DAVY VIEW

Wizz Air will host a Capital Markets Day at 14:00 BST today. Ahead of the presentation, the company has announced its medium-term targets out to FY30 – revenue €10bn; ex-fuel CASK 3.00c, EBIT margin of 10% and an investment grade balance sheet – the achievement of which should see significant upside to today’s share price. More detail will be given later in the day on how Wizz intends to reach these targets. Additionally, the revenue environment has been better than expected, with the company announcing today that it expects Q2 RASK flat (up from previous guidance of ‘down low single digits’), with ASK and H1 ex-fuel guidance remaining unchanged. Wizz has also pulled back H2 capacity by 5% given the current fuel prices into the winter. While Wizz capacity for the winter is still high, the capacity cuts will be positively received by the market.