WOOD Flash - Wizz Air: 1QFY23 trading update - a slight capacity reduction aimed at easing impact of disruptions
Wizz Air has published a trading update for its 1QFY23 (calendar 2Q22). As European aviation continues to suffer from operational disruptions and severe bottlenecks at airports, Wizz Air has announced a slight reduction in its summer schedule. Currently, it is guiding to fly c.35% more capacity vs. 2019, whereas previously it was guiding for 40% growth. This should help to introduce additional buffers into the system and limit the number of delayed or cancelled flights. In 1QFY23, Wizz Air estimates the cost of the disruption at around EUR 50m. Going forward, it reiterated that it expects to return to ex-fuel CASK comparable to pre-pandemic levels, as the utilisation improves. Other highlights of the update included pricing being a touch weaker (net fares were flat in 1QFY23E compared to 1QFY20, while Wizz Air was guiding for a “low-single-digit increase”). In addition, Wizz Air is likely to incur a net operating loss of c.EUR 285m for the quarter, and a net loss of EUR 450m (which includes unrealised FX losses of EUR 136m, driven by the weakness of the EUR vs. the USD during the quarter). This would push the equity, which stood at EUR 264m at the end of March, into negative territory.Wizz Air Holding is a European airline. As of Mar 31 2017, Co. provided more than 500 routes from 28 bases, connecting 141 destinations across 42 countries. Co. has two reportable segments: the airline and the tour operator business units, marketed under the Wizz Air and Wizz Tours brand names, respectively. Wizz Air sells flight tickets and related services to external customers and, to an extent, to Wizz Tours. Wizz Tours sells travel packages to external customers covering the network of Wizz Air.
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