WIZZ AIR
AT A GLANCE
Wizz Air is the fastest growing ultra-low-cost carrier and one of the most sustainable European airlines,
operating a fleet of 208 Airbus A320 and A321-family aircraft, and connecting over 200 destinations across
more than 50 countries, as of 31 March 2024. A team of dedicated aviation professionals delivers a superior
service and very low fares, making Wizz Air the preferred choice of over 62 million passengers in the fiscal
year ended March 2024. Wizz Air is listed on the London Stock Exchange under the ticker WIZZ.
At Wizz Air, our vision is to liberate lives through affordable travel. We operate one of the lowest unit costs
and lowest carbon intensity footprints in the European airline industry and drive profitable growth to create
Shareholder and stakeholder value.
CONTENTS
Highlights and Company overview
2
Strategic report
Chairman’s statement
5
Chief Executive’s review
7
Sustainability report
11
Modern Slavery Act disclosure statement 2024
95
Financial review
97
Key statistics
105
Emerging and principal risks and uncertainties
106
Governance
Chairman’s statement on corporate governance report
114
Management of the Company
124
Report of the Chairman of the Audit and Risk Committee
136
Report of the Chair of the Safety, Security and Operational Compliance Committee
142
Report of the Chairman of the Nomination and Governance Committee
144
Directors’ remuneration report
146
Directors’ report
166
Company information
171
Statement of Directors’ responsibilities in respect of the financial statements
172
Accounts and other information
Consolidated statement of comprehensive income
174
Consolidated statement of financial position
175
Consolidated statement of changes in equity
176
Consolidated statement of cash flows
178
Notes forming part of the financial statements
179
Independent auditors’ report to the members of Wizz Air Holdings Plc
233
Additional information
Glossary of terms
241
Alternative performance measures (APMs)
244
References to “Wizz Air”, “Wizz”, “the Company”, “the Group”, “we” or “our” in this report are references to Wizz Air Holdings Plc, or to
Wizz Air Holdings Plc and its subsidiaries, as applicable.
F24 in this document refers to the financial year ended 31 March 2024. Equivalent terms are used for prior/future financial years.
Wizz Air Holdings Plc Annual report and accounts 2024
1
HIGHLIGHTS AND
COMPANY OVERVIEW
€5.1B REVENUE
2.761
0.739
1.663
3.896
5.073
F20
F21
F22
F23
F24
—
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
€1.6B TOTAL CASH1,2
1.496
1.617
1.379
1.529
1.589
F20
F21
F22
F23
F24
—
0.500
1.000
1.500
2.000
2.500
3.000
€437.9M OPERATING PROFIT
338.3
(528.1)
(465.3)
(466.8)
437.9
F20
F21
F22
F23
F24
(600.0)
(500.0)
(400.0)
(300.0)
(200.0)
(100.0)
—
100.0
200.0
300.0
400.0
500.0
€365.9M NET INCOME
281.1
(576.0)
(642.5)
(535.1)
365.9
F20
F21
F22
F23
F24
(800.0)
(600.0)
(400.0)
(200.0)
—
200.0
400.0
4.17 €CENTS RASK
3.95
2.89
2.99
3.98
4.17
F20
F21
F22
F23
F24
—
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2.38 €CENTS EX-FUEL CASK
2.27
3.86
2.81
2.58
2.38
F20
F21
F22
F23
F24
—
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
1. For definitions, refer to the Glossary of Terms and Alternative performance measures (APMs) sections on pages 241-245.
These measures incorporate certain non-financial information that management believes is useful when assessing the performance
of the Group.
2. Total cash comprises cash and cash equivalents (€728.4 million), short-term cash deposits (€751.1 million), and current and
non-current restricted cash (€109.5 million).
The Company has a policy of rounding each amount and percentage individually from the fully accurate number to the figure disclosed
in the information presented. As a result, some amounts and percentages do not total – though such differences are all small.
Wizz Air Holdings Plc Annual report and accounts 2024
2
GEOGRAPHIES
We offer tickets for 924 routes across
Europe and the Middle East
Number of routes operated, as at 31 March 2024*:
From Central and Eastern Europe (CEE) countries
Romania
176
Poland
173
Hungary
71
Albania
53
Bulgaria
46
North Macedonia
33
Serbia
25
Bosnia and Herzegovina
20
Georgia
20
Lithuania
19
Kosovo
4
Montenegro
2
Armenia
2
From other European countries
Italy
135
United Kingdom
62
Austria
30
Cyprus
14
From Gulf Cooperation Council (GCC) and Middle East countries
United Arab Emirates
33
Israel
6
* Showing routes that are based/originated from the respective countries.
Wizz Air Holdings Plc Annual report and accounts 2024
3
WHY INVEST IN WIZZ?
LOWEST COST, FASTEST GROWING AIRLINE IN EUROPE
Wizz Air’s operationally robust ultra-low-cost carrier (ULCC) model is designed to drive efficiency across the
business. Through pursuit of the lowest cost and most efficient operation, the airline offers the lowest ticket
prices stimulating the demand for air travel in underserved or inefficiently served markets.
The airline operates Europe’s youngest fleet1 of 208 Airbus A320/321s with an average aircraft age of
4.3 years. It has an order book of over 320 technologically advanced, efficient Airbus A321neos, more than
any other European airline, secured at highly competitive rates. The size of Wizz Air’s fleet has nearly
doubled vs pre-COVID-19 levels, adding more than 80 aircraft within a four-year period.
Its ex-fuel cost (CASK) is amongst the industry’s lowest, and Wizz Air’s relentless focus on year-round asset
utilisation and productivity has resulted in a utilisation level of 12:25 hours2 at the end of F24, as well as
high crew, seat and sector productivity.
DIVERSIFIED GEOGRAPHICAL FOOTPRINT
Wizz Air’s network spans 924 routes, flying to 200 destinations in more than 50 countries. It is operated by
four underlying airlines in Hungary, Malta, the UK and Abu Dhabi, allowing it to respond quickly to changing
local market conditions.
At 27 per cent, its market share is the largest in CEE, making it well placed to defend and grow its share of
what is still an underpenetrated market.
In Western Europe, Wizz Air’s strategically focused footprint allows it to act as an effective challenger to
more established carriers in the region, with its differentiated offer and clear price advantage continuing to
drive growth.
In the Middle East, where the propensity to fly is lower than its other operating regions, Wizz Air enjoys a
ULCC first mover advantage. As a result, it is successfully stimulating demand in the region as its brand
penetration continues to increase at pace.
FOCUSED ON SUSTAINABLE, PROFITABLE GROWTH
Wizz Air remains sharply focused on establishing an optimum route mix to drive sustainable growth and
achieve a double-digit net income margin.
It also has an ambitious but achievable plan to grow its fleet to 500 aircraft by 2030, doubling the fleet
between 2025 and the end of the decade, and expects average 15 per cent capacity growth per year during
that period. The airline continually optimises its network to drive profitability, and its increasing scale
supports cost synergies across the network. It has a customer-centric and tech-enabled approach to
marketing and is committed to the ongoing evolution of its customer offer.
Sustainability is at the heart of Wizz Air’s business model. By operating Europe’s youngest fleet of aircraft, it
can deliver the lowest levels of CO2 emissions per passenger kilometre of any airline in Europe, at
52.0 grammes in F24. Its fleet renewal programme continues to support ongoing carbon reduction and Wizz
Air is also committed to the development of sustainable aviation fuel (SAF), having made considerable
investments in SAF during the year.
INDUSTRY-LEADING TALENT
Across the entire business, Wizz Air teams are dynamic and diverse. Its global workforce of more than
8,000 employees combines international and local expertise with colleagues hailing from over 100 different
nationalities and a diverse management team drawn from across the global aviation industry.
Wizz Air is proud to offer strong, market-leading career development opportunities. It is an equal
opportunities employer, providing a solid platform for internal development and promotion, while owning
and operating two state-of-the-art training centres in Hungary and Rome.
In recent years, the airline has enhanced its employee offer to provide more attractive benefits to all
colleagues. Its employee engagement programme includes an ongoing cycle of regular base visits by
management, including the CEO, and it has a People Council in place to facilitate an ongoing dialogue.
Wizz Air Holdings Plc Annual report and accounts 2024
4
1 Above 100 aircraft airlines. Source: ch-aviation.
2 Operational utilisation.
CHAIRMAN’S STATEMENT
Dear fellow Shareholders, colleagues, customers and partners,
This year, we have seen a continuation of the surge in passenger demand for air travel that began
immediately after the pandemic, as people prioritise travel and new experiences, even against the backdrop
of ongoing cost-of-living increases in many of our markets. While Wizz Air benefited from this sustained
demand and reported record passenger numbers and revenue growth throughout the year, we also faced
fresh challenges, including a further wave of geopolitical unrest, and the Pratt & Whitney Geared Turbofan
(GTF) engine recall.
Despite this, revenue increased consistently through the year and Wizz Air returned to profitability, reporting
net profit of €365.9 million for the year ended 31 March 2024 (F24), in line with guidance. This performance
is a testament to our robust and agile operating model which allows us to flex and withstand pressures, draw
on the expertise and sound judgment of our management teams, and maintain our relentless focus on
controlling costs.
Wizz Air’s continued investment in improving operational resilience yielded tangible results in the period. We
carried more passengers than ever before, had fewer flight cancellations and delivered better on-time
performance, laying a strong foundation for rebuilding trust among our passengers. We delivered this
performance even in the face of ongoing ATC issues in Europe and the GTF recall, delivering remarkable
results.
At the start of the second quarter, Pratt & Whitney informed us that their GTF engines would be subject to
mandatory inspections over a period of two to three years, with engines being taken off wing for shop visits
from September 2023. Consequently, a portion of the Wizz Air fleet has been grounded since the end of last
summer, and at the end of the financial year 45 aircraft were grounded. The business has responded
exceptionally well to this challenge, pulling a number of levers to mitigate the impact on performance,
including increasing its number of spare engines, extending the leases of existing unaffected aircraft and
securing additional aircraft from third parties. It also prudently modified the phasing of its capacity growth in
the short term and refined its net income guidance. Thanks to timely and considered management action,
the airline’s long-term growth plan remains unaffected by this issue.
Wizz Air’s Airbus A321neo order book remains the strongest among its European peers, and it is this
advantage that underpins the airline’s ambitious growth plan. During the year, we restated our commitment
to doubling the fleet between 2025 and 2030, with the aim of establishing a predominantly neo fleet of 500
aircraft by the end of the decade. This fleet renewal and our commitment to operating the most fuel-efficient
aircraft in the market is at the heart of our ULCC model.
Alongside optimising utilisation, driving productivity remains central to our success. To that end, we invested
heavily in our people, bolstering our workforce to over 8,000 during the year and significantly enhancing our
employee offer to remain competitive and attractive to the best talent. Post-period end, we were also
delighted to announce the opening of a second training centre in Rome in May 2024. The new facility houses
three full-flight simulators and will allow us to train a further 4,800 Wizz Air pilots every year.
Our increasingly diverse network continues to be a key tenet of our resilience. Wizz Air’s ever-expanding
geographic footprint, operated by four underlying airlines with AOCs in the United Kingdom, Malta, Hungary
and Abu Dhabi, allows us to respond quickly to challenges. In addition to allowing us to mitigate seasonality
across our regions, it also facilitates the rapid redeployment of capacity and enables scaling of the business
while diversifying jurisdictional and other operational risks. In October 2023, after the start of the latest
Israel-Hamas war, we prioritised the safety of our customers and people and immediately cancelled flights
into Tel Aviv. Thanks to the diversity of our network, we were able to redeploy capacity across the network
at short notice. While we continue to monitor the situation closely, we were able to restart flights into Israel
at the start of March.
In the face of unprecedented operational challenges, our efforts throughout the year are reflected in our full-
year financial performance. Our ex-fuel unit costs have continued to decline, while unit revenue has
consistently improved. This performance, including the delivery of our net income target, is testament to the
successful execution of our strategy and the resilience of our business model.
Employees
On behalf of the entire Board, I would like to thank our colleagues across the Group for their unwavering
dedication in another year characterised by significant disruption. It is our incredible people who face such
challenges first hand with our customers and it is their commitment to excellence that helps to drive our
success.
Wizz Air recognises and values talent, and we are proud to offer employees across the entire business strong
career development opportunities. In the past year alone, 39.1 per cent of our workforce was promoted,
with 772 flight crew promoted to a higher position, and employees across the board progressing to different
positions within the organisation.
STRATEGIC REPORT
Wizz Air Holdings Plc Annual report and accounts 2024
5
In an industry that remains under-resourced post-pandemic, our employee offer, which we enhanced during
the year, has been instrumental in attracting and retaining industry-leading talent. Our senior management
team, including the CEO, engages directly with the workforce on an ongoing basis, through site visits, floor
talks and internal updates. As a result of this ongoing dialogue, we have been able to understand and
address the needs of our people; this is reflected in our improved employee engagement score during the
year. Wizz Air’s People Council continues its good work in this area, and the Board is grateful to it for
facilitating an ongoing strong channel of communication.
Customers
Everything we do stems from our commitment to delivering for our customers. It is our mission to continue
to offer the lowest fares and excellent customer experience. We are beyond grateful to the millions of people
who continue to place their trust in Wizz Air and fly with us, a number that continues to rise each month.
We remain fiercely committed to continually improving our service standards. We have learnt much from our
recent experience in this area and, in response, exponentially stepped up our investment and efforts to
ensure better operational resilience. As a result, we are now better able to withstand external pressures and,
in turn, deliver better and more for our customers. We have enhanced our network, offering passengers
even more choice and flexibility when they pick Wizz Air, and deployed cutting-edge technology to optimise
our offer.
Environment
Despite challenges, Wizz Air has continued its fleet renewal programme, taking delivery of a total of
39 Airbus A321neos during the year. Operating a fleet made up predominantly of the most efficient and
technologically advanced narrow-body aircraft in the market underpins our overarching commitment to
sustainability. Our CO2 emissions profile remains the lowest in Europe, and we continue to be recognised for
this, winning multiple awards in the period. We also continue to invest in SAF projects, recognising its
importance to the sustainability of our whole industry.
Communities
As an increasingly global operator with bases in multiple markets, we are acutely aware of economic, social
and environmental developments within the communities in which we operate. We regularly engage with
regulators, governments, Shareholders, customers and representatives from local communities to help
facilitate action on national and local issues, as we strive to make a positive impact through our presence.
This is overseen by the Board’s Sustainability and Culture Committee, and through four critical pillars
(people, environment, community and governance) we seek to have an ever more active role in the
communities we serve.
Looking ahead
I am proud of the way in which Wizz Air has navigated the challenges it faced during the past year, and have
no doubt that in the current year, one in which we will celebrate 20 years of serving our passengers,
learnings from these and the initiatives implemented in response will continue to serve the business well.
Although we expect our capacity growth in the coming year to be more moderate than previously
anticipated, our fleet renewal programme and our considered network expansion will continue, and we
remain fully confident in and committed to our longer-term growth plan.
Our return to profit, together with the significant investment in operational strength, positions us well to
withstand the pressures which continue to exist across our industry. Through this, and our commitment to
ultra-low-cost principles and proven business model, we will continue to deliver sustainable growth and
value to all our stakeholders.
William A. Franke
Chairman of the Board of Directors
14 June 2024
STRATEGIC REPORT
Wizz Air Holdings Plc Annual report and accounts 2024
6
CHIEF EXECUTIVE’S REVIEW
Sustained healthy demand for air travel across our markets was a defining feature of F24, signalling that the
surge witnessed post-pandemic has evolved into a longer-term trend in consumer behaviour. Wizz Air has
been strongly positioned for this trend as reflected in our performance for the year.
A focused ultra-low-cost business model
Our business model is built on rigorous cost control and operational productivity. We placed a sharp focus on
increasing utilisation, improving load factors and lowering unit costs (fuel and ex-fuel), and continued to
invest in our operations. Our efforts saw us carry a record number of passengers during the year, return
to profitability and reduce financial leverage while maintaining our total cash position.
Our structure allows us to react quickly to evolving market conditions. We have agile teams with specialised
market knowledge and long-standing commercial relationships in place across the four Wizz Air Group
airlines. We responded rapidly to challenges during the year by flexing resources and commercial
arrangements, and quickly redeploying capacity where needed, as renewed geopolitical instability emerged.
We also faced unprecedented supply chain disruption due to mandatory engine material inspections affecting
our neo aircraft fleet. Meanwhile, we continued to hire the best talent and to invest in our people, ensuring
they received the necessary training and development to build on their talents and pursue careers at
Wizz Air.
We made significant investments in operational excellence, optimising our performance by deploying
technology and adapting processes. Some examples of where we made a marked difference include using
artificial intelligence technology in irregular operations (IRROPS) to improve year-round utilisation, and
starting to implement a new crew management and operations control system. Our investments in
operations have delivered positive results. We have improved metrics such as utilisation, on-time
performance and flight completion rate.
In recent years, learnings from operational challenges have also driven us to invest significantly in enhancing
the customer experience. This year, we saw improved results after establishing automated solutions and
other enhanced digital tools that help us to deliver a better customer journey, from initiating a booking with
us, to post-flight support.
Our fleet of 208 Airbus aircraft is the cornerstone of our ultra-low-cost model. It is the youngest among
European peers, with an average aircraft age of 4.3 years. It delivers industry-leading CO2/RPK emissions of
52.0 grammes and, with 239 seats in our A321neo, we have the highest single-aisle configuration in the
industry. We also believe that the price we pay for our aircraft, on a per seat basis, is one of the lowest
globally, due to the timing and volume of our orders.
We returned to profitability this year, repaid one of our two outstanding €500 million bonds and reaffirmed
our investment grade rating with Fitch at BBB-. We improved our robust cash position, standing at
€1,588.9 million by the fiscal year end. In the coming year, as we temporarily pause seat capacity growth
due to the mandatory Pratt & Whitney Geared Turbofan (GTF) engine inspections, we expect business
margins to improve, with operating cash flows reducing balance sheet leverage.
Our fleet as a driver of competitiveness and sustainability
Evolving our fleet to shift the balance towards aircraft with the latest, most fuel-efficient technology and a
higher seat gauge is fundamental to the sustainability of our ultra-low-cost model. We remain committed to
our plan to operate a 500-aircraft fleet made up predominantly of Airbus A320neo-family aircraft by 2030.
The Airbus A321neo has the lowest environmental footprint per passenger in the industry.
During F24 Wizz Air took delivery of 39 new A321neo aircraft, and 12 A320ceo aircraft were redelivered,
ending the fiscal year with a total fleet of 208 aircraft: 40x A320ceo, 41x A321ceo, 6x A320neo and 121x
A321neo. Delivered aircraft were financed through 30 sale and leaseback transactions and nine Japanese
Operating Leases with Call Options (JOLCOs).
While we expect challenges related to inspections of the A321neo’s (GTF) engine to impact the phasing of
our capacity growth in the short term, we are confident that our long-term growth plan remains achievable
by 2030, as previously announced. Our confidence in this plan is underpinned by our large-scale order with
Airbus of more than 300 aircraft, an order we secured under highly competitive terms. During F25 we expect
27 new A321neo aircraft deliveries, including a first XLR, three A320ceo aircraft on dry lease while nine
A320ceo aircraft will be returned to lessors and will exit the fleet.
Wizz Air is extending leases for eleven additional aircraft from the existing fleet (on top of 13 completed).
The lease extensions range between two and four years and are being agreed at both discounted and
original lease rates.
Wizz Air also secured three former Wizz Air aircraft on dry lease (to be delivered in F25), while also adding
eight wet leased aircraft for periods ranging from six to twelve months, providing additional capacity in F25.
STRATEGIC REPORT
Wizz Air Holdings Plc Annual report and accounts 2024
7
We have successfully delivered a significant improvement in utilisation and productivity across our fleet.
Year-round total fleet utilisation increased to 11:36 hours (vs 11:08 in F23), including the impact of flight
cancellations into Israel at short notice at the start of the third quarter, while operational fleet utilisation
increased to 12:25 (vs 11:08 in F23).
The average age of the fleet currently stands at 4.3 years, the youngest fleet among major European
airlines, while the average number of seats per aircraft has climbed to 224 as at March 2024. The share of
new “neo” technology aircraft within Wizz Air’s fleet has increased to 61 per cent by the end of F24.
As at 31 March 2024, Wizz Air’s delivery backlog comprises a firm order for 13x A320neo, 266x A321neo
and 47x A321XLR aircraft, a total of 326 aircraft.
During F25, we also expect to take delivery of our first A321XLR, Airbus’ long-range, narrow-body aircraft,
broadening our network and unlocking the potential for new routes. We remain committed to point-to-point
operations even as we augment our fleet with longer-range aircraft.
The table below provides fleet composition for the past, present and coming fiscal year, including effected
lease extensions and dry leases. Figures reflect Airbus contractual delivery timelines. F25 includes Airbus
communicated delivery delays, whereas F26 does not. The Company expects 30–35 aircraft to be delayed
in F26.
March 2024
March 2025
March 2026
Actual
Planned
Planned
A320ceo (180/186 seats) (9x extensions)
40
34
21
A320neo (186 seats)
6
6
9
A321ceo (230 seats) (4x+11x extensions)
41
41
40
A321neo (239 seats)
121
147
219
A321neo XLR (239 seats)
—
1
10
Fleet size (with finalised extensions)
208
229
299
GTF ENGINE UPDATE
As of 17 May 2024, Wizz Air had 47 aircraft on the ground as a result of GTF engine-related matters. The
Company is expecting circa 50 aircraft to be grounded by the end of the first half of fiscal F25
(approximately one year since the first aircraft was grounded in September 2023). We continue to maintain
our assumption for the average expected shop visit time needed to return engines back to service of circa
300 days. In the meantime, more spare engine deliveries have been advanced and we are expecting further
8-10 new spare engine deliveries, most of which should be delivered by the end of June 2024. The total
number of spare engines should exceed 50 by the end of this summer. Wizz Air has actively managed its
fleet to minimise the impact of grounding, deploying the neo fleet to longer sectors, extending existing
leases, securing third-party aircraft and advancing additional spare engines. As announced previously, we
have secured an OEM support package (including compensation for grounded aircraft) and we expect to
secure future compensation on similar terms for Q4 F25 and beyond.
Our geographic footprint as sustainable competitive advantage
In F24, despite industry-wide challenges, we continued to evolve our network. Our network now spans
924 routes, to 200 destinations in more than 50 countries, operated across our four airlines. While also
delivering economies of scale, our increased network diversity provides resilience against regional trends and
supports higher utilisation, a key component of our strategy.
We continued to build on our strong presence in our operating markets, including maintaining Wizz Air’s
dominant position in our core CEE countries, where we are well placed to grow further and defend our share
of an underpenetrated market. Wizz Air grew its market share to 27 per cent (+3 per cent points vs F23) in
CEE. In Western Europe, we continued to provide a differentiated offer and act as a challenger to established
peers across selected routes where we can offer a distinct price advantage. We have a focused footprint,
with strategic positions across CEE markets, Italy, London, Austria and UAE. At London Luton, we are now
the second largest airline, and have converted to operating an all Airbus A321neo fleet there one year earlier
than planned. In F25, our Italian bases in Rome and Milan will see the largest schedule deployed to date.
Our Middle East route network is maturing as expected, and in line with the profile of our CEE network
development. We benefit from a ULCC first mover advantage in the region, stimulating demand in
underserved markets where the propensity to fly is lower. Pleasingly, our brand awareness in Abu Dhabi is
now above 50 per cent. During the year, we added a further two aircraft in Abu Dhabi, exceeding initial fleet
size expectations there.
STRATEGIC REPORT
Wizz Air Holdings Plc Annual report and accounts 2024
8
The safety of our passengers and people remains paramount to Wizz Air, and we have been monitoring the
situation on the ground in Israel closely. Wizz Air cancelled circa 6 per cent of its planned capacity for Q3 in
early October, as the crisis emerged in Israel. Affected capacity was redeployed across the network at short
notice, which contributed to lower load factors in the period. The conflict also impacted seasonal demand for
travel to the nearby markets of Jordan and Egypt, whose capacity was also partially redeployed, accounting
for an additional 3 per cent of the overall redeployed capacity. In Q4, these changes continued to weigh on
load factors. The impact on full-year Group revenue was circa €80 million. After careful consideration, we
decided to restart operations to Tel Aviv in the last quarter of the year, and demand has been building
steadily since. We continue to monitor developments in the region closely, with operational decisions driven
solely by safety considerations.
Wizz market share in selected regions
Market
Market share
Low-cost segment share
Low-cost market position
Albania
58.0%
69.0%
1
Austria
6.0%
19.0%
2
Bosnia and Herzegovina
24.0%
44.0%
1
Bulgaria
30.0%
48.0%
1
Cyprus
14.0%
24.0%
2
Georgia
25.0%
53.0%
1
Hungary
35.0%
50.0%
1
Italy
9.0%
14.0%
3
Lithuania
17.0%
29.0%
2
Moldova
59.0%
83.0%
1
Poland
24.0%
39.0%
2
Romania
52.0%
77.0%
1
Serbia
20.0%
73.0%
1
United Arab Emirates
4.0%
10.0%
3
United Kingdom
5.0%
7.0%
4
CEE
27.0%
45.0%
1
Creating the leading digital platform
The use of digital tools, data and AI is accelerating exponentially across the board, and our industry is no
exception. We are pleased with how our use of technology and digital assets across Wizz Air is evolving as
cross-departmental collaboration continues to power digital innovation in our business.
This year, we focused on enhancing our digital assets in line with e-commerce best practice, improving the
online customer journey, particularly on mobile, and collecting and interrogating data to ensure a continuous
improvement cycle. We rolled out a digital chatbot powered by Gen AI, Amelia, enabling smoother customer
interactions while also controlling costs. We have also largely automated the customer claims process,
delivering a 37.5 per cent cost to serve reduction.
In certain markets, we introduced new ancillary products such as the WIZZ MultiPass, a subscription solution
driving more frequent flying at a lower cost for our customers. Uptake of the product has grown through
the year and the offer now has been extended to all Albanian, Italian and Polish routes. We introduced
WIZZ Shop&Fly, in partnership with InterLnkd, a platform offering AI-driven personalised shopping based on
travel destinations, enhancing customers’ holiday preparation. We continue to explore ways in which we can
scale this product and introduce more digital solutions.
Building on the model we introduced in F23, in F24 we delivered additional unit revenue through the
deployment of new machine learning models across both ancillary and ticket pricing. We expect to develop
this further in the coming year, deploying upgraded models.
During the year, we worked on development of our proprietary fleet management and planning system to
support our evolved, multi-AOC setup. Secondly, we finalised the implementation of a direct cost
management solution that delivers better control over fuel and navigation costs. In addition to this, we
modernised our corporate finance and forecasting models to better support data-driven decisions, and our
investment in data platforms and solutions continues.
We also significantly enhanced our cyber security capabilities and have more than 20 cyber security
initiatives in train. Compared to industry benchmarks in this area, we are tracking circa 60 per cent higher
than peers.
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Focus on our people
We are immensely proud of the depth of talent across our business, and credit a large part of Wizz Air’s
success to our dynamic and diverse pool of human capital. Our workforce comprises expertise drawn from
across the global industry, and home-grown talent nurtured in our training academies.
After the challenges of the pandemic, and as we continue to navigate ongoing geopolitical crises such as the
conflicts in Ukraine, Israel and the Middle East, the safety and well-being of our people has remained at the
forefront of our responses. During F24, we also faced unprecedented supply chain disruption as a result of
the mandatory engine material inspections affecting our neo aircraft fleet. Despite these challenges, our
8,000-strong workforce delivered an exceptional service, reflected across operational, financial and people
metrics. I would like to thank each one of our employees for embodying the WIZZ spirit through their
perseverance, dedication, passion and commitment in F24.
During calendar year 2023, our senior management undertook 48 base visits, facilitating direct engagement
between the CEO and other members of senior management, and our employees. Our People Council further
supports these efforts on an ongoing basis. Pleasingly, in F24, our employee engagement score has
improved to 7.1 from 6.4 the previous year, testament to our efforts here, and also reflecting how our
improved incentives and benefits package, which was introduced during F23 and F24, gives us an advantage
in a competitive talent market. We made tremendous progress with our career development initiatives,
reflected in the large number of positions filled internally and promotions among our office employees, cabin
crew and pilots.
At the start of the current financial year, we opened a second centre just outside Rome, complementing
our existing centre in Budapest which has grown its throughput five-fold since before the pandemic. During
the year, we also expanded our simulator capacity to cater to increasing training volumes and became a
GCAA-approved training organisation in Hungary.
As an organisation spanning an increasing number of geographies, our diverse workforce includes employees
representing over 100 nationalities, as we stay true to our mission to ensure that our workforce reflects our
customer base. We maintain a balanced male-to-female ratio organisation-wide, with females representing
48 per cent of our workforce. We increased our Board gender diversity to 36 per cent with the appointment
of Phit Lian Chong as Non-Executive Director in January 2024, and our management team diversity stands
at 35 per cent. Our commitment to improvement here is reflected in our long-term incentive targets for our
Executives, to reach 40 per cent female representation at managerial level by the end of F26. Improving the
balance of women on the flight deck, a key challenge in our industry, also remains a focus for Wizz Air.
Outlook
While some of the external challenges we experienced throughout F24, including groundings due to GTF
engine inspections and geopolitical instability, are expected to persist in the coming year, we have proven
that our model is agile, highly resilient and well positioned to mitigate the impact of these ongoing issues.
This includes the current scale and diversity of our network, which means we are incredibly well placed to
react quickly to issues as they arise.
While our capacity expectations for the year have been moderated in response to these changes in the
operating environment, new aircraft deliveries persist, and our efforts to drive productivity and utilisation
continue to deliver results. As we enter F25, demand for air travel remains robust, with no sign of abating in
the near term, supporting a higher yield environment as capacity across the whole industry remains
constrained.
Our current trading indicators are positive, with selling load factors trending higher year on year in the first
two fiscal quarters and unit revenue (RASK) performing equally well.
We will continue to use the levers available to us to mitigate challenges in our sector, while relentlessly
moving forward with the execution of our growth strategy, operating one of the most sustainable fleets in
the industry and delivering value for all of our stakeholders.
József Váradi
Chief Executive Officer
14 June 2024
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WIZZ AIR’S ANNUAL SUSTAINABILITY REPORT
Strategic report – financial year 2024
FLYING TOWARDS
SUSTAINABILITY
REPORT ON SUSTAINABILITY TABLE OF CONTENTS
I.
REPORT OF THE CHAIR OF THE
SUSTAINABILITY AND CULTURE
COMMITTEE (page 13)
II.
ABOUT THE REPORT (page 15)
Introduction, report scope, guidelines and
assurance
III. EMBRACING SUSTAINABILITY (page 16)
Wizz Air’s ultra-low-cost business model and
resource efficiency
Our proudest moments in F24
Wizz Air’s sustainability strategy
IV.
STAKEHOLDER ENGAGEMENT AND
MATERIALITY ASSESSMENT (page 22)
Stakeholder engagement
Materiality assessment
V.
OUR SUSTAINABILITY AND CLIMATE
GOVERNANCE (page 25)
Board of Directors
Leadership Team and Sustainability Council
Governance via the Enterprise Risk Management
Framework
Environmental regulation compliance and mitigation
of climate change-related risks
Our commitment to ethical business conduct
VI.
OUR CLIMATE-RELATED TARGETS AND
PRIORITIES (page 31)
Wizz Air’s position on climate change and net zero
TCFD-based climate risk analysis
Priority programmes in Wizz Air’s environmental
strategy
Other carbon-related programmes
Environmental and greenhouse gas metrics
VII. CLIMATE POLICY POSITIONS AND
ADVOCACY (page 59)
Fit for 55 climate package
Single European Sky
Non-CO2 emissions
Advocacy in the United Kingdom
Engagement and climate policies in the United Arab
Emirates
Political donations and advocacy expenditures
VIII. PEOPLE PILLAR – WIZZ AIR CARES FOR
ITS EMPLOYEES AND CUSTOMERS (page 63)
Core values
Our social strategy and priority programmes
Put safety first
Recruit and develop our employees
Improve and leverage diversity
Engage our employees and ensure effective
communication through the People Council
Address challenges for the continuous improvement
of customer experience
Community programmes and charitable support
IX. ECONOMY PILLAR (page 84)
Connecting people and boosting economic growth
Passenger testimonials
Our network progress in F24
Social metrics – our communities
X. CYBER SECURITY AND DATA PROTECTION
(page 88)
Cyber security
Data protection and data governance
XI. INDICES (page 90)
TCFD index
GRI index
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I. REPORT OF THE CHAIR OF THE SUSTAINABILITY AND
CULTURE COMMITTEE
“The Committee’s role is instrumental in
aligning our actions with our commitment to
both people and the planet. This alignment is
demonstrated by ensuring robust disclosure,
supported by third-party assessments.”
Charlotte Andsager
Chair of the Sustainability and Culture Committee
Introduction
Dear Shareholder,
I am pleased to present my
second report of the Wizz Air
Sustainability and Culture
Committee for the year ended
31 March 2024. The Committee
assists the Board by providing
oversight and guidance in
relation to Wizz Air’s ESG
priorities. The Committee’s role
is instrumental in aligning our
actions with our commitment
to both people and planet. This
alignment is demonstrated by
ensuring robust disclosure,
supported by third-party
assessments.
In 2023, for the second year
running, the Wizz Air Group was
named Global Environmental
Sustainability Airline Group of
the Year by the CAPA Centre for
Aviation. This award is based on
an evaluation of airline carbon
emissions data, conducted by
an independent and impartial
third-party entity. This ensures
the credibility and objectivity of
the award and confirms Wizz Air
as a leader in terms of its
commitment to carbon
reduction.
Compared to global airlines,
Wizz Air boasts the lowest
reported CO2 per passenger
kilometre – 52 grammes of CO2
per passenger kilometre for the
fiscal year 2024. This
achievement can be attributed to
the Company’s strategic fleet
renewal approach.
Fleet renewal constitutes
one important facet of our
comprehensive approach, but
the Committee also dedicated
significant effort to another
critical pillar: implementing a
sustainable aviation fuel (SAF)
strategy. For this, the
introduction of a SAF blending
mandate by the European
Commission is pivotal.
The Committee has been
instrumental in supporting
the Board’s oversight duties
in ensuring compliance with
emerging regulations. Our
commitment extends beyond
mere oversight. Therefore, the
Committee fully supported and
approved the Company’s aim
to have at least 10 per cent
of jet fuel sourced from
sustainable origins by 2030,
while considering future cost
and availability.
As we observe the efforts
outlined, it is essential to
recognise that sustainability
extends beyond numbers and
metrics. Our commitment stems
from organisational culture. The
Committee welcomed reports
of improvements in employee
engagement following the annual
survey and diligently monitored
gaps and action items.
Membership, meetings
and attendance
a)
Charlotte Andsager
b)
Dr Anthony Radev
c)
Andrew S. Broderick
The Committee consists of
three Non-Executive Directors,
including the Employee
Engagement Director, appointed
by the Board according to
experience, dedication and
capacity. The Head of Legal acts
as Secretary to the Committee
and relevant members of the
senior leadership team are
invited to attend meetings.
More information is available at:
https://wizzair.com/en-gb/
information-and-services/
investor-relations/governance/
board-committees.
