3
|
|
Leverage ratio
|
4.0
|
29.0
|
Passenger ticket
revenue: generated revenue from ticket
sales (including other ticket revenue-related items). Rationale -
Key financial indicator for the separation of different revenue
lines.
Return on capital employed
(ROCE): operating profit or loss after tax
divided by average capital employed, expressed as a percentage.
Rationale - ROCE is a key financial indicator that facilitates an
assessment of the Group's profitability and the efficiency of
capital utilisation.
Calculation: please see the range
below.
|
|
|
|
|
|
2024
|
2023
|
|
|
€
million
|
€
million
|
|
Operating profit/(loss)
|
437.9
|
(466.8)
|
|
Effective tax rate for the
year
|
(7.3)%
|
5.2%
|
|
Operating profit/(loss) after
tax
|
469.7
|
(442.5)
|
|
Average Shareholders'
equity
|
(106.1)
|
(47.0)
|
|
Average borrowings
|
5,785.6
|
4,633.1
|
|
Average cash and cash
equivalents
|
(1,068.5)
|
(1,087.6)
|
|
Average short-term cash
deposits
|
(375.6)
|
(225.0)
|
|
Average capital
employed
|
4,235.4
|
3,273.5
|
|
ROCE (%)
|
11.1%
|
(13.5)%
|
Total cash: non-statutory financial performance measure and
comprises/is calculated from cash and cash equivalents, short-term
cash deposits and total current and non-current restricted cash.
Rationale - This key financial indicator offers a comprehensive
view of the Group's cash position and financial
stability.
Calculation: please see the table
below.
|
|
|
|
|
|
31 March
2024
|
31 March
2023
|
|
|
€
million
|
€
million
|
|
Non-current assets
|
|
|
|
Restricted cash
|
54.0
|
56.7
|
|
Current assets
|
|
|
|
Restricted cash
|
55.4
|
63.7
|
|
Short-term cash
deposits
|
751.1
|
-
|
|
Cash and cash
equivalents
|
728.4
|
1,408.6
|
|
Total cash
|
1,588.9
|
1,529.0
|
Total revenue: total ticket and ancillary revenue for the given period.
The split of total revenue presented in the consolidated statement
of comprehensive income. Rationale - Key financial indicator for
the Company.