Wizz Air Q3 Earnings Call Highlights

Wizz Air (LON:WIZZ) absorption said third-quarter results were broadly successful enactment with marketplace expectations arsenic the bearer continued to enactment done craft groundings tied to Pratt & Whitney’s GTF motor inspections, reshaped its network, and strengthened liquidity portion preparing for a high-growth summertime schedule.

The institution reported rider maturation of 12% year-over-year, supported by an 11.1% summation successful capableness measured successful disposable spot kilometers (ASKs). Seat capableness grew 13.1%, which absorption linked partially to shorter mean signifier lengths and higher assemblage productivity.

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Wizz Air posted a quarterly nett nonaccomplishment of EUR 139 million, which absorption said was 42% amended than the anterior year, and an betterment of astir EUR 100 million. Total gross roseate 10% year-over-year to conscionable nether EUR 1.3 billion. EBITDA accrued 5%, with an EBITDA borderline of 13.6%, unchanged from the prior-year quarter.

On portion revenues, absorption said summons RASK was up 0.2%, portion ancillary RASK declined, contributing to an wide RASK alteration of 0.8%. Executives attributed portion of the ancillary unit to the web displacement distant from longer flights, which transportation a antithetic ancillary gross profile. Load origin was described arsenic marginally down, which absorption said was not concerning fixed craft gauge and accelerated spot growth.

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Management said ex-fuel CASK accrued 2.1% and full CASK accrued 2.3%, successful enactment with what the hose had communicated earlier successful the year. The substance enactment was affected by substance pricing arsenic good arsenic higher costs for emissions credits, with absorption noting less escaped allowances and ostentation successful recognition pricing.

Executives highlighted circumstantial outgo pressures that stay areas of focus:

• Maintenance: Costs accrued successful enactment with expectations, driven by a planned emergence successful A320ceo lease returns. Management said Wizz Air plans to discontinue 18 A320ceos this year, compared with 3 past year, creating “event-related” attraction costs tied to lease instrumentality conditions amid scarce attraction capableness and inflation.

• Depreciation: Management cited higher “maintenance depreciation” arsenic the fleet ages, noting a greater stock of craft 8 years oregon older compared with 2020. Executives said these costs should diminish arsenic older craft are returned implicit the adjacent respective years.

• Airports, handling, and en way charges: En way costs were pressured by higher navigation charges crossed the network. Airport costs were described arsenic elevated aft the airline’s maturation slowed owed to motor groundings, which reduced expected incentives and rebates; absorption said redeploying capableness and returning to maturation should assistance retrieve those benefits implicit time.