The Committee met six times
during the year and focused on
the following activities:
• review of the Group ESG
strategy, including SAF
strategy;
• review of ESG ratings, gap
analysis and action plans;
• review of EU and international
climate regulations, policies,
and consultations;
• updates on sustainability
projects, including electric
turnarounds, SAF flights and
the Sustainability Ambassadors
Programme;
• review and tracking of targets
and key metrics;
• review of the annual
Sustainability Report;
• discussions of results of
employee engagement survey
and action plans;
• review of organisational five-
year strategy; and
• updates from the Employee
Engagement Director.
Furthermore, the Committee
participated in a Company-wide
training session to familiarise
itself with the Company’s
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upcoming requirements related
to the Corporate Sustainability
Reporting Directive (CSRD), EU
taxonomy and various reporting
frameworks. The Committee
invited all Directors to participate
in the training. This proactive
approach ensures preparedness
across the Company for evolving
regulatory standards.
Key activities
ESG strategy, projects and
initiatives
Our sustainability strategy is
focused on the three Fs: flights,
footprint and fuel. We care about
the aircraft we fly, how we fly
them, and the fuel we will use to
power them in the future.
The Committee received regular
updates on Wizz Air’s ESG
strategy, and engaged in
discussions related to emissions
reduction target tracking and
plans for pathway status. In
particular, it continued to
monitor closely the Group’s
initiatives related to SAF, which
included the first commercial
SAF flights and progress on
equity investments. The
Committee approved the Group’s
aspiration to power 10 per cent
of its flights with SAF by 2030.
The Committee endorsed the
Company’s decision not to
submit a target to the Science
Based Targets initiative (SBTi)
for the time being following a
change in methodology by SBTi.
The Committee’s oversight
ensures that the Company
maintained credibility in
circumstances where submitting
a target would have been
unrealistic due to limitations in
current technology and SAF
availability.
By investing in SAF production,
efficient operations and new
aircraft, Wizz Air is contributing
to the long-term viability and
affordability of sustainable
aviation solutions.
ESG ratings, reporting and
consultations
The Committee received updates
on enhanced scores in ISS and
S&P Global. The Company
improved its CDP score by a
remarkable two grades. The
Committee oversaw a gap
analysis and action plan related
to the scores.
The Committee welcomed the
Company’s first third-party
assurance related to its report on
GHG emissions for the Annual
Report for the financial year
ended 31 March 2023. The
Company’s inventory for F24 is
also getting limited assurance.
The Committee was regularly
updated about changes in
climate regulation, in particular
on incentives through the future
SAF allowances and the zero-
emissions factor in the European
Union Emissions Trading System
(EU ETS) attributed to the use of
SAF. This plays a critical role in
curbing emissions.
Diversity and culture
The great people of Wizz Air are
the soul of the Company and
their engagement is integral to
the success of the business. The
Committee regularly discussed
the progress made with respect
to employee engagement, as
well as diversity and target
tracking, with a focus on gender
diversity in the flight deck and
progress in relation to the Wizz
Air Pilot Academy “She Can Fly”
initiative.
The Committee reviewed several
people initiatives, including
comprehensive strategies for
leadership and development
training. The Committee was
also pleased to observe the
improved employee engagement
scores from the annual survey,
which were clearly linked to the
actions taken by management.
The Committee continuously
reviewed these over the course
of the fiscal year.
The Company’s approach to
employee engagement stands
out due to its unique and
innovative internal People
Council. The Committee was
updated on the newly elected
People Council and its leadership
and reports were received from
the Employee Engagement
Director who updated the
Committee on his discussions
with the People Council. The
Committee was pleased to learn
about the positive impact on
employee well-being resulting
from the stability in roster
patterns – a direct outcome of
actions taken based on last
year’s engagement survey.
I would like to thank all the
Wizz Air employees, and in
particular the WIZZ ESG team
for its work throughout the
past year.
Charlotte Andsager
Chair of the Sustainability
and Culture Committee
14 June 2024
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14
II. ABOUT THE REPORT
INTRODUCTION
This report is the annual Sustainability Report of Wizz Air Holdings Plc (referred to as “the Company”) to
present its strategies and practices within the framework of environmental, social and governance (ESG)
management, its position on climate change and its decarbonisation efforts.
REPORT SCOPE
Time scope: This report covers the period from 1 April 2023 to 31 March 2024 (referred to as F24).
Business scope: Unless otherwise stated, the report includes all operating entities under the Company,
namely Wizz Air Hungary Ltd., Wizz Air UK Ltd., Wizz Air Abu Dhabi LLC and Wizz Air Malta Ltd. and all
related subsidiaries.
REPORTING GUIDELINES
This Sustainability Report has been prepared in alignment with the Task Force on Climate-related Financial
Disclosures (TCFD), and in reference to the Global Reporting Initiative (GRI). The detailed indices with the
relevant page numbers and external disclosure references can be found at the end of this Sustainability
Report. The Company started preparations to ensure future compliance with the Corporate Sustainability
Reporting Directive, and has already integrated some of the relevant work in the present report.
ASSURANCE AND DATA SOURCE
This report was reviewed and approved by Wizz Air’s responsible Executive Officer, as well as the
Sustainability and Culture Committee of the Board of Directors. Independent assurance is a key part of our
approach to reporting. This year, we engaged KPMG Hungary Ltd. to provide limited assurance on
Wizz Air Group’s environment and greenhouse gas (GHG) metrics, for which the applicable certificate will
be separately available on Wizz Air’s sustainability website, once their work is completed.. Emissions data
from intra-European flights (EU and UK Emissions Trading Schemes) and all other flights falling under the
scope of the UN Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is reviewed
and verified by Verifavia, an independent third party, for the complete calendar year.
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III. EMBRACING SUSTAINABILITY
WIZZ AIR’S ULTRA-LOW-COST BUSINESS MODEL AND RESOURCE EFFICIENCY
Wizz Air celebrates two decades of success this year, having gone from a small airline
to a network spanning across Europe and beyond to Asia Pacific, the Middle East and
Africa. Throughout the years, Wizz Air faced turbulence, surmounted obstacles and
emerged as a beacon of resilience and innovation. With each challenge, Wizz Air
transformed adversity into opportunity and not only elevated the passenger
experience but has also been steadily reducing its environmental footprint per flight
over the years.
But the journey does not end there. We dream of a greener horizon and, by 2030, we aim to reduce our
carbon emissions intensity by 25 per cent. This commitment to the environment is etched in every take-off
and landing. The Company’s ultra-low-cost, low-fare business model is aligned with the pivotal elements of a
low-carbon strategy. This synergy and a highly efficient operational framework allow us to provide
affordable, safe and reliable air travel to more and more people every day. What sets Wizz Air apart as the
greenest choice compared to other airlines?
Leading in fleet renewal
We are focused on technology and innovation and feel confident that fleet renewal is a key solution available
here and now to reduce our emissions per flight. The Airbus A321neo offers a nearly 50 per cent reduction in
noise footprint, a 20 per cent reduction in fuel consumption and a 50 per cent reduction in nitrogen oxide
emissions compared to the previous generation aircraft. Replacing older aircraft with the newest Airbus
A321neo models is part of our long-term fleet renewal strategy to reduce Wizz Air’s carbon intensity by
25 per cent by 2030.
Fuel-efficient aircraft and engines
At Wizz Air, low cost and low fares do not mean low quality of service, quite the opposite. We operate the
youngest and most carbon-efficient fleet in Europe, and the third youngest fleet in the world – among
airlines with more than 100 aircraft in their fleet. Our aircraft fleet boasts one of the lowest environmental
footprints per passenger kilometre. With a focus on fuel efficiency, we have significantly reduced our CO2
emissions per passenger kilometre compared to the average in the industry.
High seat capacity – low emissions per passenger
With the Airbus A321neo aircraft’s 239-seat single-class configuration, Wizz Air is making strides in carbon
efficiency. By maximising the number of passengers per flight, we are effectively reducing carbon emissions
per passenger kilometre. This approach aligns perfectly with our commitment to sustainability and
responsible air travel.
Wizz Air’s ultra-low-cost, low-fare business model at a glance:
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OUR PROUDEST MOMENTS IN F24
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Carbon intensity performance (emissions per passenger kilometre)
52 grammes CO2 emissions per passenger kilometre in F24 – further improvement since F23 and one of the
best among industry peers.
Sustainable aviation fuel investments
Two equity investments into renewable fuel research and development (R&D) in F24, supporting new
feedstocks and technologies.
Fleet renewal – 200 aircraft milestone
As part of the Company’s growth and fleet renewal strategy, Wizz Air’s fleet has grown to more than
200 aircraft by the end of the financial year.
WIZZ Sustainability Ambassadors Programme
The Company launched its pioneering WIZZ Sustainability Ambassadors Programme as part of which
24 Sustainability Ambassadors were selected to support local sustainability projects across our vast network.
First green turnarounds in our network
Wizz Air’s flights performed, for the first time, fully electric turns in Rome Fiumicino and Budapest airports
thanks to the local ground handling companies’ commitment to electric ground support equipment.
Industry recognition and climate ratings
World Finance Sustainability Awards
In June 2023, Wizz Air was awarded the Most Sustainable Low-Cost Airline title for the third consecutive
year at the World Finance Sustainability Awards 2023. World Finance praised Wizz Air’s sustainability
credentials and commitment to reducing emissions intensity by a further 25 per cent by the end of the
decade. The judging panel recognised the airline’s continued investment in the latest technology, renewal of
its aircraft fleet, fuel efficiency initiatives, sustainable aviation fuel (SAF) partnerships, including investments
in research and development, and exploration into hydrogen-powered aircraft with Airbus.
CAPA Environmental Sustainability Awards for Excellence
Last November, Wizz Air took home the award for Global
Environmental Sustainability Airline of the Year for the second
year running at the CAPA Aviation Summit. These awards and
recognition underscore the airline’s remarkable achievements in
this critical domain. The CAPA Environmental Sustainability Awards
for Excellence recognise airlines, airports and suppliers that put
climate change at the forefront of their business. The awards are
independently researched by CAPA’s analysts and carbon reduction
strategists at Envest Global.
Strategic Investment of the Year – Europe
Wizz Air was awarded Strategic Investment of the Year – Europe at the 2023 SAF
Investor Awards in London in February 2024. The SAF Investor Awards recognise
industry leaders taking steps to decarbonise aviation with significant transactions
helping to move the industry forward. Wizz Air received recognition for its £5 million equity investment in
Firefly, an innovative UK-based biofuel company, to support research and development into viable options
for SAF production. Through this partnership, Wizz Air and Firefly will collaborate on research and
development, working towards the optimisation of SAF production, to scale up SAF availability.
Carbon Disclosure Project (CDP)
In F24, Wizz Air furthered its commitment to environmental transparency by disclosing
its environmental impact through CDP, a global non-profit that runs the world’s leading
environmental disclosure platform. In 2023, the Company completed CDP’s Climate
Change Questionnaire. Wizz Air received a “B” score in the 2023 climate ranking by
CDP, reaching “management level”. The result shows a two-band improvement from
Wizz Air’s 2022 score, which is a testament to the significant work Wizz Air is doing to
manage its environmental impact, especially considering that CDP strengthened its
criteria for scoring last year.
The overall “B” score in CDP ranking indicates that Wizz Air is taking coordinated action on climate issues.
CDP awarded Wizz Air the highest scores for disclosure of Scope 1 and 2 emissions (including verification),
emissions reduction initiatives and low-carbon products, risk management processes and climate
governance. Wizz Air has participated in CDP disclosure since 2021. Fully aligned with the Task Force on
Climate-related Financial Disclosures (TCFD), CDP holds the largest environmental database in the world.
CDP scores are widely used to drive investment and procurement decisions towards a zero carbon,
sustainable and resilient economy. Wizz Air’s 2023 disclosure is available on CDP’s website.
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WIZZ AIR’S SUSTAINABILITY STRATEGY
At Wizz Air, our mission is to provide travel opportunities that enrich lives and foster global connections.
We believe in bringing together nationalities, cultures and businesses through affordable air travel. Our
commitment extends beyond transportation; we strive to set high standards in safety, customer experience,
corporate citizenship and reliability.
Today, one critical task is to establish a sustainable business. We recognise the urgent need to mitigate the
impact of climate change on our operations. To achieve this, we actively seek solutions to reduce our
environmental footprint. Our sustainability efforts span four key pillars: environment, people, governance
and economy.
THE COMPANY’S STRATEGIC PRIORITIES
Opportunity, consistent resource efficiency and service are the cornerstone of Wizz Air’s success, and today
this still inspires Wizz Air’s mission and its key strategies. Wizz Air’s key objective is to deliver leading
Shareholder and stakeholder value in aviation. We recognise the unique challenges the aviation industry
faces. As part of our long-term vision, we are dedicated to decarbonising the sector so we continuously
explore innovative opportunities to facilitate a green transition within aviation. Our commitment extends
beyond environmental stewardship. By maintaining a laser focus on resource efficiency, we not only benefit
the planet but also enhance our cost structure. Moreover, we strive to win the hearts and minds of our
valued customers while ensuring improved access to capital in the long run. Wizz Air remains determined in
its pursuit of sustainability, a core value of our business.
Company goals:
• Deliver average 20 per cent annual growth in capacity in the long term
• Deliver 13 to 15 per cent net income margin
• Reduce our CO2 emissions intensity by 25 per cent by F30
The main ESG-related metrics are integrated into our key performance measures year on year.
Strategic priorities:
• A focused ultra-low-cost, low-fare business model
• Increasing and diversifying our geographical footprint
• Delivering leading sustainability in accordance with the Company’s ESG strategy
• Enabling our business by creating the leading digital platform
• Continuing to run a highly engaged, agile and entrepreneurial organisation
ESG-related metrics (indicated with pink) are integrated into our key performance measures,
year on year:
1. Leading on
cost
2. Increasing our
geographical
footprint
3. Leading
sustainability
4. Leading digital
platform
5. A highly
engaged
organisation
1.1. CASK
performance
2.1. Market
penetration
3.1. CO2 emissions
intensity
4.1. Brand
awareness
5.1. Employee
engagement
1.2. Ancillary PAX
revenue
2.2. Market share
3.2. Gender
diversity
4.2. Web/app
visitors
5.2. Staff attrition
1.3. Cash
4.3. Conversion
5.3. Promotion
from within
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Supporting the United Nations Sustainable Development Goals (SDGs)
By aligning with the UN SDGs that fall within our sphere of influence, we actively contribute to global
progress. In this report, we meticulously pair relevant SDGs with specific business areas and material
sustainability topics. Our unwavering focus on sustainability, resilience in the face of climate risks and
fostering of an inclusive culture – built on gender diversity and career prosperity – drives our development
and business conduct.
Wizz Air ESG pillars and contribution to UN SDGs via our relevant programmes:
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ENVIRONMENT
• Our goal is to make air travel with
Wizz Air the most carbon-efficient
choice.
• We actively work on reducing
our environmental footprint and
carbon intensity.
PEOPLE
• Our focus is on our workforce and
customers.
• We strive to enhance customer
experience, support our communities
and empower our employees to
achieve their full potential.
GOVERNANCE
• The Sustainability and Culture
Committee oversees our sustainability
agenda.
• This Committee collaborates with the
Board to review Company policies
and practices related to sustainability
and culture.
• The Sustainability Council executes
projects and initiatives in accordance
with Company strategy
ECONOMY
• Our Company’s mission centres
around providing affordable travel for
everyone.
• By driving tourism, we contribute to
the GDP growth of WIZZ destinations,
creating new jobs and business
opportunities.
Our sustainability commitments
Our sustainability strategy is seamlessly integrated with Wizz Air’s vision. By 2030, we aim to achieve our
WIZZ500 fleet renewal plan – a milestone that reflects our commitment to growth and excellence. To realise
this vision, we have set 15 specific objectives aligned with our sustainability ambitions.
The sustainability strategy tracker table below describes the key objectives and the current status of our
targets (
= target achieved or in case of long-term target, the current trend is positive;
= target not reached but there is an action plan in place to reach it).
More details can be found on each commitment later in the Sustainability Report.
Sustainability
pillar
Commitments
On
target
Current status
Environment
Reduce CO2/RPK (carbon emitted per passenger
kilometre) from flight operations by 25 per cent
until 2030 (F20 base year).
Significant reduction year on year, though the F24
annual sub-target has not been achieved due to
external factors. More information can be found on
page 41.
Qualify a sustainable aviation fuel (SAF) supply
chain from 2025.
On target. Two equity investments in sustainable
aviation
fuel
research,
partnerships
with
SAF
suppliers and aspiration to fuel flights with 10 per
cent SAF blend by 2030. Details on pages 46—48.
Drive noise reduction by ensuring all our fleet is
compliant with the applicable Chapter 14 noise
emission standards by 2028.
On target. 80 per cent of our aircraft are compliant
as of F24.
See page 49 for more information.
Qualify future technology building blocks and
industry partnerships to enable decarbonisation
by 2050.
Ongoing with the Board of Directors leading and the
Sustainability Council stakeholders implementing
actions. See pages 50—51 for key projects.
People
Continue to put safety first, in everything we do.
On target. Cross-functional safety council meets four
times a year. Dedicated Safety, Security and
Operational Compliance Committee of the Board
since F23 for additional oversight. See pages 64—65.
Further improve gender diversity in the Board,
management and flight deck to achieve:
1.
33 per cent female gender diversity in the
Board of Directors;
2.
40 per cent female gender diversity in the
management team by F26; and
3.
7 per cent female gender diversity in the
flight deck by F30.
1.
Board of Directors: 36 per cent – target
reached.
2.
Management team: 35 per cent.
3.
Flight deck: 5 per cent.
See pages 70—73 for all details.
Develop and sustain employee engagement in
the top 25 per cent of the industry benchmark.
Improvement in F24 but target not yet fulfilled. More
on employee engagement on page 76.
Improve customer experience each year as
measured by various customer satisfaction
metrics.
Improvement in F24. Action plans in progress. See
page 80 on customer experience-related initiatives.
Governance
Ensure effective Board oversight of all elements
of the sustainability strategy.
On target. Details in the Sustainability Governance
section, from page 25.
Continue to improve our climate-related
disclosures, work on our decarbonisation
roadmap, and report on all scopes of greenhouse
gas (GHG) emissions.
Continuous
work
on
climate
disclosures
and
alignment with reporting frameworks such as the
Task Force on Climate-related Financial Disclosures
(starts on page 33); Global Reporting Initiative
(page 90); Carbon Disclosure Project (page 18); and
GHG inventory Scope 1, 2 and 3 reporting (page 55)
with third-party assurance since F23.
Environmental target integrated into the
incentive scheme for the CEO and the entire
management team.
Incentive scheme in place since 2021 (details in the
F22 Annual Report).
Gender diversity target for management
integrated into the incentive scheme for the CEO
and Officers.
Incentive scheme in place since 2021 (details in the
F22 Annual Report).
Economy
Grow our fleet to 500 aircraft by 2030.
On target to achieve goal by F30. Current fleet: 208
aircraft. See page 42.
Increase the number of customers from
40 million in 2019 to 170 million by 2030.
On target to achieve goal by F30. Passengers in F24:
62 million (compared to 51 million in F23).
Employ over 20,000 people directly and 125,000
people indirectly across the network.
On target to achieve goal by F30.
New employees hired in F24: 2,357 (total employee
number: 8,044).
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IV. STAKEHOLDER ENGAGEMENT AND MATERIALITY ASSESSMENT
The materiality assessment is a crucial step in Wizz Air’s sustainability reporting process, as it helps us
identify the environmental, social and governance (ESG) issues that are most significant to our business and
stakeholders. Through extensive stakeholder engagement, we gather diverse perspectives to inform our
assessment. This engagement not only ensures transparency but also deepens our understanding of
stakeholders’ evolving expectations, enabling us to identify priority areas and develop strategies that align
with these expectations and broader societal needs. Wizz Air is using a materiality assessment method to
identify those priority issues that matter most to each individual stakeholder group.
STAKEHOLDER ENGAGEMENT
Wizz Air identified its key stakeholder groups as follows: our customers, people, investors, partners and
communities, as well as policymakers and regulators. For a comprehensive understanding of our
stakeholders and their significance to our operations, as well as insight into their priorities and concerns,
please refer to last year’s detailed stakeholder analysis provided in Wizz Air’s F23 Annual Report on page 22.
Throughout the financial year 2024, we maintained
close engagement with stakeholders through
targeted communication, collecting direct feedback
from all our stakeholders, primarily but not only
through our digital materiality survey. Utilising a
variety of communication platforms, including
meetings,
online
surveys,
social
media
and
newsletters, we fostered dialogue with stakeholders
such as customers, employees, policymakers and
regulators. We regularly collaborate with business
partners
to
showcase
best
practices,
drive
pioneering
initiatives
and
foster
sustainable
innovation. In addition to surveys, in order to
gain deeper insights into investor preferences, we
actively collaborate with investor representatives
through our Investor Relations team and direct
meetings. Our discussions primarily revolve around
environmental,
social
and
governance
(ESG)
matters, climate change and sustainability agendas.
MATERIALITY ASSESSMENT
Our ongoing engagement with both internal and external stakeholders has played a crucial role in translating
their expectations and needs into meaningful organisational goals and targets. In line with the GRI
framework, Wizz Air also conducts an annual materiality analysis. We collected direct feedback from all
stakeholder groups to identify the issues that they consider highly influential for the airline’s business
processes and success.
Similar to previous years, we’ve selected a diverse set of ESG topics, considering industry standards,
stakeholder preferences, regulatory requirements and GRI guidelines. In addition, in anticipation for the
CSRD regulation, going beyond climate change impacts, we have also conducted a high-level assessment of
the environmental impacts caused by our operations and throughout our value chain, with a focus on critical
areas such as biodiversity, water use, circularity and pollution. The aim of this initiative is to identify and
mitigate risks in relation to these topics and enhance our contribution to environmental stewardship.
In F24, Wizz Air has utilised an enhanced systematic approach to prioritise the identified ESG topics through
weighting our stakeholders’ inputs. This updated rating method is a two-dimensional approach designed to
consider both stakeholder influence and alignment with priority topics:
• Influence assessment: the Company assessed the potential impact of each stakeholder group on our
strategic decisions.
• Alignment assessment: the Company measured how well stakeholders’ priorities align with its own
strategic goals through the analysis of survey data.
This approach facilitates the identification of potential risks and opportunities within the framework of ESG.
Divergence between stakeholders’ ESG priorities and a company’s strategic goals can reveal risks that
require strategic management and engagement. In contrast, areas of strong alignment offer opportunities
for collaboration, innovation and improved ESG performance, ensuring that a company’s efforts are effective
and aligned with company and stakeholder expectations. During the stakeholder alignment assessment, we
have discovered and are pleased to report a harmonious alignment between the priorities of our
stakeholders and those of Wizz Air. The results of the materiality assessment underwent a review process
with internal stakeholders, including senior management. Based on their feedback, the specific order of
these topics was carefully streamlined to ensure a tighter alignment with the airline’s strategic objectives,
risk management priorities and regulatory compliance obligations, while preserving the integrity of the
stakeholders’ initial assessment. Following the revision, the material topics have been approved by the
Sustainability and Culture Committee of the Board.
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Materiality list and matrix – highest priority topics
As a company committed to transparency, we continuously evolve our ESG reporting to provide stakeholders
with a clear, actionable view of our sustainability efforts. In this year’s report, we have presented the result
of our materiality assessment in a dual format. Our decision to employ both presentation tools is driven by a
recognition that our stakeholders are diverse, with varying needs and preferences for information.
The table and the accompanying materiality matrix below present the ESG topics in separate categories
based on the assessment by the Company and the engagement with stakeholders.
CATEGORY
ENVIRONMENT
SOCIAL
GOVERNANCE
CHAMPION
The most material ESG
issues that the Company
strives to champion,
integrates into its
strategy and reports on
consistently.
• Emissions management
• Climate change policy
• Renewables
• Noise emissions
• Employee health and
safety
• Equal opportunities and
fair treatment
• Employee trainings
• Employee relations
• Ethical business conduct
• Product health and safety
• Complaints management
ACT
Material issues that the
Company recognises as
important and is taking
steps to manage
appropriately.
• Energy management
• Community involvement
• Human rights issues
• Shareholder transparency
• Accessibility of service
• ESG reporting
• Supplier standards
MONITOR
Adequately managed –
the Company is compliant
with applicable
requirements and
regulations. Regular
monitoring in place but
no immediate actions
required.
• Freshwater use
• Biodiversity
• Board of Directors
composition
• Political transparency
• Responsible marketing
• GDPR
We will provide further perspective in this report with regard to our goals, strategies and results connected
to these issues and opportunities. Note, this Sustainability Report covers all of the below listed high-priority
topics (listed in the Champion category), as discussed under the relevant ESG pillar disclosures, to ensure
added transparency and detail on the topics most essential for our stakeholders.
Materiality matrix
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GOVERNANCE PILLAR
V. OUR SUSTAINABILITY AND CLIMATE GOVERNANCE
BOARD OF DIRECTORS
Wizz Air operates under a robust governance framework. This structure comprises two key pillars: the Board
of Directors and an internal governance system.
The Board plays a pivotal role in shaping Wizz Air’s strategy. It does so through the collaboration of the
Group Chief Executive Officer (CEO) and the Chairman of the Board. Together, they examine critical
business objectives, and the Board, based on the proposal of the CEO, approves the key objectives and
strategy of the business including those related to environmental, social and governance factors.
A dedicated Sustainability and Culture Committee assists the Board in ensuring that the Company’s
strategic goals align with sustainability principles. It ensures that the Company promotes long-term value
creation and thus takes environmental issues into account in defining the Company’s strategy by submitting
recommendations to the Board.
Sustainability and Culture Committee responsibilities:
The Board’s Audit and Risk Committee also has a crucial role in overseeing the Company’s risk assessment
processes. This includes the approval of the processes around the Enterprise Risk Management (ERM)
framework (outlined on page 34) and the annual comprehensive climate opportunity and risk analysis
integrated into it. In addition to the regular, bi-monthly Board updates, the Committee receives a detailed
briefing on the principal risks as well as the risk appetite and it reviews the action plans proposed by
management.
Going forward, Wizz Air’s Board of Directors remains steadfast in its commitment to position the airline as
the most environmentally conscious choice for air travel. It actively endorses initiatives, innovation and
investments aimed at minimising Wizz Air’s environmental impact. As of F25, both the Board and the
Sustainability and Culture Committee will consistently assess the execution of the Company’s sustainability
strategy and ensure continued compliance with ESG reporting frameworks during their six annual meetings.
This review process will be overseen by the Corporate and ESG Officer, who serves as the Board Secretary,
and is also the Chair of the internal Sustainability Council.
Similar to F23, the members of the Board’s Sustainability and Culture Committee and other Board Directors,
key members of Wizz Air’s senior management (Leadership Team) and the responsible heads and managers
participated in sustainability and ESG training by Deloitte sustainability experts in January 2024. The Wizz Air
stakeholders received an update on the sustainability and climate-related reporting requirements, the
applicable regulations and the ESG reporting frameworks impacting the Wizz Air Group in the short and
medium term (e.g. the Corporate Sustainability Reporting Directive (CSRD), ESG value chain factors and
EU taxonomy). The Board is confident in its understanding of climate change and the industry’s transition
while recognising the need for ongoing education in this rapidly changing landscape.
To maintain momentum and achieve our goals, the Board prioritises effective oversight of key sustainability
initiatives. The focus remains on enhancing sustainability governance through additional training, ensuring
environmental expertise, and staying informed about climate-related developments, risks and opportunities.
Strengthening Wizz Air’s sustainability strategy and governance is the initial step towards achieving
sustainable aviation. This aligns with the Company’s vision to: i) reach WIZZ500 by 2030; ii) be Europe’s
undisputed price leader; and iii) be Europe’s top choice for environmentally conscious flying.
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Strategy
It reviews and oversees the implementation of Wizz Air’s sustainability
strategy.
Risk assessment
The Committee examines extra-financial risks, particularly those related to
environmental, social and societal issues.
Reporting and
benchmarks
It oversees non-financial reporting processes, adhering to applicable legislation
and international benchmarks.
Culture and diversity
Beyond sustainability, the Committee also evaluates the Company’s culture,
ensuring that it promotes diversity across the workforce and facilitates
effective communication between management and employees.
Employee engagement
The Committee oversees employee relations, ensuring that Wizz Air fosters a
diverse and engaged workforce.
LEADERSHIP TEAM AND SUSTAINABILITY COUNCIL
The Sustainability Council, led by the Corporate and ESG Officer, convenes regularly as a group and/or on
individual working group level (such as the SAF strategy working group and the ESG reporting working
group, etc.) to review our sustainability agenda, track new developments and assess ongoing projects.
Additionally, the Council stakeholders analyse future plans related to the Company’s decarbonisation
pathway.
At the operational level, the Sustainability Council is overseen by the Group’s Senior Sustainability Manager,
and the overall responsibility lies with the Corporate function including the Corporate and ESG Officer, and
the Executive Vice President and Chief Corporate Affairs Officer. The Council comprises key internal
stakeholders such as the Executive Vice President and Chief Financial Officer, the People Officer, the
Customer and Marketing Officer, the Managing Directors of airline subsidiaries, and all Heads of Function.
Senior managers responsible for specific business areas also participate. Main stakeholders include leaders
and experts from strategic functions such as Corporate and ESG, Finance, Government and Public Affairs,
Investor Relations, Group Operations, Fleet Acquisition, Flight Operations, Purchasing (Supply Chain),
Aircraft Maintenance and Engineering, Cabin Operations, Retail, Facility, Organisational Development,
Recruitment, Human Resources, Crew Resources and Planning, Group Training, People Council, Customer
Experience, Communications and Marketing, Legal, and Internal Audit. Their collective mission is to drive our
Company’s sustainability strategy and ensure its effective implementation throughout the organisation.
SUSTAINABILITY COUNCIL MAIN STAKEHOLDERS
The Company-wide, fully cross-functional Sustainability Council will continue to operate and provide updates
to the full Leadership Team, including the CEO, regarding progress made in accordance with our strategic
priorities. When necessary, adjustments to goals and strategies will be discussed and presented to the
responsible Chief Officers or the Leadership Team. Subsequently, progress and future strategies will be
coordinated with the Board’s Sustainability and Culture Committee as well.
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SUSTAINABILITY GOVERNANCE SUMMARY
Board of Directors
Approval and
supervision of
strategic objectives
Sustainability and Culture Committee
• Objective: Aligns the Company’s sustainability strategic objectives with industry best-in-
class standards.
• Frequency: Meets at least six times per year, with an additional session dedicated to in-
depth training on sustainability and climate-related matters each year.
Audit and Risk Committee
• Objective: Approval of the climate risk universe (including the physical and transition risk
analysis), risk appetite and action plan to address these risks.
• Frequency: Meets at least six times per year.
Leadership Team
Development and
execution of
strategies
Sustainability Council
The driving force behind sustainable practices, ensuring they are embedded throughout the
organisation’s operations and culture.
• Strategic alignment: Supports the Leadership Team in defining sustainability objectives and
corresponding strategies. Ensures alignment with industry best practices.
• Execution and prioritisation: Drives execution across the organisation by prioritising and
allocating resources. Focuses on key priorities, including fleet renewal, fuel efficiency,
climate regulation advocacy and sustainable aviation fuels.
• Expertise hub: Serves as a centre of expertise on ESG, sustainability and climate matters.
• Integration and action: Integrates functional leaders to swiftly deploy guidance into
operations.
GOVERNANCE VIA THE ENTERPRISE RISK MANAGEMENT FRAMEWORK
Wizz Air’s ERM framework evaluates environmental and climate change-related risks, among other risk
types. This framework is reviewed biannually by the Board of Directors. The process of risk identification,
which involves discovering, acknowledging and describing risks that could hinder Wizz Air’s objectives, is
crucial for updating the Company’s risk universe and risk appetite semi-annually. Various methods such as
meetings, interviews, group discussions, historical data and market information are used for risk
identification. The identified risks are then analysed and evaluated based on their impact and likelihood.
In addition to these processes, the Group’s ESG function also continuously assesses sustainability-related
risks. It collaborates with experts to conduct an annual detailed climate scenario analysis, which is
incorporated into the ERM. These risks are evaluated using the ERM classification methods for relevant
business planning timeframes. More details about this process and climate risk mitigation can be found in
the report’s Task Force on Climate-related Financial Disclosures (TCFD) section.
The ERM encompasses several ESG-related risks, including climate-related risks. The primary and secondary
risk owners are identified based on the required functional expertise. It is the risk owner’s duty to
appropriately assess the risks and provide information to the Internal Audit function during the annual
update process.
As part of the Company’s going concern and viability work, management maps principal risks into the
planning horizon for going concern and viability. These horizons align well with the definitions of short-term
(going concern) and medium-term (viability) risks. The main principal risks identified during our ERM work
are mapped and discussed for their impact over one, five and ten years. The same approach is applied to
climate risks. An assessment is documented for the short, medium and long-term horizons for each outlined
climate risk – transition and physical risks. Where applicable, a quantified impact of that assessment is
incorporated into the going concern and viability modelling for the Company.
Wizz Air is dedicated to consistently predicting and mitigating the effects of climate-related phenomena on
the environment, our communities and our business. Therefore, climate considerations are integrated into
our financial planning and controlling processes. Each year, when preparing the financial operating plan for
the following year (and medium-term forecasts), the key risks are gathered from the Department Heads,
indicating the potential financial impact of the risks. This information is continuously incorporated into
financial planning, ensuring that the organisation remains prepared and resilient, calculating the most
significant risks and their financial threat.
Risk governance structure
Wizz Air’s risk governance is designed to identify potential risks and manage those risks within the
organisation’s risk appetite in order to enhance the outcome of the corporation’s business objectives. The
risk governance structure ensures well-defined roles and responsibilities for its members regarding
Enterprise Risk Management.
The risk management process is channelled into the Company’s Leadership Team, the Audit and Risk
Committee and the Board of Directors, receiving robust support and priority for driving our business plans
and implementing risk mitigation actions. The Internal Audit function and the Leadership Team report to
the Board’s Audit and Risk Committee. The Internal Audit function periodically updates the Leadership Team
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and the Audit and Risk Committee regarding any significant risk exposures. The Internal Audit function
is accountable and reports functionally to the Board’s Audit and Risk Committee, and administratively
(i.e. day-to-day operations) to the Chief Financial Officer. The Internal Audit function is not involved in the
decision-making process in relation to business matters, in order to ensure full independence.
The Internal Audit function’s purpose is to provide independent, objective assurance and consulting services
designed to add value and improve the operations of all entities within the Group. It also ensures that any
internal auditing activity remains free from all conditions that may threaten the ability of internal auditors to
carry out their responsibilities in an unbiased manner.
MITIGATION OF ENVIRONMENTAL AND CLIMATE CHANGE-RELATED RISKS
A key focus area connected to climate change and ESG will be environmental regulation compliance. This
entails the applicable current and future mandatory reporting frameworks related to corporate sustainability
(like the Corporate Sustainability Reporting Directive (CSRD)), emissions reporting, ETS or CORSIA
reporting, future environmental taxation compliance, or any other requirements that are not currently known
but could potentially result in a cost increase in the future. The Company’s responsible working groups are
continuously working on ensuring compliance with existing regulation and preparing appropriately with
resources, systems and processes for all emerging requirements.
