Half Year Results
WIZZ AIR HOLDINGS PLC - RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2023
RECORD NET PROFIT IN H1 AS CAPACITY CONTINUES TO GROW YOY AND OPERATIONAL IMPROVEMENTS DELIVER RESULTS
LSE: WIZZ
Geneva, 9 November 2023: Wizz Air Holdings Plc ("Wizz Air", "the Company" or "the Group"), the fastest-growing European low-cost airline, today issues unaudited results for the six months to 30 September 2023 ("first half", "H1" or "H1 F24").
This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the 2023 Annual Report and Accounts, and any public announcements made by Wizz Air Holdings Plc during the interim reporting period.
FINANCIAL RESULTS (Unaudited)|
Six months to 30 September |
2023 |
2022 |
Change 1 |
|
Passengers carried (million) |
33.0 |
26.5 |
24.6 % |
|
Total revenue (€ million) |
3,052.3 |
2,193.8 |
39.1 % |
|
EBITDA (€ million) 3 |
878.1 |
217.8 |
303.2 % |
|
EBITDA Margin (%) 3 |
28.8 |
9.9 |
18.8ppt |
|
Operating profit/(loss) for the period (€ million) |
522.9 |
(63.8) |
n.m. |
|
Unrealised foreign currency losses (€ million) |
(14.3) |
(285.2) |
(95.0) % |
|
Profit/(loss) for the period (€ million) |
400.7 |
(384.3) |
n.m. |
|
RASK (€ cent) |
4.91 |
4.48 |
9.6 % |
|
Fuel CASK (€ cent) |
1.55 |
2.11 |
(26.5) % |
|
Ex-fuel CASK (€ cent) |
2.60 |
2.62 |
(0.8) % |
|
Total cash (€ million) 2 |
1,837.8 |
1,529.0 |
20.2 % |
|
Load factor (%) |
92.6 |
86.9 |
5.7ppt |
|
Period-end fleet size |
187 |
168 |
11.3 % |
|
Period-end seat count (thousand) |
35,625 |
30,485 |
16.9 % |
1 n.m.: not meaningful as a variance is more than (-)100 per cent.
2 Total cash is a non-statutory financial performance measure and comprises cash and cash equivalents (30 September 2023: €1,132.3 million; 31 March 2023: €1,408.6 million), short-term cash deposits (30 September 2023: €600.5 million; 31 March 2023: nil) and total current and non-current restricted cash (30 September 2023: €105.0 million; 31 March 2023: €120.4 million).
3 For further definition of non-financial measures presented refer to "Glossary of terms and alternative performance measures (APMS)" section of this document. These measures incorporate certain non-financial information that management believes is useful when assessing the performance of the Group.
HIGHLIGHTS
▶ Profit for the period of €400.7 million, with Q2 five times higher year-on-year.
▶ Record high traffic of 33.0 million passengers in H1 (vs 26.5 million in H1 F23 and 22.1 million in H1 F20).
▶ 27.0 per cent higher ASK capacity in H1 vs H1 F23 (+63 per cent vs H1 F20).
▶ Unit revenue (RASK) was +9.6 per cent higher year on year; ticket RASK +17.4 per cent.
▶ Load factor recovered to an average of 92.6 per cent (vs 86.9 per cent in H1 F23 and 95 per cent in H1 F20).
▶ Unit cost (CASK) -12.3 per cent year-on-year; ex-fuel CASK -0.8 per cent (driven primarily by continued airport delays, a higher volume of past disruption claims and crew cost).
▶ Total cash balance at €1.8 billion, reflecting larger selling volumes and strong cash management.
▶ Investment in operational strength delivering significant results:
◦ Improved flight completion rate to 99.2 per cent (vs 98.1 per cent F23).
◦ Utilisation in H1 increased to 12:18 hours (vs 11:49 in H1 F23); Q1 to 11:58 hours and Q2 to 12:37 hours (vs 11:50 in Q2 F23).
▶ Sustained robust demand environment throughout the period.
▶ On track to take delivery of 21 Airbus 321neo aircraft by end of F24 in line with projections for the year.
▶ Currently extending 13 CEO leases (including 4x A321s - 230 seats) with seven already completed and six in documentation stage.
▶ Based on a service bulletin in relation to GTF engine inspections (issued 3 November, 2023), and verification performed with Pratt & Whitney, we are projecting a grounding of 45 aircraft by the end of F24 (including aircraft previously grounded in September '23 and from mid-January '24). Overall impact to ASK capacity for H2 F24 expected to be c.20 per cent higher YoY (Q3 c.25 per cent, Q4 c.15 per cent). Near and longer-term operational and financial impact is mitigated by management actions and OEM compensation that has now been secured.
▶ Suspended Israel capacity until end of November '23 (redeploying it across the network), while observing security situation and maintaining a plan to redeploy capacity should things improve (in H1 F24 ASK capacity to/from Israel amounted to 5 - 6 per cent of total capacity).
József Váradi, Wizz Air Chief Executive, commented on business developments in the period:"This summer we delivered significantly improved operational performance compared to last year. There were fewer flight cancellations, and overall fleet utilisation and productivity increased year on year. Our revenue and profit results reflect the higher volumes we now operate and the enormous amount of work and investment over the past three years.
In the first half, we saw very strong load factor recovery, as demand remained robust, including in new markets that are maturing steadily and where we continue to add frequencies and improve our schedule. The Middle East route network is tracking a similar maturity profile to the development of our CEE network, supporting our decision to continue to invest in, add to and evolve capacity there. Our wider fleet allocation programme remains active, and in addition to our expanded flying programme this winter, we have announced a summer 2024 expansion to Romania, Italy and Albania, operating new A321neo aircraft.
The security of our Airbus order book continues to be the backbone of our planned capacity growth and fleet renewal programme. The initial GTF powder metal engine inspection requirements had minimal impact on our operational capacity, and we are taking measures to mitigate the impact of further inspections, including higher utilisation from our existing fleet, aircraft lease extensions and continued new aircraft deliveries.
With respect to sustainability in our operations, we continue to make good progress, and we have made direct investments in new start-ups and signed a number of off-take agreements with SAF producers, thus securing a portion of our supply in the years to come."
On current trading and the outlook, Mr Váradi said:
"We continue to see positive bookings in Q3, with selling load factors exceeding last year's levels by single digit percentage points. We estimate overall H2 ASK capacity will be circa 20 per cent higher year on year, despite the number of GTF engines needing off-wing inspection in the period. This figure still represents industry-leading capacity growth and is a further testament to the Company's ability to overcome adverse external factors.
Our plans to grow capacity next year are based on: combination of new aircraft deliveries, existing fleet lease extensions, securing additional aircraft capacity from the market and delivering improved utilisation. Based on current best knowledge we anticipate capacity for F25 to be at similar levels to F24. We have secured a comprehensive compensation support package from the OEM that will protect the Company's commercial and operational performance in the coming quarters, protecting us from the costs of grounding any aircraft while our GTF engines undergo inspections.
Most of the financial impact from GTF removals will be mitigated by timely OEM compensation, while higher yield opportunities in our commercial programme will help protect revenue as market capacity remains constrained. We are narrowing our F24 net income guidance, initially set in June 2023, to a range of EUR 350-400 million. This guidance reflects our expectations for H2 F24 in the context of the ongoing macro environment uncertainty and continuing difficult operating conditions, from an infrastructure and security perspective.
We remain well protected against volatile fuel costs and FX movements via a systematic hedging programme, and our strengthened operations and a renewing fleet (tracking at 57 per cent at the end of September '23) continue to deliver efficiencies for the business while reducing unit costs.
Our continued ability to manage the impact of complicated issues gives us the confidence that Wizz Air has the strategy and expertise to achieve our profitable growth ambitions."
NEAR-TERM AND FULL-YEAR OUTLOOK
▶ Capacity (ASKs): H2 F24 c.20 per cent higher YoY (Q3 c.25 per cent, Q4 c.15 per cent).
▶ Load factor: F24 above 90 per cent.
▶ Cost: F24 ex-fuel CASK lower versus the prior year.
▶ Financial performance: narrow F24 net income outlook to the range of €350-400 million.
▶ Above guidance remains subject to any adverse external events (including macro, security, infrastructure and/or supply chain developments), revenue performance, for which company has limited visibility at this point in time, especially for Q4 period, as well as any airworthiness directive in relation to GTF engine inspections and number of available spare engines.
REVENUE AND COST HIGHLIGHTS H1
Total revenue amounted to €3,052.3 million, an increase of 39.1 per cent versus H1 F23:
▶ Passenger ticket revenue1 increased by 49.1 per cent to €1,762.2 million.
▶ Ancillary revenue1 increased by 27.5 per cent to €1,290.1 million.
▶ Total unit revenue increased by 9.6 per cent to 4.91 Euro cents per available seat kilometre (ASK).
▶ Ticket revenue per passenger increased by 19.7 per cent to €53.4 and was also up by 23.8 per cent versus H1 F20. Ticket RASK improved by 17.4 per cent to 2.83 Euro cents year-on-year, supported by strong pricing momentum in the period.
▶ Ancillary revenue per passenger increased by 2.4 per cent to €39.1 and was also up by 21.3 per cent versus H1 F20. Ancillary RASK stayed flat year-on-year at 2.07 Euro cents as more focus went to ticket pricing in the period, while ancillaries continued to be attractively priced to drive the demand.
Total operating costs increased 12.0 per cent to €2,529.3 million versus H1 F23:
▶ Total unit costs (including net financing expense) decreased by 12.3 per cent to 4.15 Euro cents per ASK.
▶ Ex-fuel unit costs decreased by 0.8 per cent to 2.60 Euro cents per ASK, mainly driven by higher than expected flight disruption and compensation charges and higher crew cost reflecting pay adjustments made since summer of 2022.
▶ Fuel unit costs decreased by 26.5 per cent to 1.55 Euro cents per ASK.
Total cash increased by 20.2 per cent to €1,837.8 million from €1,529.0 million.
The unrealised foreign currency losses in H1 amounted to €14.3 million (H1 F23: €285.2 million), this favorable change from last year is largely attributed to the slower depreciation of the EUR against the USD, leading to a more favorable revaluation of our USD lease liabilities on the balance sheet.
1 For further definition of non-financial measures presented refer to "Glossary of terms and alternative performance measures (APMS)" section of this document.
NETWORK UPDATES
▶ Wizz Air announced significant growth in the Polish market during the period, adding an eleventh aircraft to its Warsaw base and further expanding the route network from other Polish bases.
▶ Wizz Air Abu Dhabi is growing the fleet this winter and is adding two more aircraft, taking the fleet to eleven in total, which is one extra aircraft compared to its initial plans.
▶ Bucharest, Romania, will grow in size as largest base in the network with addition of two A321neo from June 2024.
▶ Tirana, Albania, will receive two additional A321neo aircraft from next summer, adding two new routes and growing the number of frequencies on existing routes.
▶ Next summer, Italian bases in Rome and Milan will see the largest schedule deployed to date with the addition of four new A321neo aircraft, with three going to Rome and one to Milan. The expansion will support six new routes and grow frequencies on 17 existing routes.
▶ During the period, Wizz Air also announced that its entire fleet of aircraft at London Luton Airport will be comprised of Airbus A321neos by 2025.
Base aircraft additions▶ Catania, Italy: one additional aircraft, taking the base to four aircraft.
▶ Tirana, Albania: three additional aircraft, taking the base to thirteen aircraft.
▶ Warsaw, Poland: one additional aircraft, taking the base to eleven aircraft.
▶ Belgrade, Serbia: one additional aircraft, taking the base to four aircraft.
▶ Skopje, N. Macedonia: one additional aircraft, taking the base to six aircraft.
▶ London Luton, United Kingdom: one additional aircraft, taking the base to twelve aircraft.
▶ Bucharest, Romania: two additional aircraft, taking the base to nineteen aircraft.
▶ Rome, Fiumicino: three additional aircraft, taking the base to fourteen aircraft.
▶ Milan, Malpensa: one additional aircraft, taking the base to eight aircraft.
▶ Abu Dhabi, UAE: two additional aircraft, taking the base to eleven aircraft.
Base aircraft reductions
▶ Tuzla, Bosnia and Herzegovina: two aircraft
▶ Suceava, Romania: two aircraft
FLEET UPDATE▶ In the six months ended 30 September 2023 Wizz Air took delivery of 18 new A321neo aircraft, and 10 A320ceo aircraft were redelivered, thus ending the first half with a total fleet of 187 aircraft: 40x A320ceo, 41x A321ceo, 6x A320neo and 100x A321neo.
▶ Four of the aircraft delivered were financed through Japanese Operating Leases with Call Options (JOLCO) and the rest through sale and leaseback transactions.
▶ Wizz Air is extending thirteen leases, of which seven have been signed and the other six are in the documentation stage. The lease extensions range between two and four years and have been secured at discounted or original lease rates.
▶ The average age of the fleet currently stands at 4.20 years, and remains one of the youngest fleets of any major European airline, while the average number of seats per aircraft has climbed to 223 as at September 2023.
▶ The share of new "neo" technology aircraft within Wizz Air's fleet increased to 57 per cent and is planned to reach 63 per cent by the end of F24.
▶ In the remainder of F24 we expect 21 new A321neo aircraft deliveries, while four A320ceo aircraft will be redelivered to lessors and will exit the fleet. We expect minimal impact from Airbus delivery delays in F25 and F26.
▶ As at 30 September 2023, Wizz Air's delivery backlog comprises a firm order for 13x A320neo, 287x A321neo and 47x A321XLR aircraft, a total of 347 aircraft.
▶ The table below provides expected number of aircraft for the current and next fiscal years, including current extensions:
|
|
March 2024 |
March 2025 |
March 2026 |
|
|
Planned |
Planned |
Planned |
|
A320ceo (180/186 seats) (7x extension) |
35 |
27 |
17 |
|
A320neo (186 seats) |
6 |
6 |
9 |
|
A321ceo (230 seats) |
41 |
37 |
25 |
|
A321neo (239 seats) |
121 |
162 |
219 |
|
A321neo XLR (239 seats) |
- |
2 |
11 |
|
Fleet size (with finalised extensions) |
203 |
234 |
281 |
|
A320ceo (180/186 seats) (2x extension) doc stage |
1 |
2 |
2 |
|
A321ceo (230 seats) (4x extension) doc stage |
- |
4 |
4 |
|
Fleet size (after extension) |
204 |
240 |
287 |
▶ Based on a service bulletin (issued 3 November, 2023) and verification performed with Pratt & Whitney, we are projecting a grounding of 45 aircraft at the end of F24 (including aircraft grounded in September '23) in order to administer mandatory GTF engine inspections. The so called 'Second Batch Engines' are expected to be removed from middle of January '24, subject to regulator's airworthiness directive. The final number of aircraft impacted by the inspections at the end of F24, and periods beyond, depends on utilization of engines (cycle count), number of spare engines available and MRO induction slots schedule. Near and longer-term operational and financial impact is mitigated by management action and OEM compensation that has now been secured.
