Full Year 2025 Wizz Air Holdings PLC Earnings Call Transcript
Key Points
- Wizz Air Holdings PLC (WZZAF) sees significant opportunities to gain market share in Central and Eastern Europe, which remains a core focus for growth.
- The company is investing in new technology, transitioning to an all A321neo fleet, which is expected to provide economic and environmental benefits.
- Revenue increased by 4% year-over-year, indicating strong demand and effective revenue protection strategies.
- Wizz Air Holdings PLC (WZZAF) is actively restructuring its network to eliminate loss-making routes and focus on profitability.
- The company is exploring aircraft ownership to balance its reliance on sale and leaseback models, potentially reducing long-term costs.
- The Pratt & Whitney engine issues have significantly impacted operations, with 21% of capacity grounded, leading to increased costs.
- Operating costs have risen due to the inefficiencies associated with maintaining older aircraft and the need for additional spare engines.
- The company faces challenges in hot and harsh environments, which accelerate engine wear and increase operational costs.
- There is a high level of uncertainty regarding future capacity and cost management due to ongoing engine issues and market conditions.
- Wizz Air Holdings PLC (WZZAF) anticipates continued cost pressures from maintenance and depreciation, particularly with the redelivery of older aircraft.
I'll hand over to Jozsef Varadi and Ian Malin.
Thank you. Good morning, everyone. Thanks for coming. So we are reporting the last financial year. And obviously, your interest is mostly on what's in front of us. We believe that, indeed, we are cleared for takeoff. But at the same time, we are tainted over the short run given the various issues we are facing.
So let me talk about kind of how we see the next three years and what picture we are seeing developing there. First of all, we're seeing that we have a significant opportunity to win market shares in our market. Central and Eastern Europe remains bread and butter for the company.
This is where we are investing most of our growth capacity. And we believe that we are in a unique situation that we actually can grow while our competitors will be contained. This is happening probably for the first time in our history when we have less constraint on our ability to grow while others will have significant
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