Wizz Air is intent on strengthening its internal and Board-level sustainability governance with frequent
reviews and updates of reporting requirements. All reporting and environmental compliance matters have
ownership assigned to the responsible function within the Company, which then reports on the applicable
risks and mitigation actions to the Leadership Team and then the Board of Directors.
The Company’s risk mitigation actions and projects addressing climate-related risks are discussed in detail in
this report’s section VI. Climate-related targets and priorities, and can be found on pages 31–32.
OUR COMMITMENT TO ETHICAL BUSINESS CONDUCT
At Wizz Air, we hold our Board of Directors and entire workforce to the highest standards of integrity. It is
our unwavering commitment to act in accordance with all applicable laws and regulations at all times.
Key policies:
• Policy of Good Conduct
Our cornerstone policy for ethical business behaviour, the Policy of Good Conduct, was reviewed and
revised in F23. This comprehensive document outlines the precise expectations we have for all Wizz Air
employees as they carry out their duties within their business and professional relationships.
• Equal Opportunities and Fair Treatment Policy
This policy underscores our dedication to fostering a secure and respectful workplace for all stakeholders.
Rooted in principles of mutual respect, fairness and equality, we actively champion diversity. Our aim is to
maintain an environment that remains untainted by any manifestations of discrimination, victimisation,
vilification, bullying or harassment.
• Whistleblowing Policy
This covers any report made via whistleblowing channels of any infringement of the Code of Conduct of
Wizz Air or the laws of any jurisdiction, where a Wizz Air entity is established. The summary of the new
policy is available online at Wizz Air’s sustainability website. Wizz Air believes that in order to ensure the
continued integrity of its business there should be an effective reporting line for its employees. If the
employees suspect any breach of Company policies, they can raise their concerns and report it to the
relevant personnel anonymously via the whistleblowing programme, as detailed in the policy.
• Anti-Fraud Policy
This new policy released this year sets out Wizz Air’s principles, restrictions and practical guidelines
regarding fraud in order to prevent, detect and avoid any fraudulent, unethical or improper business
practice. Wizz Air rigorously prohibits any act, behaviour or failure to act that is contrary to the values and
principles of its Anti-Fraud Policy.
• Anti-Corruption Policy
Wizz Air’s Anti-Corruption Policy prohibits corrupt or improper practices or bribery. It applies to interactions
between Wizz Air personnel and third parties. The policy aims to prevent improper inducements or rewards
related to relevant functions. Anti-corruption education and training are provided to Wizz Air personnel and
third parties involved in business operations.
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• Supplier Code of Conduct
Wizz Air’s partners and suppliers are expected to comply with the Company’s Supplier Code of Conduct.
The Supplier Code of Conduct outlines requirements for ethical business practices, social and
labour standards, legal compliance, and environmental and commercial sustainability. During the tendering
phase, all supplier candidates receive the Supplier Code of Conduct for complete awareness of the
Company’s expectations.
There are additional policies ensuring the ethical conduct of the Board of Directors and those in
leadership positions.
• Share Dealing Policy
The Company has adopted a Share Dealing Policy. Directors and designated employees must obtain
clearance from the Company’s Chairman before dealing in the Company’s shares. During certain periods,
dealing in the Company’s shares is strictly prohibited. Regular face-to-face training is provided to ensure
Directors and affected employees can appropriately manage insider information and keep informed of
continuing obligations.
Wizz Air has established a number of policies to safeguard business ethics; all of them are available to all
employees in the Company’s systems. As part of every new employee’s general onboarding, there are
multiple mandatory e-learning training courses on business ethics and all relevant policies Wizz Air has
introduced, including conflict of interest training, the General Data Protection Regulation, competition law
and information security management, to ensure that the workforce is aware of the key principles that
govern the ethical and compliant conduct of Wizz Air. New and revised policies are always shared with
employees via the Company’s internal digital channels to ensure continued awareness and compliance.
Overall, it is the responsibility of the Internal Audit function and the Audit and Risk Committee of the Board
to review compliance with the above mentioned business ethics principles.
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ENVIRONMENT PILLAR
VI. OUR CLIMATE-RELATED TARGETS AND PRIORITIES
WIZZ AIR’S POSITION ON CLIMATE CHANGE AND NET ZERO
DECARBONISATION STRATEGY
As the industry is focused on actions and solutions for a sustainable transition, we also
have a responsibility to create a pathway towards being an even greener airline. Wizz
Air is committed to reducing climate change impact and our strategy includes renewing
our aircraft fleet, continuously enhancing operational efficiency and investing in
sustainable aviation fuels. Additionally, we collaborate with industry partners to ensure
emissions decrease throughout the supply chain and wider operations.
We remain committed to our 2030 goal of reducing emissions intensity by 25 per cent versus our F20
baseline. We have also dedicated significant resources this year to continuously assessing our potential
pathways for an interim and final target for 2035 and 2050 respectively. Our aspiration to support the global
efforts for a long-term target for aviation is clear, and we have identified the crucial elements on the path
to achieve this: (1) short-term: fleet renewal and operational efficiencies; (2) medium-term: sustainable
aviation fuels and carbon removal technologies; and (3) long-term: zero emissions aircraft technology,
sustainable aviation fuels (still playing a key role until new aircraft technology achieves mass production)
and air traffic modernisation.
Wizz Air leads the airline industry in terms of reduction of carbon emissions intensity (CO2 per passenger
kilometre). We aspire to continue to be the most carbon-efficient choice for flying and remain committed to
our goal of radically reducing our emissions intensity, driving our ambition to support the airline industry’s
goal to decarbonise. These results have been achieved through our investment in best-in-class aircraft and
engine technology. We strive to be transparent in our carbon disclosures and measure, verify and report our
carbon and GHG emissions and CO2 intensity performance.
In 2021, Wizz Air made a commitment to setting voluntary targets through the Science Based Targets
initiative (SBTi). Since that commitment, SBTi’s sector-based requirements for an interim net zero target
submission and validation have changed considerably. Wizz Air has dedicated significant resources to
continuously assessing potential pathways for an interim and final target for 2035 and 2050 respectively.
However, there are several challenges to setting those targets, including: (1) no availability of zero
emissions aircraft; (2) limitations with respect to availability and scale-up of sustainable aviation fuels; and
(3) stalled reform of air traffic management.
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Due to these limitations, Wizz Air cannot set an SBTi target in a plausible way at the present time. The
Company will continue to work on establishing a pathway for a potential target validation, and will also
review how we can co-operate with other credible third-party validators. It should be noted that other
airlines that have had their interim net zero targets validated by SBTi under the previous sector
requirements (well below 2°C scenario) will need to submit a revised target in line with the 1.5°C global
warming scenario within five years.
As always, Wizz Air is focused on remaining realistic in light of the current technology; therefore, we will
commit to a net zero pathway once innovative technology develops and becomes industrialised.
WIZZ AIR SETS 10 PER CENT SAF GOAL
In April 2024, the Company announced its aspiration to power 10 per cent of its flights with sustainable
aviation fuel (SAF) by 2030. The new goal will support the airline’s commitment to reduce its carbon
emissions per passenger kilometre by 25 per cent by 2030.
In 2023, Wizz Air took a significant step by investing in SAF companies, first Firefly, then CleanJoule, and
partnering with various SAF suppliers, ensuring a reliable long-term supply chain. The Company is
committed to achieving sustainable aviation growth while aligning with global aspirations. Our approach
involves embracing a comprehensive strategy that addresses environmental impact, operational efficiency
and long-term sustainability. This commitment includes leveraging technology, refining operational practices
and adopting sustainable aviation fuels. While aircraft technology improvements hold promise, their impact
will unfold over years and decades. SAF offers a direct pathway to reduce emissions; therefore, it is vital to
increase SAF production and utilisation within the aviation sector as soon as feasible. The urgency to
accelerate SAF production aligns with Europe’s demand, and closing this gap is critical for achieving our
shared environmental goals.
With this step, Wizz Air urges policymakers to address barriers to SAF deployment at scale by incentivising
production, providing price support and embracing additional sustainable feedstocks for biofuel production.
National SAF strategies, government incentives, green financing, investment and further ETS allowances for
SAF uplift will be crucial. Today, several regions in Europe and its periphery lag behind in SAF production and
availability. The urgency to accelerate renewable fuel production and closing this gap are critical for
achieving our shared environmental goals.
The announcement was made at a recent press conference with Firefly, a pioneering biofuel company from
the UK. Wizz Air has been a partner of and investor in Firefly since 2023. This collaboration will be crucial in
the companies’ journey to decarbonise, as Firefly’s sustainable aviation fuel (SAF) solution can provide
Wizz Air’s UK operations with up to 525,000 tonnes of SAF over a span of 15 years, starting from 2028.
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TCFD-BASED CLIMATE RISK ANALYSIS
As an airline, we recognise our environmental impact and the industry’s goal to achieve decarbonisation by
2050. We are committed to reducing our environmental footprint while ensuring affordable air travel for our
customers and the communities we serve. We are continually enhancing our knowledge on mitigating our
climate impact and remain vigilant in evaluating the effects of climate change on our operations. As part of
the ERM process (more details on page 106 in the Annual Report’s Emerging and Principal Risks and
Uncertainties section), climate change is acknowledged as a potential risk to Wizz Air, affecting our business
in the short, medium and long term. The Audit and Risk Committee has reviewed the climate related risks
during the year as part of its regular review of principal risks, as set out in the Annual Report each year.
Wizz Air has been reporting based on the TCFD guidance since F21. Each year, the Company reviews and
extends its disclosure and as such, ensures that we include the relevant industry-specific metrics, for
example the fleet fuel use, the percentage of sustainable fuels, total emissions, the risk mitigation strategies
related to the transition to more efficient aircraft, or research and development projects aimed at renewable
fuels production ramp up. Wizz Air’s disclosures are consistent with the recommended disclosures of the
TCFD, taking into consideration the all-sector guidance and the supplemental guidance for non-financial
groups for transportation. In terms of the Company’s TCFD maturity, Wizz Air’s management is comfortable
with the consistency of our reporting regarding the core TCFD recommendations and recommended
disclosures, and the TCFD all-sector guidance, including the supplemental guidance for non-financial groups
for our industry, and has a clear timetable to develop further in the future.
DEFINING QUALITATIVE SUBSTANTIVE IMPACT FOR CLIMATE-RELATED RISKS
Wizz Air defines risk timelines as short-term (0–1 years),
medium-term (1–5 years) and long-term (5–10 years). The
Company has chosen this approach, as these timeframes
are aligned throughout the ERM, the climate risk analysis
and the Company’s existing financial planning time horizons.
Risks identified in the scenario analysis were compiled into
materiality/likelihood heatmaps, following the logic and risk
ranking framework of our in-house ERM. This heat-mapping
allows Wizz Air to assess the impact of climate-related risks –
substantive climate risks were identified if they had high
impact in any time horizon, or at least a medium risk impact
for each time horizon.
To better understand the potential impacts, however, Wizz Air evaluated the impact of four possible global
warming scenarios. We have looked at the impact on our business, projecting our current fleet plan and the
WIZZ500 ambitions. To continuously develop our climate risk assessment approach, we have been working
with expert sustainability and climate consultants from Deloitte Ltd. Hungary who helped improve our
existing climate risk analysis approach. The methodology considered four different climate change scenarios,
in accordance with the Intergovernmental Panel on Climate Change (IPCC). These scenarios are ~1.5°C,
2°C, 3°C and 4°C. The four potential scenarios had been previously chosen as they cover a broad spectrum
of outcomes.
Scenario
Physical risks
Transition risks
Low-emissions
scenario
SSP1-1.9-SSP1-2.6
(~1.5–2°C)
IEA Net Zero Emissions by 2050 (NZE)
High-emissions
scenario
SSP3-7-SSP5.85
(~3–4°C)
IEA Stated Policies Scenario (STEPS)
Based on a heat-mapping process as part of the qualitative risk assessment, taking into account the
aforementioned materiality threshold, Wizz Air identified the main climate risks and categorised them based
on Wizz Air’s ERM framework: low risk impact (accept risk); medium impact (action plan); and high impact
(avoid, reduce or transfer risk).
The quantitative risk assessment was based on Wizz Air’s business projections, current climate legislation
and proposals, as well as up-to-date industry-specific reports and forecasts from EASA, ICAO and IATA
sources. As risk calculation involves assumptions and estimates, and since the financial impact of risks is
dynamically changing, it is crucial for the Company to have effective risk management processes to
frequently review and adjust the financial impact estimations to the changing circumstances or policy
environment. (Further details on the methodology and the four potential climate scenarios can be found
in the F23 Annual Report on pages 29–30.)
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Horizon
Definition
Short
0–1 years
Medium
1–5 years
Long
5–10 years
The ERM framework and climate-related risks
For climate-related risks, management complements the ERM approach on a qualitative basis first as
outlined below using two dimensions: 1) impact (low, medium, high) and 2) likelihood (low, medium, high).
This leads to a risk and impact qualification called the TARA framework, which assists decision making on
whether the risks can be accepted, need an action plan, or must be reduced, avoided or transferred. The
Company and the Board have agreed to a low risk appetite for climate-related risks which means that
essentially any climate-related risk needs an action plan.
Following the TCFD recommendations, the key risks retained are quantified afterwards and integrated in the
going concern, viability planning and asset impairment analysis for the Company. This risk management
process feeds into the Risk Council, into the Audit and Risk Committee and into the Board of Directors and,
as such, has strong support and priority in terms of driving our business plans and the actions to mitigate
the risks. As part of the going concern and viability work for the Company, management maps principal risks
into the going concern planning horizon and into the viability horizon. These horizons align well with the
definition of short-term risks (going concern) and medium-term risks (viability). This process is key to
evaluate if any risks cast significant doubt on the Company’s ability to continue as a going concern.
CLIMATE-RELATED RISKS AND THEIR SIGNIFICANCE AND MITIGATION MEASURES
Wizz Air, through the heat-mapping process described earlier, has pinpointed the main climate risks. The
subsequent tables provide a description of the main physical and transitional climate risks identified, their
potential effects on Wizz Air, and the mitigation strategies and actions implemented by the Company’s
responsible departments.
The risk assessment tables align with the Company’s Enterprise Risk Management framework in terms of
risk impact categories and colour coding in the first column. Here, green signifies low risk impact (risk
acceptance), yellow indicates medium impact (requiring an action plan), and red represents high impact
(necessitating risk avoidance, reduction or transfer). The visualisation of risk impact for the short, medium
and long term demonstrates how the severity of the same type of risk can vary over time, transitioning from
green to yellow or red. As the climate risk assessment is a recurring exercise each year, based on updated
scientific forecasts or circumstances changing, the climate risks and their impact rating are reviewed and, if
needed, revised.
Overall results and findings
Our comprehensive risk assessment included high-impact risks across all time horizons, as well as those with
at least a medium impact for each timeframe. When considering global warming scenarios, the most severe
potential impacts were taken into account for each risk category, specifically 1.5°C and 2°C for transitional
risks.
The results of the climate scenario assessment imply that in the high-emissions scenario, the Company
would incur revenue loss and increased fuel costs due to the operational disruptions caused by the physical
risks-related phenomena. In the lower-emissions scenario, carbon pricing and offsetting mechanisms, the
use of increasing volumes of renewable fuels, and disruptive low-carbon technology adoption would result in
increasing Wizz Air’s costs. In both low, and high emission scenarios, Wizz Air considers itself resilient in
terms of operational preparedness, transition-related investments (fleet, sustainable aviation fuels) and
financial planning.
The analysis also suggests that transitional and physical risks are inversely related. If climate policies prove
to be ineffective, it could lead to scenarios of 3°C and 4°C, where physical risks would become more
pronounced. However, these would only pose a moderate risk within our defined time horizons, with the
really severe physical impacts expected only in the long term (from 2050 onwards). Conversely, effective
regulation and policy implementation would reduce physical risks, but could lead to a significant increase in
transition risks and therefore higher compliance costs for the Company.
Physical risks – detailed disclosure
The assessment below reveals that no high-impact physical risks were detected within the evaluated time
horizon. The implications of physical risks become more significant as we project further into the future
(2050 and beyond). We anticipate no substantial alterations in the next decade relative to current
temperature or weather pattern changes. If the implementation of climate policies proves to be ineffective,
physical risks could lead to disruptions in operations, markets and supply chains or cause damage to assets.
The most critical climate-related physical risks identified in this year’s assessment are detailed on the
next page:
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Risk type
and estimated
significance
Risk description
Financial impacts
Mitigation measures
More extreme
heatwaves
Extreme heatwaves can impact
aircraft performance and flight
operations because it may be
necessary to reschedule departures
for heavier aircraft or reduce the
weight of the aircraft.
As a result of heatwaves, airports
can also decrease runway capacity
due to the less dense warm air that
can cause harm to runway surfaces
or taxiways.
Disruption of regular
revenue streams and
increased operating costs.
Ensuring operational
readiness by following
established procedures and
policies for managing
disruptions. Ongoing climate
scenario analysis, aligned
with the TCFD framework,
allows the Company to
evaluate risks and implement
mitigation strategies in
collaboration with the
Operational and Network
Development teams.
Additionally, advancements
in forecasting technologies,
which better track historical
disruption causes and
locations, will enhance our
operational planning in
response to evolving weather
patterns.
Increase in the
frequency and
magnitude of
wildfires
In the future, wildfires may
increasingly impact travel
decisions, leading to more frequent
cancellations and revenue losses.
Attractive summer holiday
destinations could be affected by
these fires. Additionally, wildfire
smoke can disrupt operations due
to reduced visibility caused by
particulate matter, potentially
resulting in flight delays or
cancellations.
Potential revenue loss and
higher operating costs due
to disruptions that cannot be
prevented, avoided or
planned for.
Increase in
frequency of
more intensive
storms
Severe storms have the potential
to disrupt airspace and airport
operations, as well as cause
damage to infrastructure.
Additionally, they may lead to
increased fuel consumption.
Northern, North Western and
Central Europe are likely to see a
rise in severe storms. Meanwhile,
in the Mediterranean, cyclone
frequency may decrease, but their
intensity could increase.
Lost revenue and increased
operating and fuel costs.
Acute flooding
Heavy rainfall and pluvial flooding
could occur across all regions.
Flooding has the potential to harm
airport infrastructure and runways,
leading to reduced capacity, flight
delays, cancellations and financial
losses. Additionally, intense
precipitation and flash floods may
become more frequent at global
warming levels exceeding 1.5°C,
except in the Mediterranean. These
weather events could disrupt
ground operations and cause
damage to airport facilities,
resulting in flight disruptions.
Lost revenue and increased
operating costs.
Change in
weather patterns
(general)
Significant changes in weather
phenomena (frequency and
intensity) are likely in the long
term (e.g. by 2050 and beyond);
however, we expect no critical
change within the next ten years.
Potential revenue loss and
higher operating costs due
to disruptions that cannot be
prevented, avoided or
planned for.
Transitional risks – detailed disclosure
• Policy – Emissions reduction regulation in general terms
• Policy – ETS carbon price increase and decrease of free allowances
• Policy – EU ETS Carbon Border Adjustment Mechanism (CBAM) regulation and increase in aircraft and
manufacturing costs
• Policy – Energy taxation and the introduction of kerosene tax in the EU
• Policy – Sustainable aviation fuel mandate
• Policy – CORSIA and offsetting
• Policy – Uncertainties regarding the changing landscape of ESG reporting obligations
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• Technology – Disruptive aviation innovation
• Technology – Technological feasibility issues of SAF production
• Market – High price elasticity of demand
• Market – Reduced demand due to the increasing number of ESG-conscious customers
• Market – Growing green investor sentiment
• Liability – Emissions and climate damage litigation
• Reputation – Brand reputation
The most critical climate-related transitional risks identified in this year’s assessment are the following:
Risk type
and estimated
significance
Risk description
Financial impacts
Mitigation measures
Emissions
reduction
regulations
In a 1.5–2°C scenario, Wizz Air
may face strict policies across the
network to achieve emissions
reduction. However, varying
national policies without a
standardised approach bears the
risk of non-compliance due to
regulatory complexities.
Decarbonisation efforts, including
fossil fuel taxation, aim to reduce
carbon emissions, but they may
increase operational costs.
Additionally, differing timelines and
reporting requirements pose risks
to achieving adequate reductions.
Increased operational costs
and possible penalties in the
medium and long term, in
case of failure to comply
with the complex set of
requirements in our
operating environment (Wizz
Air currently has four
airlines: two within the EU,
one in the UK and one in a
UAE jurisdiction which
results in added complexities
in overall compliance).
Maintain strong emphasis on
evaluating and ensuring
compliance with tax and
regulatory requirements
related to emissions
regulations (this involves
cross-functional coordination
to guarantee full review
across the organisation).
Additionally, we actively
engage with government
bodies, the European Union,
and other essential
stakeholders to establish a
cohesive approach across
different regions.
EU ETS – carbon
price increase
and decrease of
free allowances
In a 1.5–2°C scenario, carbon price
hikes are likely to occur in the
medium and long term. The EU
Emissions Trading System (EU
ETS) is projected to significantly
surpass existing policy mandates in
the long term, post the IV phase
(ending by 2030).
Consequently, operational and
upstream expenses will sharply rise
due to the elevated carbon prices,
resulting in more substantial costs.
These price increases are expected
due to the gradual elimination of
free carbon allowances by the EU,
with forecasts indicating that the
EU ETS will exceed current policy
requirements over the long term.
Additional compliance costs
under UK and EU ETS.
Operational costs will
increase due to higher
carbon prices per unit, and
the elimination of free
allowances.
Maintaining an effective
carbon allowance/offset
purchasing strategy to
mitigate price volatility.
Continuously forecasting
carbon prices and cost
increases to increase
resilience, Wizz Air uses
internal carbon prices to
forecast ETS unit cost, to
contribute to better
budgetary and risk
management decisions.
Wizz Air would also rely on
the EU’s SAF-related support
mechanisms, including free
ETS allowances and/or lower
annual carbon cost due to the
use of SAF.
Energy taxation
– introduction of
kerosene tax in
the EU
The EU intends to impose a
mandatory tax on kerosene, appr.
€0.4 per litre, as part of the
ongoing revision of the Energy
Taxation Directive. The proposal
allows member states to introduce
even higher tax rates under
specific conditions.
Originally planned for 2024, the
approval and implementation have
faced negotiation deadlock in the
EU; however, an approval is
expected later on to ensure
alignment with the EU’s ambitious
climate package, if it wants to
maintain alignment with 1.5–2°C
climate pathways.
New fossil fuel and related
taxes may impact overall
taxation costs in the medium
and long term. The financial
impact would be even higher
if the EU and its member
states introduce carbon
taxes in parallel, leading to
double taxation.
Continuously and accurately
assessing changes in tax
legislation in Wizz Air’s
network is crucial. Advocacy
measures to ensure a
standardised approach
globally, avoiding double
taxation of emissions, via
carbon pricing, and kerosene
and carbon taxes, putting
additional burden on
operators.
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Risk type
and estimated
significance
Risk description
Financial impacts
Mitigation measures
SAF mandates
(ReFuelEU
regulation)
Regulations requiring the use of
SAFs in aviation fuel are already
operational in some countries. A
new mandate is also set to be
implemented in the EU by 2025
(mandatory SAF blend in departing
flights: 2 per cent in 2025, 6 per
cent in 2030, and 70 per cent in
2050 as per the ReFuelEU aviation
regulation), while similar trends
are anticipated in other regions.
Higher operational and
upstream costs in the
medium term due to the
increase in minimum SAF
blending volumes in aviation
fuel. Non-compliance and
continued dependence on
fossil fuels could lead to
penalties.
Wizz Air took a significant
step by investing in SAF
companies, first Firefly, then
CleanJoule, and partnering
with various SAF suppliers,
ensuring a reliable long-term
supply chain. Procurement
efforts will keep focusing on
ensuring compliance with
current and future SAF
mandates and supporting
additional aspirations in SAF
uplift later on.
Resources have also been
allocated to advocacy
regarding the book and claim
mechanism.
Uncertainties
regarding the
changing
landscape of ESG
reporting
obligations
Compliance with new ESG-related
(for example the EU’s Corporate
Sustainability Reporting Directive
(CSRD)) reporting standards will
require additional administrative
capacities at various functions of
Wizz Air, and investments in new
processes and systems may be
needed to satisfy all emerging
transparency requirements. As
Wizz Air operates in different
geographies, the new and changing
reporting expectations create
parallel reporting obligations.
Ensuring compliance with
emerging reporting
requirements can increase
administrative costs and
take away capacity to
implement strategic and
value adding transitional
actions for climate.
Non-compliance with
mandatory reporting
requirements can result in
penalties and reputational
damage.
Wizz Air’s responsible teams
are working with various
sustainability and ESG
professionals to ensure
continued compliance with all
relevant transparency
requirements. The relevant
working group has been
established to prepare for
upcoming reporting needs.
A new software solution has
been implemented for an
improved ESG supplier risk
assessment and management
process, while further
initiatives are in progress.
Disruptive
aviation
innovation
The rate at which low-carbon
technologies are embraced
influences the competitiveness of
airlines, the cost of operations, and
the value of assets. Investments in
capital expenditures (CapEx),
research and development (R&D)
and innovation need to strike a
balance between risk and reward,
fostering innovations that are both
sustainable and profitable.
Failure to invest or investing
in the wrong technology can
be risky, leading to
increased costs and/or a
decrease in competitiveness.
Wizz Air signed a
Memorandum of
Understanding with Airbus in
2022 to explore the potential
for hydrogen-powered
aircraft operations. We have
also joined the EU’s Alliance
for Zero Emission Aviation
(AZEA) to pave the way for
next-generation sustainable
aircraft. Based on the current
understanding, zero
emissions aircraft large
enough to fit our business
model (above 200 seats) are
not feasible in the near
future. While we are waiting
for technological
improvements, we continue
to look into opportunities to
accelerate the ramp-up of the
European SAF market – as
the most efficient short-term
tool for the decarbonisation
of the aviation sector.
Growing green
investor
sentiment
In the medium term, investors may
start pulling out from carbon-
intensive sectors.
Disinvestment would lead to
an increase in the
Company’s capital costs.
A robust environmental
strategy including fleet
renewal with the best
available technology today,
and fuel efficiency initiatives.
SAF strategy execution
(including investments in
R&D) to ensure a steady
supply of alternative fuels,
helping to achieve our
targets.
Continued transparency
regarding the Company’s
transition planning.
Partnership with Airbus on its
zero emissions aircraft
project for long-term
decarbonisation goals.
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With regard to the lower impact transitional risks (not included in the detailed risk table):
• Regarding the CBAM regulation that would limit carbon leakage, starting in 2026, iron, steel and
aluminium products (aircraft manufacturing included) will face carbon pricing. Importers and producers
will pay a fee under EU ETS allowances. The regulation’s implementation has started and the impacts
will be felt within five to ten years under each climate scenario.
• The CORSIA-related offsetting obligation would lead to higher operational and upstream costs, but only in
the medium term.
• As for the technological feasibility of SAF, forecasts suggest that in situations where temperatures rise
above 2°C, the ability to produce SAF may not meet the aviation industry’s demand for it. However, with
more investments, it could potentially lead to an adequate supply of SAF in the medium to long term.
• Price elasticity of demand: In a strict policy scenario, compliance with requirements would increase
Wizz Air’s unit cost due to the additional cost elements (carbon pricing, SAF and carbon taxes).
However, from a competitive perspective, due to the ultra-low-cost carrier business model, the
Company would still be a more affordable choice for customers than traditional airlines. This is because
airlines operating with a traditional business model would also pass on the additional costs to
customers, leading to higher fares. Therefore, even with increased costs, Wizz Air would maintain its
competitive advantage in terms of affordability.
• Reduced demand due to ESG-conscious customers: Wizz Air’s continued investment into fleet renewal
and sustainable technologies/initiatives is helping the airline remain a high performer by keeping its
emissions per passenger kilometre low, and an attractive option for those that must fly but want to
limit their footprint.
• Brand reputation: Our ambitious fleet renewal plan by 2030, continued developments in fuel efficiency
projects and SAF strategy will enable us to differentiate our brand by showing leadership and meet the
expectations of the public.
• Emissions and climate damage litigation: When it comes to liability, as aviation is a carbon-intensive
industry, the Company may face scrutiny from regulators, potentially resulting in liability-related
expenses; however, Wizz Air has been highly transparent regarding emissions reporting towards
authorities and the public as well.
QUANTITATIVE RISK ANALYSIS
Wizz Air’s qualitative climate risk assessment identified the most critical climate risks for Wizz Air’s business
planning. Out of the above listed physical and transitional climate risks, the following most critical risks were
selected for the quantitative analysis. The ETS, SAF and kerosene tax related risks were chosen because of
their high-impact risk rating on the medium- and long-term time horizons (excluding the emission reduction
regulations where clear forecasts on the applicable taxes and costs are not available), while the weather
pattern changes were selected to ensure that physical risks are also reviewed in the quantitative review:
• ETS (carbon price increase);
• SAF mandate-related additional fuel cost;
• introduction of kerosene tax in the EU; and
• weather pattern changes and their impact on operations.
The quantitative risk assessment was based on Wizz Air’s latest business projections, the current status of
climate legislation and proposals, as well as up-to-date industry-specific reports and forecasts from EASA,
ICAO, IATA and other credible third-party sources. As medium-term climate risk calculation typically involves
assumptions and estimates, and since the financial impact of such risks is dynamically changing, it is crucial
for the Company to have effective risk management processes to frequently review and adjust the cost
assessment to the evolving external circumstances or policy environment. The results of the quantitative risk
assessment have been shared with the responsible Finance teams of the Company, enabling the integration
of the findings into Wizz Air’s financial planning processes. This year, the potential financial impact of the
most critical climate risks was quantified up to F29 as, by focusing on this time horizon, we could gain a
better understanding of the potential risks that the Company may face in the medium term.
Complimentary disclosures: The detailed results of the F24 quantitative risk assessment will be disclosed in
the Company’s upcoming Carbon Disclosure Project (CDP) submission, the public version of which will be
available next year. Note, Wizz Air’s CDP disclosure from 2023 is already public (and also available on the
Company’s sustainability website), including a breakdown of the minimum and maximum financial impact,
and potential impact calculation logic (section C2.3a); that disclosure reflects the results of the F23
assessment. Wizz Air considers the outcome of the potential financial impact assessment based on future
scenarios as separate from financial reporting and as complementary information.
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OPPORTUNITY ANALYSIS
Initiatives related to climate change mitigation can often contribute to opportunities for companies. Such
climate-related opportunities will vary based on the industry, sector and level of the organisation in terms of
the status of their decarbonisation roadmap. The following list includes the opportunities identified by
Wizz Air, potentially bringing competitive or cost-related benefits in the short and medium term. In terms of
the long-term opportunities, such as those connected to zero emission operations, due to the lack of clarity
in terms of timelines, and the rate of disruptive technology adoption, the assessment of these scenarios will
happen at a later stage.
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EU ETS – phasing
out free
allowances –
competitive
advantage:
While the phasing out of free carbon allowances is a risk, it also presents competitive
opportunity in the short and medium term. Wizz Air’s total free allowance compared to
its emissions has been significantly lower than most of its peers in the sector. This
provides additional resilience for Wizz Air, as the Company’s cost increase impact will be
much smaller than that of the multiple airline competitors which currently have much
higher volumes of free allowance.
Sustainable
aviation fuel
investments:
Wizz Air invests strategically in research and development (R&D) projects to secure its
own sources of SAF. These investments ensure a reliable supply chain in the longer
term, allowing us to meet future blending mandates effectively. As an example, Firefly
(the Company’s first equity investment) has pioneered an integrated technology
pathway for SAF production using sewage sludge as a feedstock – which is a sustainable
and highly abundant source. This proactive approach to SAF investments ensures a
sustainable and resilient fuel supply due to the higher SAF volumes provided by one
producer, at a preferential price. This would ensure cost-efficient SAF access, at a lower
price than available on the market, mitigating the cost increase resulting from the SAF
mandates and opening up opportunities for additional SAF purchase and uplift if higher
volumes are available after the production ramp-up.
Sustainability-
conscious
customers:
Wizz Air currently has and will continue to strive towards maintaining the lowest
reported emissions intensity per passenger kilometre, compared to other major airlines
in its network. Additionally, while currently there are misconceptions about the ultra-
low-cost, low-fare business model, with the growing transparency on emissions per
passenger and per flight, we expect climate change awareness to shift consumer
sentiment to favour ULCC more than traditional airlines. In terms of a low-carbon
strategy, flying more efficient aircraft and maximising the passenger numbers in the
cabin are crucial, and the preferences of climate-focused consumers (who cannot avoid
flying) will change towards more fuel-efficient flights and airlines. Consequently, this
change could impact traditional airlines negatively, while already efficient carriers would
benefit from it.
Industry
collaboration
opportunities in
various
geographies:
Wizz Air, operating across diverse geographies, faces varying legal jurisdictions and
climate-related demands. Within the EU, UK, UAE (where the four Wizz Air airlines are
headquartered), and other third countries, the airline encounters a range of approaches
towards achieving net zero emissions and the related decarbonisation strategies. This
exposure allows Wizz Air to learn from diverse technological innovations and national
strategies, leveraging them to its advantage.
Enhanced ESG
supplier risk
assessment and
management
processes:
As a result of new climate-related transparency requirements, Wizz Air is already
working on improving its third-party risk assessment and management approach, with
special focus on ESG topics, including environmental and climate-related programmes of
its business partners and vendors. Through the enhanced process, the Company will be
able to receive more detailed information on its main suppliers’ environment and
climate-related initiatives, which will provide opportunities for better cooperation for the
future. The focused risk assessment will also help the Company to identify potential
climate/environment risks during the tender phase with prospective service providers.
PRIORITY PROGRAMMES IN WIZZ AIR’S ENVIRONMENTAL STRATEGY
Wizz Air has four main environmental programmes with the ultimate objective to improve resource efficiency
and continuously decrease our impact on the climate, by striving for lower emissions intensity and lower
noise emissions, and establishing a sustainable aviation fuel (SAF) supply chain that can support our efforts
to contribute to decarbonising aviation.
PRIORITY PROGRAMME
GOALS AND KEY LEVERS
1. FOCUS ON CARBON INTENSITY
(CO2/RPK) REDUCTION
AND RESOURCE EFFICIENCY
Our most important environmental commitment is to
gradually and radically reduce the emissions intensity
generated by flight operations through:
• 1/A fleet renewal; and
• 1/B fuel efficiency.
2. SUSTAINABLE
AVIATION FUELS
• Qualify a SAF supply chain by 2025.
• Invest strategically in SAF R&D.
• Partnerships and calls to action.
3. NOISE EMISSIONS REDUCTION
• Drive noise emissions reduction through increased Chapter
14 emissions standard compliance.
4. INDUSTRY COLLABORATION
• Qualify future technology building blocks and industry
partnerships for innovation and cooperation, to enable
decarbonisation.
The next section of the Sustainability Report provides detailed information about these integral elements
of Wizz Air’s environmental pillar.
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1.
FOCUS ON CARBON INTENSITY (CO2/RPK) REDUCTION AND RESOURCE EFFICIENCY
As we strive for more sustainable operations, it is crucial to continuously improve our carbon efficiency.