FINANCIAL UPDATE
▶ Fitch Ratings has affirmed Wizz Air Holdings Plc's long-term issuer default rating and senior unsecured rating at 'BBB-.
▶ As of 6 November, 2023, using jet fuel zero-cost collars, Wizz Air has accumulated hedge coverage of 70 per cent of its jet fuel needs for F24 at a price of 811/931 $/mT. For F25 the coverage is 38 per cent at the price of 747/854 $/mT. The jet fuel-related EUR/USD FX coverage stands at 69 per cent for F24 at 1.0686/1.1114, while the coverage for F25 stands at 32 per cent at 1.0931/1.1369 rates.
▶ The initial €500 million bond, issued under the €3 billion EMTN programme, matures in January 2024 and will be repaid from cash.
▶ The outstanding balance on the PDP facility at the end of September 2023 stands at €117.9 million. The facility is paid down automatically with new aircraft deliveries. The facility has been extended to enable additional draw-downs, with the objective of maximizing capacity utilization throughout the F24-F25 period.
▶ Net debt1 at the end of 30 September 2023 was flat at €3,889.5 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 the F23 year-end 29.0x to 4.9x. Over the same period, liquidity1 reduced to c.36 per cent.
▶ The Pratt & Whitney engine support package includes multiple benefits for the Company, including compensation for impacted aircraft. An element of this compensation, which was not material, relates to costs incurred in the period ended 30 September 2023. These credits are included in net other expense in the condensed consolidated interim statement of comprehensive income.
1 For further definition of non-financial measures presented refer to "Glossary of terms and alternative performance measures (APMS)" section of this document.
SUSTAINABILITY UPDATE
Wizz Air's CO2 emissions amounted to 51.6 grams per passenger/km for the rolling twelve months to 30 September 2023 (4 per cent improvement compared to the F23 average which was 53.8 grams, and 9.6 per cent lower than H1 F23 results a year ago, 57.1 grams per passenger/km), continuing the decreasing trend in the Company's average carbon intensity performance in a twelve-month period. The most important sustainability developments during the six months ended September 2023 were:
|
Month |
Project |
Description |
|
April 2023 |
Cepsa - SAF partnership |
Memorandum of Understanding (MoU) with Cepsa, a leading international company committed to sustainable mobility and energy, for the supply of SAF from 2025 onwards. |
|
April 2023 |
First equity investment in sustainable aviation fuel R&D |
The airline announced a £5 million investment in a biofuel company, Firefly, marking its first equity investment in sustainable aviation fuel research and development. |
|
May 2023 |
CleanJoule |
CleanJoule, a green-tech startup focused on the production of SAF, announced a US$50 million investment via a consortium led by the principals of Indigo Partners, a US-based private equity firm, and GenZero, a decarbonisation-focused investment platform company of Temasek based in Singapore. As part of the consortium's investment, Frontier Airlines, Wizz Air and Volaris have signed binding agreements to purchase up to 90 million gallons of SAF. |
|
June 2023 |
World Finance Awards 2023 |
Wizz Air was named the Most Sustainable Low-Cost Airline for the third consecutive year at the World Finance Sustainability Awards 2023. |
|
July 2023 |
First fully electric turnaround in Rome Fiumicino |
Wizz Air celebrated the arrival of its eleventh Airbus A321neo aircraft at its Rome Fiumicino base with a fully electric turnaround - the first one for the airline. Aviation Services used all-electric baggage tractors and belt loaders, passenger stairs, ground power unit and a towbarless pushback. The electric turnaround allowed Wizz Air to reduce carbon emissions from the ground handling process by 85 per cent compared to using diesel-powered equipment. |
|
September 2023 |
ReFuelEU Aviation Regulation |
Wizz Air supports the ReFuelEU Aviation Regulation, recently adopted by the European Parliament. The regulation establishes minimum shares of SAF to be blended with conventional aviation fuel which are binding. Wizz Air has established its SAF strategy, which includes securing offtake agreements with suppliers for the future and has already signed agreements with Mabanaft/P2X Europe, OMV, Neste and Cepsa. |
|
September 2023 |
Wizz Sustainability Ambassador Programme |
Wizz Air launched its new, and first of its kind, Wizz Sustainability Ambassador Programme. Among over 7,000 of Wizz Air's cabin crew and office employees, 24 Sustainability Ambassadors have been selected, representing 22 bases and two offices across Albania, Austria, Bulgaria, Cyprus, Georgia, Hungary, Italy, Malta, North Macedonia, Poland, Romania, the UAE and the UK. The Wizz Sustainability Ambassadors will support local sustainability projects at the airline's bases and offices. |
OTHER DEVELOPMENTS
▶ In July Ms Phit Lian Chong joined the Board of the Company as an independent Non-Executive Director. A citizen of Singapore, Ms Chong has held multiple senior roles in aviation, travel and logistics, including as a CEO of low-cost carriers Jetstar Asia Airways and ValuAir from 2006 to 2012.
▶ At the Annual General Meeting of Shareholders held on 2 August 2023 Shareholders approved all resolutions with the voting participation rate reaching 86 per cent. On the same date Shareholders also approved a resolution to purchase an additional 75 A321neo aircraft with delivery dates in 2028-2029.
▶ Wizz Air launched Wizz Discount Club Light, a new loyalty programme that offers exclusive in-flight discounts.
▶ Wizz Air Hungary's cabin crew training organisation, which provides initial cabin crew training, obtained approval from the Ministry of Construction and Transport in Hungary to issue cabin crew attestation. Wizz Air is the first airline in the country whose training organisation can issue this type of international document on behalf of the Hungarian Civil Aviation Authority. This document will also be valid in all EU countries.
▶ Wizz Air was awarded as Global Environmental Sustainability Airline Group of the Year for the second consecutive year at CAPA Asia Aviation Summit in Kuala Lumpur.
ABOUT WIZZ AIR
Wizz Air, the fastest growing European ultra-low-cost airline, operates a fleet of 191 Airbus A320 and A321 aircraft. A team of dedicated aviation professionals delivers superior service and very low fares, making Wizz Air the preferred choice of 51.1 million passengers in the financial year F23 ended 31 March 2023. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ. The Company was recently named one of the world's top ten safest airlines by airlineratings.com, the world's only safety and product rating agency, and named Airline of the Year by the Air Transport Awards in 2019 and in 2023. Wizz Air has also been recognised as the Most Sustainable Low-Cost Airline by the World Finance Sustainability Awards in 2021-2023 and as 'Airline Group of the Year for Global Environmental Sustainability' by CAPA-Centre for Aviation Awards for Excellence in 2022-2023.
For more information:
|
Investors: |
Zlatko Custovic, Wizz Air |
+36 1 777 9407 |
|
Media: |
Tamara Vallois, Wizz Air |
+36 1 777 9324 |
|
|
James McFarlane/Eleni Menikou/Charles Hirst |
+44 (0) 20 3128 8100 |
H1 financial review
In the first half of the financial year, Wizz Air carried 33.0 million passengers, a 24.6 per cent increase compared to the same period in the previous year, and generated revenues of €3,052.3 million, 39.1 per cent higher than last period. These rates compare to capacity increase measured in terms of ASKs of 27.0 per cent and 16.9 per cent more seats. The load factor increased by 6.6 per cent to 92.6 per cent.
The profit for the first half was €400.7 million, compared to a loss of €384.3 million in the same period of F23.
Summary condensed consolidated interim statement of comprehensive income (unaudited)For the six months ended 30 September
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
|
€ million |
€ million |
Change |
|
Passenger ticket revenue * |
1,762.2 |
1,182.1 |
49 % |
|
Ancillary revenue * |
1,290.1 |
1,011.7 |
28 % |
|
Total revenue |
3,052.3 |
2,193.8 |
39 % |
|
Staff costs |
(250.5) |
(180.3) |
39 % |
|
Fuel costs |
(966.4) |
(1,032.7) |
(6) % |
|
Distribution and marketing |
(64.9) |
(46.2) |
40 % |
|
Maintenance, materials and repairs |
(150.9) |
(115.5) |
31 % |
|
Airport, handling and en-route charges |
(631.9) |
(503.5) |
26 % |
|
Depreciation and amortisation |
(355.2) |
(281.6) |
26 % |
|
Net other expenses |
(109.5) |
(97.9) |
12 % |
|
Total operating expenses |
(2,529.3) |
(2,257.6) |
12 % |
|
Operating profit/(loss) |
522.9 |
(63.8) |
(920) % |
|
Financial income |
39.0 |
3.1 |
1158 % |
|
Financial expenses |
(92.0) |
(59.8) |
54 % |
|
Net foreign exchange loss |
(19.7) |
(269.2) |
(93) % |
|
Net financing expense |
(72.7) |
(325.9) |
(78) % |
|
Profit/(loss) before income tax |
450.2 |
(389.7) |
(216) % |
|
Income tax (expense)/credit |
(49.5) |
5.4 |
(1,017) % |
|
Profit/(loss) for the period |
400.7 |
(384.3) |
(204) % |
|
Profit/(loss) for the period attributable to: |
|
|
|
|
Non-controlling interest |
(4.4) |
(9.5) |
(54) % |
|
Owners of Wizz Air Holdings Plc |
405.1 |
(374.8) |
(208) % |
* This is an APM and subsequently explained in Note 7.
Revenue
Passenger ticket revenue increased by 49.1 per cent to €1,762.2 million and ancillary revenue (or "non-ticket" revenue) increased by 27.5 per cent to €1,290.1 million, driven by strong demand for air travel in H1 F24. Total revenue per ASKs (RASK) increased by 9.6 per cent to 4.91 Euro cents from 4.48 Euro cents, driven by a 6.6 per cent higher load factor and a significantly increased net fare (total net revenue per passengers).
Average revenue per passenger (net fare) was €92.6 during H1 F24, an increase of 11.7 per cent versus H1 F23. Average ticket revenue per passenger increased from €44.6 in H1 F23 to €53.4 in H1 F24, €8.8 or 19.7 per cent higher than last year, while average ancillary revenue per passenger increased from €38.2 in H1 F23 to €39.1 in H1 F24, an increase of €0.9 or 2.4 per cent.
Operating expensesOperating expenses for H1 F24 increased by 12.0 per cent to €2,529.3 million from €2,257.6 million in H1 F23. Key drivers being higher airport and handling costs and en-route charges driven by the increased capacity (27.0 per cent increase in ASKs), increased crew-related salary costs mainly driven by the salary adjustments, higher compensation costs in absolute terms due to the overall growth of the Company. Favorable impact on fuel costs on the back of the materially lower fuel prices explained below. The total cost per ASKs (CASK) (including impact of hedges) decreased by 12.3 per cent to 4.15 Euro cents in H1 F24 from 4.73 Euro cents in H1 F23. CASK excluding fuel expenses decreased by 0.8 per cent to 2.60 Euro cents in H1 F24 compared to 2.62 Euro cents in H1 F23.
Staff costs increased by 38.9 per cent to €250.5 million in H1 F23, up from €180.3 million in H1 F23, reflecting the increase in capacity and the cost-of-living adjustments to salaries year on year.Fuel expenses decreased by 6.4 per cent to €966.4 million in H1 F24, from €1,032.7 million in the same period of F23. Capacity (in ASK term) increased by 27.0 per cent, but the favorable price improvement exceeded the negative capacity impact in absolute terms. The average fuel price (including hedge impact) paid by Wizz Air during H1 F24 decreased by $200 (per metric tonne) compared to the same period of F23. On the top of that the consumption efficiency also improved due to the increase of NEO fleet.
Distribution and marketing costs increased by 40.5 per cent to €64.9 million from €46.2 million in the first half of F23, in line with the increase in capacity, growing load factor and strong pricing environment.
Maintenance, materials and repair costs increased by 30.6 per cent to €150.9 million in H1 F24 from €115.5 million in H1 F23, due to a larger fleet and greater number of maintenance events.
Airport, handling and en-route charges increased to €631.9 million in the first half of F24 versus €503.5 million in the same period of F23. The increase is in line with the Company's growth factor YoY in terms of ASK.
Depreciation and amortisation charges were 26.1 per cent higher at €355.2 million in the first half, up from €281.6 million in the same period in F23. The increase is related to depreciation on the growing fleet and higher aircraft utilisation.
Net other expense amounted to €109.5 million in H1 F24, compared to €97.9 million in the same period in F23. Key drivers being: flight disruption-related expenses increased to €109.4 million in H1 F24 from €89.6 million in H1 F23 due to capacity increase, overheads-related expenses increased to €42.5 million in H1 F24 from €25.5 million in H1 F23 and net other income increased to €35.2 million in H1 F24 from €6.9 million in H1 F23.
Financial income amounted to €39.0 million in the first half compared to €3.1 million in the same period in F23, driven by the increase in short-term cash deposits and higher interest rate environment in H1 F24.
Financial expenses amounted to €92.0 million in the first half compared to €59.8 million in the same period in F23. Financial expenses predominantly arise from interest charges related to lease liabilities under IFRS 16 connected to the fleet size increase and the higher interest rate environment.
Net foreign exchange loss was €19.7 million in the first half compared to a loss of €269.2 million in the same period in F23, mainly caused by slower depreciation of Euro against the US Dollar in H1 F24 (-3%) in comparison to H1 F23 (-12%) over the course of one year. This resulted in lower unrealised foreign exchange loss on the revaluation of US Dollar denominated lease liabilities. Note: the Euro exchange rate deterioration versus US Dollar was extremely high in H1 F23 following the outbreak of the Ukraine-Russia war.
Taxation
The Group recorded an income tax charge of €49.5 million in the period compared to an income tax credit of €5.4 million in the same period in F23. The increase in tax charge is mainly attributable to the positive income of the period compared to a loss position in the prior period.
Second quarter performanceIn the three months to 30 September 2023 ("Q2" or "the second quarter"), Wizz Air carried 17.7 million passengers including no-shows, a 23.9 per cent increase compared to the same period in the previous year, and generated revenues of €1,815.7 million with capacity increased in terms of ASKs by 27.4 per cent. The load factor increased from 88.8 per cent to 93.8 per cent. The profit for the second quarter was €339.6 million, compared to a profit of €68.2 million in the same period of F23.
Other information
1. CashTotal cash (including restricted cash and cash deposits with more than three months' maturity) at the end of the first half increased by 20.2 per cent to €1,837.8 million versus 31 March 2023, of which €1,732.8 million is non-restricted cash.
