Wizz Air (LON:WIZZ) management said third-quarter results were broadly in line with market expectations as the carrier continued to work through aircraft groundings tied to Pratt & Whitney’s GTF engine inspections, reshaped its network, and strengthened liquidity while preparing for a high-growth summer schedule.
Q3 performance: higher traffic, improved loss, stable EBITDA margin
The company reported passenger growth of 12% year-over-year, supported by an 11.1% increase in capacity measured in available seat kilometers (ASKs). Seat capacity grew 13.1%, which management linked partly to shorter average stage lengths and higher sector productivity.
On unit revenues, management said ticket RASK was up 0.2%, while ancillary RASK declined, contributing to an overall RASK decrease of 0.8%. Executives attributed part of the ancillary pressure to the network shift away from longer flights, which carry a different ancillary revenue profile. Load factor was described as marginally down, which management said was not concerning given aircraft gauge and rapid seat growth.
Cost trends: ex-fuel CASK growth held to guidance as maintenance and airport costs stay elevated
Management said ex-fuel CASK increased 2.1% and total CASK increased 2.3%, in line with what the airline had communicated earlier in the year. The fuel line was affected by fuel pricing as well as higher costs for emissions credits, with management noting fewer free allowances and inflation in credit pricing.
Executives highlighted specific cost pressures that remain areas of focus:
- Maintenance: Costs increased in line with expectations, driven by a planned rise in A320ceo lease returns. Management said Wizz Air plans to retire 18 A320ceos this year, compared with 3 last year, creating “event-related” maintenance costs tied to lease return conditions amid scarce maintenance capacity and inflation.
- Depreciation: Management cited higher “maintenance depreciation” as the fleet ages, noting a greater share of aircraft eight years or older compared with 2020. Executives said these costs should diminish as older aircraft are returned over the next several years.
- Airports, handling, and en route charges: En route costs were pressured by higher navigation charges across the network. Airport costs were described as elevated after the airline’s growth slowed due to engine groundings, which reduced expected incentives and rebates; management said redeploying capacity and returning to growth should help recover those benefits over time.
Management also noted higher sale-leaseback benefits during the quarter, while disruption costs were kept in line with the prior year and wet lease costs continued to decline.
Liquidity, bond repayment, and cash outlook
Wizz Air ended the quarter with EUR 1.98 billion in cash, up about EUR 400 million versus the prior year. Management said free cash flow was essentially flat for the quarter. The company’s liquidity ratio (cash as a percentage of last-twelve-months revenue) increased by 5 percentage points to 34%, which management described as among the highest in the industry.
Executives emphasized that the airline repaid its EUR 500 million outstanding bond on January 19, addressing market speculation about a potential extension. The company renewed bond documentation on December 23, keeping the program available, but said it currently sees no need to raise additional debt.
Management said cash should rebuild as seasonal booking volumes rise ahead of an earlier Easter and as summer growth generates additional unflown revenue, with expectations to restore cash to above EUR 2 billion relatively quickly.
Fleet, groundings, and network reshaping
Wizz Air said the GTF engine recovery is progressing, with 33 aircraft grounded versus 40 a year ago. Management reiterated plans to fully “uplift” the grounded aircraft by the end of calendar year 2027 and said the company is on track.
On network actions, the airline said it has continued reshuffling capacity, including the earlier closure of Abu Dhabi operations and the closure of the Vienna base in March, with capacity transitioned toward Central and Eastern Europe. Management cited base reopenings and openings in locations including Romania, Bratislava, Podgorica, Yerevan, and Warsaw Modlin, as well as aircraft allocations across Central and Eastern Europe and Italy.
Management also said the airline moderated capacity during the off-peak second half of the financial year, contributing to lower utilization, but described this as transitional with productivity expected to ramp up in the next financial year.
On longer-term fleet strategy, management said the airline is two years away from being “effectively fully converted” to A321s and new-technology aircraft, with no aircraft grounded. Executives said the delivery program has been revamped such that fiscal 2027 and fiscal 2028 would involve limited net fleet growth, with growth coming through gauge, recovery of grounded aircraft, and improved sector productivity. Management cited an expected fleet growth CAGR of around 7% over four years, versus capacity growth of 12%.
Wizz Air also clarified that its A321XLR program has been scaled down from 47 aircraft to 11, with 6 delivered and the remaining 5 expected within roughly eight months. Management emphasized the XLR does not need to be operated as a long-haul aircraft and can be deployed on short- and medium-haul rotations, with unit economics described as superior to the A321ceo and still better than competing aircraft types. The airline cited London Gatwick routes to Jeddah and Medina as exceeding expectations but said it does not need to deploy all XLRs on long missions.
Guidance reiterated; summer growth and Ukraine planning
Management reiterated its full-year fiscal 2026 outlook, including around 10% capacity growth, flat load factor and RASK, total CASK flat to low single-digit year-over-year, and net profit around breakeven in a range of EUR -25 million to +25 million.
For the upcoming summer period, management said it expects ASK growth of around 24%, translating to roughly 30% seat growth. Executives framed the high growth as driven largely by eliminating inefficiencies—unparking aircraft and improving sector productivity—rather than heavy new aircraft deliveries, and argued this represents lower-cost growth because a portion of fixed costs are already in the system.
The company also addressed speculation about U.S. service, saying it has no plans for scheduled flights to the United States. Management said it applied for charter rights potentially tied to World Cup demand, enabled by the A321XLR, and described this as opportunistic and not expected to materially affect financial results.
On Ukraine, management said it has a phased plan that could be activated when airspace reopens, including launching 30 inbound routes immediately, reinstating bases in Kyiv and Lviv, and scaling to about 5 million seats (around 10 aircraft) in year one and up to 15 million seats (around 30 aircraft) by year three. Executives said industry estimates suggest it may take 6–8 weeks to reset air traffic control before flights can resume after a ceasefire.
The call also marked outgoing CFO Ian’s final official earnings call, with Veronika Špaňárová set to join as successor.
About Wizz Air (LON:WIZZ)
Wizz Air operates a fleet of over 250 Airbus A320 and A321 aircraft. A team of dedicated aviation professionals delivers superior service and very low fares, making Wizz Air the preferred choice of 63.4 million passengers in our 2025 financial year. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ. Wizz Air has also been recognized as the “Most Sustainable Low-Cost Airline” between 2021-2025 by World Finance Sustainability Awards. In 2025, Wizz Air topped the major airlines’ emissions ranking, as presented by Cirium, an aviation analytics company, thanks to its work reducing emissions intensity.