Currently, no aviation fuel sources exist that are entirely devoid of environmental impact throughout their
lifecycle. For Wizz Air, the primary environmental indicator is the intensity of carbon emissions, as the most
substantial portion of our carbon footprint comes from Scope 1 CO2 emissions during flight operations. This
intensity metric, such as CO2 emissions per passenger kilometre, quantifies emissions from a specific
amount of activity, allowing for an objective comparison between companies of various sizes and business
models. Changes in emissions intensity indicate shifts in the Company’s resource efficiency, while total
emissions reflect changes in economic performance. Therefore, a decrease in total emissions could merely
be due to a reduction in economic activity, without any improvements in efficiency or related processes. For
passengers seeking to minimise their CO2 emissions, this metric offers a comparative measure among
various options. Carbon efficiency reflects the energy efficiency of aviation operations, as CO2 emissions are
directly derived from the quantity of fuel consumed during flights. According to international conversion
standards, burning one tonne of fuel results in the emission of 3.15 tonnes of CO2.
Wizz Air has established a CO2/RPK emissions target of 43 grammes vs its fiscal 2020 baseline of
57.2 grammes CO2/RPK. We established this target in 2021 based on the WIZZ300 strategy, which has since
been replaced by the WIZZ500 strategy that moved from a 300 aircraft by 2030 target to a more ambitious
500 aircraft by 2030 fleet renewal target. This was to take advantage of an opportunity to secure attractive
fleet order positions when other airlines were hesitant or even reluctant to make such a commitment.
In F23, Wizz Air decreased its average carbon emissions intensity by 11.3 per cent year on year, and the
Company’s continued focus on decreasing its emissions per flight and per passenger kilometre has also been
recognised by external stakeholders. In November 2023, Wizz Air received the award for Global
Environmental Sustainability Airline Group of the Year for the second consecutive year at the CAPA Aviation
Summit. The awards are independently researched by CAPA’s analysts and carbon reduction strategists at
Envest Global.
In financial year 2024, Wizz Air’s carbon intensity continued to improve. The F24 average annual CO2 per
revenue passenger kilometre (RPK) was 52 grammes, which is unique in the sector. At the same time, our
overall efficiency and CO2 intensity were affected by unforeseen, external circumstances this year. At the
start of the second quarter of F24, Wizz Air was informed by Pratt & Whitney that its GTF PW1100 engines
would be subject to mandatory inspections over a period of two to three years, with engines being taken off
wing for shop visits from September 2023. As a result, a portion of the Wizz Air fleet has been grounded
continuously since the end of last summer and Wizz Air had to ground between 40 and 45 aircraft at the
beginning of 2024. The aircraft groundings are expected to last for at least 18 to 24 months, so Wizz Air has
extended multiple existing aircraft leases and taken on a few aircraft as dry leases to cover the affected
period. As the Company is forced to lease older, less efficient engines to maintain its ability to operate with
the planned capacity, this directly impacts our flights’ fuel efficiency and CO2 intensity as well.
During the year, we restated our commitment to doubling the fleet between 2025 and 2030, with the aim of
establishing a predominantly neo fleet of 500 aircraft by the end of the decade. This fleet renewal, and our
commitment to operating the most fuel-efficient aircraft in the market, is at the heart of our business model.
As such, the airline’s long-term fleet renewal plan remains unaffected by this issue; however, due to the
grounding of a sizeable portion of our most efficient A320/321neo aircraft due to the above-mentioned
mandatory engine inspections, the carbon intensity performance has already been affected in F24, which is
the reason why the annual sub-target of our 2030 CO2/RPK glidepath could not be achieved this year. As the
groundings will altogether last for 18 to 24 months, our average carbon intensity is expected to be impacted
in F25 as well.
STRATEGIC REPORT
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With increasing load factors, operational fuel efficiency measures, future SAF purchase commitments and
restoration of future delivery rates, WIZZ maintains its commitment to the overall glidepath target
of 42.6 grammes CO2/RPK by F30 (a 25 per cent reduction over the decade) compared to 57.2 grammes
CO2/RPK in F20. The progress versus the ultimate CO2/RPK decrease target remains part of the
management incentive scheme for the Group CEO and all Officers.
Wizz Air’s robust sustainability strategy includes aircraft fleet renewal, operational and fuel efficiency
initiatives, and investments in sustainable aviation fuel (SAF), which also enable the delivery of our CO2/RPK
glidepath. Offset programmes are not included in the above presented glidepath.
1/A: FLEET RENEWAL – THE MAIN PILLAR OF CARBON INTENSITY DECREASE
For the past two decades, since its inaugural flight, Wizz Air has been operating the Airbus A320/321 family
of aircraft. The Company takes pride in operating the largest Airbus A321neo fleet, and maintaining one of
the world’s youngest fleets, with an average age of just 4.3 years (with an average 224 seats per aircraft).
Wizz Air’s fleet, comprising 208 Airbus A320/21neo and ceo aircraft, is significantly younger than the
industry average of approximately ten years. Wizz Air is committed to maintaining this modern fleet, with
plans to further reduce the average aircraft age to 3.1 years by 2027. As part of our WIZZ500 strategy, the
airline is planning to have 500 aircraft by 2030, when 100 per cent of the fleet will be the A320/A321neo
type of aircraft, flying with the most fuel efficient engines available. The projected average fleet age would
be approximately three years by 2030.
Airline
Wizz Air
Ryanair
EasyJet
AF-KLM
IAG
LH
SAS
Average fleet age
4.3
9.0
9.9
12.1
12.0
13.4
8.6
Source: latest available public information.
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F20
F21
F22
F23
F24
F25
F26
F27
F28
F29
F30
CO2 per RPK (in grammes) –
planned
57.2
77.3
62.9
51.1
48.9
47
45.1
44.1
43.1
43
42.6
CO2 per RPK (in grammes) – actual
57.2
77.3
60.7
53.8
52
—
—
—
—
—
—
CO₂/RPK in grammes
Wizz Air’s CO₂ intensity glidepath to 2030 vs actual performance
CO₂ per RPK (in grammes) - planned
CO₂ per RPK (in grammes) - actual
F20
F21
F22
F23
F24
F25
F26
F27
F28
F29
F30
40.0
50.0
60.0
70.0
80.0
Wizz Air has been continuously expanding its fleet with the addition of new Airbus A321neo aircraft while
phasing out older models. By the close of the fiscal year, aircraft equipped with the advanced “neo”
technology constituted 61 per cent of Wizz Air’s fleet. These state-of-the-art aircraft are capable of operating
on a fuel blend containing up to 50 per cent SAF.
As Wizz Air announced in November 2021, the Company signed an agreement with Airbus for the purchase
of a further 102 Airbus A321 aircraft, comprising 75 Airbus A321neo and 27 Airbus A321XLR aircraft, with
the bulk to be delivered between 2025 and 2027. Airbus has also granted Wizz Air 75 A321neo purchase
rights for deliveries in 2028–29, which can now be deemed to be completed, as the order has been approved
by Wizz Air Shareholders. Hence, as of the date of publication, Wizz Air’s order book consists of 320+
aircraft of different aircraft models from the A320 family. As with previous orders, under the agreement
Wizz Air has the right to substitute a number of the Airbus A321neo aircraft with the Airbus A320neo and/or
A321XLR aircraft and vice versa, depending on its future requirements.
Introduced to the WIZZ fleet in 2019, the Airbus A321neo stands out as the most fuel-efficient single-aisle
aircraft in its category with the lowest fuel consumption per seat kilometre. This next-generation Airbus
A321neo, powered by a pair of Pratt & Whitney Geared Turbofan engines, offers a spacious single-aisle
cabin with 239 seats in a single-class configuration. This design provides Wizz Air with unparalleled flexibility,
fuel efficiency and reduced operating costs. Compared to the A321ceo, the A321neo achieves remarkable
fuel savings, reducing fuel consumption by 10 per cent. The combination of these engines and Airbus’
fuel-conserving Sharklet™ wing-tip devices can lead to per-seat fuel improvements of up to 20 per cent.
Given the global net zero target by 2050, airlines’ reliance on current technology is crucial. We’re confident
that our investment in cutting-edge, fuel-efficient aircraft will enable the ongoing reduction of passengers’
carbon footprint per flight, and meet our CO2 reduction goal by 2030 and beyond.
Fleet disposal information
Wizz Air operates a very young fleet and is the first operator of all aircraft in the fleet (all aircraft are
delivered to the Company brand new by Airbus). The Company leases its aircraft from reputable global
lessors, and the aircraft are typically quite young (on average between eight and twelve years old) when the
Company returns them to the aircraft lessors. Because of the young age and good performance (we are
contractually committed to return the aircraft in a certain condition) of the aircraft at the end of their lease
with Wizz Air, the lessors still have the option to potentially lease out these aircraft to other lessees before
the aircraft would reach their end of life. Aircraft lessors may also re-sell the aircraft to other owners;
consequently, the handling of the aircraft after the end of lease is out of Wizz Air’s control.
1/B: FUEL SAVING AND EFFICIENCY INITIATIVES
Wizz Air’s dedicated teams are constantly seeking innovative methods to enhance fuel efficiency, thereby
reducing our environmental impact per flight by consuming less fuel. Utilising a new AI-driven digital
solution, we have identified and classified up to 44 distinct fuel efficiency initiatives spanning various flight
phases – from fuel policy to ground operations, departure, cruise and descent. Collaborating with StorkJet
has facilitated the discovery of new fuel optimisation opportunities, even in areas previously assumed to
be optimised.
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Emissions reduction impact of fuel saving initiatives during main flight stages
The infographic illustrates the reduction of the carbon dioxide equivalent (CO2e) achieved through the implemented
fuel saving and efficiency initiatives during the different flight stages in F24. Based on our fuel saving estimates, in F24
a total of 109,250 tonnes CO2e emissions have been avoided. While carbon dioxide (CO2) refers specifically to the
greenhouse gas CO2, CO2e includes not only CO2 but also other greenhouse gases like methane and nitrous oxide,
converted into the equivalent amount of CO2 based on their global warming potential.
Fuel data analytics – StorkJet cooperation
In 2022, StorkJet published a public case study detailing Wizz Air’s utilisation of its AI-powered fuel
efficiency software. Wizz Air had previously developed an internal fuel efficiency platform to process flight
data and integrate it with other data sources to assess compliance with specific fuel-saving initiatives.
However, the increasing demand for advanced data analytics and new fuel efficiency measures necessitated
the adoption of a more comprehensive system. Collaborating with StorkJet, Wizz Air’s fuel management
team identified ten fuel initiatives with the greatest potential for savings, targeting improvements across
various phases of flight operations, such as climb speed and statistical taxi time.
For the last six years we’ve been focusing on strengthening our strategic cooperation with StorkJet in aircraft
performance and fuel efficiency. From the use of daily updates on performance factors in our Flight Planning
System to the capability of estimating saving potential based on tail-specific performance models, we
are dedicated to being at the forefront of innovation, leveraging the latest technologies to maximise
fuel efficiency.
With this in mind, between December 2023 and February 2024, we successfully tested its latest solution
aimed at optimising speeds during all phases of the flight and guiding pilots to fly at the most efficient
altitude, powered by tail-specific performance models. The trial involved the dedicated cooperation of around
500 of our pilots who applied StorkJet’s recommendations during more than 12,000 flights, gathering
valuable information and feedback to further improve this promising tool.
Wizz Air’s most impactful fuel efficiency initiatives
In total, we have been deploying the following high-impact fuel efficiency initiatives that, on an ongoing
basis, are reducing consumption by 2.15 per cent:
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Initiative
Efficiency gain
Total fuel saving
Total carbon saving
Performance/idle factors
0.1%
1,110 tonnes
3,520 tonnes
Zero fuel weight optimisation
0.1%
1,110 tonnes
3,520 tonnes
Reduced take-off flap configuration
0.2%
3,980 tonnes
12,560 tonnes
Single engine taxi-in
<0.1%
800 tonnes
2,510 tonnes
Calculated reserve fuel
0.2%
3,230 tonnes
10,200 tonnes
Lighter aircraft brakes
<0.1%
130 tonnes
400 tonnes
Sharklets
2%
15,110 tonnes
47,720 tonnes
Differentiated cost index
0.2%
2,940 tonnes
9,300 tonnes
Electronic Flight Bag (EFB)
0.1%
1,270 tonnes
4,020 tonnes
Fuel efficiency platform (FEP)
0.2%
3,580 tonnes
11,300 tonnes
Note, the savings are calculated against a fuel efficiency scenario where the Company is not performing the
initiatives. On top of the measures listed above, which have the highest impact on fuel efficiency, there are
various other initiatives and policies applied on an ongoing basis, to ensure the most efficient fuel
consumption during operations.
For a comprehensive understanding of the Company’s individual initiatives towards fuel efficiency, please
refer to pages 36–38 of our report from last year: Wizz Air’s Annual Report 2023.
▶
NEW! Statistical taxi fuel: The statistical taxi fuel is one of Wizz Air’s newest fuel efficiency initiatives,
implemented in January 2024. The statistical calculation of taxi-out times in the Flight Planning
System considers historical data for up to two years of operations (adjusted for seasonality) for each
combination of airport/runway and aircraft type. Estimated taxi-out times are then converted to
estimated fuel consumption by using specific taxi fuel-flow rates based on aircraft type (ceo/neo),
resulting in a more accurate calculation of the planned taxi fuel consumption.
• Efficiency gain: 0.1 per cent
• Total fuel saving: 1,080 tonnes
• Total carbon saving: 3,420 tonnes
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2.
SUSTAINABLE AVIATION FUELS – INVESTING IN THE FUTURE
Wizz Air recognises the pivotal role of alternative fuels in decarbonising aviation.
Alongside technological and operational enhancements, our SAF strategy encompasses
a multifaceted approach. As production has only recently become viable with the
support of governments and technological development, the sector needs significant
investment to scale up. We invest strategically in research and development (R&D)
projects to secure our own sources of SAF. These investments ensure a reliable supply
chain in the longer term, allowing us to meet future blending mandates effectively.
Furthermore, through Memorandums of Understanding (MoU), we collaborate with
suppliers capable of delivering sufficient SAF quantities. This proactive approach
ensures a sustainable and resilient fuel supply.
Our strategic SAF investments:
• In April 2023, our airline made
a significant move by investing
£5.0 million to support Firefly’s
SAF process development, aiming
to achieve ASTM qualification. Our
strategic partnership with Firefly, a
biofuel company, will enable us to
supply SAF to our UK operations
starting in 2028. Over the next
15 years, Firefly would deliver up
to 525,000 tonnes of SAF. By
doing so, we have the potential to
mitigate approximately 1.5 million
tonnes of greenhouse gas lifecycle
emissions
when
compared
to
traditional fossil jet fuel. Firefly has
pioneered an integrated technology
pathway for SAF production using
sewage sludge as a feedstock.
Notably,
this
approach
holds
promise for enhanced sustainability
compared
to
some
other
SAF
types, with a remarkable 90 per
cent reduction in greenhouse gas emissions across the lifecycle. Firefly’s SAF will undergo rigorous
validation by the gold-standard sustainability assessor RSB, ensuring its alignment with environmental
standards. Looking ahead, Firefly aims to operationalise its first commercial SAF plant within the next
five years.
• Wizz Air’s second equity investment is in CleanJoule, a US-based startup dedicated to the production of
SAF. The company secured a US$50 million investment round with Indigo Partners LLC, private equity
firm, as part of which three airlines – Frontier Airlines (US), Wizz Air (Europe), and Volaris (Mexico) –
also participated. As part of their commitment, Frontier Airlines, Wizz Air and Volaris have signed
binding agreements to purchase up to 90 million gallons of SAF. The funding consortium also included
GenZero, a decarbonisation-focused investment platform under Temasek in Singapore, and Cleanhill
Partners, a US-based private equity firm. While CleanJoule is a US-based company, Wizz Air has
invested in the research and development with the aim that the technology can be rolled out at scale.
Wizz Air’s SAF MoUs:
• Wizz Air signed an MoU with Mabanaft/P2X Europe. This partnership focuses on the supply of power to
liquid synthetic SAF, scheduled to commence in 2026.
• Our collaboration with OMV extends from 2023 to 2030. Under this MoU, Wizz Air would gain access
to up to 185,000 metric tonnes of SAF (HEFA type).
• Our MoU with Neste allows the opportunity to purchase SAF across our European and UK route network
from 2025.
• The latest agreement was signed with Cepsa, with the option to purchase SAF to supply the airline’s
route network across Spain from 2025. Cepsa’s SAF will be produced from organic waste, such as
used cooking oils or agricultural waste, among others. The cooperation follows Cepsa’s SAF test
initiative in Seville in November 2022, when Wizz Air was among the airlines operating a total of
220 flights from the airport over one week using SAF produced by Cepsa at its La Rábida Energy Park in
Huelva. This was the first time that the supply of SAF at this magnitude had been seen at an airport
in Southern Europe.
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Wizz Air is also committed to
industry collaboration, engaging
with key external stakeholders.
During the sustainable aviation
fuel test in Hungary in 2023,
Wizz Air took off from Budapest
Airport for the first time with
a 37 per cent blend of Neste
MY Sustainable Aviation Fuel™
supplied by MOL. Wizz Air’s five
aircraft were supplied with a
total of 23.5 tonnes of a fuel
blend containing 37 per cent
pure SAF and 63 per cent Jet
A1 fuel.
The project supported broader
efforts in aviation to reduce
lifecycle CO2 emissions and to
prepare the supply system at
Budapest Airport ahead of the
SAF
blending
mandate.
Our
relevant industry memberships also include the Alliance for Zero Emission Aviation (AZEA), and the
Renewable and Low-Carbon Fuels Value Chain Industrial Alliance (RLCF). We have also been involved in
discussions on national SAF strategies in our network, e.g. in Austria and in Hungary.
The cooperation with future SAF suppliers ensures that Wizz Air can progress in accordance with its plan to
set up a SAF supply chain with adequate supplies to comply with all upcoming SAF blending mandates. In
the short term, Wizz Air is primarily looking to secure SAF supplies to guarantee compliance and to ensure
feasibility of additional commitments, while in the longer term, the Company is looking at the potential for
achieving structural advantage in terms of cost and supply.
SAF availability in our network
The demand for SAF will be driven by pricing, availability and regulatory requirements. There are limitations
with SAF in terms of accessibility (e.g. Eastern Europe) and pricing. SAF currently sells for much higher
prices than conventional jet fuel because of the lack of scale and limits of the existing technological
pathways. Production has only recently become viable with the support of governments and technological
development; therefore, the sector needs significant investment to scale up.
The current geographic imbalances in SAF supply – especially in the Central and Eastern European region
and parts of the European periphery – are of particular concern. Today, about 50 per cent of SAF in Europe
is uplifted at approximately ten airports. In a situation where all European Union airports would need to be
supplied with physically available SAF on location, this will add to the cost of SAF (due to logistics as
blending facilities are usually not located near SAF production locations).
It is evident that SAF production will not be available in all Member States in the near future, and the related
physical, mostly road transportation of SAF will create additional greenhouse gas emissions in the short and
mid-term. Note, SAF can be transported as a blend only, so the number of trucks carrying fuel will increase
exponentially.
As a result of this imbalance, airlines flying to smaller, secondary European Union airports will be
disadvantaged, as these airports will expectedly be the last to offer SAF. As a key pillar of our low-cost
business model, Wizz Air has a point-to-point network (as opposed to hub networks where operators
transport passengers to their hubs via connecting flights), and we also predominantly serve secondary
airports that are often regional, smaller airports. These secondary airports are expected to offer SAF later
than primary airports in Europe, resulting in severely restricted SAF availability within our network. As a
result, Wizz Air would be in an unfavourable competitive position regarding SAF-related support
mechanisms, including free Emissions Trading System (ETS) allowances for airlines using SAF. Offering free
ETS units for SAF use is a welcome step, but we need to make sure that allocation is fair.
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Wizz Air bases and destinations in Europe – airports regularly offering SAF are highlighted with pink
Going further, achieving global aspirations to make aviation more sustainable requires a significant
ramp-up of SAF production and deployment. We call on policymakers to address barriers to SAF
deployment at scale by incentivising production, providing price support, and embracing additional
sustainable feedstocks for biofuel production.
Wizz Air’s aspirational SAF target
In 2023, Wizz Air took a significant step by investing in SAF companies, first Firefly, then CleanJoule, and
partnering with various SAF suppliers, ensuring a reliable long-term supply chain. This year, Wizz Air
decided to further emphasise our commitment by adopting an aspirational goal to fuel our flights with a
10 per cent sustainable aviation fuel blend by 2030. More details on this commitment are on page 32.
With this step, Wizz Air also initiates a call to action. The different circumstances and development levels
of SAF production in our network will inform the airline’s ability to contribute to the achievement of the
SAF goal by 2030. Green growth and decarbonisation in the sector are only possible with the active
support of the entire ecosystem. National SAF strategies, government incentives, green financing,
investment and further ETS allowances for SAF uplift will be crucial. Today, several regions in Europe and
its periphery lag behind in SAF production and availability. The urgency to accelerate renewable fuel
production and closing this gap are critical for achieving our shared environmental goals.
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3.
NOISE EMISSIONS REDUCTION
Wizz Air is committed to the ongoing reduction of noise from our fleet as we recognise the impacts of airline
operations such as noise pollution and air quality on the communities living close to the airports as well as its
significance to policymakers. Wizz Air’s fleet renewal programme will continue to yield substantial noise
reduction benefits annually. The A321neo, for instance, offers nearly a 50 per cent decrease in noise
compared to its predecessor, the A321ceo. This highlights a clear distinction in noise emissions between new
and old generation aircraft.
Currently, all of our aircraft meet the ICAO Chapter 4 noise emissions standard, and 80 per cent meet the
Chapter 14 emissions standard. The only exceptions are the 41 A321ceo aircraft, which do not meet
the Chapter 14 noise emissions standard. However, we project that 100 per cent of our fleet will meet this
standard by 2029.
The ICAO’s Chapter 4 noise emissions standard applies to aircraft certified from 31 December 2005, while
Chapter 14 applies to aircraft certified from 31 December 2017. Chapter 14 mandates that aircraft be at
least seven effective perceived noise decibels (EPNdB) quieter than Chapter 4.
Data based on latest confirmed fleet plan.
For reference, the table below shows (in EPNdB) that Airbus neo aircraft deliver a strong margin versus the
Chapter 14 ICAO requirements. Our A321neo EPNdB levels are like those of Boeing 737-8 with LEAP
engines’ EPNdB, even with the A321neo transporting 42 more passengers per trip.
EPNdB
Lateral
Flyover
Approach
vs Chapter 4
vs Chapter 14
A320neo
86.6
79.7
92.3
-20
-13
A321neo
87.8
83.1
94.5
-15.6
-8.6
Boeing 737-8
88.5
82.6
94.2
-14.9
-7.9
Airports and noise abatement
With regard to airports’ increased focus on noise abatement, Wizz Air is supporting the application of the
Noise Abatement Departure Procedure (NADP) 2 as opposed to the NADP 1. It is our understanding that
these procedures are currently being reviewed in various countries and airports, with the aim of reducing the
noise pollution impact on the communities living close to the airports.
Based on our estimates in fuel efficiency, comparing NADP 1 and NADP 2 for Wizz Air flights alone, there
would be a significant increase in CO2 additional emissions in a year if NADP 1 was applied instead of NADP
2. Furthermore, even though NADP 1 may be more beneficial for nearby communities, NADP 2 generates
less noise pollution for the inhabitants of further areas overall; therefore, NADP 2 generally benefits more
people. As such, it ensures the right balance between lowering noise emissions while minimising the
environmental impact on communities at the same time.
Taking into account the considerations above, we firmly believe that NADP 2 has a wider positive impact on
society, better aligned with and contributing more to the industry’s climate-related goals, so we recommend
the application of the NADP 2 departure procedure at airports.
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Fleet compliance based on Chapter 14 noise emissions requirements
73%
77%
80%
82%
87%
92%
97%
100%
100%
2022
March
2023
March
2024
March
2025
March
2026
March
2027
March
2028
March
2029
March
2030
March
4.
INDUSTRY COLLABORATION – FUTURE TECHNOLOGY BUILDING BLOCKS
Green growth and decarbonisation in the sector are only possible
with the active support of the entire ecosystem. Wizz Air is
committed to engaging with industry stakeholders in an effort to help
drive sustainable change within aviation. We are cooperating with
our suppliers, partners and other stakeholders on projects
concerning technological and operational innovations.
Electrification of ground handling processes
Aeroporti di Roma and Aviation Services
In July 2023, Wizz Air had its first fully electric
turnaround at Rome Fiumicino Airport, one of the
largest bases in our network. Our sustainability
efforts do not stop with fleet renewal, operational
efficiencies and investing in sustainable fuels.
The turnaround process included a number of steps
using electric equipment to prepare Wizz Air’s
aircraft for the next departure once it had landed.
Aviation Services used all-electric baggage tractors
and belt loaders, passenger steps, a ground power
unit and a towbarless pushback.
Electric turnaround allows us to reduce carbon emissions from the ground handling process per aircraft by
85 per cent compared to using diesel-powered equipment. Industry collaboration is one of the most
impactful ways to address the current climate challenge and we are pleased to work on this together with
Aeroporti di Roma and Aviation Services to make our ground operations greener in Italy.
Menzies Aviation – Budapest
In November 2023, Wizz Air was the first airline to
perform fully electric turnarounds at Budapest
Airport thanks to our partnership with Menzies
Aviation. The “green” turnaround at Budapest
Airport is possible through the airport’s provision of
charging
infrastructure
necessary
for
electric
equipment, with all energy from renewable sources.
It is further supported by Menzies’ “electric first”
approach which includes a commitment to 25 per
cent electric ground service equipment globally by
2025. Menzies’ use of electric baggage tractors and
belt loaders, passenger steps with solar panels, a
ground power unit, a pushback, potable water and
lavatory units is enabling Wizz Air to depart from
Budapest Airport safely while improving energy use
and operational efficiency.
These electric turns reduce carbon emissions from the ground handling process by around 80 per cent per
aircraft when compared to using diesel-powered equipment. Currently, Menzies Aviation can provide fully
electric turnarounds for two Wizz Air aircraft simultaneously at Budapest Airport. Wizz Air welcomes Menzies
Aviation’s investment to switch from diesel-powered to electric equipment. As Budapest Airport’s largest
operator, we are delighted to continue working with our local partners to find new solutions that help us
reach our targets collectively as an industry.
European Union – industry collaboration
Alliance for Zero Emission Aviation (AZEA)
In September 2022, Wizz Air joined AZEA, a voluntary initiative launched by the
European Commission to pave the way for next-generation sustainable aircraft. The
objective of AZEA is to prepare the market for the entry into service of zero emissions
aircraft. The Company is participating in two expert-level groups most relevant to our
operations: one dealing with roll-out scenarios for electric and hydrogen-powered
aircraft and related “figures of reference”, and the other focusing on incentives,
analysing the barriers and opportunities operators may face when integrating such
aircraft into their fleet.
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Renewable and Low-Carbon Fuels Value Chain Industrial Alliance (RLCF)
The RLCF Alliance is working on tackling the lack of availability and affordability of renewable and low-carbon
drop-in fuels for aviation (and waterborne transport), boosting production, increasing investor certainty,
reducing investment risks and reducing price differential between conventional fossil fuels and alternative
fuels. Wizz Air has been a member since September 2022, and we continuously provide information and
industry expectations in the framework of targeted consultations.
European Aviation Environmental Report (EAER) – Advisory Group
The European Union Aviation Safety Agency (EASA) will publish its next EAER in 2025, as part of which EASA
has invited Wizz Air as a key stakeholder to participate in the EAER Advisory Group that will provide input
and guide the report process. The relevant content of the EAER 2025 will also be used as the basis for the
European Common Section of the ECAC State Action Plans to quantify CO2 emissions reductions from
mitigation measures that are submitted by States to ICAO every three years. This will facilitate a
harmonised approach on environmental reporting both within Europe and internationally towards ICAO.
Sustainable fuel R&D
Alongside technological and operational enhancements, our SAF strategy encompasses a multifaceted
approach. As production has only recently become viable with the support of governments and
technological development, the sector needs significant investment to scale up. We invest strategically in
research and development (R&D) projects to secure our own sources of SAF.
Firefly
Our strategic partnership with Firefly, a biofuel company, will enable us to supply SAF to our UK
operations starting in 2028. Over the next 15 years, we anticipate delivering up to 525,000 tonnes of
SAF. By doing so, we have the potential to mitigate approximately 1.5 million tonnes of greenhouse gas
emissions when compared to traditional fossil jet fuel. Firefly has pioneered an integrated technology
pathway for SAF production using sewage sludge as a feedstock. Firefly’s SAF will undergo rigorous
validation by the gold-standard sustainability assessor RSB, ensuring its alignment with environmental
standards.
CleanJoule
The company secured a US$50 million investment round with Indigo Partners LLC, private equity firm, as
part of which three airlines – Frontier Airlines (US), Wizz Air (Europe) and Volaris (Mexico) – also
participated. As part of their commitment, Frontier Airlines, Wizz Air and Volaris have signed binding
agreements to purchase up to 90 million gallons of SAF. While CleanJoule is a US-based company, it is
planning to build plants in Europe in the future, which would support SAF availability within the EU.
Aircraft technology
Airbus – ZEROe Hydrogen Project
Wizz Air and Airbus signed a ZEROe Memorandum of Understanding in January 2022, to explore the
potential for hydrogen-powered aircraft operations. Key topics of the cooperation are the evolution of
the ecosystem, sharing insights on operational and infrastructure opportunities and challenges to determine
how a zero emissions aircraft could be operated within Wizz Air’s network.
Circularity
In-flight waste sorting at various bases across the WIZZ network
We previously launched an in-flight recycling trial programme in collaboration with Budapest Airport. The
goal was to improve waste collection on-board, promote circularity and reduce landfill waste. The project
involves our cabin crew in Budapest, local ground handling teams and the airport’s waste sorting station.
Wizz Air is expanding the programme to other bases in our network, including all of our Romanian bases.
ELeather – aircraft seat covers made sustainably
Wizz Air is not only active in finding ways to deliver fuel efficiency and decarbonisation initiatives, but also
continues to support resource-efficient processes across the supply chain. The Company’s aircraft have
been outfitted with Gen Phoenix ELeather’s seat covers ever since 2012. The ELeather manufacturing
process is naturally sustainable – recycling waste leather, which would otherwise be destined for landfill,
into a durable material with strong environmental credentials. Its innovation journey is continuing as
ELeather is developing next generation materials with increased recycled content, as well as end-of-life
(EOL) solutions for Wizz Air seat covers to ensure that these materials have a future life, even when no
longer on our aircraft.
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Fuel efficiency
StorkJet
For the last six years, we’ve been actively collaborating with StorkJet to boost aircraft performance
and fuel efficiency. We’ve innovatively used daily performance updates and tail-specific models to estimate
fuel savings. A highlight of our engagement was a recent trial from December 2023 to February 2024,
where we tested StorkJet’s new solution for optimising flight speeds and altitudes. This trial saw the
enthusiastic participation of around 500 of our pilots during more than 12,000 flights, applying
StorkJet’s recommendations and providing valuable feedback, demonstrating our commitment to
continuous improvement.
OTHER CARBON-RELATED PROGRAMMES
Working towards a sustainable supply chain and enhanced third-party risk assessment
Wizz Air’s operations rely heavily on supply chain services, which include valuable contributions from our
partners and suppliers. Our supply chain encompasses around 2,500 suppliers across various categories
related to airline operations, such as but not limited to:
• aircraft manufacturers (including companies providing spare parts and aircraft interior components);
• fuel suppliers;
• airports and ground handling providers;
• aircraft maintenance services;
• digital system and software companies supporting operations and other business processes
(e.g. navigational systems, booking system, website, cyber security and procurement system);
• consultants and auditors; and
• other sub-contractors or service providers (e.g. financial services and contact centre services).
In F23, we implemented a Sustainable Procurement Policy
to enhance oversight of indirect emissions, particularly
within the supply chain. This policy mandates ongoing
sustainability research and efforts, and requires suppliers
to incorporate sustainability factors into their operations.
We aim to gather and update data on our suppliers’
greenhouse gas emissions and prioritise suppliers with
strong environmental credentials during the tender
selection process. We’ve streamlined the process of
surveying our vendors about their environmental practices
through our Supply Chain Innovation and Automation
Centre of Excellence, enabling efficient review of supplier
feedback.
In F24, as part of the Company’s strategy to expand its
comprehensive ESG risk assessments to its supply chain,
Wizz Air entered into a partnership with a company
specialised in third-party risk management. Its software
solution allows assessments across various environmental,
social and governance topics and enables an in-depth
analysis of our supplier base in a thorough and efficient
manner. This will help Wizz Air identify, monitor and
successfully manage potential supplier ESG risks during
tender evaluations and after contracting as well.
Carbon pricing and compliance markets
Wizz Air has been complying with the EU ETS since 2012 and later established its strategy and processes to
manage data collection, verification and reporting, to support the Company’s compliance with the new
scope, including Switzerland ETS (reported together with EU ETS) and UK ETS. As part of ensuring
compliance, the Tax, Treasury and Controlling teams all have dedicated internal resources to support the
task. To ensure that all teams are up to date on applicable regulations, these Finance functions are
coordinating with the relevant internal functions (EU Affairs and ESG teams) and external consultants on
policy changes, while they also receive training from third-party experts. The responsible functions meet
regularly as part of the ETS reporting project, and also via the Sustainability Council working groups, to
understand the changes in the applicable EU and UK laws.
As a result of this process, Wizz Air has been able to comply with the applicable regulations and ensure
high-quality data collection and ETS reporting processes. The final reports are processed by the Finance
departments, then reviewed and verified by Verifavia SAS, a third-party assurance provider. As a result
of the above described processes, Wizz Air is able to comply with the changing regulations and ensure
ongoing compliance.
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The impact of carbon pricing changes is assessed regularly. Our risk mitigation strategies include:
maintaining an effective carbon allowance/offset purchasing strategy to mitigate price volatility; forecasting
carbon prices and cost increases continuously to increase resilience; and continued work on assessing a
feasible decarbonisation pathway for Wizz Air for the long term.
Apart from ETS, Wizz Air also discloses its emissions through the UN Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA), with the Company being subject to offset purchases under
CORSIA since January 2024.
The total offsets funded by Wizz Air are covering 52 per cent of emissions (ETS/CORSIA offsets excluding
free credits). The average price of a EU/UK ETS credit purchased during F24 has landed at €78.6, while
Wizz Air’s ETS unit cost was €67.18.
Note, Wizz Air has not included offsets in its F30 carbon intensity reduction glidepath.
Wizz Air’s Treasury function is dedicated to managing the ETS and CORSIA emissions reporting to the
competent authorities, and it also manages the purchase and surrender of the required allowance volume
within the allotted timeframe, whilst forecasting future ETS and CORSIA costs. Wizz Air uses internal
carbon prices to forecast ETS unit cost, to contribute to better budgetary and risk management decisions.
The Management and the Controlling team use this input for short-term and medium-term budgets and
business planning. The Treasury function balances liquidity and market risks in its forward planning
and risk management activities.