2. Ownership and control
To protect the EU airline operating license of Wizz Air Hungary Ltd and Wizz Air Malta Ltd (subsidiaries of the Company), the Board has resolved to continue to apply a disenfranchisement of Ordinary Shares held by non-EEA Shareholders in the capital of the Company. This will continue to be done on the basis of a "Permitted Maximum" of 45 per cent pursuant to the Company's articles of association ("the Permitted Maximum"). In preparation for the 2023 Annual General Meeting (AGM), on 2 August 2023 the Company sent a Restricted Share Notice to Non-Qualifying registered Shareholders, informing them of the number of Ordinary Shares that will be treated as Restricted Shares:
▶ a "Qualifying National" includes: (i) EEA nationals, (ii) nationals of Switzerland and (iii) in respect of any undertaking, an undertaking which satisfies the conditions as to nationality of ownership and control of undertakings granted an operating licence contained in Article 4(f) of Regulation (EC) No. 1008/2008 of the European Commission, as such conditions may be amended, varied, supplemented or replaced from time to time, or as provided for in any agreement between the EU and any third country (whether or not such undertaking is itself granted an operating licence); and
▶ a "Non-Qualifying National" includes any person who is not a Qualifying National in accordance with the definition above.
3. Hedging positionWizz Air operates under a clear set of treasury policies approved by the Board and supervised by the Audit and Risk Committee. The hedges under the hedge policy will be rolled forward quarterly, 18 months out, with coverage levels over time reaching indicatively between 65 per cent for the first quarter of the hedging horizon and 15 per cent for the last quarter of the hedging horizon. The hedging policy covers jet fuel and jet fuel-related EUR/USD exposure. Jet fuel hedge coverages at 30 September 2023 are as follows assuming no impact of PW engine recalls:
Jet fuel hedge coverage|
|
F24 |
F25 |
|
Period covered |
6 months |
12 months |
|
Exposure in metric tonnes ('000) |
945 |
2,131 |
|
Coverage in metric tonnes ('000) |
582 |
479 |
|
Hedge coverage for the period |
62% |
22% |
|
Coverage by hedge types: |
|
|
|
Zero-cost collars in metric tonnes ('000) |
582 |
479 |
|
Weighted average ceiling |
$ 936.0 |
$ 845.0 |
|
Weighted average floor |
$ 816.0 |
$ 743.0 |
|
|
F24 |
F25 |
|
Period covered |
6 months |
12 months |
|
Exposure in USD millions |
905 |
1,845 |
|
Coverage in USD millions |
428 |
405 |
|
Hedge coverage for the period |
47% |
22% |
|
Coverage by hedge types: |
|
|
|
Zero-cost collars in USD millions |
428 |
405 |
|
Weighted average ceiling |
$ 1.1139 |
$ 1.1413 |
|
Weighted average floor |
$ 1.0709 |
$ 1.0975 |
Pre-hedging, a $10 (per metric tonne) movement in the price of jet fuel will impact the H2 F24 fuel costs by $9.4 million.
A one cent movement in the EUR/USD exchange rate impacts the H2 F24 operating expenses by €14.3 million.
Key statistics
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
Change |
|
Capacity |
|
|
|
|
Number of aircraft at end of period |
187 |
168 |
11.3 % |
|
Equivalent aircraft |
181.9 |
156.3 |
16.4 % |
|
Utilisation (block hours per aircraft per day) |
12.30 |
11.82 |
4.1 % |
|
Total block hours |
409,595 |
338,125 |
21.1 % |
|
Total flight hours |
357,047 |
293,928 |
21.5 % |
|
Revenue departures |
160,725 |
141,108 |
13.9 % |
|
Average departures per day per aircraft |
4.83 |
4.93 |
(2.0) % |
|
Seat capacity |
35,625,271 |
30,485,203 |
16.9 % |
|
Average aircraft stage length (km) |
1,746 |
1,607 |
8.6 % |
|
Total ASKs ('000 km) |
62,192,609 |
48,976,909 |
27.0 % |
|
Operating data |
|
|
|
|
RPKs ('000 km) |
57,590,890 |
43,219,485 |
33.3 % |
|
Load factor % |
92.6 % |
86.9 % |
6.6 % |
|
Passengers carried |
32,979,806 |
26,476,899 |
24.6 % |
|
Fuel price (average US$ per tonne, including hedge and IPP) |
974.5 |
1,279.4 |
(23.8) % |
|
Foreign exchange rate (average US$/€, including hedge impact) |
1.089 |
1.033 |
5.4 % |
Cost per available seat kilometers
|
|
Six months ended 30 Sep 2023 Euro cents |
Six months ended 30 Sep 2022 Euro cents |
Change Euro cents |
|
Fuel costs |
1.55 |
2.11 |
(26.5) % |
|
Staff costs |
0.40 |
0.37 |
8.1 % |
|
Distribution and marketing |
0.10 |
0.09 |
11.1 % |
|
Maintenance, materials and repairs |
0.24 |
0.24 |
- % |
|
Airport, handling and en-route charges |
1.02 |
1.03 |
(1.0) % |
|
Depreciation and amortisation |
0.57 |
0.57 |
- % |
|
Net other expenses |
0.18 |
0.20 |
(10.0) % |
|
Net financial expenses |
0.09 |
0.12 |
(25.0) % |
|
Total CASK |
4.15 |
4.73 |
(12.3) % |
|
Total ex-fuel CASK |
2.60 |
2.62 |
(0.8) % |
The Company has a policy of rounding each amount and percentage individually from the fully accurate number to the figure disclosed in the condensed consolidated interim financial statements. As a result, some amounts and percentages do not total - though such differences are all trivial.
Forward-looking statements
The information in this announcement includes forward-looking statements which are based on the Company's or, as appropriate, the Company's Directors' current expectations and projections about future events. These forward-looking statements may be identified by the use of forward-looking terminology including, but not limited to, the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussion of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company and its subsidiaries and investments, including, among other things, the development of its business, trends in its operating industry and future capital expenditures. In light of these risks, uncertainties and assumptions, the events or circumstances referred to in the forward-looking statements may differ materially from those indicated in these statements. Forward-looking statements may, and often do, materially differ from actual results.
None of the future projections, expectations, estimates or prospects or any other statements contained in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the announcement. Forward-looking statements speak only as of the date of this announcement. Subject to obligations under the Listing Rules and Disclosure and Transparency Rules made by the Financial Conduct Authority under Part VI of the Financial Services and Markets Act 2000 (as amended from time to time), neither the Company nor any of its affiliates, or individuals acting on its behalf, undertakes to publicly update or revise any such forward-looking statement, or any other statements contained in this announcement, whether as a result of new information, future events or otherwise.
As a result of these risks, uncertainties and assumptions, one should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise. The information and opinions contained in this announcement are provided as at the date of this announcement and are subject to change without notice.
Emerging and principal risks and uncertaintiesThe aviation industry is subject to many risks and Wizz Air's business is no exception. A number of risks, as described in our 2023 Annual Report and Accounts, have the potential to adversely affect Wizz Air's expected results for the remainder of the current financial year, as well as newly emerging risks that we have included into our summary. These include external factors related to conflicts between countries such as prolonged war between Russia and Ukraine and the renewed Israeli-Palestinian armed conflict, as well as fleet development-related difficulties like the unplanned maintenance of Pratt & Whitney GTF engines.
The full list of risks considered is set out below:
▶ information technology and cyber risk, including website availability, protection of our own and our customers' data, and ensuring the availability of operations-critical systems in a significantly escalating threat landscape;
▶ external factors, ensuring the Company has capabilities and resilience to deal with risks such as geopolitical risks (including the ongoing war between Ukraine and Russia, and the renewed Israeli-Palestinian armed conflict), fuel cost, foreign exchange rates, risk of higher cost of doing business, competition, general economic trends, and the default of a partner financial institution;
▶ network development, making sure that we are making the best use of our capacity, driving maximum utilisation and ensuring that we have access to the right airport infrastructure at the right price so that we can keep on delivering the superior Wizz Air service at low fares across an expanding network;
▶ fleet development, ensuring the Company has the right number of aircraft and engines available at the right time to take advantage of commercial opportunities and grow in a disciplined way without any supply chain disruption;
▶ regulatory risk, making sure that we remain compliant with regulations affecting our business and operations and we remain agile to react to the changing governmental actions due to slowing economic landscape, ownership and control, loss of traffic rights, and changing policies due to sustainability (taxation, etc.);
▶ operations, including safety events and terrorist incidents and employee and passenger security;
▶ human resources, ensuring we are able to recruit the right quality and the right number of colleagues to support our ambition to grow and, once recruited, that they remain engaged and motivated and that the Company has appropriate succession management in place for key colleagues;
▶ social and governance risks, making sure we operate in accordance with our core values and our value of integrity, are respected throughout our business processes and deals, and provide transparency to all our stakeholders through responsible reporting and disclosure; and
▶ environmental risk, ensuring that we are able to answer the growing need of environmental protection and consciousness, mitigate the emerging transition and physical risks and create a sustainable, climate-friendly service for our customers, at all times respecting the planet.
The Directors consider that the principal risks to the Company's business during the second half of the financial year remain those summarised above and set out on pages 86 to 93 of our 2023 Annual Report and Accounts, available at corporate.wizzair.com.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTSCondensed consolidated interim statement of comprehensive income
For the six months ended 30 September 2023 (unaudited)
|
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
Note |
€ million |
€ million |
|
Passenger ticket revenue |
6, 7 |
1,762.2 |
1,182.1 |
|
Ancillary revenue |
6, 7 |
1,290.1 |
1,011.7 |
|
Total revenue |
6, 7 |
3,052.3 |
2,193.8 |
|
Staff costs |
|
(250.5) |
(180.3) |
|
Fuel costs |
|
(966.4) |
(1,032.7) |
|
Distribution and marketing |
|
(64.9) |
(46.2) |
|
Maintenance, materials and repairs |
|
(150.9) |
(115.5) |
|
Airport, handling and en-route charges |
|
(631.9) |
(503.5) |
|
Depreciation and amortisation |
|
(355.2) |
(281.6) |
|
Net other expenses |
8 |
(109.5) |
(97.9) |
|
Total operating expenses |
|
(2,529.3) |
(2,257.6) |
|
Operating profit/(loss) |
|
522.9 |
(63.8) |
|
Financial income |
9 |
39.0 |
3.1 |
|
Financial expenses |
9 |
(92.0) |
(59.8) |
|
Net foreign exchange loss |
9 |
(19.7) |
(269.2) |
|
Net financing expense |
9 |
(72.7) |
(325.9) |
|
Profit/(loss) before income tax |
|
450.2 |
(389.7) |
|
Income tax (expense)/credit |
10 |
(49.5) |
5.4 |
|
Profit/(loss) for the period |
|
400.7 |
(384.3) |
|
Profit/(loss) for the period attributable to: |
|
|
|
|
Non-controlling interest |
|
(4.4) |
(9.5) |
|
Owners of Wizz Air Holdings Plc |
|
405.1 |
(374.8) |
|
Other comprehensive income/(expense) - items that may be subsequently reclassified to profit or loss: |
|
|
|
|
Change in fair value of cash flow hedging reserve, net of tax |
|
88.2 |
(125.9) |
|
Cash flow hedging reserve recycled to profit or loss |
|
36.0 |
(8.7) |
|
Cost of hedging |
|
57.4 |
(2.9) |
|
Currency translation differences |
|
(3.0) |
(4.9) |
|
Other comprehensive income/(expense) for the period, net of tax |
|
178.6 |
(142.4) |
|
Total comprehensive income/(expense) for the period |
|
579.3 |
(526.7) |
|
Total comprehensive income/(expense) for the period attributable to: |
|
|
|
|
Non-controlling interest |
|
(5.2) |
(11.9) |
|
Owners of Wizz Air Holdings Plc |
|
584.6 |
(514.8) |
|
Basic earnings/(loss) per share (€/share) |
11 |
3.92 |
(3.63) |
|
Diluted earnings/(loss) per share (€/share) |
11 |
3.18 |
(3.63) |
Condensed consolidated interim statement of financial position
As at 30 September 2023
|
|
|
30 Sep 2023 (unaudited) |
31 Mar 2023 (audited) |
|
|
Note |
€ million |
€ million |
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
12 |
5,064.0 |
4,666.0 |
|
Intangible assets |
|
85.9 |
76.7 |
|
Equity investment |
21 |
4.5 |
- |
|
Restricted cash |
|
44.8 |
56.7 |
|
Deferred tax assets |
|
18.6 |
50.6 |
|
Trade and other receivables |
13 |
20.4 |
21.4 |
|
Derivative financial instruments |
4 |
10.0 |
0.2 |
|
Total non-current assets |
|
5,248.2 |
4,871.7 |
|
Current assets |
|
|
|
|
Inventories |
8 |
220.4 |
295.6 |
|
Trade and other receivables |
13 |
525.8 |
390.1 |
|
Current tax assets |
|
4.4 |
3.8 |
|
Derivative financial instruments |
4 |
83.0 |
1.0 |
|
Restricted cash |
|
60.2 |
63.7 |
|
Short-term cash deposits |
|
600.5 |
- |
|
Cash and cash equivalents |
|
1,132.3 |
1,408.6 |
|
Total current assets |
|
2,626.7 |
2,162.8 |
|
Total assets |
|
7,874.9 |
7,034.4 |
|
EQUITY AND LIABILITIES |
|
|
|
|
Equity attributable to owners of the parent |
|
|
|
|
Share capital |
|
- |
- |
|
Share premium |
|
381.2 |
381.2 |
|
Reorganisation reserve |
|
(193.0) |
(193.0) |
|
Equity part of convertible debt |
|
8.3 |
8.3 |
|
Cash flow hedging reserve |
|
51.0 |
(73.2) |
|
Cost of hedging reserve |
|
33.4 |
(24.0) |
|
Cumulative translation adjustments |
|
1.2 |
3.3 |
|
Retained losses |
|
(24.5) |
(433.6) |
|
Capital and reserves attributable to the owners of Wizz Air Holdings Plc |
|
257.6 |
(331.0) |
|
Non-controlling interest |
|
(32.1) |
(26.9) |
|
Total equity |
|
225.5 |
(357.9) |
|
Non-current liabilities |
|
|
|
|
Borrowings |
16 |
4,407.0 |
4,000.5 |
|
Convertible debt |
|
25.5 |
25.7 |
|
Deferred income |
17 |
117.1 |
103.3 |
|
Deferred tax liabilities |
|
12.4 |
3.2 |
|
Derivative financial instruments |
4 |
- |
4.2 |
|
Trade and other payables |
14 |
57.2 |
59.1 |
|
Provisions for other liabilities and charges |
15 |
95.4 |
76.3 |
|
Total non-current liabilities |
|
4,714.6 |
4,272.3 |
|
Current liabilities |
|
|
|
|
Trade and other payables |
14 |
1,005.8 |
886.3 |
|
Current tax liabilities |
|
21.1 |
4.1 |
|
Borrowings |
16 |
1,189.5 |
1,275.0 |
|
Convertible debt |
|
0.3 |
0.3 |
|
Derivative financial instruments |
4 |
0.2 |
104.2 |
|
Deferred income |
17 |
585.6 |
770.3 |
|
Provisions for other liabilities and charges |
15 |
132.3 |
79.8 |
|
Total current liabilities |
|
2,934.8 |
3,120.0 |
|
Total liabilities |
|
7,649.4 |
7,392.3 |
|
Total equity and liabilities |
|
7,874.9 |
7,034.4 |
Condensed consolidated interim statement of changes in equity
For the six months ended 30 September 2023 (unaudited)
|
|
Share capital € million |
Share premium € million |
Reorganisation reserve € million |
Equity part of convertible debt € million |
Cash flow hedging reserve € million |
Cost of hedging reserve € million |
Cumulative translation adjustments € million |
Retained earnings € million |
Total € million |
Non-controlling interest € million |
Total equity € million |
|
Balance at 1 April 2023 |
- |
381.2 |
(193.0) |
8.3 |
(73.2) |
(24.0) |
3.3 |
(433.6) |
(331.0) |
(26.9) |
(357.9) |
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
- |
- |
- |
- |
- |
- |
- |
405.1 |
405.1 |
(4.4) |
400.7 |
|
Other comprehensive income/(expense) |
- |
- |
- |
- |
124.2 |
57.4 |
(2.1) |
- |
179.5 |
(0.8) |
178.7 |
|
Total comprehensive income/(expense) |
- |
- |
- |
- |
124.2 |
57.4 |
(2.1) |
405.1 |
584.6 |
(5.2) |
579.4 |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment charge |
- |
- |
- |
- |
- |
- |
- |
4.0 |
4.0 |
- |
4.0 |
|
Total transactions with owners |
- |
- |
- |
- |
- |
- |
- |
4.0 |
4.0 |
- |
4.0 |
|
Balance at 30 September 2023 |
- |
381.2 |
(193.0) |
8.3 |
51.0 |
33.4 |
1.2 |
(24.5) |
257.6 |
(32.1) |
225.5 |
Condensed consolidated interim statement of changes in equity
For the six months ended 30 September 2022 (unaudited)
|
|
Share capital € million |
Share premium € million |
Reorganisation reserve € million |
Equity part of convertible debt € million |
Cash flow hedging reserve € million |
Cost of hedging reserve € million |
Cumulative translation adjustments € million |
Retained earnings € million |
Total € million |
Non-controlling interest € million |
Total equity € million |
|
Balance at 1 April 2022 |
- |
381.2 |
(193.0) |
8.3 |
(3.8) |
- |
(0.7) |
87.3 |
279.3 |
(15.4) |
263.9 |
|
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
- |
- |
- |
(374.8) |
(374.8) |
(9.5) |
(384.3) |
|
Other comprehensive expense* |
- |
- |
- |
- |
(134.6) |
(2.9) |
(2.5) |
- |
(140.0) |
(2.4) |
(142.4) |
|
Total comprehensive expense |
- |
- |
- |
- |
(134.6) |
(2.9) |
(2.5) |
(374.8) |
(514.8) |
(11.9) |
(526.7) |
|
Transactions with owners |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payment charge |
- |
- |
- |
- |
- |
- |
- |
4.2 |
4.2 |
- |
4.2 |
|
Total transactions with owners |
- |
- |
- |
- |
- |
- |
- |
4.2 |
4.2 |
- |
4.2 |
|
Balance at 30 September 2022 |
- |
381.2 |
(193.0) |
8.3 |
(138.4) |
(2.9) |
(3.2) |
(283.3) |
(231.3) |
(27.3) |
(258.6) |
* In the prior period items within other comprehensive income were presented separately in the condensed consolidated interim statement of changes in equity. See the details in the condensed consolidated interim statement of comprehensive income.
