Wizz Air: Revenue and Profit Surge Amid Strategic Realignment

Wizz Air Holdings PLC (LON: WIZZ) reported unaudited results for the six months ended September 30, 2025, showcasing significant gains in revenue and profitability despite ongoing industry challenges.

The budget airline's strategic shift towards core Central and Eastern European (CEE) markets appears to be bearing fruit, offsetting headwinds from capacity adjustments and engine-related groundings.

Total revenue climbed to €3,342.1 million, a 9.0% increase compared to €3,066.1 million in the same period last year. EBITDA soared by 18.8% to €981.3 million, resulting in an improved EBITDA margin of 29.4%. Operating profit jumped 25.8% to €439.2 million, while net profit saw a more modest increase of 2.6% to €323.5 million.

The airline’s strong cash position is a highlight, reaching €1,984.8 million, a 14.3% increase compared to March 31, 2025. Net debt decreased slightly by 2.5% to €4,832.8 million. Wizz Air intends to repay its €500 million bond maturing in January 2026 from its cash reserves, demonstrating financial stability.

The company's strategic decisions, including optimizing aircraft deliveries and focusing on lower-cost airports, are expected to lead to sustainable capacity growth.

They have deferred 88 Airbus deliveries from this decade to the next. Wizz Air Chief Executive József Váradi highlighted the importance of these actions, noting the pivot away from high-cost locations to new bases at lower-cost airports.

Driver Breakdown:

• Capacity Management: Strategic realignment towards core CEE markets and closure of less profitable bases.
• Cost Efficiency: Focus on lower-cost airports and improved operational performance.
• Fleet Modernization: Continued investment in new “neo” technology aircraft, increasing the share of these aircraft to 71% of the fleet.

CEO József Váradi stated, “Our first half financial results reflect the increased capacity year-on-year deployed over the summer season. During the period both operational and commercial improvements were made, with further actions planned in the months ahead.”

Despite the positive results, Wizz Air faces challenges, including GTF engine inspections that have grounded a portion of its fleet. As of September 30, 2025, 35 aircraft were grounded, an improvement from 41 at the end of June 2025. The company anticipates the number of grounded aircraft will reduce to 25-30 in the next fiscal year.

The airline has also finalized an amendment to its aircraft purchase agreement with Airbus, enabling a mid-term annual seat growth of 10-12%. This includes the conversion of 36 A321XLR aircraft to A321neo, adjusting its fleet composition for future growth.

Near-term guidance indicates a complex picture. While capacity is expected to increase, revenue per available seat kilometer (RASK) is projected to decline slightly. Total cost per available seat kilometer (CASK) is expected to be broadly flat for the full year, with ex-fuel CASK increasing in the mid-single digits.