Voluntary carbon offsetting available for passengers
Wizz Air has not included offsets in its F30 carbon intensity reduction glidepath. Wizz Air started a voluntary
CO2 emissions offset programme for its passengers in 2020. Wizz Air acknowledges that offsetting cannot
counterbalance emissions and will not make flying sustainable. This voluntary option provides an opportunity
for customers to support environmental projects certified to leading global carbon standards. The
programme, in partnership with climate-focused technology company CHOOOSE, provides the option to
support trusted, high-quality and high-impact climate projects around the world. We are working with
CHOOOSE because it offers offsets from projects that are currently aligned with the Oxford Principles for
Net Zero Aligned Carbon Offsetting (“the Oxford Offsetting Principles”). To account for their carbon
emissions, passengers can make a payment supporting a verified carbon offset project and receive a
certificate in return.
As part of the voluntary offsetting programme offered to customers, Wizz Air is supporting two verified
carbon-reducing projects:
• The International Small Group and Tree Planting Programme (TIST) in Uganda, an award-winning and
long-standing reforestation project:
• The TIST is an innovative combined reforestation and sustainable development project carried out by
subsistence farmers to combat the devastating effects of deforestation, poverty and drought. The
farmers plant trees on their land and retain ownership of the trees and their products, which is creating a
potential long-term income stream, and developing sustainable environments and livelihoods.
• Landfill gas extraction and electricity generation (Türkiye):
• This project converts methane emissions from landfill waste into electricity in Türkiye. It involves
developing and constructing two waste-to-energy facilities at both the Odayeri and Komurcuoda landfill
sites, which capture the methane gas released from landfill waste and use it to generate electricity. The
project objective is to build, operate and maintain these two landfill waste-to-energy systems consisting
of landfill gas (LFG) collection systems, flaring stations and gas engines coupled with generators to
produce electricity. The gas engines will combust the landfill gas to produce electricity, and any excess
LFG will be flared.
These projects are certified by the Verified Carbon Standard to measurably reduce emissions. Since the start
of the programme, only a very small percentage of bookings have elected to offset carbon.
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Tonnes of CO2 offset:
F24
F23
Scope 1 CO2 emissions with EU/UK ETS offsets
2,421,482
3,054,662
Scope 1 CO2 emissions with CORSIA offsets
577,985
—
Scope 1 CO2 emissions with voluntary offsets by customers (CHOOOSE)
577.51
988
Scope 1 CO2 emissions without offset
920,953
700,976
Biodiversity
Biodiversity is the lifeblood of our planet’s ecosystems and human life itself. As an airline, it is important to
consider the impact our actions can have on this delicate balance. As a preliminary risk assessment, Wizz Air
matched the locations of its key supply chain operations, including our bases and destination airports, with
significant biodiversity areas using the WWF’s Biodiversity Risk Filter. This help us to proactively identify and
mitigate potential impacts while also enabling resilience in terms of biodiversity risks in our supply chain.
Based on this environmental risk assessment, our operations are not in very high biodiversity sensitive areas
and Wizz Air identified no major biodiversity risks connected to its direct operations.
We also included the topic of biodiversity in our stakeholder engagement through the recurring materiality
assessment process. Based on the results and considering the internal and external stakeholders’
biodiversity ranking, it is not considered a highly material issue for Wizz Air.
At the same time, we recognise the impact that our operations and our passengers’ decisions can make on
biodiversity. Wizz Air launched a biodiversity educational campaign in March 2024, sharing useful
information and recommendations with its passengers regarding the adoption of sustainable practices when
travelling and during their vacations. The educational newsletters were sent out to 6 million subscribed
customers, and they were shared with the Company’s entire workforce as well.
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ENVIRONMENTAL AND GREENHOUSE GAS (GHG) METRICS △
Our climate strategy includes challenging objectives and ambitious targets to address climate risks across
our operations. Since F22, CO2 as measured in grammes per RPK (revenue passenger kilometre) has been
included in the annual remuneration targets for all Officers at Wizz Air.
The Company’s greenhouse gas emissions (GHG) were calculated based on the GHG Protocol’s carbon
accounting framework, while the report was prepared considering the guidance of the framework for carbon
reporting.
CARBON INTENSITY AND GHG EMISSIONS
AREA
UNIT
NOTE
F24
F23*
F22
2030
TARGET
CO2/RPK
g/RPK
Priority/1
52
53.8
60.7
43
EMISSIONS
CO2e Scope 1
(a + b + c)
t
2
5,771,643
4,811,337
2,646,742
—
CO2e Scope 2 (market-based)
t
2
1,680
1,463
1,764
—
CO2e Scope 3
t
3
1,773,193
1,381,602
787,825
—
CO2 Scope 1 (a)
t
Priority/4
5,719,535
4,763,307
2,620,321
—
CH4 Scope 1 (b)
t
5
3,986
2,964
1,631
—
N2O Scope 1 (c)
t
6
48,122
45,066
24,792
—
* Wizz Air chose F23 as base year for the greenhouse gas emission calculations for the future, as it is the first year with our GHG
inventory reporting that received third-party assurance.
(1) CO2/RPK: See page 41-45 on carbon intensity reduction. Further, you can find emissions per FTE and per m2 below.
GHG emissions
Final year-end emissions
(tCO2e)
Total emissions
7,546,516
100%
Total average FTE (F24)
7,925
FTE
Total floor area
34,254
m2
Emissions intensity per FTE
952
tCO2e/FTE
Emissions intensity per m2
220
tCO2e/m2
(2) Scope 1 and Scope 2 CO2e emissions: Scope 1 emissions stem from sources owned, leased, or controlled by
Wizz Air, with jet fuel being the primary source, while Scope 2 emissions result from purchased energy consumption in
various ground facilities, including the rented offices, crew rooms, training centre, and hangars. The Company
calculates both market-based and location-based emissions from electricity based on the GHG Protocol Scope 2
guidance. The methodology for accounting for natural gas has been modified in F24. This year, natural gas
consumption at all sites is included in Scope 2, categorised as purchased heat. Scope 2 encompasses all heating
systems that are not owned or operated directly by the Company compared to last year where natural gas usage was
accounted for in Scope 1.
In the GHG table above, the market-based figure is provided. The location-based emissions are reported in Wizz Air’s
CDP responses and Greenhouse Gas Emissions Methodology and Additional Disclosures document, available on the
Company’s sustainability website.
CO2 with Radiative Forcing Index: For the first time in F24, the Company is incorporating the Radiative Forcing Index
(RFI) in its CO2 emissions reporting as per the recommendation of the UK’s Department for Environment, Food and
Rural Affairs (DEFRA) 2023 methodology of GHG conversion factors for company reporting. The RFI is a metric that
considers not only CO2 but also non-CO2 emissions from aviation. It is utilised to compute emissions related to air
travel, reflecting the higher global warming potentials of these emissions, including the impacts of contrails and other
high-altitude emissions.
As outlined by DEFRA (2023), this multiplier is exclusively applied to the CO2 component of direct emissions, excluding
other greenhouse gases like methane or nitrous oxide. This multiplier is uniformly applied to all flights, irrespective of
their distance or altitude, and to all flight phases, while recognising the inherent approximations linked with this
approach. However, current scientific research addresses aviation emissions as an aggregate, without the capacity to
distinguish between effects at different altitudes or flight stages.
CO2 (tCO2e)
Total (tCO2e)
With RFI-factor 1.7
9,775,318
No RFI-factor
5,771,643
Wizz Air’s primary source of emissions is jet fuel, accounting for a substantial portion of the total emissions. When
considering both fuel production (Scope 3) and combustion in aircraft (Scope 1), jet fuel contributes to 92 per cent of
Wizz Air’s overall carbon footprint.
(3) Scope 3 CO2e emissions encompass all other indirect GHG emissions originating from a company’s value chain.
Scope 3 emissions occur from sources not directly owned or controlled by Wizz Air. These emissions include activities
upstream of Wizz Air’s operations, primarily from Tier 1 suppliers during the reporting year. The following Scope 3
categories were considered relevant and included in the inventory calculation: purchased goods and services, capital
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55
goods, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations,
business travel, employee commuting, use of sold products, end-of-life treatment of sold products, and investments.
Note, the investments category became relevant from F24 due to Wizz Air’s investments into two companies, Firefly
and CleanJoule, which are both focused on producing and developing sustainable aviation fuels. This category involves
“financed” emissions, which are emissions stemming from financial services, and investments. The associated
emissions were calculated based on the GHG Protocol. Other Scope 3 categories are not relevant as they are not part
of the Company’s business activity.
Wizz Air’s residual emissions, once jet fuel is excluded, primarily stem from two sectors: capital goods and purchased
goods and services. Although other emissions constitute a minor share of the total 4.5 per cent, their absolute
significance (upstream transportation and distribution or employee commuting), Wizz Air considers their inclusion in
our comprehensive long-term emissions reduction strategy.
The results indicate that Wizz Air’s jet fuel emissions (upstream emissions and combustion in aircraft) account for
92 per cent of total carbon footprint, followed by capital goods 3.2 per cent, purchased goods and services 1 per cent
and upstream transportation and distribution 0.3 per cent, with the remaining categories being immaterial and
accounting for less than 1 per cent of total.
(4) Scope 1 CO2 emissions (carbon dioxide): These emissions stem from jet fuel consumption and natural gas usage
within our operations totalled 5,720,139 tonnes in F24. This also includes the fuel consumption of any wet lease aircraft.
In alignment with the priority programmes highlighted earlier, we have outlined key initiatives undertaken by the
Company to continually improve our performance in reducing carbon intensity per passenger kilometre.
(5) Scope 1 CH4 emissions (methane): Such emissions by our operations are negligible. Emissions are calculated by
multiplying the fuel and energy use by the applicable factors based on the UK Government’s latest GHG conversion factors
for company reporting (DEFRA 2023).
(6) Scope 1 N2O emissions (nitrous oxide): Emissions are calculated by multiplying the fuel and energy use by the
applicable factors based on the UK Government’s latest GHG conversion factors for company reporting (DEFRA 2023).
More detailed descriptions of the emission categories, operational boundaries, calculation methodology and the base year
chosen for the greenhouse gas emission calculations are included in Wizz Air’s Greenhouse Gas Emissions Methodology
and Additional Disclosures document, available on the Company’s sustainability website.
Independent assurance is a key part of our approach to reporting. This year, we engaged KPMG Hungary Ltd. to
provide limited assurance on Wizz Air Group’s environment and greenhouse gas (GHG) metrics, for which the applicable
certificate will be separately available on Wizz Air's sustainability website, once their work is completed. For further
supplementary information on Wizz Air’s GHG emissions reporting, please refer to the Company’s upcoming CDP
disclosure (similarly, the Company’s 2023 CDP report, which is already publicly available, includes the detailed F23 GHG
report figures). Within this sustainability report, information that is expected to fall within KPMG's limited scope assurance
report, work on which is ongoing as of the date of this report, is marked with a △ symbol at its beginning and end, on
pages 55 and 56. △
NOISE, WASTE, NATURAL RESOURCES
AREA
UNIT
NOTE
F24
F23
F22
2030 TARGET
Noise regulation
compliance
Chapt.14
Priority/7
80%
77%
72%
100%
Waste-to-landfill
%
8
27.2
98
99
50
Freshwater use per
sales
l/EUR
9
0.0038
0.00166
0.00295
—
Energy use per sales
GJ/EUR
10
0.0155
0.0179
0.023
—
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Wizz Air's total GHG emissions by Scope F24
85%
0%
15%
Scope 1
Scope 2
Scope 3
Emissions breakdown (tCO2e)
Scope 1: Jet fuel
5,771,643.00
Total Scope 2, market-based
(including purchased electricity
and heat and steam)
Total Scope 2, location-based
1,680.04
1,092.95
Scope 3: Upstream and
downstream categories total:
1,773,192.98
Fuel and energy related activities
(not in Scope 1–2)
1,202,266.88
Capital goods
372,984.21
Purchased goods and services
121,085.30
Upstream transportation and
distribution
38,799.71
All other Scope 3 categories
38,056.88
Total GHG emissions
7,546,516
(7) Noise emissions: See page 49, for more details on Wizz Air’s noise emissions reduction plan.
(8) Circularity: Waste is generated across various areas of Wizz Air’s operations, including aircraft, rented offices, and
other facilities leased by the airline. While Wizz Air does not have direct operational control over waste management in
these facilities, it is seeking to engage in dialogue with its suppliers to explore opportunities for implementing waste
recycling initiatives.
In F24, Wizz Air has updated its methodology for waste-to-landfill reporting, now employing EU standards and
statistical data to calculate the ratio of waste going to landfill. As Wizz Air doesn’t have direct operational control over
waste management at its rented facilities, and as such, lacks data and data granularity, it relies on benchmark and
proxy data for waste reporting.
In the aircraft we have galley waste and tank waste, with one hour of flying causing around 30kg of waste (5kg of
galley waste and 25kg of tank waste), or a total of 20,995 tonnes during F24. Office waste for Wizz Air was estimated
at a total 733 tonnes.
Wizz Air has introduced initiatives in order to reduce waste in our operations and across all our activities:
Office: Wizz Air’s HR Operations team has launched a fully digital solution for the employment-related documentation
distribution and signature, eliminating the current paper-based process. Other than the technical benefits, this digital
solution is part of a transition to a paperless environment, streamlining processes, reducing administrative burden, and
reducing office waste.
On-board: Food wastage generated during flights has been a focal point for improvement. Wizz Air has implemented a
machine learning tool that leverages historical data to predict the optimal number of sandwiches needed per route.
Since its implementation, this data analytics tool has successfully enabled the reduction of sandwich waste by 10 per
cent.
The Company previously launched an in-flight recycling trial programme in collaboration with Budapest Airport. The
goal was to improve waste collection on-board, promote circularity and reduce landfill waste. Such projects need to
involve the cabin crew, the local ground handling supplier and the airport’s waste sorting station and infrastructure,
where available. Wizz Air has now also implemented in-flight waste sorting at the Company’s Romanian bases.
Additionally, our Larnaca-based Sustainability Ambassador has initiated recycling practices on our aircraft,
incorporating trial procedures into our in-flight operations.
Wizz Air prioritises looking at sourcing SAF or a significant portion of it from waste materials that do not compete with
food sources like corn. Consequently, the Company focuses on recycled SAF feedstock rather than exploiting virgin
materials. This strategy is in line with circular economy principles, as it involves repurposing waste products, thereby
mitigating dependencies and the risks associated with food scarcity and inflated food and feed prices. For example,
Wizz Air has made investments in projects like Firefly, where SAF is produced from sewage sludge. The feedstock for
this process is an abundant and highly sustainable waste material.
Wizz Air is in the process of revising its ESG policy, considering the incorporation of elements in line with circular
economy principles.
(9) Water use intensity: Water consumption at Wizz Air encompasses various activities across its rented facilities,
including offices, crew rooms, training centres, hangars where engine washing occurs and at airports where aircraft
de-icing happens. These activities are crucial for maintaining safe and efficient flight operations, as engine washing
enhances performance by removing contaminants, while de-icing ensures safety by preventing ice build-up on wings
and obstructing sensors and vents.
In F24, as part of Wizz Air’s commitment to enhance the level of detail and completeness of our natural resource use
reporting, the Company conducted a comprehensive assessment of water usage across all its rented facilities,
revealing a total consumption of 19,511,886 litres. The calculation employed a hybrid methodology utilising actual
consumption data for water consumption and benchmark/proxy data. The calculation methodology was chosen due to
the lack of data granularity at Wizz Air’s suppliers.
Moreover, Wizz Air is currently assessing its key suppliers based on the water stress levels in their operational regions,
projected by the Aqueduct Water Risk Atlas for 2030 under a medium scenario. This effort aims to identify which parts
of the supply chain are most vulnerable to water scarcity, enabling the Company to develop strategies to mitigate the
impact of supply chain activities in these high-risk areas.
(10) Energy use intensity: Wizz Air uses electricity through leased contracts in its offices, bases, maintenance
operations and training centre. The Company’s total energy use also includes the energy generated by the combustion of
jet fuel. The Company’s new office headquarters in Budapest holds a BREEAM certificate with a “very good” rating.
OTHER OPERATIONAL METRICS
AREA
UNIT
NOTE
F24
F23
F22
2030 TARGET
Booked load factor
%
11
90.1%
87.8
78
95
Stage length
km
12
1,774
1,674
1,604
1,650
Sustainable aviation fuel
%
13
0.0005
0.005
0.0002
10%
Offsets
%
14
52
64
64
—
Aircraft age
Years
15
4.3
4.6
5.04
—
ICAO NOx compliance
CAEP/8
16
64%
50%
34%
100%
(11) Passenger load factor: This is a key operational metric, as Wizz Air operates a load factor-active business model,
trying to maximise load factor, which maximises value creation. Our mid to long-term target is to reach 95 per cent load
factor on our aircraft.
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(12) Stage length for Wizz Air is on average 1,774 km with flights below 1,000 km accounting for less than 13.8 per cent
of flights. Our stage length is significantly higher than our key competitors (see below the comparison for F20,
pre-COVID-19, and the latest publicly available data).
Airlines
Wizz Air
Ryanair*
EasyJet**
Stage length F20 (km)
1,635
1,409
1,132
Stage length (latest available annual figures as of May 2024)
1,774
1,233
1,224
*The figure was converted from 766 miles reported by Ryanair to kilometres. Ryanair 2023 Annual Report and Accounts.
** EasyJet 2023 Annual Report and Accounts.
(13) Sustainable aviation fuels: The Company had one SAF fuel test in this financial year, at the same time we
experienced growth in flight capacity, which led to a lower ratio of SAF used in F24 compared to F23. We are
committed to being compliant with what we believe will be an increasing number of blending mandates over the region
we operate in. Consequently, we have made significant efforts in ensuring a reliable long-term supply chain by
investing in SAF companies and partnering with SAF suppliers. To underscore our commitment, Wizz Air is setting a
goal to fuel our flights with a 10 per cent blend of Sustainable Aviation Fuel by the year 2030.
(14) CO2 emissions offsets: See page 53 for more details. Note, the Company’s operations outside of EU and UK ETS
scope expanded, and the gradual phasing out of free allowances has begun. The proportion of offsets in F24 is therefore
lower than last year.
(15) The average age of aircraft is 4.3 years; see also page 7 for more details on Wizz Air’s fleet. Additionally,
Wizz Air’s average lease length is around ten years, after which the aircraft is returned in the contractually determined
condition to the lessor.
(16) ICAO NOx standard compliance: Our entire fleet is in full compliance with the ICAO NOx CAEP/6 standards,
while 64 per cent of our fleet meets the ICAO NOx CAEP/8 standards (all our neo-powered aircraft are compliant with
the ICAO CAEP/8 standard). The emissions factor has been verified by the Eurocontrol European Aviation Fuel Burn
and Emissions Inventory System on behalf of the European Environment Agency, using data from 2005, as per the
2018.01 version released on 20 July 2018.
% of fleet
Mar 20
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
Mar 26
Mar 27
Mar 28
Mar 29
Mar 30
CAEP-8
7%
20%
35%
49%
62%
67%
75%
86%
96%
100%
100%
Our neo fleet has a very wide margin in terms of NOx emissions versus CAEP/8 standards, significantly ahead of the
Boeing 737-8200 (Max).
NOx margin to CAEP/6 (%)
NOx margin to CAEP/8 (%)
Wizz Air A320neo
56
49
Wizz Air A321neo
44.6
37.2
Wizz Air A320ceo
7.4
-10.6
Wizz Air A321ceo
1.3
-13.9
Boeing 737-8200
16
6
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58
VII. CLIMATE POLICY POSITIONS AND ADVOCACY
FIT FOR 55 CLIMATE PACKAGE
The European Commission published a comprehensive climate package called Fit for 55 in July 2021.
Negotiations on most of the aviation-related proposals have concluded by now (except for the Energy
Taxation Directive). The proposals put forward either modified existing legislation or established new
initiatives with the aim of reaching at least 55 per cent greenhouse gas emissions reduction by 2030.
In general, Wizz Air has followed a consistent approach in advocacy along two main concepts. Firstly,
Wizz Air has been active in highlighting the need for a level playing field as most of the proposals focused on
intra-EU flights, ultimately punishing intra-EU traffic, while extra-EU flights represent the majority of
emissions. Secondly, Wizz Air believes that sustainable aviation cannot be achieved without technology and
has highlighted to the decision makers the efforts Wizz Air has made in the decarbonisation of the aviation
sector and green growth, e.g. by investing in a young and efficient fleet with the best technology available
on the market that allows the constant reduction of carbon emissions intensity.
ReFuelEU Aviation
Wizz Air has been closely following the negotiations of and supporting the ReFuelEU Aviation proposal to
promote and develop the use of sustainable aviation fuels (SAF) for all flights in a fair and equal way. The
new law entered into force at the end of 2023. The ReFuelEU Aviation legislation creates an obligation for
fuel suppliers to provide gradually increasing amounts of SAF to airlines, so they can progressively increase
their use of SAF and subsequently reduce the emissions of aviation.
It is Wizz Air’s position that the
inclusion of a book and claim system
would contribute to reaching the EU’s
green goals and could be an important
step towards ensuring a level playing
field for access to alternative fuels as
the market develops across the EU.
We think that the current flexibility
mechanism needs to be revised to
include elements of a book and claim
system, thus allowing flexibility for
aircraft
operators
too.
Current
geographic imbalances in SAF supply
and price levels – especially in the
Central and Eastern Europe (CEE)
region and parts of the European
periphery – are of particular concern.
A book and claim system could ensure
that aircraft operators can purchase
the requested amounts of SAF even if
not available at the specific airport they are operating from. The airlines that “purchased” the SAF must be
able to claim proportional emissions reductions in the relevant EU-wide and international systems and report
emissions accordingly. An SAF registry could ensure transparency and avoidance of double counting.
Wizz Air is currently working on ensuring access to adequate supplies to comply with future mandates.
In connection with the ReFuelEU Aviation Regulation, several governments are working on their national SAF
strategies and, in this framework, consulting stakeholders of the aviation industry. Wizz Air has been
involved in the preparation of the Austrian and Hungarian strategies. Technology leads the way to more
sustainable aviation; therefore, Wizz Air’s approach to sustainability with the fleet renewal programme to
replace older technology with new more efficient aircraft and engines is a good example for governments.
ETS Aviation
The EU Emissions Trading System (ETS) Aviation legislation was published in May 2023. During the
discussions, Wizz Air has been advocating for the extension of the scope to all departing flights from the
European Economic Area (EEA), as emissions do not stop at borders. We regret that the scope remained
intra-EEA, excluding the most polluting flights. Extension of the scope would have contributed significantly to
the joint European green goal.
We have been supporting the early phase-out of free ETS allowances to airlines and welcome that they will
be fully auctioned from 2026. This is a step towards a level playing field in the European market.
We also agree with the introduction of the SAF allowances into ETS, to incentivise SAF uptake across Europe,
as we believe this is the effective short to mid-term solution.
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Energy Taxation Directive
The European Commission proposed to end kerosene tax exemption for intra-EU flights over a period of ten
years. Wizz Air cannot support an additional financial burden to be introduced for airlines. In case of the
adoption of the proposal in its current form, the most polluting flights, namely intercontinental long-haul
flights, will be excluded despite being the main source of European CO2 emissions3.
Considering that the EU ETS already applies to intra-European flights, we believe that double taxation needs
to be avoided. According to Eurocontrol’s analysis4, there is no proof that taxing aviation will result in lower
greenhouse gas emissions. However, there is a risk that such taxation would divert traffic from EU to non-EU
airports (carbon leakage), threatening Europe’s connectivity and competitiveness5.
SINGLE EUROPEAN SKY
Wizz Air has been supporting the Single European Sky
2+ (SES2+) proposal to reform the architecture of air
traffic control in the EU, in order to meet future capacity
and safety needs. Today, aircraft are flying longer than
necessary routes which result in delays and additional
emissions that could be prevented. All these contribute
to increased costs and higher ticket prices.
New technology is at the heart of Wizz Air’s sustainability
policy; however, we could further reduce our emissions
if the SES2 is effectively carried out. Wizz Air is already
significantly contributing to the goals of the European
Green Deal by offering only point-to-point routes, thus
avoiding unnecessary CO2 emissions. We will continue to
take part in cutting emissions, but airlines’ efforts must
be supported by an efficient ATM system. Industry stakeholders have been waiting for decades for the
SES2+ reform. The reform is needed to enhance the competitiveness, cost effectiveness, growth and
sustainability of the European aviation industry.
The current framework does not support airlines to avoid longer flights, and related costs and emissions.
Regrettably, the compromise reached in March seems to not be enough to deliver on the above. We will
continue to follow the progress and be involved in making the skies more efficient.
NON-CO2 EMISSIONS
In line with its targets, Wizz Air is fully committed to reducing its carbon emissions intensity. We operate one
of the youngest, most efficient fleets in Europe using the Airbus A321neo, which reduces fuel consumption
and CO2 emissions by as much as 20 per cent – also leading to Wizz Air having one of the lowest CO2
emissions per passenger kilometre in the industry. The A321neo also reduces NOx emissions by 50 per cent
per flight and we are further mitigating non-CO2 emissions impacts through route optimisation and jet fuel
improvements.
With regard to a non-CO2 emissions monitoring, verification and reporting EU scheme, Wizz Air recognises
that accurately calculating the impact of such emissions and their effective radiative forcing (ERF) is still a
challenge due to scientific uncertainties persisting about the actual contribution of non-CO2 emissions per
flight. As there is no single metric available to easily quantify the actual climate effects of a given flight when
it comes to non-CO2 (as opposed to CO2) emissions, there is a risk that the establishment of a simple
multiplier could lead to vastly overestimating such emissions. It is imperative to create a reporting
methodology that is accurate and realistic regarding the actual climate impact of non-CO2 emissions, while
also preventing significant additional reporting and data assurance burdens for the airlines.
ADVOCACY IN THE UNITED KINGDOM
By the end of March 2024, Wizz Air UK Limited was operating a 100% A321neo fleet in the United
Kingdom, with a fleet average age of 1.53 years. It is recognised both by the UK government and by
stakeholders as the most environmentally friendly airline. The Company provides its business insight to the
UK government, to support the mission of reaching net zero in the aviation sector by 2050. The Company is
a member of the two delivery groups of the UK government’s main advisory body on sustainable aviation,
the JetZero Council. In the Zero Emissions Flight delivery group, the focus is on accelerating the design,
manufacturing, infrastructure and commercial operation of zero emissions aircraft. The SAF delivery group
provides advice on how government and industry can work together to deliver the UK SAF commitments
(to have at least 10 per cent sustainable aviation fuel (SAF) in the UK jet fuel mix by 2030).
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3 EUROCONTROL Data Snapshot on CO₂ emissions and flight distance | EUROCONTROL.
4 EUROCONTROL Data Snapshot on CO₂ emissions and flight distance | EUROCONTROL.
5 Does taxing aviation really reduce emissions? | EUROCONTROL.
ENGAGEMENT AND CLIMATE POLICIES IN THE UNITED ARAB EMIRATES
Wizz Air Abu Dhabi LLC is a UAE national airline and the second-largest carrier in Abu Dhabi. The Emirates
was the first nation in the Middle East and North Africa to make a commitment to achieve net zero emissions
by 2050. As a local airline, Wizz Air Abu Dhabi LLC is
involved and has been participating in the UAE Aviation
Environment Working Group (which was established by the
local General Civil Aviation Authority to support the UAE’s
Net Zero 2050 Strategy for aviation and the related state
action plan).
The airline is committed to sustainability and recently signed
an agreement with the UAE Ministry of Energy and
Infrastructure to promote sustainability and collaborate on
a wide range of areas, raising awareness about more
environmentally friendly practices amongst passengers. This
includes online educational campaigns on both organisations’
social
media
platforms,
websites,
forums
and
key
stakeholder events and the endorsement of the “Switch Off,
Take Off” initiative, a National Conservation programme.
POLITICAL DONATIONS AND ADVOCACY EXPENDITURES
Wizz Air works constructively with all levels of government across its network, regardless of political
affiliation. Wizz Air believes in the right of individuals to engage in the democratic process. However, Wizz
Air itself does not make any political donations and does not incur any political expenditure. Employees are
also obliged to follow the Wizz Air Code of Conduct and Anti-Bribery Policy, and therefore may not
improperly influence decisions about Wizz Air by any government, legislators, authorities or regulators. Any
risk of significant violation of these policies and procedures is escalated by the Corporate and ESG Officer to
the Audit and Risk Committee.
Wizz Air is politically neutral, and prohibits contributions to political parties, campaigns, political think tanks
and any equivalent political donations on behalf of Wizz Air, either directly or indirectly, by its employees or
contractors. On occasion, the Company offers non-financial support to public events which support issues of
importance to the Company and the aviation industry. Any expenditure in this regard requires the approval
of an Officer of the Group.
Since November 2021, Wizz Air has been collaborating with Penta (formerly Hume-Brophy) on advocacy
issues in the European Union, with a special focus on climate or other regulation impacting aviation. Wizz Air
is also listed in the EU Transparency Register.
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SOCIAL
PILLAR
VIII. PEOPLE PILLAR – WIZZ AIR CARES FOR ITS EMPLOYEES
AND CUSTOMERS
CORE VALUES
Wizz Air remains steadfast in its commitment to its employees, fostering an inclusive environment where
equal opportunities prevail. All team members benefit from an environment and tools that support their
professional aspirations, enabling them to realise their full potential. Supported by strong policies against
discrimination or harassment, everyone is afforded equitable chances to excel, develop and thrive.
Our social agenda and progress toward our self-imposed targets are regularly discussed with Wizz Air’s
Leadership Team, led by our Group Chief Executive Officer. Additionally, the Sustainability and Culture
Committee of the Board actively monitors and discusses this critical topic, as outlined on page 14.
The WIZZ culture empowers our workforce to embody the five core values of Wizz Air, driving innovation
and problem solving in our business endeavours. These values underpin our organisation’s identity and
ambition:
▶
Inclusivity – we embrace diversity, engaging and collaborating with all key stakeholders to achieve our
goals.
▶
Positivity – we are an inspired and inspiring team, passionate about what we offer, using a positive
mindset to unlock new ways to do things better and more efficiently.
▶
Integrity – doing what is right for passengers and stakeholders, holding ourselves to the highest possible
standards in everything we do.
▶
Dedication – we have an entrepreneurial, “can-do” attitude, taking individual and collective ownership,
and are accountable for everything we do.
▶
Sustainability – we strive to be the greenest choice of air travel and work hard on continuously
decreasing our environmental footprint.
OUR SOCIAL STRATEGY AND PRIORITY PROGRAMMES
Wizz Air is committed to a well-defined social strategy as we firmly believe that our operations can
significantly improve the lives of many people, including our team members, our passengers, and the
inhabitants of the communities we cater to. We remain dedicated to our mission of “we will break down
every barrier between people and air travel”. While our social strategy encompasses a wide range of
initiatives, Wizz Air focuses on several key priority programmes:
1.
Put safety first
2.
Recruit and develop our employees
3.
Improve and leverage diversity
4.
Engage our employees and ensure effective communication through the People Council
5.
Address challenges for the continuous improvement of the customer experience
6.
Community programmes and charitable support
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1.
PUT SAFETY FIRST
Safety is the first priority in our work and the key to a successful business. It is through the personal
commitment of all our employees that we will provide our customers with the highest level of safety
possible. Wizz Air, including the Board of Directors, the Leadership Team and the entire employee
community, is firmly committed to ensuring the safest operations possible, always keeping our people and
our customers safe. Wizz Air’s safety philosophy is to create and maintain an organisation which is healthy,
safe and successful while we are fully committed to supporting the continuous improvement of the
organisation and management system.
We are committed to complying with all applicable laws, regulations and standards, taking into consideration
industry best practice including IATA Standards And Recommended Practices (ISARPs). Since August 2022,
the Safety, Security and Operational Compliance Committee of the Board of Directors has been supporting
the Board with additional oversight of the Group’s policies, practices, objectives and performance on safety,
security and operational compliance.
Safety Policy Statement
At Wizz Air, we are deeply committed to upholding safety management by allocating ample resources to
ensure safe operations. Our senior leadership is dedicated to cultivating and endorsing an organisational
culture that promotes safe work practices, encourages robust safety reporting and proactively oversees
safety. We firmly believe that safety is everyone’s responsibility, and all management levels and
employees are held accountable for delivering the highest level of safety performance. This commitment
starts from the top, with our Chairman of the Board of Directors and Wizz Air’s Operations Officer.
We have put into place a comprehensive Safety Management
System to manage the risks associated with our operations and
activities. Our safety objectives and performance standards are
designed to facilitate continuous improvement in our safety
performance.
Our employees play a crucial role in maintaining a safe
operation. It is vital that they report any actual or potential
safety issues or concerns. We encourage every employee to
contribute to the Safety Management System by reporting
safety issues and concerns to the Safety and Compliance
department. To support our employees in maintaining their
mental fitness, we have initiated an employee support
programme.
We strive to foster an atmosphere of trust through our Just
Culture, where individuals are encouraged to report critical
safety-related information. Our Just Culture Policy ensures that
unintentional errors and unsafe acts will not be penalised.
However, those who act recklessly or take deliberate and unjustifiable risks will be subject to disciplinary
action. This will be determined through a fair and consistent process that includes an independent review
of the events, taking into account any human factors, human behaviour and mitigating circumstances as
outlined in the Organisation Management Manual.
Safety compliance
Wizz Air is dedicated to adhering to all relevant laws and
regulations on safety. We have a Compliance Monitoring
System
in
place
that
persistently
evaluates
the
effectiveness of our systems and processes. This ensures
our operations are safe, meet the needs of our internal and
external customers, and comply with national aviation
regulations and Company-specific standards, including
IATA ISARPs.
The Compliance Monitoring System aims to:
• guarantee safe operations and airworthy aircraft;
• continually monitor Wizz Air operations for compliance
with all relevant standards, requirements and procedures,
providing feedback to the Accountable Manager;
• retain our Air Operator Certificates and operating licences by meeting requirements;
• implement corrective and preventive actions in a timely and adequate manner in response to
non-conformities identified during audits and inspections; and
• achieve the safety performance indicators set by the Accountable Manager at the management evaluation.
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We are committed to consistently carrying out our duties in accordance with Part-ORO, Part-ORA, and
Part-CAMO requirements, and to continually enhance our processes and performance to realise the
objectives of the Compliance Monitoring System.
Wizz Air remains dedicated to adhering to all pertinent regulations issued by the responsible aviation safety
agencies in all its operating environments. We ensure that our managers and operational personnel comply
with all relevant laws, regulations and procedures wherever our operations take place.
Health and safety – employee healthcare management
In line with the World Health Organization's declaration marking the end of COVID-19
as an international public health emergency, we responsibly eased our relevant
protocols. Although the virus no longer poses a global threat, we continue to prioritise
the health of our passengers and crew, adopting a proactive stance in our health and
safety measures, and are prepared to revise our policies and procedures as necessary.
In response to any viral or infectious diseases in the workplace, we provide on-time
support to the affected employees. This includes effective communication strategies,
executed in collaboration with our internal Communications team, ensuring timely and
informative updates for all crew members.