Condensed consolidated interim statement of cash flows
For the six months ended 30 September 2023 (unaudited)
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
|
€ million |
€ million |
|
|
Cash flows from operating activities |
|
|
|
|
Gain/(loss) before income tax |
450.2 |
(389.7) |
|
|
Adjustments for: |
|
|
|
|
Depreciation |
346.5 |
275.3 |
|
|
Amortisation |
8.7 |
6.2 |
|
|
Financial income |
(39.0) |
(3.1) |
|
|
Financial expenses |
92.0 |
59.8 |
|
|
Unrealised fair value (gains)/losses on derivative financial instruments |
(15.6) |
14.1 |
|
|
Unrealised foreign currency losses |
14.3 |
285.2 |
|
|
Realised non-operating foreign currency losses/(gains) |
1.1 |
(25.4) |
|
|
Gain on sale of property, plant and equipment |
(45.3) |
(41.8) |
|
|
Share-based payment charges |
3.9 |
4.3 |
|
|
Other non-cash income |
(5.4) |
- |
|
|
|
811.3 |
184.9 |
|
|
Changes in working capital |
|
|
|
|
Increase in trade and other receivables |
(137.0) |
(114.1) |
|
|
Decrease in restricted cash |
18.1 |
45.5 |
|
|
Increase in derivatives |
- |
(6.0) |
|
|
Decrease/(increase) in inventory |
75.2 |
(57.7) |
|
|
Increase in provisions |
3.5 |
61.7 |
|
|
Increase in trade and other payables |
148.9 |
300.9 |
|
|
(Decrease)/increase in deferred income |
(183.7) |
62.9 |
|
|
Cash generated by operating activities before tax |
736.3 |
478.2 |
|
|
Income tax paid |
(10.2) |
(4.2) |
|
|
Net cash generated by operating activities |
726.1 |
473.9 |
|
|
Cash flows from investing activities |
|
|
|
|
Payment for acquisition of equity investment |
(4.5) |
- |
|
|
Purchase of aircraft maintenance assets |
(73.7) |
(55.2) |
|
|
Purchases of tangible and intangible assets |
(155.5) |
(38.2) |
|
|
Proceeds from sale of tangible assets |
104.2 |
95.2 |
|
|
Advances paid for aircraft |
(112.3) |
(261.9) |
|
|
Refund of advances paid for aircraft |
218.6 |
284.9 |
|
|
Interest received |
32.4 |
2.4 |
|
|
(Increase)/Decrease in short-term cash deposits |
(598.0) |
84.8 |
|
|
Net cash (used in)/generated by investing activities |
(588.8) |
111.9 |
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from new loans* |
36.6 |
47.7 |
|
|
Repayment of loans* |
(279.0) |
(240.7) |
|
|
Interest paid - loans - IFRS 16 lease liability |
(57.5) |
(43.6) |
|
|
Interest paid - loans - JOLCO |
(7.7) |
(3.6) |
|
|
Proceeds from secured debt |
14.6 |
- |
|
|
Repayment of secured debt |
(143.1) |
- |
|
|
Interest paid - secured debt |
(7.4) |
- |
|
|
Interest paid - other |
(1.6) |
(1.4) |
|
|
Net cash used in financing activities |
(445.1) |
(241.7) |
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(307.8) |
344.2 |
|
|
Cash and cash equivalents at the beginning of the period |
1,408.6 |
766.6 |
|
|
Effect of exchange rate fluctuations on cash and cash equivalents |
30.7 |
18.5 |
|
|
Cash and cash equivalents at the end of the period** |
1,131.5 |
1,129.3 |
|
* Mostly JOLCO and IFRS 16 leases.
** Cash and cash equivalents at 30 September 2023 include €274.1 million (€197.3 million at 31 March 2023; €235.6 million at 31 March 2022) of cash at bank and €858.2 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 and overdrafts (repayable on demand) of €0.8 million (€6.0 million at 31 March 2023; €nil at 31 March 2022), which are an integral part of the Group's cash management activities.
Notes to the condensed consolidated interim financial statements (unaudited)
1. General information
Wizz Air Holdings Plc ("the Company") is a limited liability company incorporated in Jersey, registered under the address 44 Esplanade, St Helier JE4 9WG, Jersey. The Company is managed from Switzerland, under the address Route François-Peyrot 12, 1218 Le Grand-Saconnex, Geneve. The Company and its subsidiaries (together referred to as "the Group" or "Wizz Air") provide low-cost, low-fare passenger air transportation services on scheduled short-haul and medium-haul point-to-point routes across Europe and the Middle East. The Company's Ordinary Shares are listed in the premium segment of the Official List of the Financial Conduct Authority and admitted to the Main Market of the London Stock Exchange.
2. Basis of preparation
These unaudited condensed consolidated interim financial statements present the financial results of the Group for the six-month period ended 30 September 2023. These condensed consolidated interim financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, IAS 34, 'Interim Financial Reporting' as adopted by the European Union and those parts of the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS. The unaudited condensed consolidated interim financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 March 2023, which have been prepared in accordance with IFRSs and IFRICs as adopted by the European Union and with those parts of the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS.
The comparative figures included for the year ended 31 March 2023 do not constitute statutory financial statements of the Group based on Article 105 (11) of the Companies (Jersey) Law 1991. The consolidated financial statements of the Group for the year ended 31 March 2023, together with the Independent Auditors' Report, have been filed with the Jersey Financial Services Commission and are also available on the Company's website (wizzair.com). The Independent Auditors' Report on those financial statements was unqualified.
The Company has a policy of rounding each amount and percentage individually from the fully accurate number to the figure disclosed in the condensed consolidated interim financial statements. As a result, some amounts and percentages do not total - though such differences are all trivial.
Going concernWizz Air's business activities, financial performance and financial position, together with external factors and principal risks likely to affect its future development and performance as described in our 2023 Annual Report and Accounts, including the plans to finance a growing number of future aircraft deliveries, where sale and leaseback financing is typically secured shortly before the scheduled delivery date of the aircraft and our judgment that there will continue to be demand in the leasing market to finance our aircraft prior to their delivery dates, have been reviewed by the Directors and are considered to be unchanged.
At 30 September 2023, the Group held total cash of €1,837.8 million (including cash and cash equivalents of €1,132.3 million, €105.0 million of restricted cash and €600.5 million of short-term cash deposits), while net current liabilities were €308.1 million and net assets were €225.5 million. The Group's contractual undiscounted external borrowings include: €500.0 million of bonds maturing in January 2024, €500.0 million of bonds maturing in January 2026, €117.9 million of PDP financing from Carlyle Aviation Partners that is repayable over twelve months but may be re-borrowed and convertible debt of €25.8 million. A further €4,457.5 million in relation to future liabilities from lease, JOLCO and FTL contracts are presented as borrowings. None of these borrowings contain any financial covenants.
The Group operates using a three-year planning cycle. The Directors have reviewed their latest financial forecasts for a period of 18 months from the date of signing these interim financial statements including plans to finance committed future aircraft deliveries (see Note 18) due within this period. After making enquiries and testing the assumptions against different forecast scenarios including a severe but plausible (downside) scenario (see below), the Directors have satisfied themselves that the Group is expected to be able to meet its commitments and obligations as they fall due for a period of at least the next twelve months from the date of signing this interim report.
These enquiries and the testing performed in reaching this conclusion included the review of a base case model of how the operations of the business would develop against a backdrop of persistent inflation, an adverse fuel and exchange rate environment and continued aircraft delivery delays that have been notified by Airbus. Notably, as part of this base case, the expected consequences of the metallurgy inspections announced by Pratt & Whitney (RTX) and grounding of 45 aircraft, on average, commencing 15 January 2024 and spanning 18 months, have been mitigated by management actions and original equipment manufacturer ("OEM") compensation that has now been secured. In the absence of detailed information and instructions from the involved regulatory organisations and the OEM, the Directors believe this scenario to be a realistic assumption. This base case was then flexed to produce a downside forecast that reflects the potential impact of trading scenarios such as a lower RASK, higher fuel price, stronger USD and exclusion of uncommitted lease financing for future aircraft deliveries (see Note 18). Both the base and downside forecasts reflect the repayment of €500 million of bonds in January 2024.
The Directors also considered the impact of climate change over the time period and concluded that it is unlikely that material physical or transition risks that are described in our Sustainability Report, on pages 29 to 40 of the 2023 Annual Report and Accounts, will arise over this period.
In preparing the base and downside forecasts the Directors also considered the requirements of security levels in its card acquirer contracts and took into account the impact of the war in Ukraine, the three aircraft stranded in Ukraine (see Note 5 and Note 12) and the war in Palestine. The Directors concluded that no material adverse impact on future cash flows is likely to result from these matters.
In this downside scenario the Group is still forecasting significant liquidity (or access to liquidity) throughout this period. Accordingly, the Directors concluded it is appropriate to retain the going concern basis of accounting in preparing the financial statements.
3. Accounting policies
These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies, methods of computation and presentation applied in the Group's most recently published consolidated financial statements for the year ended 31 March 2023, except for the changes explained below.
The Group's interests in equity investments are presented as financial assets at fair value through other comprehensive income.
The useful life of aircraft assets that were first leased and then purchased by the Group is estimated based on the date of the major overhaul events that are no longer economical to perform. Within the current aircraft fleet the maximum estimated useful life of A320ceo aircraft is 20 years.
The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 March 2023, with the exception of changes in estimates that are required in determining the provision for income taxes. Taxes on income in the interim periods are accrued using the effective rate that would be applicable to expected total annual profit or loss.
In preparing the condensed consolidated interim financial statements, the Directors have considered the impact of climate change, particularly in the context of the disclosures included in the Strategic Report in the 2023 Annual Report and Accounts, the stated emission targets and the update provided on pages 5 and 6 of this Interim Report. These considerations did not have a material impact on the Group's going concern assessment, nor on the financial reporting judgments and estimates used in the preparation of these interim financial statements.
New standards, amendments and interpretations issued and effective
The following amendments and interpretations apply for the first time in the six months to 30 September 2023, but do not have a material impact, or any impact (except the for disclosure of gross deferred tax balances in relation to leases under Amendment to IAS 12, see Note 10), on the condensed consolidated interim financial statements of the Group:
▶ IFRS 17, 'Insurance Contracts' including Amendments to IFRS 17
▶ Amendments to IFRS 17, 'Insurance Contracts': Initial Application of IFRS 17 and IFRS 9 - Comparative Information
▶ Amendments to IAS 1, 'Presentation of Financial Statements' and IFRS Practice Statement 2: Disclosure of Accounting Policies
▶ Amendments to IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors': Definition of Accounting Estimates
▶ Amendments to IAS 12, 'Income Taxes': Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction
New standards, amendments and interpretations issued but not yet effective
The following new accounting standards and interpretations have been published by the IASB that are not yet effective and have not been early adopted by the Group. These standards are either not relevant or not expected to have a material impact on the Group in the current or future reporting periods or on foreseeable future transactions.
