Wizz Air Q4 Net Income Down 22%; Capacity Growth Hits Revenue

Wizz Air Holdings reported fiscal fourth-quarter net income of €142 million, down 22% from €182 million a year earlier. The low-cost carrier flew 18% more passengers in the quarter ended March 31. Revenue per available seat kilometer fell 4% year over year. Unit costs excluding fuel dropped 2%. Fuel costs rose 8% on higher jet fuel prices and longer average stage lengths. Operating margin came in at 6.2%, down from 8.1% in the same quarter last year. Wizz Air cited higher airport charges and crew costs as the main drivers of margin compression.

The carrier added 14 Airbus A320-family jets during the fiscal year, bringing its fleet to 210. Expansion focused on Central and Eastern European bases, with new routes from Bucharest to Dubai and from Budapest to Jeddah. Load factor held at 91.5%. The yield decline of 4% indicates that the airline filled the new seats at lower average fares.

Wizz Air ended the quarter with €1.6 billion in cash and equivalents against €4.8 billion in total debt, most of it aircraft financing. Free cash flow for the year was negative €210 million, driven by aircraft delivery payments. The company expects free cash flow to turn positive in fiscal 2027 as the delivery schedule slows.

For the summer season, Wizz Air plans to operate 25% more capacity in the June quarter versus a year ago, betting on European leisure demand. Forward bookings for July and August are running 12% ahead of last year's pace. Average ticket prices for those months are flat so far.