• Health and safety – internal audits and service enhancement
Aiming for network-wide compliance and transparency, we concluded a network-wide health and safety
audit in F24. This internal audit included visits to numerous countries and bases, reflecting our
commitment to continuous improvement. We have upgraded our reporting services, underscoring our
dedication to creating a safe and supportive working environment. Our initiatives have focused on
streamlining communication, enhancing stakeholder alignment, and ensuring swift responses and actions.
Our comprehensive training programmes have bolstered the confidence of our local representatives in
health and safety matters. We maintain ongoing collaboration with local stakeholders to ensure a secure
working environment. Furthermore, we have conducted thorough reviews of our internal processes, aiming
for increased effectiveness and productivity to better support our employees in their roles.
• Environmental health and safety
As part of our efforts to improve the working environment, we engaged in extensive collaboration to
establish the new office for our Budapest headquarters. The Health and Safety team supported projects
and decisions that foster a safe and comfortable workplace. Throughout this process, the physical and
mental well-being of our employees remained a top priority.
In F24, the Health and Safety team actively worked with various departments to update our corporate
travel insurance coverage. The revised travel insurance policy ensures comprehensive medical care for our
employees during their work-related travels abroad, offering them enhanced protection and peace of mind.
• Enhancing the Employee Assistance Programme
In our continuous effort to support our employees’ well-being, we have expanded the scope of the
Employee Assistance Programme (EAP). This expansion aims to provide comprehensive psychological
counselling services, both on site and online, accessible to all employees across our network. We are
committed to actively monitoring and supporting the mental health of our colleagues and we encourage
them to participate in and benefit from the confidential resources offered by the EAP.
• WIZZ Aid
WIZZ Aid is designed to provide financial support to our colleagues who need urgent medical treatment or
suffer from natural or man-made disasters outside of the coverage of life and travel and accident
insurance. The WIZZ Aid policy sets out the criteria and process related to the funding granted
to employees. This corporate initiative is open for any Wizz Air Group employee (both indefinite and
fixed-term contract) facing such an emergency situation and temporary financial hardship, provided
they have passed their probation period and are not pending a notice period. During F24, six applications
were approved, in the amount of €61,170, for life-saving medical assistance, surgery and other related
financial support.
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OUR PEOPLE
“At Wizz Air, we firmly believe that the strength of
any organisation lies in the exceptional qualities
of its people. Our dedicated team embodies passion,
resilience and kindness, thriving on the dynamic
challenges inherent to our industry.”
2.
RECRUIT AND DEVELOP OUR EMPLOYEES – WIZZ AIR’S HUMAN CAPITAL DEVELOPMENT
At Wizz Air we are dedicated to recruiting top talent and providing them with
essential tools, offering dynamic development opportunities through a specially
tailored programme for all levels within the organisation, while promoting diversity
and inclusion throughout the entire employee journey.
Since 2010, Wizz Air’s employee base has grown from 1,184 to 8,044 by the end of
March 2024. Despite facing operational challenges during F24 due to the Pratt &
Whitney engine issues and ongoing conflicts in Ukraine and Israel, Wizz Air recruited
2,357 employees.
As part of the ongoing Crew to Office Programme, Wizz Air transferred 13 employees from crew to office
positions during F24. This initiative aims to provide active flight and cabin crew employees with opportunities
to transition their careers and gain experience in the office environment.
We continue to offer new and alternative career opportunities for existing employees to further develop their
expertise or explore new spheres within various departments. In F24, 21 per cent of open office positions
were filled internally, with 16 employees promoted to higher positions and 68 employees moving laterally to
different positions within the same or other departments.
Despite operational challenges, over the past twelve months, 19 per cent of the office population received
internal career advancement opportunities, both at the employee and management team levels.
Wizz Air office career development and gender breakdown
63%
46%
87%
36%
39%
92%
42%
38%
54%
13%
64%
61%
8%
58%
FEMALE
MALE
Promotion
Lateral move
Crew to office
External hire
Stayed in
position
Back from
parental leave
Grand total
—%
20%
40%
60%
80%
100%
Training our flight and cabin crew
Flight and cabin crew training is organised by
a dedicated in-house training team, which
consists of 354 flight deck and 286 cabin crew
trainers across Wizz Air’s entire network. In
F24, more than 380 pilots and over 1,300 cabin
crew members joined the Company and had
world-class initial training, while 2,080 pilots
and 4,450 cabin crew members completed
recurrent training.
Training is undertaken in the modern, state-of-
the-art training facility in Budapest, equipped
with three Airbus A320 CAE 7000XR Series
full-flight simulators, a cutting-edge Cabin
Emergency Evacuation Trainer, and a V9000
Commander Next-Generation Fire Trainer. In
the five years since its opening, cadets and
experienced pilots who take part in recurrent
training have completed a total of more than 83,000 flight hours, i.e. roughly nine and a half years of flying
on three simulators.
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Wizz Air’s crew training has successfully implemented a fully integrated digital Training Management System,
which enables us to manage and control the entire lifecycle of pilot and cabin crew learning and
qualifications in a single digital platform. The system will further enhance our training efficiency,
organisational flexibility and performance, while ensuring guaranteed compliance with regulations.
In February, Wizz Air announced that it will open its second training centre in 2024, which will be located in
Rome, Italy. The new 2,500+ square metre facility will be within walking distance from T1 of Rome
Fiumicino Airport, housing three full-flight simulators for recurrent training of over 4,800 Wizz Air pilots
yearly.
Briefing rooms and rooms for theoretical training will take up 1,290 square metres on two floors, while
nearly 600 square metres will be devoted to the simulator hall with three ultra-modern full-flight Airbus
A320-family simulators. Each simulator can accommodate up to 135 pilots per month, ensuring recurrent
training for up to 4,800 pilots per year. The construction has already begun, with facilities set to open for
theoretical training in May 2024, while the simulators will be installed until the end of the year.
This marks Wizz Air’s continued commitment to the highest standards of safety and continuous training with
state-of-the-art equipment. At the same time, through this investment we continue to provide local direct
job opportunities, building on our current team of 1,000 WIZZ employees in Italy.
We are also organising dedicated “Foundations
of People Management” leadership training
upon request for cabin and flight operations
management
in
order
to
increase
the
leadership self-awareness necessary to lead
and motivate others, as well as to equip
managers with essential leadership skills and
techniques such as constructive feedback,
effective delegation, conflict management and
impactful leadership communication.
As our WIZZ family is rapidly expanding, it is
important that we maintain good relationships
within our network, especially with the newly
joined colleagues that might need assistance
getting acquainted with their crew life and
responsibilities. The myWIZZmentor programme
was developed by the Cabin Operations team
with the purpose of improving our working environment by supporting our new colleagues in their WIZZ
journey, with the help of our valued and experienced cabin crew. The mentoring programme is currently
available in our Budapest, Vienna, Warsaw, Sofia, Rome Fiumicino and Otopeni bases.
Wizz Air Pilot Academy (WAPA) Programme
The WAPA is a unique pilot training programme, giving a whole new generation of pilots with little to no
previous aviation experience the opportunity to obtain a Commercial Pilot’s Licence and the prospect of
working as a pilot at Wizz Air thanks to high-quality pilot training, starting from scratch, with the support of
an experienced flight school and in line with Wizz Air’s training standards. Wizz Air has a training programme
undertaken via one of the top EASA-approved flight training academies in Europe.
With our integrated training scheme, our aim is not only to provide training which fulfils the EASA
requirements, but to train our cadets to become real team players. They must support their fellow cadets at
all times, and move towards their goals together. In a multi-pilot environment – like an airline operation –
this ability will be a huge asset. Next to investment in aircraft and equipment, we are continuously
enhancing our training structure. We involve active airline pilots in the creation of the syllabus and they are
also involved in progress checks, theoretical training and multi-crew cooperation training.
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Developing our office workforce
This year, Wizz Air has introduced a comprehensive training programme tailored for all levels within the
organisation. The programme commences with an assessment of competencies and performance, followed
by feedback from peers and direct managers to facilitate the skill development necessary for success in
current or future roles. Our primary focus is on nurturing the growth of every individual and ensuring the
provision of appropriate development opportunities.
Over the past twelve months, 21 per cent
of our office employees had internal career
moves and progression across all levels within
the organisation. We remain dedicated to
continuous development to facilitate efficient
career
advancement
and
growth
within
respective fields or transitions to new functions
within the Company for further development.
We conduct thorough onboarding sessions for
new employees, led by the senior leadership
team and key internal stakeholders, offering
insights into the Company culture, principles,
policies and procedures. These sessions aim
to quickly integrate new hires and acquaint
them with the Company, enabling them to
be productive from day one. The onboarding
process is continually refined based
on
feedback from new employees to ensure
effectiveness and relevance.
This year, we celebrated 195 WIZZ Academy alumni completing five semesters as of the end of F24. The
programme aims to provide both office employees and crew members with unique insights into the
Company’s strategy and objectives, presented by top executives, including the CEO. The Academy serves as
a platform for increased interaction between employees and the Leadership Team, fostering a community of
potential internal culture/brand ambassadors and expanding the talent pool based on participants’ career
aspirations. Each WIZZ Academy semester selects a diverse group of 40 employees to attend a series of
eight bi-weekly, interactive lectures and training sessions with networking opportunities.
Building on the success of the WIZZ Management Trainee Programme in previous years, it has been further
expanded this year. The programme aims to create diverse talent growth opportunities from the bottom of
the organisation, enhance WIZZ brand and culture awareness in the market, strengthen our presence at top
universities, and recruit and develop young talent with the potential to become future Managers and Senior
Managers at Wizz Air. The programme has been extended with new recruitment waves, bringing the total
number of selected new management trainees to 19, with 11 offered full-time internal Wizz Air positions this
fiscal year. Within the programme, trainees join the office for a “one plus one” year with the possibility of full
employment with Wizz Air upon completion and rotate every six months to a new department or function
within the Company.
Leadership education
This year, we have also launched the Leadership Development Programme for all people managers to further
enhance our leadership capabilities, including a Master of Business Administration from Corvinus University,
offered to Heads and Officers based on exceptional performance ratings, with a partial scholarship provided
by the Company; a SEED Business Management Programme, available to all Heads and Senior Managers
with outstanding performance and potential for leadership growth; and a Leadership Development
Programme, extended to all people managers below the Head level, fostering their leadership skills and
managerial capabilities.
Digital learning solutions
In
addition
to
traditional
classroom
training,
our
commitment to digital proficiency remains paramount.
We actively utilise digital tools, platforms and customised
e-learning solutions to empower our workforce. We have
organised two webinars to support strategic planning,
prioritisation, setting goals and feedback. Our partnership
with LinkedIn continues, providing office and crew
management employees with access to LinkedIn Learning
with over 10,000 courses covering various domains.
Department-specific learning paths have been developed
for the management trainees to support their development
and enhance their skills. The overall Company-wide
learning strategy is being revised to cultivate the culture of learning and to establish the right mix of learning
opportunity types, better fitting the demands of the Company and the employees at all levels and ways
of working.
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Regular performance and talent review
Wizz Air’s annual People Cycle process ensures alignment of talent within the organisation through three
stages: goal setting, performance appraisal and talent review. Goals are set collaboratively with the
managers, performance is assessed against competencies and goals, and talent potential is evaluated every
year. The process is facilitated digitally and promotes transparency and development across the
organisation. All internal Wizz Air office employees and also crew Country Managers, Base Managers and
Standardisation Instructors are included in this process. Calibration sessions then take place with Heads and
Officers to finalise ratings at function and Company level. Final performance ratings and the feedback
collected are later shared with all the employees during face-to-face discussions with their direct managers.
The managers assign a potential talent rating for all direct reports and create a succession plan on the
employees’ talent profiles. Then, similar to performance, calibration sessions take place and final talent
ratings are also shared and explained during face-to-face discussions. A more detailed description of the
performance and talent review process can be found in last year’s Annual Report on page 55.
3.
IMPROVE AND LEVERAGE THE DIVERSITY OF OUR EMPLOYEES
As an airline, our approach to diversity and inclusion mirrors our
mission to democratise air travel. In the past two decades since
Wizz Air was founded, the Company has been committed to
providing equal opportunities and an inclusive environment to
all candidates, employees and partners regardless of their race,
national and ethnic origin, social origin, gender, age, religion,
political views, sexual/gender identity or expression, marital
status, citizenship, disability or medical history, military status,
employment status or any other legally protected factor.
Decisions in all aspects of the Company’s business operations are to be based on the merit – skills,
performance and abilities – of a candidate/employee, in line with the given position’s requirements,
irrespective of any other personal characteristics.
The Company expects its workforce to adhere to its diversity and inclusion principles, which are set out in
The Wizz Way, its Policy for Good Conduct, and its Equal Opportunities and Fair Treatment Policy, which has
been revised this fiscal year, along with the expected standards of behaviour for every member of the
Wizz Air team.
Nationalities
Wizz Air is an ethnically diverse and inclusive professional organisation with over 109 nationalities within its
employee base (84 in cabin crew, 60 in the flight crew and 61 in the office). At Board level, eleven current
Directors are from eight different countries, while the Company’s 37 Heads of Function and 16 Officers and
Executives represent 19 different nationalities. The following charts include detailed information on the
nationality breakdown according to various employee categories.
Cabin crew
24%
17%
10%
7%
5%
5%
4%
3%
24%
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National diversity ratio:
Romania
24%
Poland
17%
Italy
10%
Hungary
7%
Bulgaria
5%
Ukraine
5%
Albania
4%
Republic of North Macedonia
3%
All other nationalities (with 2% share or less)
24%
Flight crew
18%
14%
10%
11%
9%
5%
3%
3%
27%
Office employees
56%
4%
4%
3%
3%
2%
2%
26%
Management team
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National diversity ratio:
Poland
18%
Hungary
14%
Italy
10%
Romania
11%
United Kingdom
9%
Bulgaria
5%
Spain
3%
Ukraine
3%
All other nationalities (with 2% share or less)
27%
National diversity ratio:
Hungary
56%
Poland
4%
Romania
4%
Russia
3%
India
3%
United Kingdom
2%
Ukraine
2%
All other nationalities (with 1% share or less)
26%
41%
7%
7%
6%
6%
4%
4%
4%
4%
19%
National diversity ratio:
(Heads, Officers and above)
Hungary
41%
Romania
7%
United States
7%
Poland
6%
United Kingdom
6%
Spain
4%
Portugal
4%
Ireland
4%
France
4%
All other nationalities (with 3% share or less)
19%
Gender diversity
At Wizz Air, we maintain a balanced male-to-female ratio organisation wide, with females representing
48 per cent of our workforce. However, we acknowledge the need for further enhancements in gender diversity
within specific employee cohorts. As part of our ongoing commitment to diversity, we have set targets to
enhance female representation in critical areas such as the flight deck, Leadership Team and Boardroom.
The table below showcases the male-to-female ratio within various employee groups at Wizz Air:
68%
5%
42%
35%
29%
48%
32%
95%
58%
65%
71%
52%
Female
Male
Cabin crew
Flight crew
Office
Management
(Head +)
Officers
(Officers +)
Grand total
—%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Wizz Air strongly believes that leadership diversity enables faster progress towards targeted growth and
employee base diversity. The Company continues to adhere to its long-term set target to achieve 40 per
cent gender diversity by F26 among its management team (Heads, Officers, EVPs and CEO level), which is
broken down into yearly plans and actions, and regularly reviewed at Board level and by the Nomination and
Governance Committee.
In this past financial year, Board gender diversity increased to a 36 per cent female ratio after Ms Phit Lian
Chong joined the Wizz Air Holdings Plc Board of Directors, while the management team’s gender diversity
remained at a 35 per cent female ratio. Office female gender diversity has not changed compared to last
year, with 48 per cent female to male ratio. Flight crew female gender diversity at F24 year end is at 5 per
cent (in terms of the operating entities, Wizz Air UK Ltd. has the highest flight deck female diversity, with
8.15 per cent), whereas the female cabin crew number decreased slightly to 68 per cent, down from 69 per
cent the previous year.
To improve gender diversity in the Company, we have established the following targets:
• 33 per cent female gender diversity in the Board of Directors – this was surpassed in F24 reaching
36 per cent;
• 40 per cent female gender diversity in the management team by F26; and
• 7 per cent female gender diversity in the flight deck by F30.
We have put in place actions to achieve our ambitious targets as part of our diversity initiative, Women of
WIZZ. Recruitment is focused to ensure that there is always at least one female candidate on the shortlist
for positions and recruitment panels are recommended to have female interviewees.
Female pilot initiatives
Wizz Air is focusing on gender diversity in its flight crew as a
major opportunity and aims to be an industry leader. The
Company has launched several initiatives to support this
transformation:
Wizz Air’s cabin or flight crew ambassadors are representing the
Company at public events, and our Cadet Programme initiatives
are key building blocks to support our flight crew transformation
over the next few years. In addition, the Company’s Equal Opportunities and Fair Treatment Policy supports
our commitment to undertake initiatives fostering equal access to positions where certain protected groups
(including, in particular, women) are underrepresented – always taking into account the particular personal
circumstances of all applicants, respecting their fundamental and human rights and applying a diverse set of
selection criteria for any position or entitlement.
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Several unique programmes have been launched to nurture talent and diversity in our flight deck:
• She Can Fly Programme: a sub-brand of the Wizz Air Pilot Academy (WAPA) Programme dedicated to
women, aiming to increase women’s flight deck crew diversity;
• Internal Cadet Programme: a self-sponsored programme for WIZZ employees who have completed
their pilot training;
• Cabin Crew to Captain Programme: a Company-sponsored programme for WIZZ cabin crew to obtain a
commercial pilot licence;
• WAPA: offers training and financial support to young, passionate candidates. Graduates can begin their
employment at Wizz Air as pilot trainees; and
• Self-Sponsored Cadet Programme: designated flight schools will be selected for Wizz Air’s growing UK,
Italian and UAE bases.
Women on Air – inaugural event in 2024
In conjunction with this year’s International
Women’s Day and Wizz Air’s 20th anniversary
celebrations,
the
Company
hosted
its
inaugural “Women on Air” event in Budapest
on 26 March. This event provided employees
with a unique opportunity to learn directly
from women who have achieved significant
success in leadership roles within the aviation
industry.
The forum, hosted by Wizz Air’s CEO, József
Váradi, and moderated by Yvonne Moynihan,
Marion Geoffroy and Robert Carey from Wizz
Air’s Leadership Team, featured insightful
sessions by inspiring speakers from various sectors of the aviation industry. These accomplished women,
who have broken barriers and achieved great success in their aviation careers, shared their personal
journeys, challenges and triumphs. They offered invaluable perspectives on leadership, innovation and
overcoming obstacles in a traditionally male-dominated field.
The event was graced by the presence of the Ambassador of the Republic of Türkiye to Hungary, H. E.
Gülşen Karanis Ekşioğlu, who was a guest of honour. She delivered an introductory address, discussing
important topics such as the valuable skills women bring to diplomacy. The guest speakers included
exemplary women from the WIZZ family, such as Charlotte Pedersen (a Wizz Air Board Member and the first
female to join the military pilot programme in the Danish Air Force in 1989), along with numerous successful
and inspirational women from Wizz Air’s middle and senior management and flight deck.
A separate panel was dedicated to female leaders from across the entire aviation spectrum, including
representatives from Wizz Air, aircraft manufacturing companies, the leasing industry, air navigation service
providers, and regulators. This inaugural event, which showcased esteemed female professionals sharing
stories about their challenges and insights, provided a unique opportunity for many aspiring WIZZ ladies to
envision their future careers.
The speakers, panellists and moderators of the Women on Air event.
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4.
ENGAGE OUR EMPLOYEES AND ENSURE EFFECTIVE COMMUNICATION THROUGH THE PEOPLE
COUNCIL
At Wizz Air, our workforce remains our most valuable asset. We recognise that our employees’ engagement
and well-being are essential for consistently delivering on our mission. A significant 93 per cent of our staff
directly interact with passengers, ensuring safety and an excellent customer service journey with Wizz Air.
Our commitment to employee engagement is supported by key pillars, including the WIZZ People Council,
regular engagement surveys and informative floor talks led by our CEO during base visits.
WIZZ People Council – empowering representation and communication
At Wizz Air, we firmly believe that the strength of any organisation lies
in the exceptional qualities of its people. Our dedicated team embodies
passion, resilience and kindness, thriving on the dynamic challenges
inherent to our industry. Simultaneously, we recognise the critical
importance of empowering our employees to shape their own career
trajectories and professional growth in alignment with the Company’s
vision.
The WIZZ People Council serves as a space where our valued team
members feel secure sharing their insights, concerns and innovative ideas.
Guided by a steadfast commitment to open dialogue, the Council plays a
pivotal role in shaping both our airline’s trajectory and our identity as an
employer, ensuring that the collective voice of our exceptional team
resonates throughout the organisation.
The Council is led by its President, who serves for two years and is appointed by the former President. Within
the People Council, eleven additional members play a pivotal role in ensuring representation across
the airline’s network and diverse business divisions. These representatives are democratically elected for a
one-year term, following an all-encompassing Company-wide application process. The selection is
meticulously guided by transparent criteria, guaranteeing a balanced representation from all areas of
business across all Air Operator Certificates (AOCs).
The key figures steering the WIZZ People Council’s work are:
• Nikoletta Zima, the Council’s current President, has been an integral part of the Wizz Air family since 2004.
As the very first cabin crew member, she brings a wealth of experience and steadfast dedication. She also
serves as a Cabin Crew Trainer and Training Centre Operations Manager, and is actively involved in the
WIZZ Foundation and WIZZ Aid. Her passion for our Company’s corporate social responsibility (CSR)
initiatives is unwavering.
• Doloresz Szalay, the Council’s Secretary General, joined Wizz Air in 2011. Her previous roles within the HR
department have provided her with a deep understanding of our organisation. Doloresz previously served
on the Council for two years in the same capacity before her maternity break.
• Nikola Mitov, our newly appointed Vice President, brings a decade of experience as a captain at Wizz Air.
His insights and leadership contribute significantly to the Council’s effectiveness.
The Council’s structure and ways of working are:
• Term and continuity: Representatives
may serve an additional year if
approved by the President, but their
tenure
aligns
with
the
current
President’s mandate.
• Committees and focus areas: The
Council’s work revolves around four
major
areas:
benefit,
well-being,
engagement
and
policy.
Four
dedicated Committees – each led by
a Chair appointed annually by the
President – delve into a spectrum of
topics,
challenges
and
strategic
initiatives. These Committees convene
twice a month to deliberate and
shape policies.
• Facilitating effective communication:
The entire Council engages bi-weekly
with the senior leadership team and separately with the Company’s CEO. These interactions foster open
dialogue, enabling the Council to fulfil its core objective, bridging the gap between management and
employees through robust two-way channels.
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• Informed decision making and transparency: The Council provides critical insights on matters impacting
the entire Wizz Air community. Every action and decision arising from monthly meetings is communicated
back to employees by their dedicated representatives.
The key recurring agenda topics are:
• work-life balance;
• Company policies and process changes;
• working environment improvement;
• salary principles and policies;
• Company events;
• trends impacting safety; and
• initiatives enhancing employee diversity.
The WIZZ People Council actively contributed to a variety of projects throughout the year, providing detailed
insights on specific employee groups’ perspectives to support the work of other departments. To ensure
effective communication with the WIZZ community, Council members go beyond regular meetings. They
engage in frequent face-to-face sessions with employees, organise and host online employee meetings
across all countries, and conduct regular base visits alongside the Wizz Air Leadership Team. These efforts
aim to strengthen open communication between employees and management across the airline’s entire
network.
Additionally, as part of its direct engagement with office employees, the People Council arranges regular
meetings at the Company headquarters. During these sessions, employees have the opportunity to interact
with the Secretary General of the WIZZ People Council and the local office representative. Critical topics,
including knowledge management, office environment enhancements and employee retention, are
thoughtfully discussed and addressed.
Base visits, floor talks and management updates on Workplace
These events offer a unique platform for local crews to engage directly with Company management, allowing
them to voice their opinions, ask questions about the business direction and express their concerns. In
addition to the top management’s “fly-around events”, there are line operation base visits. During these
visits, line management travels to each base once a year, and at least one representative from the People
Council is present.
The People Council actively participates in base visits when the Leadership Team interacts with employees in
the market – both formally and informally. In the past year (F24), the People Council’s President, Secretary
General and local Council Representative engaged in 17 personal base visits.
Furthermore, regular floor talks hosted by the
Wizz
Air
CEO
provide
quantitative
and
qualitative insights into employees’ work and
life. These talks are live and accessible either in
person or via Workplace, our internal social
media channel available to all employees.
Additionally, every Monday, a live leadership
update is delivered to all Group employees via
Workplace. The CEO, the President and other
Chief Officers also issue written updates on
Workplace for significant events impacting
Company operations or when key information
needs direct communication from management.
Wizz Air remains committed to directly engaging
with its workforce, ensuring that all employees
have direct access to the CEO and senior
management through the channels mentioned
above. Based on employee feedback, the Company continually implements relevant actions, as evidenced
in the section discussing employee engagement results. Moreover, Wizz Air complies with all applicable
laws and regulations in every country of operation and actively participates in mandatory consultations
where required.
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Employee engagement survey results and follow-up actions
During the period between 25 October and 8 November 2023, Wizz Air conducted its seventh employee
engagement survey, yielding 4,467 responses, reflecting a participation rate of 53 per cent. Company wide,
the overall satisfaction reached 7.3, with an engagement score of 7.1, marking a notable increase of
0.7 compared to the previous year. The employee Net Promoter Score (eNPS) for overall engagement
soared to 10, showing a remarkable improvement of 19 from the previous year. Specifically, cabin crew
members demonstrated an engagement score of 7.5 (eNPS 23), a 0.6 improvement from the previous year.
Flight crew engagement increased to 6.5, an improvement of 0.9 (eNPS -14), while office staff reported an
engagement score of 7.1, a 0.6 improvement from the previous year (eNPS 6).
The satisfaction survey includes a range of following key aspects that are meticulously addressed in the
employee survey, serving as a valuable tool to gain insight into the sentiments and perspectives of
the workforce:
• resources and support;
• freedom of opinions;
• engagement;
• reward; and
• health and well-being, including mental and social well-being.
Following detailed analysis and results discussions, EVPs, Officers and
Department Heads submitted their action plans. Concurrently, the People
Council conducted an exhaustive analysis, reviewing over 19,000
comments to propose additional action points.
Drawing from these insights, the Organisational Development team
crafted a comprehensive action plan slated for completion over F25,
aimed at further enhancing employee engagement and satisfaction across
the organisation. All engagement survey results are annually reviewed by
the Board of Directors, which enables the Company’s highest decision-
making body to also assess and monitor progress towards cultural
objectives, identify priorities and set measurable goals for achieving the
vision. Wizz Air also has a dedicated Board member, Dr Anthony Radev,
who is responsible for overseeing engagement with employees.
At the Company level, the focus areas in order to improve engagement and the work environment are:
• enhanced roster stability and preferences (crew);
• a comprehensive appreciation programme;
• health and well-being-related initiatives;
• career progression (office); and
• reward.
The engagement and retention-focused actions already implemented are the following:
• Despite not meeting the share price increase target, we’ve made a discretionary decision to pay out 50 per
cent of the target bonus under the All-Employee Bonus Scheme to eligible employees. This payout
occurred with the July salary in early August 2023.
• We have completed our extensive salary review across all Wizz Air entities. Our aim was to bring salaries
in line with market standards, ensuring competitive and equitable compensation for all employees.
• We have implemented guidelines to support employees returning from parental leave, including
maintaining the same-level position, flexible work schedules and remote working arrangements.
• The Budapest Wizz Air headquarters has been relocated to a much larger office building, entirely
refurbished, promoting enhanced collaboration.
• The Abu Dhabi team also upgraded to a larger, more collaborative office space, complete with spacious
breakout rooms and a relaxing chill-out area.
• In the UK, our newly designed office is tailored specifically for WIZZ, providing a conducive work
environment. Additionally, it offers communal areas to foster employee well-being.
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Compensation and salary
In terms of compensation matters, Wizz Air designed its remuneration practices with a focus on base
salaries and providing a non-financial benefit that can factor in customer experience and employee
experience. The Company makes Wizz Air’s services available to all personnel at accessible, favourable and
discretionary price for leisure travel as a token of appreciation for the diligent performance of their duties
and for their continued loyalty to Wizz Air so that they all have the opportunity to experience Wizz Air flights
together with their family and friends.
Pay is only part of the proposition to join and stay at Wizz Air. Whilst the yearly salary reviews – also
supported by recurring market benchmark processes – allow adjustments, the best way to increase
compensation is through performance and career progression, which stands as a core element in all of
Wizz Air’s HR processes (talent management, compensation, development and organisational development).
Company events supporting employee engagement
As
social
interaction
and
building
strong, dedicated and efficient teams
are
an
important
part
of
the
WIZZ culture, we make sure to offer
opportunities to reunite with colleagues
and
celebrate
our
achievements
together. For this reason, we will
continue to organise corporate events
and programmes, such as the annual
Christmas
and
Wizz
Air
birthday
parties, department away days and
team
building
events,
or
other
programmes
such
as
the
WIZZ
Academy,
to
strengthen
Company
culture.
Employee engagement on sustainability
Our Company has consistently prioritised employee engagement in sustainability. By actively involving our
workforce in sustainable practices, we not only contribute to a greener future but also create a sense of
purpose and shared responsibility among our team members. We firmly believe that fostering a culture of
responsibility and stewardship begins with education and awareness of sustainability developments within
the workplace. By equipping our workforce with the necessary knowledge and resources, we continuously
build a motivated and informed team, poised to tackle the challenge of creating a more sustainable future.
Wizz Air has introduced a groundbreaking
WIZZ Sustainability Ambassadors Programme – a
testament to our unwavering dedication to
sustainability. Running from September 2023
to May 2024, this programme empowers
WIZZ Sustainability Ambassadors to actively
engage in local sustainability projects. These
projects vary from recycling initiatives to
charitable endeavours. Our Ambassadors play a
vital role in fostering eco-friendly practices
and sharing valuable sustainability insights with
their colleagues. For more information on the
Sustainability Ambassadors Programme please
visit page 81.
For the second time, Wizz Air initiated its internal campaign, the “Sustainability Month”, in November 2023.
As part of this campaign, we launched a four-week-long network-wide competition to inspire our employees
to adopt environmentally friendly practices and share their efforts on minimising their impact on the
environment. The goal is to encourage more and more people at Wizz Air to take up eco-friendly habits and
promote more sustainable daily routines.
Throughout this campaign WIZZ Sustainability Ambassadors have showed their enthusiasm and
commitment to sustainability by taking an active role and encouraging employees to use green
transportation, coordinating litter collection and tree planting events and providing assistance to those in
need through charitable donations.
We recognise the significance of indirect emissions, which arise from sources beyond our direct control. One
such source is employee commuting – the routine travel between their place of residence and the workplace.
To comprehensively assess our environmental footprint, we conduct an employee commuter survey twice a
year. This survey gathers information directly from our employees on how often they commute, their
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preferred modes of transport and the distance of their commute. By understanding these patterns, we can
develop strategies to minimise our impact and promote sustainable commuting options.
PEOPLE METRICS – OUR TEAM MEMBERS
Below we have outlined our most critical employee health metrics:
PEOPLE
UNIT
NOTE
F24
F23
Work-related accidents
#
1
57
14
Fatal accidents
#
2
—
—
Contractor accident rate
%
3
1
—
Contractor fatal accident rate
%
4
—
—
Number of employees
Total/31 March
5
8,044
7,389
Staff costs
m EUR
507.8
373.9
Revenue/employee
k EUR
630
527
Staff costs/revenue
%
10
10
Survey scores
eNPS
6
10
-9
Survey participation
%
7
53
55
Average attrition
%
8
18.92
9.35
All-Company gender diversity
% female
9
48
48
Leadership gender diversity
% female
10
35
32
Flight crew gender diversity
% female
11
4.86
4.68
Cabin crew gender diversity
% female
12
68
69
Office diversity
% female
13
42
42
All-Company national diversity
# nationalities
14
109
93
Leadership national diversity
# nationalities
15
19
17
Part-time ratio
%
16
2.28
0.49
Training per employee
Hours
17
22.35
30.71
Notes:
(1) Accidents: measures work-related accidents (excluding travel to/from work) involving occurrences where employee has
taken at least one day off from work. In response to a rise in work-related accidents, we have intensified our safety
communication efforts to ensure all employees are well-informed about the necessary safety measures while on duty. This
proactive approach aims to enhance workplace safety and mitigate potential risks.
(2) Fatal accident: number of accidents, as defined in Note 1, that result in fatality.
(3) Contractor accident rate: measures work-related accidents involving occurrences where contracted employee has
taken at least one day off from work.
(4) Contractor fatal accident rate: number of accidents, as defined in Note 3, that result in fatality.
(5) Number of employees: total number of active employees as of 31 March 2024 (excluding employees on leave of
absence, e.g. parental leave).
(6 and 7) Survey scores: the way of measuring your employees’ satisfaction levels, based on NPS methodology,
which is used to measure customer loyalty. The eNPS score is a number, calculated by subtracting the percentage of
“detractors” (who gave a score of 0–6 on a scale of 10) from the percentage of “promoters” (who gave a score of 8–10
on a scale of 10), and can range from -100 to 100. In F24, the eNPS of Wizz Air was 10 and the participation rate was
53 per cent of all employees.
(8) Attrition (average): the reduction in staff numbers across the organisation that occurs as employees resign,
retire or are dismissed – calculated as the total leavers in a financial year divided by the average headcount within that
financial year. Note, the calculation methodology was adjusted in F24, hence the difference between the reported
figures.
(9) All-Company gender diversity: percentage of total roles, including direct and indirect employment, occupied by
women.
(10) Leadership gender diversity: percentage of leadership roles, Heads of Function and above (also called
management), occupied by women.
(11) Flight crew gender diversity: percentage of flight deck employees, including direct and indirect employment,
occupied by women. As the flight deck diversity target for F30 is 7 per cent, this figure is reported with decimals to
represent the improvement year on year. In other publications, we refer to it as 5 per cent for simplicity.
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(12) Cabin crew gender diversity: percentage of cabin crew employees, including direct and indirect employment,
occupied by women.
(13) Office gender diversity: percentage of office employees, including direct and indirect employment, occupied by
women.
(14) Ethnic diversity: number of different nationalities, compiled based on declarations by employees at the time of
hire.
(15) Leadership ethnic diversity: number of different nationalities, compiled based on declarations by Heads of
Function and above.
(16) Part-time ratio: percentage of total employees who have reduced working time arrangements (not full-time
employees).
(17) Training hours per employee: number of offline training hours per employee, calculated based on all the
training sessions divided by average annual headcount in F24, not including outsourced or online training hours. Total
offline training hours were 176,097, while all training hours including offline and online events were a total of 367,868
hours in F24. In terms of online training, the Company’s cooperation with LinkedIn continues, offering office and crew
management employees access to digital, flexible and individually tailored development opportunities with unlimited
access via interactive, engaging courses. The flight deck and cabin crew also regularly receive digital training via
e-learning solutions, on top of their offline training.