Endorsed by the EU but not yet effective or not yet endorsed by the EU:
▶ Amendments to IAS 1, 'Presentation of Financial Statements': Classification of Liabilities as Current or Non-current
▶ Amendments to IAS 1, 'Presentation of Financial Statements': Non-current Liabilities with Covenants
▶ Amendments to IFRS 16, 'Leases': Lease Liability in a Sale and Leaseback
▶ Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements: these amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis.
▶ Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability: an entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.
Not endorsed by the EU but will become immediately effective once endorsed:
▶ Amendment to IAS 12: International Tax Reform - Pillar Two Model Rules
This amendment gives companies temporary relief from accounting for deferred taxes arising from the Organization for Economic Co-operation and Development's (OECD) international tax reform. The amendments also introduce targeted disclosure requirements for affected companies. For more details refer to Note 10.
4. Financial risk managementInterest rate benchmarks
As a result of interest rate benchmark reform, many benchmark interest rates are not published anymore. In connection with floating rate leases, the Group had exposures to LIBOR rates, which were published until 30 June 2023. This had no material impact on the H1 F24 condensed consolidated interim financial statements.
Hedging
In F23 the Company reinstated its Board approved systematic hedging policy with the following coverage and time horizon.
The hedges under the hedge policy will be rolled forward quarterly, 18 months out, with coverage levels over time reaching a minimum of 65 per cent for the first quarter of the hedging horizon and 15 per cent for the last quarter of the hedging horizon. In line with the hedging policy, Wizz Air also hedges its US Dollar exposure related to fuel consumption.
Hedge transactions during the period
The Group uses zero-cost collar instruments to hedge its jet fuel-related foreign exchange exposures and jet fuel price exposures. In order to ensure economic relationship, the Group enters into hedge relationships where critical terms of the hedging instrument match exactly with that of the hedged item.
The gains and losses arising from hedge transactions during the period were as follows:
Foreign exchange hedge:
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Gain recognised within fuel costs |
|
|
|
Effective cash flow hedge |
0.6 |
- |
|
Total loss recognised within fuel costs |
0.6 |
- |
Fuel hedge:
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
(Loss)/gain recognised within fuel costs |
|
|
|
Effective hedge (loss)/gain transferred into the statement of profit or loss |
(36.0) |
8.7 |
|
Total (loss)/gain recognised within fuel costs |
(36.0) |
8.7 |
Hedge period and open positions
The Group measures its derivative financial instruments at fair value, as calculated by the banks involved in the hedging transactions. As required, the fair values ascribed to those instruments are verified also by management using high-level models. These estimations are performed based on market prices observed at period end and therefore, according to paragraph 128 of IAS 1, do not require further disclosure. Such fair values might change materially within the near future but these changes would not arise from assumptions made by management or other sources of estimation uncertainty at the end of the period but from the movement of market prices. The fair value calculation is most sensitive to movements in the jet fuel and foreign currency spot prices, their implied volatility and respective yields.
At the end of the period the Group had the following open hedge positions:
Foreign exchange hedges with derivatives:
|
|
|
Derivative financial instruments |
|
|||
|
At 30 September 2023 |
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 |
833.0 |
2.9 |
15.7 |
- |
- |
18.6 |
|
Total foreign exchange hedge |
833.0 |
2.9 |
15.7 |
- |
- |
18.6 |
|
|
|
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 hedge |
312.0 |
- |
- |
- |
(0.4) |
(0.4) |
For the movements in other comprehensive income refer to the condensed consolidated interim statements of changes in equity and comprehensive income.
The open foreign currency cash flow hedge positions at year end can be analysed according to the maturity periods and price ranges of the underlying hedge instruments as follows:
EUR/USD foreign exchange hedge:
|
|
F24 |
F25 |
|
At 30 September 2023 |
6 months |
12 months |
|
Maturity profile of notional amount (million) |
$ 428.0 |
405.0 |
|
Weighted average ceiling |
$ 1.1139 |
1.1413 |
|
Weighted average floor |
$ 1.0709 |
1.0975 |
|
|
F24 |
F25 |
|
At 31 March 2023 |
12 months |
6 months |
|
Maturity profile of notional amount (million) |
$ 312.0 |
- |
|
Weighted average ceiling |
$ 1.1154 |
- |
|
Weighted average floor |
$ 1.0724 |
- |
Fuel hedge with derivatives:
|
|
|
Derivative financial instruments |
|
|||
|
At 30 September 2023 |
'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 |
1,061.0 |
7.1 |
67.3 |
- |
(0.2) |
74.2 |
|
Total fuel hedge |
1,061.0 |
7.1 |
67.3 |
- |
(0.2) |
74.2 |
|
|
|
Derivative financial instruments |
|
|||
|
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 condensed consolidated interim statements of changes in equity and comprehensive income.
The fuel hedge positions at period end can be analysed according to the maturity periods and price ranges of the underlying hedge instruments as follows:
|
|
F24 |
F25 |
|
At 30 September 2023 |
6 months |
12 months |
|
Maturity profile ('000 metric tonnes) |
582.0 |
479.0 |
|
Blended capped rate |
$ 936.0 |
$ 845.0 |
|
Blended floor rate |
$ 816.0 |
$ 743.0 |
|
|
F24 |
F25 |
|
At 31 March 2023 |
12 months |
6 months |
|
Maturity profile ('000 metric tonnes) |
1,081.0 |
177.5 |
|
Blended capped rate |
$ 994.0 |
$ 884.0 |
|
Blended floor rate |
$ 864.0 |
$ 767.0 |
Effects of hedge accounting on the financial position and performance
The effects of the foreign exchange hedges on the Group's financial position and performance are as follows:
|
|
At 30 Sep 2023 |
At 31 Mar 2023 |
|
|
€ million |
€ million |
|
Zero-cost collars |
|
|
|
Carrying amount, net asset/(liability) |
18.6 |
(0.4) |
|
Notional amount |
833.0 |
312.0 |
|
Maturity date |
October 2023- January 2025 |
April 2023- |
|
Hedge ratio |
1:1 |
1:1 |
|
Change in fair value of outstanding hedging instruments |
14.1 |
- |
|
Change in value of hedged item used to determine hedge effectiveness |
(14.1) |
- |
The effects of the fuel hedges on the Group's financial position and performance are as follows:
|
|
At 30 Sep 2023 |
At 31 Mar 2023 |
|
|
€ million |
€ million |
|
Zero-cost collars |
|
|
|
Carrying amount, net asset/(liability) |
74.2 |
(106.8) |
|
Notional amount |
1,061.0 |
1,006.9 |
|
Maturity date |
October 2023- January 2025 |
April 2023- |
|
Hedge ratio |
1:1 |
1:1 |
|
Change in fair value of outstanding hedging instruments |
45.3 |
(83.2) |
|
Change in value of hedged item used to determine hedge effectiveness |
(45.3) |
83.2 |
Hedge effectiveness
The effectiveness of hedges is tested both prospectively and retrospectively to determine the appropriate accounting treatment of hedge gains and losses. Prospective testing of open hedges requires making certain estimates, the most significant one being for the future expected level of the business activity (primarily the utilisation of fleet capacity) of the Group. Building on these estimations of the future, management makes a judgment on the accounting treatment of open hedging instruments. Hedge accounting for jet fuel and foreign currency cash flow hedges is discontinued where the "highly probable" forecast criterion is not met in accordance with the requirements of IFRS 9.
There was no discontinued hedging relationship during the six months ended 30 September 2022 or the six months ended 30 September 2023.
None of the hedge counterparties had a material change in their credit status that would have influenced the effectiveness of the hedging transactions.
Fair value estimationThe Group measures its derivative financial instruments at fair value, as calculated by the banks involved in the hedging transactions. These instruments fall into the Level 2 category. Fair values are determined based on inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. The banks are using generally accepted valuation techniques, principally the Black-Scholes model and discounted cash flow models. Equity investments are measured at fair value through profit or loss. All the other financial assets and financial liabilities of the Group are measured at amortised cost. For the majority of these instruments, the fair values are not materially different from their carrying amounts. Fair value of unsecured debt amounted to €935.1 million as at 30 September 2023 (31 March 2023: €927.1 million) as estimated using quoted prices (Level 1). Fair value of secured debt amounted to €117.9 million as at 30 September 2023 (31 March 2023: €250.0 million) as estimated using Level 3 methodology. Fair value of convertible debt amounted to €25.8 million as at 30 September 2023 (31 March 2023: €26.0 million) as estimated using Level 3 methodology. Fair value of borrowings amounted to €3,729.8 million as at 30 September 2023 (31 March 2023: €3,408.8 million) as estimated using Level 2 methodology. For the carrying amount of borrowings please see Note 16.
The following table presents the Group's financial assets and liabilities that are measured at fair value at 30 September 2023.
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
€ million |
€ million |
€ million |
€ million |
|
|
Assets |
|
|
|
|
|
Equity investment |
- |
- |
4.5 |
4.5 |
|
Derivative financial instruments |
- |
93.0 |
- |
93.0 |
|
|
- |
93.0 |
4.5 |
97.5 |
|
Liabilities |
|
|
|
|
|
Derivative financial instruments |
- |
0.2 |
- |
0.2 |
|
|
- |
0.2 |
- |
0.2 |
The following table presents the Group's financial assets and liabilities that are measured at fair value at 31 March 2023.
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
€ million |
€ million |
€ million |
€ million |
|
Assets |
|
|
|
|
|
Equity investment |
- |
- |
- |
- |
|
Derivative financial instruments |
- |
1.2 |
- |
1.2 |
|
|
- |
1.2 |
- |
1.2 |
|
Liabilities |
|
|
|
|
|
Derivative financial instruments |
- |
108.4 |
- |
108.4 |
|
|
- |
108.4 |
- |
108.4 |
5. Critical estimates and judgments made in applying the Group's accounting policies
For critical estimates and judgments refer to Note 4 in the 2023 Annual Report and Accounts of the Group. No significant changes to such estimates and judgments occurred for the six months ended 30 September 2023, except for the below.
Aircraft in UkraineJudgment: 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. It is assumed that the aircraft can return to the fleet before the summer season in 2024. For more details refer to Note 12.
6. Segment information
Reportable segment information
During F23 and F24 the Group had only one reportable segment, being its entire route network, resulting in a net profit of €400.7 million during the six months ended 30 September 2023 (for the six months ended 30 September 2022: €384.3 million loss). All segment revenue was derived wholly from external customers and, as the Group had a single reportable segment, inter-segment revenue was zero.
Entity-wide disclosuresProducts and services
Revenue from external customers can be analysed by groups of similar services as follows:
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Passenger ticket revenue |
1,762.2 |
1,182.1 |
|
Ancillary revenues |
1,290.1 |
1,011.7 |
|
Total segment revenue |
3,052.3 |
2,193.8 |
These categories are non-IFRS categories meaning that they are not necessarily distinct from a nature, timing and risk point of view; however, management believes that these categories provide clarity over the revenue profile of the Group to the readers of the financial statements and are in line with airline industry practice. The categories as per the definition of IFRS 15 are disclosed in Note 7.
Ancillary revenue arises mainly from baggage charges, booking/payment currency conversion charges, airport check-in fees, fees for various convenience services (e.g. priority boarding, extended legroom and reserved seats), loyalty programme membership fees, commission on the sale of on-board catering, accommodation, car rental, travel insurance, bus transfers, premium calls, co-branded cards and repatriation.
Geographic areas
Revenue from external customers can be analysed by geographic areas as follows:
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
EU and EFTA countries |
2,102.8 |
1,560.2 |
|
UK |
349.8 |
280.1 |
|
Other (non-EU) |
599.7 |
353.5 |
|
Total revenue from external customers |
3,052.3 |
2,193.8 |
In the table above, other (non-EU) comprises a number of non-EU geographic areas that are all individually less than 10 per cent of the total revenue.
Revenue was allocated to geographic areas based on the location of the first departure airport on each ticket booking.
The Company's revenue from external customers within the EU is mainly generated by Italy of €384.9 million for the six months ended 30 September 2023 (the six months ended 30 September 2022: €305.7 million), Romania of €329.8 million (the six months ended 30 September 2022: €236.8 million) and Poland of €255.0 million (the six months ended 30 September 2022: €178.9 million).
The physical location of non-current assets is not disclosed by geographic area. This is because: (i) by value most assets are associated either with aircraft not yet received (pre-delivery payments) or with existing leased aircraft and spare engines (RoU and maintenance assets), the location of which changes regularly following aircraft capacity allocation decisions; and (ii) the value of the remaining asset categories (land and buildings, and fixtures and fittings) is not a material part of total non-current assets.
The distribution of the non-current assets between the key operating entities of the Group is as follows:
|
|
30 Sep 2023 |
31 March 2023 |
|
|
€ million |
€ million |
|
Wizz Air Hungary |
2,444.9 |
2,755.8 |
|
Wizz Air UK |
480.8 |
460.1 |
|
Wizz Air Fleet Management |
568.1 |
504.9 |
|
Wizz Air Malta |
1,679.9 |
1,117.2 |
|
Wizz Air Abu Dhabi |
71.3 |
32.5 |
|
Other |
3.2 |
1.2 |
|
Total non-current assets |
5,248.2 |
4,871.7 |
No revenue or non-current assets of the Group were recognised in Jersey, the Company's country of domicile for the six months ended 30 September 2023 (for the six months ended 30 September 2022: €nil).
Wizz Air Malta Limited and WAM Ventures Holding Limited were successfully established in 2022 to reinforce Wizz Air's position and support its expansion plans in Europe. From 1 April 2023, Wizz Air Malta Limited commenced commercial operations and started to sell tickets for its own flights in addition to its wet-lease operations.
AOG Jet Limited, a wholly owned subsidiary of the Group, was successfully established in July 2023.
Major customers
The Group derives the vast majority of its revenues from its passengers and sells most of its tickets directly to the passengers as final customers rather than through corporate intermediaries (tour operators, travel agents or similar).
7. RevenueThe split of total revenue presented in the condensed consolidated interim statement of comprehensive income, being passenger ticket revenue and ancillary revenue, is a non-IFRS measure (or alternative performance measure). The existing presentation is considered relevant for the users of the financial statements because: (i) it mirrors disclosures presented outside of the financial statements; and (ii) it is regularly reviewed by the Chief Operating Decision Maker for evaluating the financial performance of its single operating segment.
Revenue from contracts with customers can be disaggregated as follows based on IFRS 15:
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Revenue from contracts with passengers |
3,012.3 |
2,159.4 |
|
Revenue from contracts with other partners |
40.0 |
34.4 |
|
Total revenue from contracts with customers |
3,052.3 |
2,193.8 |
These two categories represent revenues that are distinct from a nature, timing and risks point of view. Revenue from contracts with other partners relates to commissions on the sale of on-board catering, accommodation, car rental, travel insurance, bus transfers, premium calls and co-branded cards, where the Group acts as an agent.
