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WIZZ

-5.65%
BAD

Wizz Air Reports Mixed Results Amid Operational Challenges

Why we think this is bad

The airline's performance presents a mixed bag, but leans towards negative territory. While revenue grew by 3.8% to €5,267.6 million, the operating profit took a significant hit, plummeting by 61.7% to €167.5 million. This stark decline in profitability is a major red flag. The ongoing GTF engine issues continue to plague operations, with 42 aircraft grounded at year-end. Despite these headwinds, the company managed to improve its cash position and maintain passenger growth. However, the outlook remains challenging with geopolitical uncertainties and operational disruptions expected to persist. The decrease in EBITDA margin from 23.5% to 21.5% further underscores the pressure on profitability. While the airline shows resilience in some areas, the substantial profit decline and operational challenges overshadow the positive aspects, painting a concerning picture for investors.

Key Points

  • Revenue increased 3.8% to €5,267.6 million
  • Operating profit decreased 61.7% to €167.5 million
  • Passenger numbers grew 2.2% to 63.4 million
  • EBITDA declined to €1,134.3 million, with margin dropping to 21.5%
  • Total cash improved 9.3% to €1,736.0 million
  • 42 aircraft grounded at year-end due to GTF engine issues
  • Expects capacity growth in low to mid-teens for H1 F26, circa 20% for full year F26
  • Ongoing challenges from geopolitical uncertainties and operational disruptions

Summary

The low-cost carrier reported a 61.7% drop in operating profit despite revenue growth, as operational challenges and geopolitical uncertainties weighed heavily on performance.

Wizz Air's full-year results for F25 reveal a complex picture of resilience and challenges. Revenue increased by 3.8% to €5,267.6 million, driven by a 2.2% rise in passenger numbers to 63.4 million. However, operating profit plummeted by 61.7% to €167.5 million, primarily due to ongoing GTF engine issues that led to 42 aircraft being grounded at year-end. The company's EBITDA decreased to €1,134.3 million, with the EBITDA margin declining from 23.5% to 21.5%. On a positive note, total cash improved to €1,736.0 million, up 9.3% year-on-year. The airline faces continued headwinds from geopolitical uncertainties and operational disruptions, but expects improvement in F26 with reduced groundings and a return to growth. Management anticipates capacity growth in the low to mid-teens for H1 F26 and circa 20% for the full year F26.

Key Dates

Late Q3 2025
Expected reduction in grounded aircraft to approximately 34
Early Q4 2025
Anticipated conclusion of negotiations for engine selection for 177 A321neos
January 19, 2026
Maturity of €500 million Eurobond
Late March 2026
Repurchase deadline for ETS allowances
ANNUAL RESULTS