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5. ADDRESS CHALLENGES FOR THE CONTINUOUS IMPROVEMENT OF CUSTOMER EXPERIENCE
At Wizz Air, we prioritise our customers, ensuring that their needs remain central to all our actions. In
F24, our Passenger Care Centre remained unwavering in its commitment to providing timely and
comprehensive support to our customers. We implemented early notifications regarding various events,
including strikes and terminal changes, ensuring travellers were well prepared. Additionally, in times of
unforeseen circumstances such as the Catania volcanic eruption or conflict escalation cases, our team
promptly communicated with customers, enabling us to uphold customer satisfaction and effectively
manage crises.
As part of the agreement with the UK Civil Aviation Authority in July 2023, Wizz Air made several
commitments regarding the handling of claims for costs incurred following flight disruptions. In January
2024, the Civil Aviation Authority confirmed that Wizz Air is fully compliant with the agreement.
Throughout F24, Wizz Air faced a surge in official claims,
primarily driven by activities from claim companies,
reaching its zenith during the summer of 2023. However,
our dedicated Customer Experience team diligently
focused on reducing the number of open cases,
successfully resolving 90 per cent of all official claims
received in F24. In response to the escalating volume
of claims, we implemented automated case allocation
systems, with further development slated for F25.
Negotiations commenced with major claim companies
to ensure sustainable management of official cases.
Technological advancements have played a pivotal role
in achieving automation rates of 85 per cent in
EC261-related customer case handling and 60 per cent
in third-party claim handling. Looking ahead to F25, we plan to introduce a host of new technologies,
including a fraud detection module and a disruption management support system, to further enhance our
customer service offerings. Expanding our contact centre capacity significantly reduced response times,
enhancing customer service as travel resumed. Building on this success, we will continue to refine our
operations, leveraging robust teams and advanced automated solutions to prioritise exemplary customer
care. In F24, significant strides were made in enhancing self-serve capabilities and automated solutions,
culminating in the development of a new Help Centre, which will be launched in Q1 F25, facilitating easy
access to information and guidance for our customers.
Furthermore, a new chatbot solution was selected to enhance technical capabilities while reducing
costs. The Customer Experience Quality Assurance project, initiated in Q3 F24, is expected to be
completed in Q1 F25, further improving and standardising the quality of customer service. To enhance
the quality of passenger interactions with our contracted ground handling partners, a recurring Conflict
and Incident Management workshop has been launched to provide additional training for effective
passenger communication and assistance during
disruptions. Moreover, the implementation of
a smart interactive voice recognition system
will be launched pre-summer that aims to
streamline flight status updates and disruption
management.
Our dedication to soliciting and acting upon
customer feedback is evident through the
maintenance of a disruption-specific customer
survey, which enables us to continuously
refine our customer experience strategy. In
line with our customer-centric approach, we
introduced innovative subscription programmes
such as WIZZ MultiPass and WIZZ MultiPass
Unlimited, catering to the diverse needs of
our customers and enhancing their travel
experiences.
As we continue to navigate through challenges and embrace opportunities, our unwavering focus on
improving customer service ensures that Wizz Air remains the airline of choice, both in F25 and beyond,
for both current and future customers.
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6. COMMUNITY PROGRAMMES AND CHARITABLE SUPPORT
As a responsible corporate citizen, Wizz Air has consistently risen to the occasion during challenging times.
Throughout the pandemic, Wizz Air launched cargo and repatriation services, ensuring the safe transport of
critical medical supplies and stranded passengers back to their homes. Additionally, in response to the
conflict in Ukraine, the airline introduced a programme offering free seats on flights departing from Ukraine’s
border countries, facilitating the journey for refugees to their chosen destinations. Furthermore, the airline
has been proactive in supporting local rescue efforts and swiftly organised emergency flights during natural
disasters and political crises in various countries over the past few years.
Beyond crisis response, Wizz Air actively engages in regular initiatives that benefit the communities where
we operate. Notably, this year’s projects include the following:
WIZZ marathons
Like affordable travel, a healthy and active lifestyle should be available to everyone. Running is the most
inclusive and affordable sport as one only needs a pair of running shoes – this sport is accessible and
affordable for all, similar to the ultra-low-cost, low-fare business model. Wizz Air sponsored nine running
events in seven countries, including our flagship event, the Budapest Half Marathon, and races in Bucharest,
Cluj-Napoca, Sofia, Skopje, Venice, Debrecen, London, and Dubai. A record-breaking 72,982 runners
challenged themselves with WIZZ last year, out of whom there were around 300 WIZZ runners participating.
WIZZ Foundation – Csodalámpa Foundation partnership
WIZZ Foundation has partnered with Csodalámpa Foundation in Hungary and Fundacja Mam Marzenie
in Poland. The purpose of these wish-granting foundations is to fulfil wishes of children who suffer from a
life-threatening disease. By making their wishes come true, the foundations hope to strengthen the
children’s and their families’ belief in recovery and help them to persevere through times of adversity.
As part of the cooperation, the WIZZ Foundation provides flight tickets (and the applicable services)
every year for children and their travelling guardians to support the foundations’ projects where the
surprise involves travelling to another destination by plane. In F24, Wizz Air supported the Csodalámpa
Foundation, completing eight special wishes, with a total number of 22 flight tickets provided to children
and their families, and Fundacja Mam Marzenie, completing six wishes, with a total number of 15 flight
tickets provided.
Sustainability Ambassadors Programme
In September 2023, Wizz Air launched its first of its kind WIZZ Sustainability Ambassadors Programme as
part of its long-term commitment to sustainability. Among the 7,000+ cabin crew and office employees at
Wizz Air, initially 24 Sustainability Ambassadors have been carefully selected and 22 started their journey in
September 2023. These ambassadors represent 20 bases and two offices across Albania, Austria, Bulgaria,
Cyprus, Georgia, Hungary, Italy, Malta, North Macedonia, Poland, Romania, the UAE and the UK.
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From September 2023 to May 2024, the WIZZ Sustainability Ambassadors actively supported local
sustainability projects, ranging from recycling initiatives, waste collection and tree planting to charitable
programmes at the airline’s bases and offices. Their goal is to promote eco-friendly practices and share
valuable sustainability insights with colleagues. By doing so, they play a pivotal role in developing green
initiatives, raising environmental awareness and driving positive changes within the Company. Since
September 2023, these 22 dedicated Sustainability Ambassadors have voluntarily embraced their roles and
implemented several initiatives and projects that are truly an inspiration for all employees at Wizz Air:
Wizz Air UK
• With the lead of the exemplary local
WIZZ Sustainability Ambassador, the
London Luton team actively supports
the communities around the airport
through initiatives like litter collection,
blood donation, food drives and
tree planting. During a sustainability
event organised by London Luton
Airport and the Forest of Marston
Vale,
the
ambassador-led
WIZZ
team came together and planted 97
trees.
This
collective
effort
has
garnered
significant
participation,
with almost 40 colleagues, including
the Managing Director of Wizz Air
UK Limited, actively contributing to
sustainability initiatives at the Luton
base.
Wizz Air Hungary
• One of the most engaged WIZZ Sustainability Ambassadors within the Wizz Air Hungary domain works at
Larnaca base in Cyprus. He organised a local lake beach clean-up in collaboration with the local town hall
to enhance area cleanliness and support biodiversity, particularly for the flamingos inhabiting the region.
Another initiative introduced as part of the voluntary Ambassador Programme is a trial for in-flight waste
collection for flights operating from Larnaca base.
Wizz Air Malta
• Within the network of Wizz Air Malta Ltd., notable initiatives have been introduced by the WIZZ
Sustainability Ambassador from Cluj-Napoca base. A group of employees from the Romanian base, led by
the Ambassador, participated in litter collection as part of a clean-up campaign at local parks. They have
also been involved in donation initiatives to help those in need. In an effort to champion circularity, the
team also repurposed its old WIZZ uniforms, transforming them into unique pillow covers for its crew
room.
Wizz Air Abu Dhabi
• The local WIZZ Sustainability Ambassador is working on various initiatives, and an important achievement
so far has been the desert renewal campaign he introduced. As part of this project, he gathered volunteers
from both the crew and office employee teams in Abu Dhabi, who participated in the Company’s first
desert clean-up event.
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ECONOMY PILLAR
IX. ECONOMY PILLAR
CONNECTING PEOPLE AND BOOSTING ECONOMIC GROWTH
Wizz Air’s impact extends far beyond air travel. It is not just about transporting
passengers from one destination to another. It is about making people’s lives better and
contributing to the economic well-being of the regions we serve. We are committed
to making travel more affordable for everyone. While providing affordable flights to
different destinations, Wizz Air also opens up new doors for businesses, and helps
create new job opportunities, drive tourism and boost the economies of these countries
and regions. Wizz Air’s key contributions in terms of connectivity are the following.
FOSTERING ECONOMIC GROWTH, JOB CREATION AND PERSONAL CONNECTIONS
Economic growth and job creation
• Business opportunities: Wizz Air’s affordable flights open up new avenues for businesses. By connecting
diverse destinations, we facilitate trade, investment and collaboration across borders.
• Job opportunities: Our operations create employment opportunities directly and indirectly. From pilots and
cabin crew to ground staff and maintenance personnel, Wizz Air contributes to job growth in the countries
where we operate. We aim to serve 170 million passengers by 2030 and create jobs for over 100,000
people in our network.
Boosting local economies
• Tourism: Wizz Air plays a pivotal role in driving tourism. Our flights introduce travellers to captivating
destinations, supporting local hospitality, attractions and cultural experiences.
• Economic impact: By connecting cities and regions, we stimulate economic activity. Our presence
encourages investment, infrastructure development and prosperity.
Passenger-centric approach
• Pay for what you use: Our transparent pricing model ensures that passengers pay only for the services
they need. This approach eliminates unnecessary costs and reduces waste.
• Positive passenger experience: Our highly trained workforce provides a welcoming environment on-board.
We prioritise safety, comfort and efficiency.
Reuniting people and helping them explore new horizons
• For those working abroad, Wizz Air often bridges the gap by providing affordable flights, helping families
reunite more frequently, strengthening bonds and creating lasting memories.
• Be it families, groups of friends or single travellers, they can explore destinations they’ve never been to.
Whether it’s a weekend getaway or an extended vacation, low-fare flights open up new doors for
adventure, culture and exploration.
• Many students within our network also rely on Wizz Air to pursue their studies abroad. We facilitate
seamless travel to universities and educational institutions across Europe.
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Environmental responsibility
• Efficient point-to-point network: Our network strategically connects destinations (including secondary
airports) where other modes of transportation may be impractical or unavailable. By flying direct, we
minimise emissions and enhance efficiency.
• Carbon footprint reduction: Wizz Air maintains one of the youngest aircraft fleets in the industry, resulting
in lower CO2 emissions per passenger kilometre. We invest in fleet renewal, sustainable aviation fuel,
fuel-saving initiatives and paperless flight operations.
PASSENGER TESTIMONIALS
At Wizz Air, we believe in a future where everyone has the freedom to travel. We believe that travel provides
opportunities that can make life and the world around us better. It is this vision that motivates us on a daily
basis, and rewards our increasingly diverse team dedicated to achieving it. We work hard, we have fun and
we get things done. For some, the sky is the limit; for us, the sky is where the fun begins. Over the years,
our wings have carried more than just passengers, and their personal stories often resonate with gratitude
and wonder:
“Thank you for making my last six years possible; “the sky is not the limit” is such a powerful and
noble goal. Thank you for always having a friendly and kind crew and attendants, and for making
many goals and dreams possible around the world!”
“The opportunity to explore such a remarkable city at an affordable cost meant a lot to us, particularly to
my son, a young blind pianist with learning difficulties, who has always had a deep passion for music and
a thirst to explore the world. The fact that Wizz Air provided him with a convenient and budget-
friendly option to travel was a game-changer. Being able to access new places and experiences first
hand is incredibly important for his growth and learning journey. I would like to commend your airline for
its affordability, exceptional service and friendly cabin crew. Thank you from the depths of our hearts
for making our journey not only feasible but also meaningful. We eagerly anticipate more journeys
with Wizz Air in the future.”
“You have helped me rather a
lot with your prices, offering
convenient timetables for me
to fly home and back. I would
like to say a warm thank you
to the whole Wizz Air crew and
staff for making my trips
unforgettable,
helping
me
achieve new memories.”
“I had big dreams and high
expectations on my first ever
flight with Wizz Air. I was
going to start a new job
abroad, swapping a country
where everyone speaks the
same language for one where
there’s a variety of dialects, not
to mention cultures, mentalities
and habits. And, not only was
this my first flight with
WIZZ, it was my first ever flight with any airline, anywhere! I was nervous indeed, but the crew all
made me feel totally at ease. I quickly developed a passion for aviation. I’m moving to a new
country, again, but I still see the pink Wizz Air planes that helped me get where I wanted in
my career.”
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OUR NETWORK PROGRESS IN F24
Wizz Air continued its significant capacity growth in F24, creating a number of new affordable travel
options while also contributing to the growth of the local economy. After a large expansion during the
previous fiscal years, we focused on offering more travel options in Central and Eastern Europe by remaining
the region’s largest carrier as well as densifying and diversifying our network in our newer ventures. We also
keep growing in other regions such as the Middle East, Central Asia and North Africa with new routes
and destinations.
In F24, we remained committed to bringing something new to our customers, as three new countries joined
the vast WIZZ network: the Maldives, Uzbekistan and Iraq. Throughout the year, Wizz Air has expanded by
26 exciting new destinations and 62 fresh routes. Wizz Air Abu Dhabi LLC launched eight new destinations
and carried a record-breaking 3 million passengers, more than doubling its capacity compared to the
previous year.
Marking
remarkable
progress,
the airline surpassed 90 million
passengers carried at London
Luton Airport, where Wizz Air is
the largest carrier (eleven aircraft
operating 50 return flights per day
to 60 destinations in 28 countries
in F24). We reached another
historic milestone of carrying
100 million passengers in Poland
in F24 after we greatly expanded
our route network and established
five operational bases in the
country.
Wizz Air has announced its largest
ever capacity and schedule for
summer 2024, with a €400 million
investment
in
the
market,
including four new Wizz Air aircraft,
six new routes and increased frequencies on existing routes in Italy. With this expansion, Wizz Air has a total
of 14 aircraft stationed in Rome and eight in Milan, serving nearly 230 routes spanning over 40 countries
and reinforcing its position as the go-to choice for travellers seeking seamless and diverse connections
across Europe and beyond. Since establishing its first base three years ago, Wizz Air has introduced more
than 50 new routes previously unserved in the market and created more than 1,000 direct jobs in Italy.
Airport leadership testimonials about Wizz Air’s role in society:
• Jonathan Rayner, Chief Commercial Officer of London Luton Airport, on reaching a milestone
of 70 million passengers who have travelled through London Luton Airport with Wizz Air:
“This is a fantastic achievement for Wizz Air at London Luton Airport and the latest key milestone in
a partnership that has continued to flourish since its first flight from Katowice in Poland almost
20 years ago. Since then, London Luton Airport and Wizz Air have worked closely to achieve
impressive, sustained growth in passenger numbers and an ever greater choice in destinations, as
well as collaborating on new solutions that support the airport’s commitment to sustainable aviation.
We look forward to another busy year as we continue to focus on delivering a simple and friendly
passenger experience and the next big milestone in our partnership.”
• Piervittorio Farabbi, Chief Operational Officer of Tirana International Airport:
“Wizz Air’s continuous commitment to Tirana International Airport has helped immensely to put
Albania on the map and open the country to millions of passengers from more countries than ever
before. In turn, our commitment and that of Kastrati Aviation Holding is to provide the right facilities
and the capacity required to accommodate any future growth.”
• Roberto Barbieri, CEO of GESAC, Naples:
“The new intercontinental flight to the capital of Saudi Arabia further strengthens the connectivity of
Naples Airport to an emerging geographical area in terms of tourism and results in an increase
of offer in the Middle East, where flights to Abu Dhabi, Dubai, Istanbul and Tel Aviv are already
operating. With Wizz Air, we share investments in and commitments to sustainability: the flight is, in
fact, operated by an Airbus 321neo with 239 seats, a latest generation aircraft with less
environmental impact, both in terms of noise emissions and CO2.”
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• Irakli Karkashadze, Chief Executive Officer of United Airports of Georgia, on allocating a
fourth aircraft at our Kutaisi base, consolidating Wizz Air’s position as the largest airline
operating from Kutaisi:
“We are delighted that we have a possibility to attract new destinations and increase the number of
existing flights. Stationing of the fourth jet and increased flight frequencies will result in a huge
growth in the number of tourists. The United Airports of Georgia’s goal is to offer quality services to
passengers and with our strategic partner Wizz Air we have the opportunity to reach our mutual
goals. Today, once again, we are able to see the result of a negotiation and strategy that we have
done right.”
• Maria Kouroupi, Senior Manager of Aviation Development and Communication of Hermes
Airports, Cyprus:
“Wizz Air’s successful establishment in the Cyprus market has been an important milestone for the
development of air connectivity on a year-round basis. The continued growth of the airline is
significantly contributing to the Cypriot economy and tourism, and we look forward to continuing our
partnership approach in further developing the air connectivity in our region.”
Economy-related key metrics
We have previously outlined the role we see for the Company towards the communities and countries where
we operate. Our related key metrics include:
COMMUNITIES
UNIT
NOTE
F24
F23
F22
Passenger numbers
m
1
62
51
27
Paid taxes
m EUR
2
809
632
304
Notes:
(1) Wizz Air reported 62.015 million booked passengers in F24, an increase of 21.4 per cent compared to F23.
(2) Wizz Air contributes to the communities it operates in through the payment of taxes. In F24, a total of
€809,478,216 of taxes were paid in the form of airport-related taxes, corporate income tax, local business taxes in
Hungary, payroll taxes, social security and other contributions (yet excluding carbon credit-related fees), or a total of
16 per cent of revenues. Wizz Air advocates for fair taxation policies, highlighting the disparity in tax treatment that
often benefits national airlines. Many jurisdictions impose taxes not tied to carbon emissions intensity but rather based
on past emissions, regardless of aircraft technology or noise levels. We are engaging with authorities and
environmental agencies to ensure there are environmental taxes to incentivise the right behaviour in the industry.
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X. CYBER SECURITY AND DATA PROTECTION
CYBER SECURITY
In today’s hyperconnected world, cyber security is paramount across all sectors. With the aviation industry
relying heavily on interconnected digital systems for flight operations, reservations and communication,
robust cyber security measures are essential to protect against cyber-attacks, data breaches and potential
disruptions. Wizz Air is highly aware of this issue and places it, along with data privacy, at the forefront of its
priorities, ensuring the highest level of regulatory compliance.
As cyber threats continue to evolve in sophistication and scale, the importance of robust cyber security
measures cannot be overstated. Ultimately, we have continued to invest in and strengthen the relevant
processes, systems and policies and have cooperated with the Data Protection function to further increase
our security preparedness.
Wizz Air’s Cyber Security Programme is led by a Cyber Security team made up of skilled professionals with
extensive experience in the field, focusing on the people, process and technology aspects of cyber by
running multiple workstreams. This includes regular risk assessments, compliance audits and oversight of
cyber security investments to align with industry best practices and regulatory requirements.
Wizz Air’s Cyber Security Programme is based on the NIST CSF, ISO 27001, Payment Card Industry (PCI)
Data Security Standards and Open Web Application Security Project® (OWASP) Standards. Wizz Air holds the
Cyber Certificate of Compliance from the Civil Aviation Authority (CAA) UK after going through the Cyber
Assessment Framework audit.
The Company follows a layered approach to ensure proper hygiene in cyber and data protection matters.
It involves safety mechanisms for prevention as the first line of defence, detection and response
mechanisms as the second line of defence, and robust recovery procedures. To mitigate cyber risks and
ensure the resilience of our digital systems, the Company employs a comprehensive testing regime that
encompasses internal and external security tests, including vulnerability assessments, penetration testing
and red team exercises. Our testing systems are designed to simulate real-world cyber threats, providing
valuable insights into the effectiveness of our cyber security defences and informing ongoing
improvements to our security posture.
Recognising that our employees are one of
our first lines of defence against cyber threats,
the Company regards employee cyber security
awareness and training a crucial factor. As such,
a comprehensive and compulsory e-learning
training
programme
for
all
colleagues
is
maintained as a key educational and prevention
measure, along with regular training sessions,
online courses and simulated phishing exercises.
Wizz Air’s cyber security and data protection
experts have created a cyber security awareness
campaign during which each month the team
shares valuable insights and practical tips to
strengthen the employees’ knowledge of the
fast-developing digital landscape. Each October
for the Awareness Month, Wizz Air Group
holds internal cyber security awareness training
including quizzes, one-pagers and informative
posts. Fake phishing messages are regularly
sent to employees to test situational awareness.
Our employees routinely rely on a well-
established IT service desk that is the unified
communication channel for reporting operational
issues, including cyber relevant cases. Beside
the materialised incident reporting, a centralised
issue management platform absorbs findings.
The reported items are thoroughly investigated
and assessed according to our risk management
rules and channelled into the operational risk
management process.
Wizz Air possesses an end-to-end (E2E) incident
management mechanism that manages all
aspects of third-party, IT and cyber events and
environmental changes and drives the escalation
based on predefined impact thresholds, then
triggering the appropriate response.
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DATA PROTECTION AND DATA GOVERNANCE
Data protection is a fundamental aspect of our operations, guided by strict adherence to regulatory
standards and internal policies to ensure the confidentiality, integrity and availability of sensitive information.
Therefore, Wizz Air has comprehensive cyber security and data protection measures to mitigate risks,
comply with regulatory requirements, and maintain the trust of our customers, employees and stakeholders.
Our data protection management framework encompasses comprehensive policies, procedures and controls
designed to safeguard personal information.
To ensure data security, Wizz Air has an appointed Group Data Protection Officer (DPO) who oversees our
data protection efforts, ensuring privacy by design at all levels and compliance with EU standards such as
the General Data Protection Regulation (GDPR) as well as with relevant international and national regulations
and guidelines.
To foster comprehensive understanding and awareness across the Group, we uphold an Internal Data
Protection Regulation. This regulation outlines the responsibilities of all employees and staff members. It
encompasses the confidentiality, authenticity, integrity, availability and functionality of the personal data
handled by the Group, safeguarding the privacy of employees, staff, customers, suppliers and business
partners.
For the data transfer chain to be legally sound within the value chain, Wizz Air employs its own contract
templates aligned with standard regulatory guidelines, primarily:
• the Guidelines 07/2020 of the European Data Protection Board on the concepts of controller and processor
in the GDPR (“the EDPB Guidelines 07/2020”); and
• the Commission Implementing Decision (EU) 2021/915 of 4 June 2021 on standard contractual clauses
between controllers and processors under Article 28(7) of Regulation (EU) 2016/679 (“the EU C2P Model
Contract”).
These standards guarantee proper regulation of the flow of personal data, with suppliers formally committing
to their obligations through written data processing agreements, thereby ensuring the protection of personal
data transferred outside of the Wizz Air Group.
In addition to the Internal Data Protection Regulation, the Group maintains a set of internal policies
accessible to all employees. These policies cover data of customers, suppliers, business partners and
employees as well as data classification rules.
Customised, regularly updated data enquiry manuals are available and training sessions are conducted for
customer service agents, focusing on the proper recognition and handling of data subject access requests
received by Wizz Air Group entities. This tailored training programme features quarterly train-the-trainer
sessions for supervisors, monthly multiple choice test-based training sessions, and personalised awareness-
raising initiatives for a rotating selection of contact centre agents. Additionally, the Company has initiated an
awareness-raising programme, including monthly posts on its internal Wizz Air Group website raising
awareness on cyber security and data protection-related issues, e.g. identification of personal data, data
breach and data subject access requests.
In case of a data breach, Wizz Air follows and complies with international and industry best practices and
standards and its obligation to continuously keep its data breach registry up to date. Whenever there is a
suspected data breach, Wizz Air prepares a risk assessment based on the European Union Agency for
Cybersecurity’s (ENISA) scoring methodology guidelines to determine the actions needed. Employees have a
written obligation to report any suspected data breach to the Group DPO. In order to facilitate the
identification of possible data breaches, breach awareness is present throughout Wizz Air Group’s internal
pages, as well as training and onboarding materials.
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XI. INDICES
RESPONDING TO TCFD RECOMMENDED DISCLOSURES
Governance
Disclose the organisation’s governance around climate-
related risks and opportunities.
Recommended disclosure a)
Describe the board’s oversight of climate-
related risks and opportunities.
Board-level oversight is with the Chief Executive and the Chairman
of the Board, as well as the Sustainability and Culture Committee.
See pages 25-28.
Recommended disclosure b)
Describe management’s role in assessing
and managing climate-related risks and
opportunities.
Management defines strategies and drives progress through the
Corporate and ESG Officer and the cross-functional Sustainability
Council. See pages 25-28.
Our disclosure is consistent with the TCFD framework.
Strategy
Disclose the actual and potential impacts of climate-related risks
and opportunities on the organisation’s businesses, strategy and
financial planning where such information is material.
Recommended disclosure a)
Describe the climate-related risks and
opportunities the organisation has identified
over the short, medium and long term.
The ongoing development of our risk register including climate-
related risks is integrated into the ERM process (see page 106), but
independently researched and supported via our sustainability
consultants at Deloitte Ltd. Hungary, as outlined further on pages
33–39.
Recommended disclosure b)
Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy and financial planning.
Addressed through our comprehensive climate strategy; see pages
34-39, where we have outlined how climate risk analysis and risk
management are embedded in our financial planning for the short
and medium-term risks and opportunities.
Recommended disclosure c)
Describe the resilience of the organisation’s
strategy, taking into consideration different
climate-related scenarios, including a 2°C or
lower scenario.
Our climate strategy integrates climate risk assessments and is
embedded in our short, medium and long-term planning process.
Our climate scenario modelling processes include a qualitative and a
quantitative analysis with the applicable risks under four different
climate-related scenarios. Please refer to pages 33–39.
Our disclosure is consistent with the TCFD framework.
Risk management
Disclose how the organisation identifies, assesses and
manages climate-related risks.
Recommended disclosure a)
Describe the organisation’s processes for
identifying and assessing climate-related risks.
Climate-related risks are identified as part of our ERM process
(page 106), based on cross-functional alignments and
independently reviewed by third-party climate risk assessment
experts (pages 33 and 34).
Recommended disclosure b)
Describe the organisation’s processes for
managing climate-related risks.
By integrating sustainability and climate as key focus areas
of our corporate strategies, we intend to be a pioneer on all
relevant climate-related areas for the Company. See pages 31 and
32, and 40–55.
Recommended disclosure c)
Describe how processes for identifying,
assessing and managing climate-related risks
are integrated into the organisation’s overall
risk management.
We manage climate-related and ESG risks through our corporate
ERM framework. The Company’s risk register identifies a wide array
of ESG-related risks, a sub-group of which includes climate risks.
See pages 34 and 106.
Our disclosure is consistent with the TCFD framework. We are constantly working on developing our ERM framework
and the applicable internal risk management processes, to ensure heightened resilience in the face of climate change.
Metrics and targets
Disclose the metrics and targets used to assess and manage
relevant climate-related risks and opportunities where such
information is material.
Recommended disclosure a)
Disclose the metrics used by the organisation
to assess climate-related risks and
opportunities in line with its strategy and risk
management process.
See pages 19, and 40–58 for our environmental metrics and targets.
Recommended disclosure b)
Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 greenhouse gas
(GHG) emissions, and the related risks.
We report extensively on Scope 1, Scope 2 and Scope 3 emissions
on pages 55 and 56.
Recommended disclosure c)
Describe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets.
See page 146 regarding the Directors’ Remuneration Report and
page 152 for climate-related metrics in CEO incentives.
Our disclosure is consistent with the TCFD framework. We will continue to improve our greenhouse gas disclosure with
increased data granularity regarding location-based emissions reporting in the short and medium term.
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GRI Index
Statement of use
Wizz Air Holdings Plc.
Registered seat: 44 Esplanade, St Helier,
Jersey JE4 9WG, registration number: 103356.
GRI 1 used
The Sustainability Report includes all operating entities under
the Company, namely Wizz Air Hungary Ltd., Wizz Air UK Ltd.,
Wizz Air Abu Dhabi LLC, and Wizz Air Malta Ltd.
GRI 2: GENERAL DISCLOSURE
DISCLOSURE
DETAILS AND LOCATION IN THE REPORT
2-1
Organisational details
Wizz Air Holdings Plc.
Registered seat: 44 Esplanade, St Helier,
Jersey JE4 9WG, registration number: 103356.
2-2
Entities included in the organisation’s
sustainability reporting
The Sustainability Report includes all operating entities under
the Company, namely Wizz Air Hungary Ltd., Wizz Air UK Ltd.,
Wizz Air Abu Dhabi LLC, and Wizz Air Malta Ltd.
2-3
Reporting period, frequency and
contact point
Reporting period: Financial year 2024 (F24) (1 Apr 2023–
31 Mar 2024).
Frequency: Annual.
Date of publication: 14 June 2024.
Contact: dissustainabilityteam@wizzair.com.
2-4
Restatements of information
For the first time in F24, the Company is incorporating the
Radiative Forcing Index (RFI) in its CO2 emissions reporting as
per
the
recommendation
of
the
UK’s
Department
for
Environment, Food and Rural Affairs (DEFRA) 2023 methodology
of GHG conversion factors for company reporting.
The methodology for accounting for natural gas has been
modified in F24. This year, natural gas consumption at all sites is
included in Scope 2, categorised as purchased heat. Scope 2
encompasses all heating systems that are not owned or operated
directly by the Company compared to last year where natural gas
usage was accounted for in Scope 1.
In F24, Wizz Air has updated its methodology for waste-to-
landfill reporting, now employing EU standards and statistical
data to calculate the ratio of waste going to landfill.
2-5
External assurance
Emissions data from intra-European flights (EU and UK Emission
Trading Schemes) and all other flights falling under the scope of
the UN Carbon Offsetting and Reduction Scheme for International
Aviation (CORSIA) are reviewed and verified by Verifavia, an
independent third party, for the calendar year 2024.
Independent assurance is a key part of our approach to
reporting. This year, we engaged KPMG Hungary Ltd. to provide
limited assurance on Wizz Air Group’s environment and
greenhouse gas (GHG) metrics, for which the applicable certificate
will be separately available on Wizz Air's sustainability website. The
Company’s F24 GHG reporting will be receiving independent
limited assurance from KPMG Hungary Ltd., which will be made
available on Wizz Air’s sustainability website, once their work is
completed.
2-6
Activities, value chain and other
business relationships
Aviation and airlines.
More details on the Company’s supply chain are included in the
“Working towards a sustainable supply chain and enhanced third-
party risk assessment” section of the ESG Report on page 52.
2-7
Employees
Total number of employees in F24: 8,044.
More information in the people metrics table on page 78.
2-8
Workers who are not employees
Data related to the indirect/contractor employee data and
information is currently insufficient. The Company is actively
engaged in compiling a more relevant and exhaustive set of data
for future use.
2-9
Governance structure and composition
Wizz Air’s sustainability governance is explained on pages 25–28
Wizz Air’s central governance structure and composition is
covered in the Corporate chapter on pages 114–171.
2-10
Nomination and selection of the
highest governance body
Detailed under the corporate chapter, from page 144.
2-11
Chair of the highest governance body
William A. Franke – Chairman of the Board of Directors.
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DISCLOSURE
DETAILS AND LOCATION IN THE REPORT
2-12
Role of the highest governance body in
overseeing the management of impacts
Our sustainability and climate governance section can be found
on page 25.
Corporate chapter, pages 114–171.
2-13
Delegation of responsibility for
managing impacts
The climate risk management section of the report starts on
page 27.
2-14
Role of the highest governance body in
sustainability reporting
The Board of Directors, including the Sustainability and Culture
Committee, has ultimate oversight of the Company's sustainability
strategy, its TCFD reporting, climate-related issues and target
setting, reported to it by the responsible Corporate and ESG Officer.
The Audit and Risk Committee of the Board receives bi-annual
updates about the climate-related physical and transition risks
via the Enterprise Risk Management framework and the Group’s
Leadership Team.
The Sustainability Report was reviewed and approved by Wizz
Air's responsible Executive Officer, as well as the Sustainability
and Culture Committee and the Board of Directors.
2-15
Conflicts of interest
Ethical business conduct section, pages 28–29.
Policy of Good Conduct.
2-16
Communication of critical concerns
Anti-Corruption Policy.
Policy of Good Conduct.
2-17
Collective knowledge of the highest
governance body
Corporate chapter, page 124.
2-18
Evaluation of the performance of the
highest governance body
Corporate chapter, page 122.
2-19
Remuneration policies
Corporate chapter, pages 146–163.
2-20
Process to determine remuneration
Corporate chapter, pages 146–163.
2-21
Annual total compensation ratio
Corporate chapter, page 164.
2-22
Statement on sustainable development
strategy
Position on climate change section, page 31.
UN Sustainable Development Goals, page 20.
2-23
Policy commitments
Anti-Corruption Policy.
Policy of Good Conduct.
Equal Opportunities and Fair Treatment Policy.
Supplier Code of Conduct.
Anti-Slavery and Human Trafficking Policy.
2-24
Embedding policy commitments
See 2-23.
2-25
Processes to remediate negative
impacts
See 2-23.
2-26
Mechanisms for seeking advice and
raising concerns
See 2-23.
2-27
Compliance with laws and regulations
Ethical business conduct section, page 28.
2-28
Membership associations
Member of the European Commission’s Alliance for Zero Emission
Aviation, and the Renewable and Low-Carbon Fuels Value Chain
Industrial Alliance, pages 50–52.
2-29
Approach to stakeholder engagement
Stakeholder management section, page 22.
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2-30
Collective bargaining agreements
Wizz Air is not party to any third-party collective bargaining
agreements. Wizz Air’s approach to employee engagement is one
of innovative direct dialogue, which is the most effective way to
safeguard and promote: (i) the right to freedom of expression;
(ii) the right to obtain or impart information necessary to make
an informed choice on matters relevant to the workplace; and
(iii) the right to protection against interference with privacy,
family, home, correspondence or reputation.
Our approach is based on cooperation by relying on face-to-face
interaction and communication through innovative technologies.
This approach offers a better alternative to more contentious and
outdated practices used by third parties.
We remain faithful to these convictions by relying on our People
Council which provides a platform for discussions between
management and employees. In addition, the Company has
appointed a dedicated independent Board member responsible
for overseeing engagement with employees. Feedback is
periodically shared with the Board of Directors and transformed
into actions relating to remuneration and work–life balance. Our
executive management (including our CEO) conducts regular
floor talks and base visits where all employees are invited to
participate, raise any topic they may deem relevant and discuss
it openly and transparently.
GRI 3: MATERIAL TOPICS
DISCLOSURE
DETAILS AND LOCATION IN THE REPORT
3-1
Process to determine material topics
Materiality assessment section, pages 22–23.
3-2
List of material topics
Materiality assessment section, pages 22–23.
GRI 305: EMISSIONS
3-3
Management of material topics
Environment section, pages 40–58.
305-1 Direct (Scope 1) GHG emissions
All environmental metrics section, page 55.
305-2 Energy indirect (Scope 2) GHG
emissions
All environmental metrics section, page 55.
305-3 Other indirect (Scope 3) GHG
emissions
All environmental metrics section, page 55.
305-4 GHG emissions intensity
All environmental metrics section, page 55.