The contract assets reported on 30 September 2023 as part of trade and other receivables amounted to €5.0 million (31 March 2023: €5.9 million) and the contract liabilities (unearned revenues) reported as part of deferred income were €576.3 million as at 30 September 2023 (31 March 2023: €761.1 million). Out of the €3,012.3 million revenue recognised for the six months ended 30 September 2023 (for the six months ended 30 September 2022: €2,159.4 million), €761.1 million (the six months ended 30 September 2022: €326.6 million) was included in the contract liability balance at the beginning of the period.
8. Operating profit/(loss)Net other expenses
The following charges less gains are included in net other expenses:
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Gain on sale and leaseback transactions |
45.3 |
41.8 |
|
Flight disruption-related expenses |
(109.4) |
(89.6) |
|
Overhead-related expenses |
(42.5) |
(25.5) |
|
Crew-related expenses |
(35.5) |
(27.3) |
|
Expense relating to short-term leases |
(2.3) |
(2.8) |
|
Impairment reversal for receivables |
- |
- |
|
Expense relating to variable lease payments |
(0.4) |
(1.4) |
|
Net other income |
35.2 |
6.9 |
|
Net other expenses |
(109.5) |
(97.9) |
Overhead-related expenses include fees for legal support, professional services, consulting and IT-related services.
Net other income is mainly related to credits received from suppliers and to income and expenses from cargo operations.
InventoriesInventories totaling €12.9 million were recognised as maintenance materials and repairs expenses in the period (the six months ended 30 September 2022: €7.0 million).
Emission Trade Schemes amounted to €185.5 million at 30 September 2023 (31 March 2023: €262.5 million). The decrease is due to the ETS settlement in April 2023.
9. Net financing expense|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Interest income |
39.0 |
3.1 |
|
Financial income |
39.0 |
3.1 |
|
Interest expenses: |
|
|
|
Convertible debt |
(0.9) |
(0.9) |
|
IFRS 16 lease liability |
(57.5) |
(43.8) |
|
JOLCO and FTL lease liability |
(16.5) |
(7.7) |
|
Unsecured debt |
(6.6) |
(6.6) |
|
Secured debt |
(9.3) |
- |
|
Other |
(1.2) |
(0.8) |
|
Financial expenses |
(92.0) |
(59.8) |
|
Net foreign exchange loss |
(19.7) |
(269.2) |
|
Net financing expense |
(72.7) |
(325.9) |
Interest income and expense include interest on financial instruments. Interest income is earned on cash and cash equivalents and short-term deposits.
Net foreign exchange loss in amount of €52.4 million for the six months ended 30 September 2023 (the six months ended 30 September 2022: €274.7 million) relates to remeasurement of lease liabilities denominated in currencies different from EUR, predominantly in USD which is offset by a net foreign exchange gain of €25.4 million on cash and cash equivalents denominated in foreign currency. During H1 F24 the USD/EUR exchange rate decreased from 1.09 USD/EUR at 31 March 2023 to 1.06 USD/EUR at 30 September 2023 which resulted in an increase in lease liability and related recognition of foreign exchange loss.
10. Income tax expenseThe income tax charge for the six months ended 30 September 2023 was €49.5 million (the six months ended 30 September 2022: €5.4 million tax credit). The increase in tax charge is mainly attributable to the positive income of the period compared to the loss position in the prior period.
The effective income tax rate for the six months ended 30 September 2023 is 11.0 per cent (the six months ended 30 September 2022: 1.4 per cent). The tax charge or credit for the period was calculated based on the estimated annual effective income tax rate of the Group.
Deferred tax positions
Deferred tax assets decreased from €50.6 million to €18.6 million and deferred tax liabilities increased from €3.2 million to €12.4 million in the current period (between 31 March and 30 September 2023). The changes in the deferred tax position are mainly caused by changes in the balances related to hedging, ETS liability and JOLCO-financed assets, which are sources of temporary differences.
The amendments of IAS 12 have no material impact on the net deferred tax balances of the Group, as the exemption for deferred tax recognition in relation to leases was not applied at initial recognition.
Deferred tax related to leases:
|
|
RoU assets |
Lease liabilities |
||
|
|
Deferred tax assets |
Deferred tax liabilities |
Deferred tax assets |
Deferred tax liabilities |
|
|
€ million |
€ million |
€ million |
€ million |
|
31 March 2022 |
1.4 |
(79.8) |
81.8 |
- |
|
31 March 2023 |
2.6 |
(154.3) |
171.7 |
- |
|
30 September 2023 |
1.5 |
(151.8) |
161.3 |
- |
Tax residency change
Wizz Air Hungary Ltd. moved its place of effective management from Switzerland to Hungary with an effective date of 1 April 2023. As a consequence, the tax residency of Wizz Air Hungary Ltd. changed from Swiss to Hungarian from F24 onwards.
Global minimum tax
On 20 December 2021, the OECD released a framework for Pillar Two Model Rules which aims to introduce a global minimum corporate tax rate of 15 per cent applicable to multinational enterprise groups with global revenue over €750 million. On 15 December 2022, the EU Council formally adopted the EU minimum tax directive by written procedure and rules are expected to apply for accounting periods starting on or after 31 December 2023 (i.e. the year ending 31 March 2025 for the Group). Management is monitoring the status of implementation to understand the potential impact on the Group's future tax position. The Group does not account for deferred tax on Pillar Two top-up taxes and, therefore, there was no impact on the recognition and measurement of deferred tax balances.
11. Earnings and loss per shareBasic earnings and loss per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Group by the weighted average number of Ordinary Shares in issue during each period.
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
Profit/(loss) for the six months, € million |
405.1 |
(374.8) |
|
Weighted average number of Ordinary Shares in issue, thousands |
103,310 |
103,158 |
|
Basic earnings/(loss) per share, € |
3.92 |
(3.63) |
There were no Convertible Shares in issue at 30 September 2023 (30 September 2022: nil).
Diluted earnings and loss per share
Diluted earnings per share is calculated by adjusting the weighted average number of Ordinary Shares in issue with the weighted average number of Ordinary Shares that could have been issued in the respective period as a result of the conversion of the following convertible instruments of the Group:
▶ Convertible Shares;
▶ Convertible Notes; and
▶ employee share options (vested share options are included in the calculation).
The profit for the period has been adjusted for the purposes of calculating diluted earnings per share in respect of the interest charge relating to the debt which could have been converted into shares.
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
Profit/(loss) for the six months, € million |
405.1 |
(374.8) |
|
Interest expense on convertible debt (net of tax), € million |
0.9 |
- |
|
Profit/(loss) used to determine diluted earnings per share |
406.0 |
(374.8) |
|
Weighted average number of Ordinary Shares in issue, thousands |
103,310 |
103,158 |
|
Adjustment for assumed conversion on convertible instruments, thousands |
24,396 |
- |
|
Weighted average number of Ordinary Shares for diluted earnings per share, thousands |
127,706 |
103,158 |
|
Diluted earnings/(loss) per share, € |
3.18 |
(3.63) |
There is no difference between the basic and diluted loss per share for H1 F23 as potential Ordinary Shares are anti-dilutive due to incurred loss.
12. Property, plant and equipment
|
|
Land and buildings |
Aircraft maintenance assets |
Aircraft assets and parts |
Fixtures and fittings |
Advances paid for aircraft* |
Advances paid for aircraft maintenance assets |
RoU assets aircraft and spares |
RoU assets other |
Total |
|
|
€ million |
€ million |
€ million |
€ million |
€ million |
€ million |
€ million |
€ million |
€ million |
|
Cost |
|
|
|
|
|
|
|
|
|
|
At 1 April 2022 |
25.8 |
374.0 |
690.3 |
11.3 |
734.4 |
224.6 |
3,414.1 |
16.1 |
5,490.6 |
|
Additions |
0.1 |
33.2 |
483.5 |
1.2 |
271.2 |
33.3 |
389.3 |
7.2 |
1,219.0 |
|
Disposals |
- |
(90.5) |
(6.5) |
(0.2) |
(248.1) |
- |
(112.1) |
- |
(457.4) |
|
Transfers |
- |
25.0 |
- |
- |
- |
(25.0) |
- |
- |
- |
|
FX translation effect |
- |
1.7 |
(5.9) |
- |
- |
(0.7) |
(15.1) |
- |
(20.0) |
|
At 30 September 2022 |
25.9 |
343.4 |
1,161.4 |
12.3 |
757.4 |
232.2 |
3,676.2 |
23.3 |
6,232.1 |
|
At 1 April 2023 |
25.9 |
428.6 |
1,298.3 |
12.2 |
810.0 |
208.2 |
3,920.6 |
27.3 |
6,731.1 |
|
Additions |
0.8 |
110.9 |
278.4 |
0.4 |
159.3 |
38.2 |
374.6 |
0.1 |
962.7 |
|
Disposals |
- |
(134.8) |
(5.2) |
- |
(218.5) |
- |
(216.3) |
(0.1) |
(574.9) |
|
Transfers |
- |
46.5 |
- |
- |
- |
(46.5) |
- |
- |
- |
|
FX translation effect |
- |
2.0 |
1.4 |
- |
- |
0.1 |
4.6 |
- |
8.1 |
|
At 30 September 2023 |
26.7 |
453.2 |
1,572.9 |
12.6 |
750.8 |
200.0 |
4,083.5 |
27.3 |
7,127.0 |
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
|
|
At 1 April 2022 |
4.5 |
263.4 |
83.8 |
7.6 |
- |
- |
1,492.7 |
7.2 |
1,859.2 |
|
Depreciation charge for the period |
0.8 |
49.2 |
26.4 |
0.9 |
- |
- |
196.9 |
1.3 |
275.5 |
|
Disposals |
- |
(90.1) |
(0.3) |
(0.2) |
- |
- |
(111.7) |
- |
(202.3) |
|
FX translation effect |
- |
0.9 |
(0.1) |
- |
- |
- |
(3.8) |
- |
(3.0) |
|
At 30 September 2022 |
5.3 |
223.4 |
109.8 |
8.3 |
- |
- |
1,574.1 |
8.5 |
1,929.4 |
|
At 1 April 2023 |
6.0 |
242.4 |
128.6 |
8.4 |
- |
- |
1,669.8 |
9.9 |
2,065.1 |
|
Depreciation charge for the period |
0.8 |
72.3 |
46.7 |
0.9 |
- |
- |
224.6 |
1.5 |
346.8 |
|
Disposals |
- |
(130.5) |
(1.8) |
- |
- |
- |
(214.3) |
- |
(346.6) |
|
FX translation effect |
- |
(0.7) |
(0.7) |
- |
- |
- |
(0.9) |
- |
(2.3) |
|
At 30 September 2023 |
6.8 |
183.5 |
172.8 |
9.3 |
- |
- |
1,679.2 |
11.4 |
2,063.0 |
|
Net book amount |
|
|
|
|
|
|
|
|
|
|
At 1 April 2022 |
21.3 |
110.6 |
606.5 |
3.7 |
734.4 |
224.6 |
1,921.4 |
8.9 |
3,631.4 |
|
At 30 September 2022 |
20.6 |
120.0 |
1,051.6 |
4.0 |
757.4 |
232.2 |
2,102.2 |
14.8 |
4,302.8 |
|
At 1 April 2023 |
19.9 |
186.2 |
1,169.7 |
3.8 |
810.0 |
208.2 |
2,250.8 |
17.4 |
4,666.0 |
|
At 30 September 2023 |
19.9 |
269.7 |
1,400.1 |
3.3 |
750.8 |
200.0 |
2,404.3 |
15.9 |
5,064.0 |
* Disposals represent the refunds upon delivery of aircraft of advances previously paid.
The Group entered into various financing arrangements in order to finance aircraft including sale and leaseback, Japanese Operating Lease with Call Option (JOLCO) and French Tax Lease (FTL) structures. Certain of these arrangements include Special Purpose Vehicles (SPV) in the financing structure and in accordance with IFRS 10, where the Group has control of these entities, these are consolidated in the Group balance sheet. Aircraft assets and parts leased under JOLCO are not classified as leases under IFRS 16 and treated as aircraft assets and parts (as if there were no sale at all). Additions to aircraft assets and parts also include two purchased aircraft that were previously leased by the Group.
Other right-of-use (RoU) assets include leased buildings and simulator equipment. Please refer to Note 16 for details on lease liabilities.
Additions to aircraft maintenance assets were fixed assets created primarily against provision, as the Group's aircraft or their main components no longer met the relevant return conditions under lease contracts.
Additions to "advances paid to aircraft maintenance assets" reflect primarily the advance payments made by the Group to the engine maintenance service provider under power by the hour agreements.
Additions to "advances paid for aircraft" represent PDPs made in the period, while disposals in the same category represent PDP refunds received from the manufacturer where the respective aircraft or spare engine was leased (i.e. not purchased) by the Group. In F23, the Group entered into a PDP financing loan agreement denominated in US Dollars ($), according to which PDPs in the amount of $159.2 million is pledged as collateral (see Note 16).
The Group has reviewed the expected useful economic lives attributed to its leased aircraft fleet and notes that the duration of its leases is significantly less than the current expected life of the aircraft. No change as a result of climate change has been made.
Impairment assessmentNo new impairment triggers for the Group's aircraft fleet, which comprises a single cash-generating unit (CGU), in the period have been identified. Nonetheless, an impairment risk review assessment was performed for the Group's aircraft fleet CGU that includes virtually all property, plant and equipment, and also the intangible assets of the Group. The recoverable amount of that CGU was estimated by value in use calculations based on cash flow projections in the plan approved by the Board for the following three financial years up to and including March 2026.
Management's assessment of future trends includes trading and other assumptions - such as fleet size, passenger numbers, load factors, commodity prices and foreign exchange rates - based on external and internal inputs, as well as climate change risks and opportunities outlined in the TCFD disclosure in the Group's 2023 Annual Report and Accounts. Key assumptions for the jet fuel price and USD exchange rate were the following:
|
|
2024 |
2025 |
2026 |
|
Jet fuel price (EUR per metric tonne) |
879.0 |
901.0 |
920.0 |
|
USD/EUR exchange rate |
1.09 |
1.05 |
1.05 |
Cash flow projections of the approved plan were extrapolated beyond March 2026 for a period of 12 years in total to cover all lease terms in the existing aircraft fleet. A pre-tax discount rate of 10.6 per cent (31 March 2023: 10.1 per cent) was derived from the weighted average cost of capital of the Group. The risk of significant adverse changes in cash flows was taken into account by calculating and weighting management's base case approved plan with a downside scenario that is consistent with that used in the Group's going concern assessment. Sensitivity analysis was performed by management to assess the impact of changes in its trading assumptions and the key assumptions detailed above. As a result of this risk review, management did not identify any risk of an impairment.
