EU TRANSPORTATION: Wizz Air: FY25 Results

(WIZZLN; Ba1/BB+/-)

Equity is getting hit on the current and guided cost issues due to groundings. Credit is insulated here with strong liquidity to cash-pay the 26s.

• 4Q saw 5% passenger growth with 4% capacity expansion. Load factor was marginally higher at 89.5%. All close to expectations.
• Total fleet utilization finished -14% for FY following the GTF groundings.
• Groundings were little changed at 42 aircraft; it has previously flagged 40-45 for FY26. That is ~20% of the fleet, which it expects to fall to single digit by FY27. Some of that will come from increasing its fleet size rather than utilisation.
• Revenue was 7% higher YoY and 1.5% below consensus.
• Adj. EBITDA missed by 22% as groundings drag from wet leases and fixed maintenance outweigh compensation.
• FY FCF was €420m. Reported net/leverage increased from 4x to 4.4x YoY. Cash remains healthy at €1.7bn with cash repayment of the 26s expected.
• It guided for 2ppt load factor improvement for FY26. Fuel CASK set to drop as expected, but ex-fuel is seen slightly higher due to groundings; consensus expected a slight improvement.