DAVY VIEW

Wizz Air has reported a FY26 net profit of €1.3m (Davy: -€75.5m, consensus: -€33m), in line with May guidance of breakeven to slightly positive. Under-utilisation of fleet drove ex-fuel CASK +5.8%, offset by fuel cask -9.6%. It achieved flat RASK and loads on ASK growth of 8.5%, outpaced by seat growth of 10.5%. The balance sheet strengthened and leverage now stands at 3.7x (from 4.4x). Looking ahead, the outlook remains mixed as elevated capacity growth this summer (Q1 ASKs +15% and Q2 ASKs +20%) is coupled with impacts from the Middle East conflict. RASK declines of mid- to high-single-digits are guided in Q1, improving to flat for Q2. Cost guidance is for flat to up low-single-digit ex-fuel, while fuel CASK inflation will be helped by 84% hedge position for H1. Consensus for FY27 stands at net loss of €225m (Davy: -€96.9m).