Aircraft in Ukraine
Three airframes remained grounded in Ukraine after the successful repatriation of one aircraft and all the engines. The above impairment assessment included those three airframes with a total net book value of €24.3 million. Based on photographic and local employee information these airframes are in good condition and have not been damaged in the conflict. Whilst not a separate CGU, cash flow projections were estimated for these aircraft based on the average cash contribution generated per aircraft in the Group's fleet adjusted for a downward scenario according to the plans and calculations described above, and the cost of planned maintenance of the particular aircraft. Management's working assumption is that these aircraft will be returned to the fleet before the summer season in 2024; however, delays to the date until the aircraft can be returned to the fleet can cause a significant but not material change to their estimated recoverable amount. If the aircraft do not return into service for a prolonged period of time, then additional consideration will be needed in upcoming reporting cycles.
13. Trade and other receivables|
|
30 Sep 2023 |
31 Mar 2023 |
|
|
€ million |
€ million |
|
Non-current |
|
|
|
Receivables from lessors |
8.6 |
9.1 |
|
Other receivables |
11.8 |
12.3 |
|
Non-current trade and other receivables |
20.4 |
21.4 |
|
Current |
|
|
|
Trade receivables * |
206.0 |
170.0 |
|
Receivables from lessors |
16.2 |
15.5 |
|
Other receivables |
20.1 |
27.2 |
|
Total current other receivables |
36.3 |
42.7 |
|
Prepayments, deferred expenses and accrued income * |
283.5 |
177.3 |
|
Current trade and other receivables |
525.8 |
390.1 |
|
Total trade and other receivables |
546.2 |
411.5 |
*Current trade receivables at 31 March 2023 now total €170.0 million (previously €233.8 million) and prepayments, deferred expenses and accrued income at 31 March 2023 now total €177.3 million (previously €113.5 million) following the reclassification of prepayment balances made to vendors. The change had no impact on the statement of financial position.
Receivables from lessors (both current and non-current) represent the deposits provided by the Group to lessors as security in relation to lease contracts and in relation to the funding of future maintenance events.
Trade receivables included €118.0 million of receivables from contracts with customers (at 31 March 2023: €127.0 million).
Total trade and other receivables as at 30 September 2023 included financial instruments in the amount of €399.3 million (31 March 2023: €270.4 million).
Impairment of trade and other receivables|
|
30 Sep 2023 |
31 Mar 2023 |
|
|
€ million |
€ million |
|
Impaired receivables |
|
|
|
- trade receivables |
(3.5) |
(3.5) |
|
Allowances on impaired receivables |
|
|
|
- other receivables |
(0.6) |
(0.5) |
The Group recorded €2.1 million of receivables from Warsaw Modlin Airport during 2013 as compensation for damages which was immediately impaired in full. However, the Group is legally claiming the full amount in court. The compensation claimed by the Group, plus interest, was awarded by the District Court of Warsaw in June 2018. However, the airport appealed against the decision, which is currently pending. There was no transaction regarding this receivable in the first half of this financial year.
14. Trade and other payables|
|
30 Sep 2023 |
31 Mar 2023 |
|
|
€ million |
€ million |
|
Non-current liabilities |
|
|
|
Accrued expenses |
57.2 |
59.1 |
|
Other payables |
- |
- |
|
Non-current trade and other payables |
57.2 |
59.1 |
|
Current liabilities |
|
|
|
Trade payables |
202.1 |
173.7 |
|
Payables to passengers |
81.8 |
95.2 |
|
Other trade payables |
35.7 |
34.0 |
|
Accrued expenses |
686.2 |
583.4 |
|
Current trade and other liabilities |
1,005.8 |
886.3 |
|
Total trade and other payables |
1,063.0 |
945.4 |
Payables to passengers include the refunds made in credits which can be used by customers for rebooking tickets for later dates or can be requested to be refunded by the Group in cash and other liabilities towards customers. Credits not eligible for cash refund are classified as deferred income.
Accrued expenses mainly include accruals for operating expenses such as airport and ground handling, fuel, ETS allowances, en-route and navigation, crew and maintenance-related expenses and liabilities for EU regulation (EC) No. 261/2004 (EU261) compensation to customers in the amount of €11.8 million (31 March 2023: €11.2 million), refund made to passengers beyond the original paid value.
Total trade and other payables as at 30 September 2023 included financial instruments in the amount of €875.0 million (31 March 2023: €705.5 million).
15. Provisions for other liabilities and charges|
|
Aircraft maintenance |
Other |
Total |
|
|
€ million |
€ million |
€ million |
|
At 31 March 2022 |
88.8 |
18.3 |
107.1 |
|
Non-current provisions |
43.0 |
0.9 |
43.9 |
|
Current provisions |
45.8 |
17.4 |
63.2 |
|
Capitalised within property, plant and equipment |
37.8 |
- |
37.8 |
|
Charged to comprehensive income |
6.0 |
91.0 |
97.0 |
|
Used during the period |
(19.7) |
(36.4) |
(56.1) |
|
At 30 September 2022 |
112.9 |
72.9 |
185.8 |
|
Non-current provisions |
28.7 |
0.9 |
29.6 |
|
Current provisions |
84.2 |
72.0 |
156.2 |
|
At 31 March 2023 |
148.7 |
7.4 |
156.1 |
|
Non-current provisions |
76.2 |
0.1 |
76.3 |
|
Current provisions |
72.5 |
7.2 |
79.8 |
|
Capitalised within property, plant and equipment |
103.1 |
- |
103.1 |
|
Charged to comprehensive income |
(6.0) |
9.4 |
3.4 |
|
Used during the period |
(38.7) |
(0.9) |
(39.6) |
|
FX translation effect |
4.8 |
- |
4.8 |
|
At 30 September 2023 |
211.9 |
15.8 |
227.7 |
|
Non-current provisions |
95.3 |
0.1 |
95.4 |
|
Current provisions |
116.6 |
15.7 |
132.3 |
Non-current provisions mainly relate to future aircraft maintenance obligations of the Group on leased aircraft and spare engines, falling due typically between one and five years from the balance sheet date. Current aircraft maintenance provisions relate to heavy maintenance obligations expected to be fulfilled in the coming financial year. The amount of provision reflects management's estimates of the cost of heavy maintenance work that will be required in the future to discharge obligations under the Group's lease agreements. Maintenance provisions in relation to engines and APUs covered by power by the hour agreements are netted off with the prepayments made to the maintenance service provider under those agreements in respect of the same group of engines and APUs.
16. Borrowings
|
|
30 Sep 2023 |
31 Mar 2023 |
|
|
€ million |
€ million |
|
Lease liability under IFRS 16 |
480.9 |
444.2 |
|
Liability related to JOLCO and FTL contracts |
85.5 |
74.1 |
|
Unsecured debts |
505.2 |
506.7 |
|
Secured debt |
117.9 |
250.0 |
|
Total current borrowings |
1,189.5 |
1,275.0 |
|
Lease liability under IFRS 16 |
2,578.5 |
2,350.9 |
|
Liability related to JOLCO and FTL contracts |
1,312.6 |
1,137.0 |
|
Unsecured debt |
501.7 |
498.8 |
|
Loans from non-controlling interests |
14.2 |
13.8 |
|
Total non-current borrowings |
4,407.0 |
4,000.5 |
|
Total borrowings |
5,596.5 |
5,275.5 |
On 19 January 2021, Wizz Air Finance Company B.V., a 100 per cent owned subsidiary of Wizz Air Holdings Plc, issued a €500.0 million 1.35 per cent Eurobond, fully and irrevocably guaranteed by the Company, under the €3,000.0 million EMTN programme with a maturity in January 2024. Further to that, on 19 January 2022, Wizz Air Finance Company B.V., a 100 per cent owned subsidiary of Wizz Air Holdings Plc, issued a €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.
In February 2023, the Group entered into a PDP financing loan agreement, according to which a part of the PDPs made has been financed and at the same time pledged as collateral, through the novation of the PDPs and the associated aircraft purchase rights to an orphan SPV. At 30 September 2023 $125.1 million is borrowed, and PDPs in the amount of $159.2 million are collateralised. The Group has an obligation to repay the financed amount, its interest and other costs related to the transaction within one year. When all obligations are settled, the aircraft purchase rights and the PDPs are automatically re-novated to Wizz Air. In case of default, the Group bears the potential risk of losing the purchase rights and the related PDP amounts. There were no defaults during the six-month period ended on 30 September 2023 and the six months period ended on 30 September 2022. The PDP refinancing credit facility is available for further financing for a maximum of three years and does not contain any financial covenants.
The maturity profile of borrowings as at 30 September 2023 is as follows:
|
|
IFRS 16 aircraft and engine 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 |
33.9 |
0.2 |
- |
0.7 |
10.9 |
- |
45.7 |
|
Between one and three months |
76.3 |
0.4 |
21.4 |
- |
43.9 |
- |
142.0 |
|
Between three months and one year |
368.6 |
1.6 |
64.1 |
504.5 |
63.1 |
- |
1,001.9 |
|
Between one and two years |
458.2 |
6.0 |
92.1 |
- |
- |
- |
556.3 |
|
Between two and three years |
399.8 |
1.9 |
92.9 |
501.7 |
- |
- |
996.3 |
|
Between three and four years |
324.1 |
1.5 |
95.3 |
- |
- |
- |
420.9 |
|
Between four and five years |
278.8 |
1.6 |
97.8 |
- |
- |
- |
378.2 |
|
In more than five years |
1,102.1 |
4.4 |
934.5 |
- |
- |
14.2 |
2,055.2 |
|
Total borrowings |
3,041.8 |
17.6 |
1,398.1 |
1,006.9 |
117.9 |
14.2 |
5,596.5 |
The maturity profile of borrowings as at 31 March 2023 is as follows:
|
|
IFRS 16 aircraft and engine 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 |
|
In more than five years |
1,009.1 |
7.4 |
815.1 |
- |
- |
13.8 |
1,845.4 |
|
Total borrowings |
2,776.5 |
18.5 |
1,211.2 |
1,005.5 |
250.0 |
13.8 |
5,275.5 |
17. Deferred income
|
|
30 Sep 2023 |
31 Mar 2023 |
|
|
€ million |
€ million |
|
Non-current liabilities |
|
|
|
Deferred income |
117.1 |
103.3 |
|
Current liabilities |
|
|
|
Unearned revenue |
576.3 |
761.1 |
|
Other |
9.3 |
9.2 |
|
|
585.6 |
770.3 |
|
Total deferred income |
702.7 |
873.6 |
Non-current deferred income represents the value of benefit for the Group coming from credits and free aircraft components received from manufacturers and component suppliers, which will be recognised as a credit (a decrease to aircraft-related expenses) over the useful life of the respective asset.
Current deferred income represents the value of tickets paid by passengers for which the flight service is yet to be performed ("unearned revenue"), the value of membership fees paid but not yet recognised and credits provided to passengers with no cash conversion option in the amount of €22.7 million (at 31 March 2023: €19.4 million). Unearned revenue decreased primarily due to seasonality having lower volume of bookings than before summer season.
The contract liabilities (unearned revenue) of €576.3 million existing at 30 September 2023 (at 31 March 2023: €761.1 million) will become revenue during the upcoming twelve months (subject to further cancellations that might happen after the period end).
18. Capital commitmentsAt 30 September 2023 the Group had the following capital commitments:
▶ A commitment to purchase 347 Airbus aircraft of the A320 family in the period 2023-2029. The total commitment is valued at US$50.6 billion (€47.7 billion) based on list prices last published in 2018 and escalated annually until the reporting date based on contract terms (31 March 2023: US$42.2 billion (€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). As at the date of approval of this document out of the 347 aircraft 21 are to be delivered in H2 F24 and for 16 financing is already contracted. The Group uses various financing arrangements in order to finance aircraft including sale and leaseback, Japanese Operating Lease with Call Option (JOLCO) and French Tax Lease (FTL) structures.
▶ A commitment to purchase 18 IAE "neo" (GTF) spare engines in the period 2023-2026. The total commitment is valued at US$381.7 million (€359.7 million) at list prices in 2023 US$ terms (31 March 2023: US$572.5 million (€525.7 million), valued at 2023 list prices, to purchase 27 IAE "neo" (GTF) spare engines in the period 2023-2026). As at the date of approval of this document out of the 18 engines 4 is to be delivered in H2 F24 and it is not financed yet.
▶ A commitment to purchase 3 Full Flight Simulators. The total commitment is valued at €13.6 million based on contract terms. Payment is due in installments with €4.6 million paid as at 30 September 2023.
19. Contingent liabilities
The Group has certain contingent liabilities in relation to European Commission state aid investigations and to legal claims initiated by Carpatair. These matters were explained in Note 33 in the 2023 Annual Report and Accounts of the Group and there have been no significant developments in these cases since then.
No provision has been made by the Group in relation to these cases because there is currently no reason to believe that the Group will incur charges from these cases.
20. Subsequent eventsIn FY23 the Group entered into a PDP financing loan facility (see Note 16). In October 2023, the loan facility was extended by an additional US$270.0 million, keeping the total drawdown limit at US$280.6 million, aimed at bolstering the Group's liquidity.
Based on a service bulletin in relation to GTF engine inspections (issued 3 November, 2023), and verification performed with Pratt & Whitney, the Group is projecting a grounding of 45 aircraft by the end of F24 (including aircraft previously grounded in September 2023.The Group has agreed an OEM compensation package for flight disruption costs incurred and expected to be incurred in respect of the aircraft that have been grounded or are expected to be grounded. An element of this compensation, which was not material, relates to costs incurred in the period ended 30 September 2023. These credits are included in net other expenses in the condensed consolidated interim statement of comprehensive income.
21. Related partiesThe Group has related party relationships with Indigo Hungary LP and Indigo Maple Hill LP (collectively referred to as "Indigo" here) and its key management personnel (Directors and Officers).
There were no related party transactions in the period ended 30 September 2023 that materially affected the financial position or the performance of the Group during that period and there were no changes to the related party positions described in the 2023 Annual Report and Accounts that could have a material effect on the financial position or performance of the Group in the same period.
The Group has contracted with a related party of the CEO to provide IT services with regard to machine learning. The amount paid for this service for the six months ended on 30 September 2023 was €2.1 million (for the six months ended on 30 September 2022: €1.8 million), which happened on an arm's length basis. On 30 September 2023 the outstanding amount payable to the related party was €0.3 million.
Wizz Air invested 2.5 million GBP into Firefly Green Fuels SAF as Tranche 1 investment in April 2023 resulting in 14.3 per cent ownership. Tranche 2 investment amounting to 2.5 million GBP is expected to happen in H2 F24 (to have 25 per cent ownership).
Wizz Air invested 1.7 million USD in Tranche 1 in May 2023 from 4 million USD in total, having 2.5 per cent ownership, as other investment. The CleanJoule consortium investment was led by Indigo Partners and GenZero. As part of the consortium's investment, Frontier Airlines, Wizz Air and Volaris have signed binding agreements to purchase up to 90 million gallons of SAF from CleanJoule.
