Wizz Air (WIZZ) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 was significantly impacted by Pratt & Whitney GTF engine groundings, leading to 14% of the fleet grounded, 21% ASK capacity loss, and heightened unit costs, with only partial compensation received.

• Revenue increased 4% year-over-year, with passenger count up 2%, fleet size up 11%, and load factor up 1.0ppt to 91.2%, but cost pressures, especially ex-fuel, were substantial due to engine issues and hot and harsh operations.

• Strategic focus is on network optimization, densifying established markets, reducing exposure to high-cost environments, leveraging technology for efficiency, and transitioning to 100% A321neo technology by F29.

• The company expects margin recovery and a return to investment grade status within a few years as cost headwinds subside, targeting double-digit net margins by F28.

Financial highlights

• Total revenue rose 4% year-over-year to €5.27bn, with RASK up 4% and load factor up 1.0ppt to 91.2%.

• Operating profit reached €167.5m, down 62% year-over-year, and net profit was €214m, boosted by a significant tax credit from group restructuring.

• Ancillary revenue per passenger increased by €0.57 year-over-year to €37.07.

• Free cash flow for the year was €422m, with year-end cash at €1.74bn after repaying €250m of PDP debt.

• Net debt and leverage ratio increased due to fleet growth and grounded aircraft, with net debt/EBITDA at 4.4x; leverage is expected to decline to around 3x by F2026.

Outlook and guidance

• Fiscal 2026 will remain challenging due to ongoing Pratt & Whitney issues and a spike in A320ceo redeliveries, but cost performance is expected to improve over the next 2–3 years.

• F26 capacity (ASK) expected to grow circa 20% year-over-year, with higher load factors and positive RASK trends; fares down slightly to drive traffic.

• Ex-fuel CASK will see a modest increase in F2026, mainly due to maintenance and depreciation from older aircraft retirements and ongoing grounding pressure.

• GTF grounding exposure will drop from 20% in F2025 to mid-low single digits within two years, with normalization expected by F27.

• Margin recovery plan targets double-digit net margins and investment grade balance sheet, leveraging operational improvements and technology transition.