Wizz Air Holdings Plc (“Wizz Air” or the “Company”), the largest low-cost airline in Central and Eastern Europe, today issues an unaudited interim management statement for the three months to 31 December 2015 (“third quarter” or “Q3”).
Three months to 31 December | 2015 (million) | 2014 (million) | Change |
Passengers carried | 4.7 | 3.8 | +23.2% |
Revenue (€) | 310.5 | 264.6 | +17.3% |
Reported Net Profit (IFRS) (€) | 15.6 | 19.7 | - 20.9% |
Underlying Net Profit (€)* | 17.2 | 3.6 | +376.5% |
HIGHLIGHTS
- Total revenue increased 17.3% to €310 million
- Ticket revenue up 12.4% to €187 million
- Ancillary revenue up 25.8% to €123 million
- Reported net profit under IFRS was €15.6 million, a decrease of 20.9%
- Underlying net profit was a record €17.2 million, an increase of 376.5%
- Underlying net profit for the full year is now expected to be in the range of €200 million to €210 million.
STRONG OPERATING PERFORMANCE ACROSS KEY METRICS
- Passengers carried in Q3 up 23.2% to 4.7 million reaffirming Wizz Air’s position as the leading low cost carrier in CEE
- Load factor increased to 85.7% for Q3 versus 84.6% in Q3 2014
- Total unit costs fell by 7.4% to 3.40 euro cents per ASK** compared to Q3 2014
- Ancillary revenue per passenger increased 2.1% in the third quarter to €26.1 compared to Q3 2014
- Current fleet expanded to 65 aircraft with two new deliveries of the larger 230-seat Airbus A321ceo
- Wizz Discount Club membership was 700,000, year-on-year growth of 22%
STRONG BALANCE SHEET AND ORDER BOOK TO DRIVE GROWTH
- Total cash at the end of December 2015 was €684 million, of which €580 million is classified as free cash
- Adjusted net debt to EBITDAR ratio fell to 1.41 times, a reduction of 29% versus Q3 2014
- Shareholder approval of the purchase of 110 Airbus A321neo aircraft
- Wizz Air’s largest ever sale and lease agreement for 11 Airbus A321ceo aircraft signed
NEW ROUTES AND BASES
Wizz Air grew its route network by 19 routes in the third quarter to over 400 including new routes to Hungary, Lithuania, Macedonia, Poland, Romania and Serbia. The Company opened its 22nd base in Debrecen in Hungary and announced it will open its 23rd operating base in Iasi in Romania in July 2016.
József Váradi, Wizz Air Chief Executive said:
“Our results in the third quarter have been ahead of expectations with robust trading across all of our markets. In light of this performance and encouraging forward bookings in the fourth quarter the Company today raised its underlying net profit guidance for the full year to a range of between €200 million to €210 million. We are reporting record underlying Q3 profitability while also delivering 23% growth in passenger numbers which re-affirms the opportunity we see in Central and Eastern Europe.
The third quarter also saw a number of key milestones for Wizz Air as we position ourselves for further growth. We took delivery of our first two A321ceo aircraft and completed the order for 110 Airbus A321neo aircraft. We also signed our largest ever lease agreement for 11 Airbus A321ceo aircraft. These larger and more fuel efficient aircraft will underpin our growth plans for the next decade and ensure that we maintain our industry leading ultra-low cost base.”
* Underlying net profit is defined as reported net profit under IFRS less unrealised FX gains/losses and exceptional items. ** ASK: Available Seat Kilometres
FULL YEAR OUTLOOK
As previously indicated, lower fuel prices continue to feed through to lower air fares. Wizz Air anticipates that the downward trend in unit revenues will continue in the fourth quarter of the financial year. Nonetheless the favourable macro environment combined with the strong financial performance in the nine months to 31 December 2015 and encouraging forward bookings in fourth quarter points to an underlying net profit for the full year (excluding unrealised foreign exchange gains/losses and exceptional items) in the range of between €200 million to €210 million. Wizz Air’s current expectations for full year performance are summarised below.
Current
Guidance | Previous
Guidance | Comment |
Capacity growth (ASKs) | 18% | 18% | H1 2016: 17%, H2 2016: 19% |
Average stage length | Unchanged | Unchanged | - |
Load Factor | Modest improvement | Modest improvement | - |
Fuel CASK | - 13.0% | - 6.0% | Assumes spot price of $350/MT |
Ex-fuel CASK | Between zero and +1.0% | + 1.0% | - |
Total CASK | - 3.0% | - 1.5% | Assumes $/€ rate of $1.09 |
Revenue per ASK | Down low single digit | Down low single digit | Pass through of lower fuel prices |
Effective tax rate | 6% |
