Wizz Air Holdings Plc Shares Down After Half-Year Results

Shares of Wizz Air Holdings Plc (LON:WIZZ) fell over 3% on Thursday after reporting a net profit decline of 21.3%, totaling €315 million.

Results Overview

Although the results were generally in line with analysts’ expectations, they fell short of the consensus average of €332 million. The company’s compiled consensus median stood at €316 million.

Full-Year Guidance

Wizz Air’s guidance for the full fiscal year 2025 net profit remains unchanged, estimated between €350 million and €450 million, above the consensus median forecast of €309 million. Analysts from RBC Capital Markets predict €341 million for FY25 and suspect the lower range of guidance might be achievable, particularly due to recent foreign exchange headwinds.

Operating Profit Decline

Operating profit dropped by 33.2% year-on-year to €349 million, below the market consensus of €460 million. This decline was largely due to rising costs, notably a 9.4% increase in total cost per available seat kilometre (CASK), outpacing a mere 1.4% rise in revenue per available seat kilometre (RASK).

Revenue Analysis

Wizz Air’s revenues saw a slight increase of 0.5% year-on-year, reaching €3.07 billion, buoyed by a small rise in RASK, despite a 0.9% decline in capacity. The company also reported a foreign exchange gain of €94 million in the first half, a significant improvement from a €20 million loss in the previous year.

Future Expectations

Looking forward, Wizz Air revised its cost management expectations, now anticipating a mid-teens percentage rise in ex-fuel unit costs year-on-year, a sharper increase than earlier projections. Fuel costs are expected to decrease by 3-5%, an improvement over the initial flat outlook.

The company maintains a mid-single-digit growth forecast for RASK and reports strong demand with no signs of softening, which could bolster revenues in the second half of the fiscal year.

The airline’s net debt is currently €4.76 billion, a slight reduction from €4.79 billion at the end of FY24, with a high leverage of 4.2x net debt to EBITDA.