Wizz Air LON: WIZZ reported a return to pre-tax profitability and said it expects market disruption later in the year to create opportunities for the low-cost carrier, even as it continues to manage engine-related aircraft groundings and a reshaped network.
Chief Executive József Váradi said pre-tax profit rose to €27 million, while profit after tax was “positive break even,” in line with the company’s post-close statement. EBITDA increased 16% year over year, and the airline carried 70 million passengers, up 10%.
Váradi said Wizz Air ended the period with more than €2 billion of cash, unchanged net debt and lower leverage, with net debt to EBITDA improving to 3.7 times from 4.4 times. He also cited a 36% RECR ratio, which he described as “one of the highest in the industry globally.”
Revenue Growth, Lower Fuel Unit Costs Support Results
Chief Financial Officer Veronika Špaňárová said fiscal 2026 revenue grew 8%, supported by an 8.5% increase in ASKs and 10.5% seat capacity growth. She said RASK and load factor were broadly flat year over year, consistent with the company’s prior outlook.
EBITDA margin rose 1.6 percentage points to 23.2%, which Špaňárová said highlighted the “cash generative ability of the business.” Free cash flow was almost €1 billion, up 22% year over year, even after the company repaid a €500 million bond in January 2026.
Fuel costs decreased, including an almost 10% reduction in fuel unit cost. Špaňárová attributed the decline to lower market prices and improved fleet efficiency, noting that neo aircraft now account for 77% of the fleet.
Maintenance costs increased, but Špaňárová said the year-over-year comparison was affected by an €83 million accrual reversal in fiscal 2025. Excluding that reversal, maintenance costs would have been up about 3.2%. She also said disruption costs declined, reflecting improved operating performance.
Engine Groundings Still Weigh, But Recovery Is Progressing
Váradi said Wizz Air is recovering from the impact of Pratt & Whitney GTF engine inspections that forced aircraft groundings roughly two years ago. The number of aircraft grounded due to the inspections has fallen to 30 this year from 42 last year.
He said the company still expects another 18 months of impact from the GTF issue but remains on plan to have all affected aircraft “lifted and flying” by the end of calendar 2027. Váradi said the airline is pressing Pratt & Whitney to fix the existing fleet before prioritizing new aircraft deliveries.
The company continues to transition its fleet from A320ceo aircraft to newer technology aircraft while also upgauging from A320s to A321s. Váradi said that, in about three years, the fleet will be effectively converted into A321neo aircraft.
Network Refocus Moves Capacity Back Toward Europe
Management emphasized a renewed focus on core Central and Eastern European markets and shorter European routes. Váradi said the company has reallocated most Middle Eastern capacity into Europe, where shorter stage lengths generate more sectors and seats.
He said that while seat growth may look high, some of that growth is coming from higher sector productivity rather than long-haul capacity additions, reducing the cost of growth. He added that densifying the network can attract more business and higher-yielding passengers while improving operational reliability.
Wizz Air has also taken action on underperforming parts of the business. Váradi said the company closed Abu Dhabi last year and Vienna earlier this year, and is continuing to review profitability and high-cost airport exposure. In the Q&A, he said London Gatwick would not rank high among future growth priorities because of high airport costs, operational constraints and the U.K. air passenger duty environment.
The company also ended plans for a distinct A321XLR operation. “XLR is over, to put it very simple,” Váradi said, adding that 11 XLR aircraft will be folded into regular A321neo operations rather than used for a separate XLR network or operating model.
Fiscal 2027 Outlook Calls for High Seat Growth
For the first half of fiscal 2027, Váradi said Wizz Air expects first-quarter ASK growth of 15%, translating into roughly 25% more seats. In the second quarter, ASKs are expected to rise about 20%, with seat growth of more than 25%.
The company expects 30% of Tel Aviv capacity to be reinstated by the second quarter, with the rest of the previously affected Middle Eastern capacity flown in Europe. Váradi said first-quarter RASK is expected to be down in the mid-single digits toward high-single digits, affected by the timing of Easter, while second-quarter RASK is expected to be broadly flat. Load factors are expected to remain in line with last year’s performance.
On costs, Wizz Air expects ex-fuel unit costs to be flat to slightly higher in the first half. Špaňárová said that as of May 29, the airline had hedged 84% of its first-half fiscal 2027 jet fuel needs with a cap of $826 per metric ton. The second-half hedge position stood at 71% with a cap of $819 per metric ton. The airline has also hedged 83% of its U.S. dollar lease exposure.
Váradi declined to provide full winter guidance, citing uncertainty, but said winter would be a high-growth environment due to shorter European sectors, the return of grounded aircraft and capacity restored after cuts made last winter.
Management Sees Potential Opportunity in Market Stress
Váradi said he expects the second half of the financial year to bring “significant strategic opportunities” as other airlines face pressure from fuel costs, liquidity constraints and older fleets. He said Wizz Air expects “market vacuums” and possible airline failures, comparing the potential opportunity to the post-COVID recovery period.
Ian, Wizz Air’s chief commercial officer, said the airline is seeing booking behavior normalize after customers shifted to later bookings following the Iran conflict. He said May and early June showed customers returning to a more planned approach, giving the company greater confidence in capacity deployment.
Ian also discussed the airline’s newly announced Starlink Managed connectivity product with SpaceX. He said the service will not follow the free Wi-Fi model used by some airlines, but will instead be designed around ultra-low-cost principles, with SpaceX managing sales and Wizz Air focused on ancillary revenue opportunities. Installation is expected to begin across the fleet in early 2027 and roll out through that year.
On the balance sheet, management said the company wants to reduce leverage further. Ian said the ambition is to return leverage to about two times and regain an investment-grade profile, while maintaining cash flexibility to pursue market opportunities.
About Wizz Air LON: WIZZ
Wizz Air operates a fleet of over 250 Airbus A320 and A321 aircraft. A team of dedicated aviation professionals delivers superior service and very low fares, making Wizz Air the preferred choice of 63.4 million passengers in our 2025 financial year. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ. Wizz Air has also been recognized as the "Most Sustainable Low-Cost Airline" between 2021-2025 by World Finance Sustainability Awards. In 2025, Wizz Air topped the major airlines' emissions ranking, as presented by Cirium, an aviation analytics company, thanks to its work reducing emissions intensity.
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