Wizz Air Holdings: Post-close Trading Statement
Geneva, 15 April 2021: Wizz Air Holdings Plc ("Wizz Air" or the "Company"), the fastest growing European low-cost airline today provides a post-close trading update for the year ended 31st March 2021 ("F21"), subject to completion of our year-end close procedures and audit.
Wizz Air expects a reported F21 net loss of €(570)-(590)m. Our full year underlying loss is expected to be of €(475)-(495)m, with the only exceptional item the loss related to discontinued fuel hedges, amounting to an estimated €(95)m.
Wizz Air maintains its investment grade balance sheet and strong liquidity position with a total cash / cash equivalents balance of €1,615m at year-end. The total cash burn in Q4 was €87m (compared versus the pro-forma cash position of €1,702m at the end of Q3, taking the €500m 3 year bond proceeds of January 2021 into account).
The start of F22 (the year ending 31st March 2022) continues to be marked by travel restrictions across our region and we expect only a gradual traffic recovery into late summer 2021, following what is expected to be a period of good progress of national vaccination plans across key markets. In the short term, the Company continues to actively adjust capacity to travel conditions with a focus on cash contribution positive flying, and as a result we continue to review aircraft allocation on a market-by-market basis as opportunities arise. In parallel we continue to be focused on our cost base and on our liquidity measures to minimize the cash burn rate of the Company in this period of transitioning out of Covid-19.
Because of the uncertainties around travel restrictions, Wizz Air today is not in a position to provide guidance for the year ending 31st March 2022.
Wizz Air will release its full year F21 results on 2nd June, 2021.
József Váradi, Wizz Air Chief Executive commented:
"First and foremost, I would like to thank our people for their relentless support for our passengers, our communities and for the Company in a period unprecedented in the 18 year history of Wizz Air. They have risen to the continued challenges in the last 12 months facing our Company and the entire industry, with great determination, endurance and agility in order to continuously adjust and adapt to ever-changing conditions and circumstances as the Covid-19 pandemic impacted us in ways no one could predict or plan for.
Despite the continued impact of the pandemic, we are well-prepared with one of the strongest balance sheets in the airline industry, flying one of the youngest and most efficient fleets and having a well-defined, proven business model. Our agility and relentless focus on costs and cash are significant competitive advantages. Our network expansion and the investments we have made in our fleet over the past 12 months ensures we are well placed for a return to normal operations and we are convinced we are now even better positioned to be a structural winner in the European aviation sector."