Wizz Air Q3 FY2026 Earnings Summary

Financial Performance:
Wizz Air reported Q3 net loss of €239 million, improving €100 million year-over-year. Revenue reached €1.3 billion (up 10%) with EBITDA of €60 million (up 12%), maintaining 13.6% margin. Passengers grew 12% on 11% ASK increase. RASK declined 0.8% as ancillary revenue weakened despite 0.2% ticket RASK gain. Full-year guidance maintained at breakeven (€-25M to €+25M net profit). Liquidity strengthened to €2 billion (34% of revenue – industry highest) after repaying €500 million bond January 19.

Operational Challenges:
CEO József Váradi confirmed 33 aircraft grounded for GTF issues (versus 40 last year), with full compensation coverage through end of calendar 2027 – differentiating Wizz Air’s Pratt & Whitney agreement from broader industry terms. Target: complete fleet restoration by end of calendar 2027.

Cost Pressures:
Ex-fuel CASK grew 2.1% in line with guidance. Maintenance costs elevated by retiring 18 CEO aircraft (versus 3 last year) with event-related return costs pressured by scarce MRO capacity and inflation. Depreciation impacted by 70% more aircraft in 8+ year age bracket versus 2020. Airport costs elevated from lost incentives during zero-growth period. However, Wizz Air’s Pratt & Whitney contracts provide protection from maintenance inflation affecting CFM operators (facing 2-3x cost increases).

Network Restructuring:
Closed Abu Dhabi base; shuttering Vienna in March 2026. Capacity transitioned to Central/Eastern Europe with new/reopened bases in Bratislava, Podgorica, Yerevan, Warsaw-Modlin, and Romania. Market share reached 26% in Central/Eastern Europe (up 2 points). Italian expansion accelerated (Milan, Venice, Rome, Catania) with AS Roma sponsorship announced.

Summer 2026 Growth:
Váradi outlined 24% ASK growth (30% seat growth) driven by efficiency gains rather than fleet additions:
- Unparking grounded GTF aircraft
- Increased sector productivity
- Higher A321 gauge deployment

Management emphasized “de-risked growth” fortifying existing strongholds with minimal industry-wide competitive capacity additions.

Fleet & Aircraft:

Current: 440 aircraft; ~50 (20%) owned/financed versus leased

Milestones: 250th aircraft delivery; 500 millionth passenger served (21 years versus Ryanair’s 34 years – European record)

Deliveries/Retirements:
- Q4 FY2026: 8 deliveries expected (mostly sale-leasebacks)
- Calendar 2025: 57 deliveries (55 A320 family, 2 ATR)
- Retirements: 18 A320ceos FY2026; 19 FY2027; 16 FY2028

A321XLR Program:
Scaled from 47 to 11 aircraft (6 delivered, 5 remaining). Váradi emphasized XLRs deliver superior economics versus A320ceo even on short/medium-haul due to minimal weight penalty versus A321neo. Operating select long-haul (London Gatwick-Jeddah/Medina exceeding expectations) but no pressure to operate all on long routes. Applied for U.S. charter rights (2026 World Cup, 2028 Olympics) – NOT scheduled service.

2-Year Fleet Vision:
- Fully A321 gauge (most productive single-aisle)
- Complete neo technology conversion
- Zero grounded aircraft
- 4-year CAGR: 7% fleet growth delivering 12% capacity via efficiency

Pratt & Whitney Advantage engine arriving within one year for new deliveries AND existing fleet retrofits (~80% technology improvement).

Ukraine Plans:
Three-phase restart (6-8 weeks post-ceasefire): Phase 1 – 30 inbound routes immediately; Phase 2 – Reinstate Kyiv/Lviv bases, ~10 aircraft, 5M seats (Year 1); Phase 3 – ~30 aircraft, 15M seats (Year 3).

Leadership:
CFO Ian Malin’s final call; succeeded by Veronika Špaňárová. Malin transitioning to operational role focusing on reliability and cost efficiency.

FY2027: Management expects margin improvement with high H1 growth moderating to 10-12% target in H2.