22. Seasonality of operationsThe Group's results of operations, like those of most other airlines in Europe, vary significantly from quarter to quarter within the financial year. Historically, the Group has had higher passenger revenue during the summer season in comparison to the winter season (with the exception of the periods around Christmas, New Year and Easter) as this is the period during which many Europeans tend to take their annual holiday. Flight frequency, load factor and average ticket prices all tend to be higher during such peak periods compared to other periods of the year.
Glossary of terms and alternative performance measures (APMS)Alternative performance measures: Non-IFRS standard performance measures aiming to introduce the company's performance in line to the management's requirements. The existing presentation is considered relevant for the users of the financial statements because: (i) it mirrors disclosures presented outside of the financial statements; and (ii) it is regularly reviewed by the Chief Operating Decision Maker for evaluating the financial performance of its single operating segment.
Aircraft utilisation / Utilisation: the number of hours of one aircraft is in operation on one day. Rationale - Key performance indicator in aviation business, measurement for one day aircraft productivity.
Calculation (for 1 month): monthly aircraft utilization equals total block hours divided by number of days in the month divided by the equivalent aircraft number divided by 24 hours. Calculation (for a longer period than 1 month): the given period aircraft utilization equals with the weighted average of monthly aircraft utilisation based on the month-end fleet counts.
Ancillary revenue: generated revenue from ancillaries (including other ancillary revenue related items). Rationale - Key financial indicator for the separation of different revenue lines (see Notes 6 and 7).
Ancillary revenue per passenger: ancillary revenue divided by the number of passengers (PAX) in the given period, which gives the ancillary performance per one passenger. Rationale - Key performance indicator for revenue performance measurement.
Calculation: Ancillary revenue / PAX.
Available seat kilometers (ASK) / total ASKs: the number of seats available for scheduled passengers multiplied by the number of kilometres those seats were flown. Rationale - Key performance indicator for capacity measurement.
Calculation: Seats on aircraft * Stage length.
Average aircraft stage length (km): average distance that an aircraft flies between the departure and arrival airport. Rationale - Key performance indicator for measurement of capacity and productivity.
Calculation: Average stage length of the revenue sectors in the given period (ASKs / Capacity).
Average capital employed: average capital employed is the sum of the annual average equity and interest-bearing borrowings (including convertible debt), less annual average cash and cash equivalents. This key financial indicator is integral for evaluating the profitability and effectiveness of capital utilization.
Calculation: Average equity + Interest-bearing borrowings (including convertible debt) - Cash and cash equivalents.
Average departures per aircraft per day: the number of departures one aircraft performs in a day in the given period. Rationale - Key performance indicator for revenue generation / utilisation of assets.
Calculation: Total number of revenue sectors per number of days (in the given period) per equivalent aircraft number.
CASK (total unit cost): total cost per ASK, where cost is defined as operating expenses and financial expenses net of financial income. Rationale - Key performance indicator for divisional cost control.
Calculation: Total operating expenses + Financial income + Financial expenses / Total of ASKs (km) *100.
Completion factor or rate: per cent of operated flights compared to the scheduled flights. Rationale - Key performance indicator for commercial planning and controlling, measurement for operational performance.
Calculation: Number of operated flights divided by scheduled flights.
Foreign exchange rate: average foreign exchange rate, plus any hedge deal for the given period, calculated with a weighted average method. Rationale - Key performance indicator for fuel control and treasury teams.
Fuel CASK (fuel unit cost): this metric is calculated by dividing the total fuel costs (plus additional fuel consumption related costs) by the sum of Available Seat Kilometers (ASKs) during a specific reporting period. Rationale - Fuel CASK provides an insightful unit fuel cost measurement, representing the cost incurred for flying one kilometer per seat within Wizz Air's fleet. The rationale behind the use of this measure lies in its effectiveness as a critical performance indicator for the control and management of fuel expenses.
Calculation: Total fuel cost (EUR) / Total of ASKs (km) * 100.
Fuel price (average US$ per tonne): average fuel price within in a period, calculated as fuel cost (including other fuel cost related items) divided by the consumption. Rationale - Key performance indicator for fuel cost controlling.
Equivalent aircraft or average aircraft count: the average number of aircraft available to Wizz Air within a period. The count contains spares and aircraft under maintenance. Rationale - Key performance indicator in aviation business for the measurement of average fleet and capacity.
Calculation (for 1 month): average from the daily fleet count in the given month which includes/excludes deliveries and redeliveries. Calculation (for a longer period than 1 month): weighted average of the monthly equivalent aircraft numbers based on the number of days in the given period.
Earnings before interest, tax, depreciation and amortisation (EBITDA): EBITDA represents the profit or loss before accounting for net financing costs or gains, income tax expenses or credits, and depreciation and amortization. Rationale - This measure serves as a key financial indicator for the Company, providing insights into operational profitability.
Calculation: Operating profit/(loss) + Depreciation and amortization.
EBITDA Margin %: EBITDA Margin % is computed by dividing EBITDA by total revenue in millions of Euros.
Rationale - This metric presents EBITDA as a percentage of total net revenue and offers valuable financial insights for the Company's performance assessment.
Calculation: EBITDA / Total revenue (€ million) * 100.
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Operating profit/(loss) |
522.9 |
(63.8) |
|
Depreciation and amortisation |
355.2 |
281.6 |
|
EBITDA |
878.1 |
217.8 |
|
Total revenue (€ million) |
3,052.3 |
2,193.8 |
|
EBITDA Margin (%) |
28.8 % |
9.9 % |
Ex-fuel CASK (ex-fuel unit costs): This measure is computed by dividing the total ex-fuel cost by the total ASKs within a given timeframe. Ex-fuel CASK defines the unit ex-fuel cost for each kilometer flown per seat in Wizz Air's fleet. Note that: ex-fuel cost contains Wizz Air operating costs excludes fuel cost, includes interest cost and income. Rationale - It serves as an essential performance indicator for overseeing divisional cost control. The rationale for employing this metric is rooted in its ability to gauge and manage non-fuel operating expenses effectively.
Calculation: Total ex-fuel cost (EUR) / Total of ASKs (km) * 100.
JOLCO (Japanese Tax Lease) and French Tax Lease: special forms of structured asset financing, involving local tax benefits for Japanese and French investors, respectively. Rationale -These measures are employed to encapsulate specific lease contracts that facilitate enhanced cash utilization strategies.
Leverage ratio: The Leverage ratio is computed by dividing net debt by the last twelve months EBITDA. Rationale - It serves as a crucial key financial indicator for the Group, facilitating an assessment of the organization's financial leverage and debt management.
Calculation: Net debt / EBITDA (12 months).
Liquidity: Liquidity represents cash, cash equivalents, and short-term cash deposits, expressed as a percentage of the last twelve months' revenue. Rationale - This key financial indicator offers a comprehensive view of the Group's cash position and financial stability.
|
|
30 Sep 2023 |
30 Sep 2022 |
|
|
€ million |
€ million |
|
Cash and cash equivalents |
1,132.3 |
1,129.3 |
|
Short-term cash deposits |
600.5 |
365.2 |
|
Additional data to calculate liquidity |
|
|
|
Total revenue for the 6 months ended 30 September |
3,052.3 |
2,193.8 |
|
Total revenue for the 6 months ended 31 March |
1,702.0 |
783.1 |
|
Total revenue for the rolling 12 months |
4,754.3 |
2,976.9 |
|
Liquidity |
36.4 % |
50.2 % |
Load factor (%): The number of seats sold (PAX) divided by the number of seats available on the aircraft (capacity). Rationale - Key performance indicator for commercial and revenue controlling.
Calculation: The number of seats sold, divided by the number of seats available.
Net debt: Net debt is defined as interest-bearing borrowings (including convertible debt) less cash and cash equivalents. Rationale - plays a pivotal role as a key financial indicator, offering valuable information regarding the Group's financial liquidity and leverage position.
|
|
30 Sep 2023 |
30 Sep 2022 |
|
|
€ million |
€ million |
|
Non-current liabilities |
|
|
|
Borrowings |
4,407.0 |
4,469.0 |
|
Convertible debt |
25.5 |
25.7 |
|
Current liabilities |
|
|
|
Borrowings |
1,189.5 |
499.3 |
|
Convertible debt |
0.3 |
- |
|
Current assets |
|
|
|
Short-term cash deposits |
600.5 |
1,129.3 |
|
Cash and cash equivalents |
1,132.3 |
365.2 |
|
Net debt |
3,889.5 |
3,499.5 |
|
Additional data to calculate leverage ratio |
|
|
|
EBITDA for the 6 months ended 30 September |
878.1 |
217.8 |
|
EBITDA for the 6 months ended 31 March |
(83.5) |
(187.6) |
|
Total EBITDA for the rolling 12 months |
794.6 |
30.2 |
|
Leverage ratio |
4.9 |
115.9 |
Net fare (total revenue per passenger): average revenue per one passenger calculated by total revenue divided by the number of passengers (PAX) during a specified period. Rationale - This metric is a crucial performance indicator for commercial control, offering insights into the overall revenue generated per passenger.
Calculation: Total revenue / PAX.
Passengers (alternative names: passengers carried, PAX): passengers who bought a ticket (thus making revenue for the Company) for a revenue sector. Rationale - Key performance indicator for commercial controlling team.
Calculation: Sum of number of passengers of all revenue sectors.
Passenger ticket revenue: generated revenue from ticket sales (including other ticket revenue related items). Rationale - Key financial indicator for the separation of different revenue lines (see Notes 6 and 7).
PDP: PDP refers to the pre-delivery payments made under the Group's aircraft purchase agreements. These payments signify contractual commitments designed to support fleet expansion and growth.
Period-end fleet size or number of aircraft at end of period: the number of aircraft that Wizz Air has in its fleet and that is leased and/or owned at the end of the given period. The count contains spares and aircraft under maintenance as well. Rationale - Key performance indicator in aviation business for the measurement of fleet.
Calculation: Sum of aircraft at the end of the given period.
RASK: RASK is determined by dividing the total revenue by the total ASK. This measure characterizes the unit net revenue performance for each kilometer flown per seat within Wizz Air's fleet. Rationale - It serves as a pivotal performance indicator for commercial control, providing insights into the revenue generation efficiency.
Calculation: Total revenue (EUR) / Total of ASKs (km) * 100.
Revenue departures or sectors: flight between departure and arrival airport where Wizz Air generates revenue from ticket sales. Rationale - Key performance indicator in revenue generation controlling.
Calculation: Sum of departures of all sectors.
Revenue passenger kilometres (RPK): the number of seat kilometres flown by passengers who paid for their tickets. Rationale - Key performance indicator for revenue measurement.
Calculation: Number of passengers * Stage length.
Return on capital employed (ROCE): It is operating profit or loss after tax divided by average capital employed, expressed as a percentage. Rationale - ROCE is a key financial indicator that facilitates an assessment of the Group's profitability and the efficiency of capital utilization.
|
|
Six months ended 30 Sep 2023 |
Six months ended 30 Sep 2022 |
|
|
€ million |
€ million |
|
Operating loss/profit |
119.9 |
(477.3) |
|
Effective tax rate for the year |
(1.6) % |
(0.3) % |
|
Operating loss/profit after tax |
118.1 |
(476.1) |
|
Average Shareholders' equity |
(16.5) |
528.2 |
|
Average borrowings |
5,308.2 |
4,197.8 |
|
Average cash and cash equivalents |
(1,130.8) |
(1,119.7) |
|
Average short-term cash deposits |
(482.9) |
(383.5) |
|
Average capital employed |
3,678.0 |
3,222.8 |
|
ROCE (%) |
3.2 % |
(14.8) % |
Seat capacity / Capacity: the total number of available (flown) seats on aircraft for Wizz Air within a given period (revenue sectors only). Rationale - Key performance indicator for capacity measurement.
Calculation: Sum of capacity of all revenue sectors.
Ticket revenue per passenger: passenger ticket revenue divided by the number of passengers (PAX) in the given period. Rationale - Key performance indicator for measurement of revenue performance.
Calculation: Passenger ticket revenue / PAX.
Total block hours: each hour from the moment an aircraft's brakes are released at the departure airport's parking place for the purpose of starting a flight until the moment the aircraft's brakes are applied at the arrival airport's parking place. Rationale - Key performance indicator in aviation business, measurement for aircraft's block hours.
Calculation: Sum of block hours of all sectors (in the given period).
Total cash is a non-statutory financial performance measure and comprises/is calculated from cash and cash equivalents, short-term cash deposits and total current and non-current restricted cash. Rationale - This key financial indicator offers a comprehensive view of the Group's cash position and financial stability.
Total flight hours: each hour from the moment the aircraft takes off from the runway for the purposes of flight until the moment the aircraft lands at the runway of the arrival airport. Rationale - Key performance indicator in aviation business, measurement for aircraft's flight hours.
Calculation: Sum of flight hours of all sectors (in the given period).
Total revenue: total ticket and ancillary revenue for the given period. The split of total revenue presented in the condensed consolidated interim statement of comprehensive income. Rationale - Key Financial indicator for the Company.
Yield: Yield represents the total revenue generated per Revenue Passenger Kilometer (RPK). Rationale - This measure is integral for assessing and controlling commercial performance by quantifying the revenue derived from each kilometer flown by paying passengers.
Calculation: The total revenue / RPK.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Interim Financial Report in accordance with applicable law and regulations.
The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union.
The interim management report includes a fair review of the information required by the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority paragraphs 4.2.7 and 4.2.8, namely:
▶ an indication of important events that have occurred during the six months ended 30 September 2023 and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
▶ material related party transactions during the six months ended 30 September 2023 and any material changes in the related party transactions described in the 2023 Annual Report and Accounts of the Group.
The Directors of Wizz Air Holdings Plc are listed in the 2023 Annual Report and Accounts of the Group.
A list of current Directors is maintained on the Wizz Air Holdings Plc website: wizzair.com.
This Interim Financial Report was approved by the Board of Directors and authorised for issue on 9 November 2023 and signed on its behalf by:
József Váradi
Director
Independent review report to Wizz Air Holdings Plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Wizz Air Holdings Plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim financial report of Wizz Air Holdings Plc for the 6 month period ended 30 September 2023 (the "period").
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
▶ the Condensed consolidated interim statement of financial position as at 30 September 2023;
▶ the Condensed consolidated interim statement of comprehensive income for the period then ended;
▶ the Condensed consolidated interim statement of cash flows for the period then ended;
▶ the Condensed consolidated interim statement of changes in equity for the period then ended; and
▶ the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim financial report of Wizz Air Holdings Plc have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
Basis for conclusionWe conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
Conclusions relating to going concernBased on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the reviewOur responsibilities and those of the directors
The Interim financial report, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim financial report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim financial report, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial statements in the Interim financial report based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
9 November 2023
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