DAVY VIEW

Wizz Air has reported a Q2 net profit of €306.5m, up 7% year-on-year (yoy), ahead of both Davy and consensus estimates. The Q2 outperformance was largely driven by better-than-expected RASK (+0.5%) due to stronger close-in bookings and stable load factors on the back of capacity growth (ASKs) of 19% yoy. Q3 RASK is guided up low-single digits, while load factors are guided down low-single digits on capacity growth (ASKs) of 12%. Mid-single digit ex-fuel CASK inflation is expected in H2, while CEO depreciation steps up along with a headwind from lower SLBs and compensation. With load factors down and a step up in ex-fuel costs coupled with fuel up c.20%, we expect the Q2 beat to largely be offset by H2 headwinds. For full year 2027, we forecast a loss of €478.6m (Visible Alpha (VA) consensus loss €487.7m; FactSet €383m). Liquidity remains robust with c.€2.4bn cash on hand at quarter end.