305-5 Reduction of GHG emissions
Environment section, pages 40–58.
CLIMATE CHANGE
3-3
Management of material topics
Our climate-related targets and priorities section, pages 31–39.
RENEWABLES
3-3
Management of material topics
Sustainable aviation fuels section, page 46.
NOISE EMISSIONS
3-3
Management of material topics
Noise emission reductions section, page 49.
GRI 401: EMPLOYMENT
3-3
Management of material topics
People section of the report, page 66–79.
401-1 New employee hires and employee
turnover
People metrics section, page 78.
401-2 Benefits provided to full-time
employees that are not provided to
temporary or part-time employees
People metrics section, page 78.
401-3
Parental leave
Wizz Air acknowledges the significance of striking a balance
between work and personal commitments. Keeping this in mind,
we offer flexible options (e.g flexible work schedule, home office
arrangements) for employees returning from parental leave
whilst also complying with all applicable local regulations.
• A total of 618 employees took parental leave during F24,
comprising 602 females and 16 males.
• A total of 246 employees returned to work after parental leave,
235 females and 11 males.
• A total of 192 employees returned to work in F23 and are still
working after 365 days of return, 170 females and 22 males.
• In F24, the retention rate for employees who took parental
leave was 82 per cent, with 81 per cent of females and 88 per
cent of males retained.
GRI 403: OCCUPATIONAL HEALTH AND SAFETY
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93
3-3
Management of material topics
Health and safety and operational safety section,
page 64.
403-1 Occupational health and safety
management system
Health and safety and operational safety section,
page 64.
403-3 Occupational health services
Health and safety and operational safety section,
page 64.
403-4 Worker participation, consultation, and
communication on occupational health
and safety
Health and safety and operational safety section,
page 64.
403-5 Worker training on occupational health
and safety
Training of our flight and cabin crew, page 67.
GRI 404: TRAINING AND EDUCATION
3-3
Management of material topics
Recruit and develop our employees section, pages 67–73.
404-1
Average hours of training per year per
employee
People metrics section, page 78.
404-2
Programmes for upgrading employee
skills and transition assistance
programmes
Recruit and develop our employees section, page 67.
404-3 Percentage of employees receiving
regular performance and career
development reviews
Regular performance and talent review section, page 70.
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY
3-3
Management of material topics
The diversity of our employees section, pages 70–73.
405-1 Diversity of governance bodies and
employees
The diversity of our employees section, pages 70–73.
ETHICAL BUSINESS CONDUCT
3-3
Management of material topics
Our commitment to ethical business conduct, page 28.
GRI 416: CUSTOMER HEALTH AND SAFETY
3-3
Management of material topics
Health and safety and operational safety section, page 64.
416-1
Assessment of the health and safety
impacts of product and service
categories
Health and safety and operational safety section, page 64.
COMPLAINTS MANAGEMENT
3-3
Management of material topics
Continuous improvement of customer experience section,
page 80.
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94
MODERN SLAVERY ACT DISCLOSURE STATEMENT 2024
This statement is made pursuant to section 54(1) of the UK Modern Slavery Act 2015 and pertains to the
fiscal year ended 31 March 2024. This statement is made by Wizz Air Holdings Plc, the parent of all four
operating airlines, Wizz Air Hungary Ltd., Wizz Air UK Ltd., Wizz Air Abu Dhabi LLC and Wizz Air Malta Ltd.,
on behalf of the Group (together, “Wizz Air”, “we”).
Wizz Air is committed to acting ethically and with integrity in our business dealings. It is Wizz Air’s
expectation that our suppliers also conduct themselves in this manner. Wizz Air is committed to improving
its practices to combat slavery and human trafficking and seek out where it exists in our dealings with third
parties and suppliers, and in our supply chain in order to meet our commitments. As defined by the UK
Modern Slavery Act 2015, “modern slavery” includes the offences of “slavery, servitude and forced or
compulsory labour”, as well as “human trafficking”.
In accordance with section 54 of the Act, in this statement we refer to the following:
1.
organisational structure and supply chain;
2.
policies;
3.
due diligence;
4.
risk assessment;
5.
our effectiveness in combating slavery and human trafficking; and
6.
training.
1. Organisational structure and supply chain
a)
WIZZ
Wizz Air offers low-cost, low-fare passenger air transportation services on scheduled short-haul and
medium-haul point-to-point routes across Europe and to a number of destinations in the Middle East, as well
as North Africa and Northwest Asia. A team of dedicated aviation professionals delivers superior service,
making Wizz Air the preferred choice of 62.0 million passengers in the financial year F24 ended
31 March 2024. Its fleet consists of 208 aircraft and its network spans more than 924 routes across more
than 50 countries. Wizz Air employs over 8,000 people across a network of 30 bases. Our Company is
incorporated in Jersey. Wizz Air Holdings Plc has four airline subsidiaries: Wizz Air Hungary Ltd., Wizz Air UK
Ltd., Wizz Air Malta Ltd. and Wizz Air Abu Dhabi LLC. For further details of Wizz Air’s subsidiaries and
corporate structure, please see page 216.
b)
Our supply chain
Wizz Air expects its suppliers to adhere to the highest standards of business internally and in relation to their
respective supply chains, and comply with their own human rights regimes and Modern Slavery Act
obligations. Wizz Air operates in a highly regulated sector and our supply chain is predominantly service
based within Europe. Our suppliers have to conform to the necessary aviation safety standards and
certification. However, we recognise that we play a part in making a contribution to reduce the occurrence of
modern slavery and human trafficking.
Whilst we have received no reports of incidents, we are taking steps to identify and detect human trafficking.
We recognise that we need to update our processes to detect such incidents. Our Anti-Slavery and Human
Trafficking Policy assists us in doing this. The policy applies to all persons working for us or on our behalf in
any capacity, including employees at all levels, Directors, Officers, agency workers, seconded workers,
volunteers, interns, agents, contractors, external consultants, third-party representatives and business
partners.
2. Policies
We are committed to assessing any instance of non-compliance regarding modern slavery or human
trafficking on a case-by-case basis. We have in place policies related to human rights principles, including
our Anti-Slavery and Human Trafficking Policy. As well as this, our Code of Ethics, “The Wizz Way”, applies
to every Company employee regardless of seniority. These, along with our Supplier Code of Conduct,
Whistleblowing Policy, Anti-Fraud Policy and Anti-Corruption Policy, help us to maintain an effective
compliance environment across our supply chain. Actions in relation to these policies are reviewed by the
Audit and Risk Committee of the Board.
These policies are part of employees’ onboarding programme, and are also accessible via the Company’s
intranet site. New or revised policies are published on Wizz Air’s internal Workplace site to raise awareness.
Our Supplier Code of Conduct is included in all tenders and requires acknowledgement and acceptance as a
prerequisite for all candidates.
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95
3. Due diligence
Due diligence processes include management of compliance with our Supplier Code of Conduct and ensuring
that the Company’s Purchasing department incorporates dedicated contractual clauses into agreements,
ensuring the prevention of slavery. Wizz Air has recently entered into a partnership with a company
specialised in third-party risk management; its solution will allow assessments across various environmental,
social and governance topics and enables a thorough analysis of our supplier base, to identify and
successfully manage risks during tender evaluations and after contracting as well.
4. Risk assessment
Risk assessments are undertaken as part of our whistleblowing processes and Supplier Code of Conduct
compliance. Our Whistleblowing Policy covers any report made via whistleblowing channels of any
infringement of the Code of Conduct of Wizz Air or the laws of any jurisdiction, where a Wizz Air entity is
established, or the European Union. WIZZ believes that in order to ensure the continued integrity of its
business, there shall be an effective reporting line for its employees. If the employees suspect any breach of
Company policies, they can raise their concerns and report it to the relevant personnel anonymously via the
whistleblowing programme, as detailed in the policy.
5. Our effectiveness in combating slavery and human trafficking
We are committed to ensuring that collectively these measures will help to assist us in combating modern
slavery and human trafficking. However, we recognise that we need to measure our effectiveness through
the use of KPIs, and we will be looking to use indicators such as vetting procedures, supplier screening
measures, sub-contractor inspections (particularly in known at-risk countries), whistleblowing reports,
percentage of staff trained, and any remedial action taken following reports or incidents of slavery or human
trafficking in the near future.
As part of our ongoing commitment to combating modern slavery and human trafficking, we will continue to
review and develop our processes.
6. Training
Wizz Air delivers online compliance training relating to its Code of Ethics to every staff member. In addition,
we are adding anti-slavery training to every crew member as part of their annual security training sessions.
Furthermore, employees are encouraged to raise legal or ethical concerns through various channels, such as
their managers or any member of the management team or Human Resources. This is a key feature of our
Anti-Slavery and Human Trafficking Policy as well as our Whistleblowing Policy.
The above statement has been approved by the Board of Wizz Air Holdings Plc.
József Váradi
Chief Executive Officer
14 June 2024
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96
FINANCIAL REVIEW
In F24, Wizz Air reported a net profit of €365.9 million, returning to a full fiscal year of profitable operations
as it carried a record 62.0 million passengers (F23: 51.1 million). It was also a year in which Wizz Air
delivered markedly improved operations, increasing on-time performance, aircraft utilisation and staff
productivity. As the industry continued its post-COVID-19 recovery, Wizz Air recorded its third consecutive
year of record capacity year-on-year growth, adding 24.5 per cent more capacity vs F23.
Total revenue increased by 30.2 per cent year on year, and unit revenue grew by 4.6 per cent,
demonstrating that our choice of markets and fleet allocation programme are delivering amid another year
of record capacity growth. We captured demand well across both the mature and maturing segments of our
network, absorbing operational disruptions, including the emergence of the Israel–Hamas war in October of
last year.
The resilience of the business was further tested with the grounding of a portion of our neo fleet for
mandatory engine inspections. Despite the grounding of nearly a quarter of our fleet at the beginning of the
fourth quarter, as a result of timely and decisive action in response to this challenge, we are confident that,
in the current year, we will be able to operate capacity comparable to last year. We expect to achieve this
through a combination of new aircraft deliveries, existing fleet lease extensions, securing additional aircraft
capacity from the market and delivering higher utilisation.
The grounding of our neo fleet contributed to cost pressures, compounding the challenges of an already
strained supply chain. However, we moved swiftly to secure a comprehensive support and compensation
package from the OEM, mitigating the operational and financial impact on the business.
During the year, flight disruption charges were elevated, exacerbated by supply chain and geopolitical
events. This further validates our resolution to continue to invest in both our operations and the customer
experience, as the business continues to expand and to ensure greater resilience in the face of challenges.
In terms of broader cost trends during F24, the structural advantages of operating a young fuel-efficient
fleet (age 4.3 years) with high-density seating (224 average seat count), and our ultra-low-cost business
model, were evident in our positive results. We delivered 7.8 per cent lower unit ex-fuel costs year on year,
reaching €2.38 cents per ASK.
Total fuel costs, including the cost of carbon and the impact of hedging, were 5.0 per cent lower year on
year, while fuel CASK decreased by 23.7 per cent, as market prices came down compared to the previous
year. We also saw an improvement in fuel efficiency, measured in fuel consumption/ASK, which reduced by
1.6 per cent year on year. Our policies of hedging jet fuel and related foreign currency have equally
protected the business well during the year, and we continue to take a considered approach to hedging
going forward. During the year, we secured further EUR currency leases and have introduced new fleet
ownership structures (in addition to JOLCO) that will impact deliveries in the current fiscal year.
The macro variables with significant influence on the financial performance of the Group:
F24
F23
Change
Average jet fuel price ($/metric tonne, including into-plane premium and
impact of effective hedges)
1,000
1,218
(17.9) %
Average EUR/USD rate (including impact of effective hedges)
1.08
1.04
4.2%
Year-end EUR/USD rate
1.08
1.08
—
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97
Financial overview
Summary consolidated statement of comprehensive income
€ million
F24
F23
Change
Total revenue
5,073.1
3,895.7
30.2 %
Fuel costs
(1,855.7) (1,954.4)
(5.0) %
Operating expenses excluding fuel costs
(2,779.5) (2,408.1)
15.4 %
Total operating expenses
(4,635.2) (4,362.5)
6.3 %
Operating profit/(loss)
437.9
(466.8)
n.m.
Operating margin
8.6 %
(12.0) %
n.m.
Net financing expense
(96.8)
(97.9)
(1.1) %
Profit/(loss) before income tax
341.1
(564.6)
n.m.
Income tax credit
24.8
29.5
(16.1) %
Profit/(loss) for the year
365.9
(535.1)
n.m.
n.m.: not meaningful as a variance is more than (-)100 per cent.
Earnings/(loss) per share
Earnings/(loss) per share, EUR (Note 12)
F24
F23
Change
Basic earnings/(loss) per share, €
3.64
(5.07)
8.71
Diluted earnings/(loss) per share, €
2.96
(5.07)
8.03
Financial performance
Revenue
The following table sets out an overview of revenue streams for F24 and F23 and the percentage change in
those items:
F24
F23
Total
(€ million)
Percentage of
total revenue
Total
(€ million)
Percentage of
total revenue
Percentage
change
Passenger ticket revenue1
2,804.2
55.3%
2,024.9
52.0%
38.5%
Ancillary revenue1
2,268.9
44.7%
1,870.8
48.0%
21.3%
Total revenue
5,073.1
100.0%
3,895.7
100.0%
30.2%
1.
For further definition of non-financial measures presented refer to the Glossary of terms and Alternative performance measures
(APMs) sections of this document.
Total revenue increased by 30.2 per cent to €5,073.1 million in F24 from €3,895.7 million in F23 driven
mainly by the capacity increase year on year and a stronger load factor, supported by sustained customer
demand. Passenger ticket revenue increased by 38.5 per cent to €2,804.2 million in F24 from
€2,024.9 million in F23, and ancillary revenue increased by 21.3 per cent to €2,268.9 million in F24 from
€1,870.8 million in F23. RASK increased by 4.6 per cent to 4.17 Euro cents in F24 from 3.98 Euro cents in
F23. Ticket RASK increased by 11.2 per cent to 2.30 Euro cents in F24, reflecting improved load factor year
on year and a favourable pricing environment, specifically during the peak periods. Ancillary RASK
decreased by 2.6 per cent to 1.86 Euro cents, mainly driven by the impact of the Israel–Hamas war denting
demand in markets with high ancillary spend.
Operating expenses
Total operating expenses increased by 6.3 per cent to €4,635.2 million in F24 from €4,362.5 million in F23.
Total CASK decreased to 3.90 Euro cents in F24 from 4.58 Euro cents in F23, driven mainly by lower fuel
charges in the period along with sale and leaseback gains and supplier compensations in the other expense
line. Ex-fuel CASK decreased by 7.8 per cent to 2.38 Euro cents in F24 from 2.58 Euro cents in F23,
reflecting improved aircraft utilisation and on-time performance, various savings in navigation and
maintenance lines plus the effect of supplier compensations and gains from multiple spare engine financing
in the last fiscal quarter (spare engines advanced to support GTF engine inspections).
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98
The following table sets out for F24 and F23 the expenses relevant for the CASK measure and the
percentage changes in those expenses:
F24
F23
Total
(€ million)
Percentage
of total
operating
expenses
Unit cost
(€cts/ASK)
Total
(€ million)
Percentage
of total
operating
expenses
Unit cost
(€cts/
ASK)
Percentage
change of
total cost
Staff costs
507.8
11.0%
0.42
373.9
8.6%
0.38
35.8%
Fuel costs
1,855.7
40.0%
1.52
1,954.4
44.8%
2.00
(5.0) %
Distribution and marketing
117.1
2.5%
0.10
91.5
2.1%
0.09
27.9%
Maintenance materials and
repairs
285.0
6.1%
0.23
237.0
5.4%
0.24
20.3%
Airport, handling and
en-route charges
1,210.1
26.1%
0.99
963.2
22.1%
0.99
25.6%
Depreciation and
amortisation
755.3
16.3%
0.62
601.1
13.8%
0.61
25.7%
Net other (income)/expense
(95.8)
(2.1%)
(0.08)
141.3
3.2%
0.14
(167.8) %
Total operating expenses
4,635.2
100.0%
3.81
4,362.5
100.0%
4.46
6.3%
Net cost from financial
income and expense
116.2
0.10
114.5
0.12
1.5%
Total
4,751.4
3.90
4,476.9
4.58
6.1%
Total ex-fuel cost
2,895.7
62.5%
2.38
2,522.6
57.8 %
2.58
14.8%
Staff costs were €507.8 million in F24, up by 35.8 per cent from €373.9 million in F23, reflecting a 16.4 per
cent increase in staff numbers, higher aircraft utilisation and the cost-of-living adjustments to salaries year
on year.
Fuel costs decreased by 5.0 per cent to €1,855.7 million in F24 from €1,954.4 million in F23 and fuel CASK
decreased by 23.7 per cent to 1.52 Euro cents in F24 from 2.00 Euro cents in F23. The average fuel price,
including hedging impact and into-plane premium, decreased by 17.9 per cent to $1,000 per metric tonne in
F24 from $1,218 per metric tonne in F23. In addition to fuel price impact, fuel consumption (metric tonnes
per ASKs) decreased by 1.6 per cent year on year, as the share of neo (more fuel-efficient aircraft variant)
in the fleet reached 61.1 per cent.
Distribution and marketing costs increased by 27.9 per cent to €117.1 million in F24 from €91.5 million in
F23 tracking in line with the revenue increase during the period.
Maintenance, materials and repair costs increased by 20.3 per cent to €285.0 million in F24 from
€237.0 million in F23, due to larger fleet and greater number of maintenance events.
Airport, handling and en-route charges increased by 25.6 per cent to €1,210.1 million in F24 from
€963.2 million in F23, reflecting the increase in passenger numbers versus last year.
Depreciation and amortisation charges increased by 25.7 per cent to €755.3 million in F24, up from
€601.1 million in F23, driven mainly by larger fleet and the increased aircraft utilisation (operational
utilisation in F24 was 12:25 hours versus 11:08 hours in F23).
Net other income of (95.8) million in F24, compared to a €141.3 million expense in F23, consists mainly of:
gains on aircraft and engine sale and leaseback transactions of €244.8 million, credits and compensation
received from suppliers of €198.6 million, flight disruption-related expenses of €186.9 million and various
expenses related to crew and overheads amounting to €66.4 million and €83.2 million, respectively. For
further details, please refer to Note 7.
Net financing income and expense
The following table sets out an overview of net financing expenses for F24 and F23 and the percentage
change in those items:
€ million
F24
F23
Change
Net financial expense
(116.2)
(114.5)
1.5%
Net foreign exchange gains
19.4
16.6
16.8%
Net financing expense
(96.8)
(97.9)
(1.1) %
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99
Net financing expenses decreased by 1.1 per cent to €96.8 million in F24 from €97.9 million in F23, of
which:
▶
Financial income represents an increase of 287.2 per cent on the back of an increase in short-term cash
deposits and higher interest rate environment in F24.
▶
Financial expenses increased by 45.4 per cent driven by the interest charges related to lease liabilities
under IFRS 16 connected to the increased fleet size and the higher interest rate environment, PDP
financing and ETS repurchasing.
▶
Net foreign exchange gains increased by 16.8 per cent due to a more favourable EUR/USD exchange
environment during F24. The unrealised portion of the foreign exchange gain, mainly driven by
revaluation of US Dollar denominated lease liabilities, amounted to a €34.2 million gain in F24,
compared to a €9.1 million gain in F23.
Taxation
The Group recorded an income tax credit of €24.8 million in F24 compared to the €29.5 million credit in F23.
The effective rate for the Group in F24 was negative 7.3 per cent compared to 5.2 per cent in F23. The main
components of the tax credit in F24 were changes in deferred tax assets, partially offset by corporate
income tax and local business tax charges in Hungary. For further details please refer to Note 11.
Profit for the year
The Group earned a net profit of €365.9 million in F24, compared to the net loss of €535.1 million in F23.
Other comprehensive income and expenses
In F24 the Group had other comprehensive income of €129.4 million compared to an expense of
€88.8 million in F23. The change is mainly attributable to the favourable impact of fair values of the Group’s
open hedge positions in F24.
Return on capital employed and capital structure
Return on capital employed (ROCE)1 is a non-statutory performance measure commonly used to measure
the financial returns that a business achieves on the capital it uses. ROCE for F24 was 11.1 per cent,
compared to (13.5) per cent for the previous year.
Two rating agencies, Fitch and Moody’s, have issued updates during the third quarter with Fitch maintaining
Wizz Air’s BBB- investment grade profile with negative outlook, while Moody’s issued a Ba1 rating with stable
outlook.
The Company’s leverage ratio1 is 4.0 at the end of the 2024 financial year, while liquidity1 decreased to
29.2 per cent from 36.2 per cent at the end of the 2023 financial year partially as a result of the Company
repaying its January 2024 maturity €500 million bond obligation from cash on hand.
F24
F23
Change
ROCE
11.1%
(13.5) %
24.6 ppt
Leverage ratio
4.0
29.0
(25.0) ppt
Liquidity
29.2%
36.2%
(7.0) ppt
1.
For definitions of non-financial measures presented refer to the Glossary of terms and Alternative performance measures (APMs)
sections of this document.
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100
Cash flows and financial position
Summary statement of cash flows
The following table sets out selected cash flow data and the Group’s cash and cash equivalents for F24
and F23:
€ million
F24
F23
Change
Net cash generated by operating activities
676.8
421.9
60%
Net cash (used in)/generated by investing activities
(360.0)
532.9
n.m.
Net cash used in financing activities
(1,016.1)
(311.2)
n.m.
Net (decrease)/increase in cash and cash equivalents
(699.3)
643.7
n.m.
Cash and cash equivalents at the beginning of the year
1,402.6
766.6
83%
Effect of exchange rate fluctuations on cash and cash equivalents
13.1
(7.7)
n.m.
Cash and cash equivalents at the end of the year
716.4
1,402.6
(49) %
n.m.: not meaningful as a variance is more than (-)100 per cent.
Cash flows from operating activities
The majority of Wizz Air’s cash inflows from operating activities are derived from the sale of passenger
tickets and ancillary services. Net cash flows from operating activities are also affected by movements in
working capital items.
Cash generated by operating activities increased from €421.9 million in F23 to €676.8 million in F24
primarily driven by the following factors:
▶
Operating cash flows before adjusting for changes in working capital improved by €892.0 million year on
year driven by the market recovery and increase in demand.
▶
Changes in working capital deteriorated by €626.7 million, primarily due to stabilised trading conditions.
This stability led to smaller fluctuation in unearned revenue (tickets paid by passengers for future
flights), following a significant increase in post-COVID-19 activity. Additionally, there were higher levels
of trade and other receivables (payments pending for collection on tickets sold) and accrued credits from
key suppliers.
Cash flows from investing activities
Investing activities resulted in €360.0 million net cash used in F24, compared to €532.9 million net cash
generated in F23, due to the following:
▶
The net cash flows from advances paid and refunded in relation to aircraft deliveries increased by
€121.8 million from a €12.1 million cash outflow in F23 to a €109.7 million cash inflow in F24.
▶
Cash outflows due to the increase in short-term cash deposits was €748.5 million in F24 compared to
the cash inflow in the amount of €450.0 million due to the decrease in cash deposits in F23.
▶
Net cash flows from the purchase and sale of tangible and intangible assets including sale and leaseback
transactions increased by €130.7 million from a €77.60 million cash inflow in F23 to a €208.3 million
cash inflow in F24.
Cash flows from financing activities
Net cash outflow from financing activities increased from €311.2 million (F23) to €1,016.1 million in F24.
The principal elements of the F24 outflow were as follows:
▶
Repayments of loans and other types of financing and interest on them amounting to €1,499.0 million
(F23: €619.7 million) which includes bond repayment and interest payment on the bond of
€511.8 million (F23: €11.8 million interest), less proceeds from new loans and other types of financing
of €482.9 million (F23: €308.5 million) comprising aircraft and engine financing of €228.9 million
(F23: €308.5 million) and a borrowing secured with emission trading scheme (ETS) units of
€254.0 million (F23: €nil).
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101
Summary consolidated statement of financial position
The following table sets out summary statements of the financial position of the Group for F24 and F23:
€ million
F24
F23
Change
ASSETS
Property, plant and equipment
5,815.0
4,666.0
1,149.0
Restricted cash1
109.4
120.4
(11.0)
Derivative financial instruments1
36.9
1.2
35.7
Trade and other receivables1
706.7
411.4
295.3
Short-term cash deposits
751.1
—
751.1
Cash and cash equivalents
728.4
1,408.6
(680.2)
Other assets1
547.4
426.8
120.6
Total assets
8,694.9
7,034.4
1,660.5
EQUITY AND LIABILITIES
EQUITY
Equity
145.7
(357.9)
503.6
LIABILITIES
Trade and other payables1
1,022.4
945.4
77.0
Borrowings (incl. convertible debt)1
6,269.7
5,301.4
968.3
Deferred income1
944.6
873.6
71.0
Derivative financial instruments1
0.7
108.4
(107.7)
Provisions1
274.3
156.1
118.2
Other liabilities1
37.5
7.3
30.2
Total liabilities
8,549.2
7,392.3
1,156.9
Total equity and liabilities
8,694.9
7,034.4
1,660.5
1.
Including both current and non-current asset and liability balances, respectively.
Property, plant and equipment increased by €1,149.0 million as at 31 March 2024 compared to
31 March 2023, primarily driven by the investment made in JOLCO financed aircraft and sale and leaseback
financed right-of-use assets (see also Notes 13 and 14 to the financial statements).
Restricted cash (current and non-current) decreased by €11.0 million as at 31 March 2024 compared to the
year before. The majority of this balance is linked to Wizz Air’s aircraft lease contracts, being cash deposits
behind letters of credit issued by Wizz Air’s banks related primarily to lease security deposits and
maintenance reserves.
Derivative financial assets (current and non-current) increased by €35.7 million as at 31 March 2024
compared to 31 March 2023 (see also Notes 3 and 21 to the financial statements). These balances are
related to fuel hedge instruments.
Trade and other receivables increased by €295.3 million as at 31 March 2024 compared to 31 March 2023.
This was primarily driven by an increase in trade receivables as a result of increased sales and operational
level.
Cash and cash equivalents amounted to €728.4 million at 31 March 2024 (2023: €1,408.6 million), and
short-term cash deposits to €751.1 million at 31 March 2024 (2023: €nil).
Borrowings (including convertible debt) increased by €968.3 million as at 31 March 2024 compared to
31 March 2023. The increase was primarily driven by lease liabilities recognised during the fiscal year, and
financing against aircraft pre-delivery payments (see Note 23 to the financial statements).
Deferred income increased by €71.0 million as at 31 March 2024 compared to 31 March 2023 (see Note 26
to the financial statements). This was primarily driven by an increase in unearned revenue and in deferred
supplier credits.
Derivative financial liabilities (current and non-current) decreased by €107.7 million as at 31 March 2024
compared to 31 March 2023 (see Notes 3 and 21 to the financial statements). These balances are related to
fuel hedge instruments.
Provisions increased by €118.2 million as at 31 March 2024 compared to 31 March 2023, in line with the
planned aircraft maintenance schedule (see Note 29 to the financial statements).
In F24, the Group’s financial position returned to positive, marking a significant recovery. This turnaround
was driven by stabilised trading conditions, increased post-COVID-19 activity, and substantial capacity
growth. These factors contributed to improved cash flows and a stronger financial foundation, positioning the
Group for sustained growth and resilience.
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Hedging strategy
Wizz Air operates under a clear set of treasury policies approved by the Board and supervised by the Audit
and Risk Committee. The hedging policy’s objective is to establish a framework to identify, report and
manage foreign currency and fuel exposures aiming to provide greater certainty and protection to the value
of the Group’s net income, net equity and related cash flows that are exposed to possible adverse
movements in foreign currency exchange rates and jet fuel prices. This is achieved through disciplined
programmatic and discretionary layering for a set time horizon (18 months) with regular rollover maintaining
hedge coverage levels.
The hedges under the hedging policy will be rolled forward quarterly, 18 months out, with coverage levels
over time reaching indicatively between 65 per cent for the first quarter of the hedging horizon and 15 per
cent for the last quarter of the hedging horizon. Hedging instruments are zero-cost collars mostly but also
jet fuel swaps are used for shorter dated exposures. In line with the hedging policy, Wizz Air also hedges its
fuel consumption-related US Dollar exposure in a similar fashion. Hedge coverages as of 17 May 2024 are
set out below:
Fuel hedge coverage
Period covered
F25
F26
11 months
7 months
Exposure in metric tonnes (‘000)
1,655.1
1,811.7
Coverage in metric tonnes (‘000)
981.0
185.0
Hedge coverage for the period
59 %
10 %
Coverage by hedge types:
Zero-cost collars in metric tonnes ('000)
934.0
185.0
Weighted average ceiling
$859.0
$850.0
Weighted average floor
$750.0
$737.0
SWAP in metric tonnes (‘000)
47.0
—
Weighted average price
$811.0
—
Foreign exchange hedge coverage
Period covered
F25
F26
11 months
7 months
Exposure (million)
$1,353.0
$1,437.0
Coverage (million)
$845.0
$152.0
Hedge coverage for the period
62 %
11 %
Weighted average ceiling
$1.1222
$1.1249
Weighted average floor
$1.0790
$1.0820
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Near-term and full-year outlook:
The near-term and full-year outlook is summarised as follows:
▶
Capacity (ASKs): H1 F25 and F25 flat YoY;
▶
Load factors: F25 92 per cent;
▶
Revenue: F25 RASK up high single digit YoY;
▶
Cost: F25 ex-fuel CASK up high single digit YoY; and F25 fuel CASK “flattish” YoY;
▶
Net income: F25 in the range of €500-600 million, at current FX rates; and
▶
Group corporate effective tax rate (ETR): 14 per cent.
Certain information provided in this Annual Report pertains to forward-looking statements and is subject to
significant risks and uncertainties that may cause actual results to differ materially. It is not feasible to
enumerate all the factors and specific events that could impact the outlook and performance of an airline
group operating across Europe, the Middle East, and beyond, as Wizz Air does. Some of the factors that are
susceptible to change and could notably influence Wizz Air’s anticipated results include demand for aviation
transport services, fuel costs, competition from both new and established carriers, availability of Pratt &
Whitney GTF engines, turnaround times at Engine Shops, expenses related to environmental, safety, and
security measures, the availability of suitable insurance coverage, actions taken by governments and
regulatory agencies, disruptions caused by weather conditions, air traffic control strikes, revenue
performance and staffing issues, delivery delays of contracted aircraft, fluctuations in exchange and interest
rates, airport access and fees, labour relations, the economic climate within the industry, passengers’
inclination to travel, social, and political factors, including global pandemics, and unforeseen security
incidents.
Ian Malin
Chief Financial Officer
14 June 2024
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KEY STATISTICS
F24
F23
Change
CAPACITY
Number of aircraft at end of period*
208
179
16.2%
Number of operating aircraft at end of period*
160
179
(10.6%)
Equivalent aircraft*
190.8
163.8
16.5%
Equivalent operating aircraft*
176.4
163.8
7.7%
Utilisation (block hours per aircraft per day)
11:29
11:08
3.1%
Utilisation (block hours per operating aircraft per day)
12:25
11:08
10.2%
Total block hours
802,346
666,476
20.4%
Total flight hours
699,837
580,863
20.5%
Revenue departures
309,594
267,707
15.6%
Average departures per day per aircraft
4.43
4.48
(1.1%)
Seat capacity
68,813,271
58,190,317
18.3%
Average aircraft stage length (km)
1,769
1,680
5.3%
Total ASKs (’000 km)
121,749,697
97,779,087
24.5%
OPERATING DATA
RPKs (revenue passenger kilometres) (’000 km)
109,962,210
86,807,338
26.7%
Load factor (%)
90.1%
87.8%
2.6%
Number of passenger segments
62,015,792
51,071,836
21.4%
Fuel price (US$ per tonne, including hedging impact and into-plane
premium)
1,000
1,218
(17.9%)
Foreign exchange rate (US$/€ including hedging impact)
1.09
1.04
4.8%
*
In F23 aircraft at end of period includes three Ukraine aircraft that were considered operational during F23 and therefore were also
included in operating aircraft at end of period. In F24 aircraft at end of period includes three Ukraine aircraft although these aircraft
are now excluded from operating aircraft at end of period.
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EMERGING AND PRINCIPAL RISKS AND UNCERTAINTIES
This section of the Annual Report sets out our risk management process and provides an overview of the
emerging and principal risks that could, if not appropriately dealt with, affect Wizz Air’s future success. Risk
management is a dynamic and ever evolving area, and the Company is committed to proactively identifying
and effectively managing risks.
We continued integrating the lessons learned from the past few years, such as the ongoing war between
Ukraine and Russia that caused high geopolitical instability, high fuel prices and high inflationary pressure
together with a volatile overall business environment. The gained experience helped us to handle the Israeli
conflict in a more effective and systematic way. In the meantime, Wizz Air faced a new type of challenge due
to the unscheduled Pratt & Whitney GTF engine inspections, causing the grounding of aircraft from our fleet
and requiring more rigorous risk monitoring.
The Company continued the periodic evaluation of the environmental risks. Given the EU’s ambition to
become climate neutral by 2050, the regulations on corporate sustainability are tightening, with the inclusion
of directives such as the Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy. Both
regulations require the assessment of climate risks (CSRD will require a scenario analysis-based assessment
of both transitional and physical climate risks; meanwhile EU Taxonomy requires the assessment of physical
risks for determining the sustainability of certain investments) and are putting increasing pressure on
Wizz Air to take all required steps to reduce and eventually eliminate emissions from travel and, as a result,
mitigate environmental risks.
Our risk management process
The Board is responsible for the Group’s risk management and it has delegated to the Audit and Risk
Committee the task of monitoring the adequacy and effectiveness of the Group’s risk management systems.
The Group has a comprehensive Enterprise Risk Management (ERM) process to support the achievement of
business and strategic goals. As part of our ERM process, risks are identified and collected in our risk
universe and individual risks are organised into risk categories. Risks are analysed for likelihood and impact
using the qualitative approach. A risk response is determined depending on the risk category and the risk
appetite which can range from “averse” to “actively seeking” depending on how much risk the Group
assesses to be appropriate within our industry and business model.
The alteration in risk appetite of the Company compared to the F24 mid-year review was minimal,
predominantly attributed to shifts in macroeconomic and geopolitical landscapes, as well as disturbances
within supply chains. The majority of the Wizz Air risk categories have “averse” risk appetite due to their
safety/compliance/regulatory nature. Similar to the prior year, in F24 we have also assessed environmental,
social and governance (ESG)-related risks with an “averse” risk appetite in order to drive a deliberate
agenda on sustainability – with respect to climate and communities served by WIZZ, and corporate
governance – as it is becoming increasingly important to the Company. Those risk categories where our risk
appetite is categorised as “cautious/open” are mostly risks related to growth and network expansion, where
a healthy level of risk taking is part of the DNA of the Group to further our commercial agenda and deliver
against our Shareholder value creation goals (e.g. major strategic initiatives, network management or our
aircraft programme, and commodity and exchange rate volatility). Wizz Air’s risk appetite for the category
“aircraft utilisation” changed to minimal from open due to the fact that it became of utmost importance to
maximise the utilisation of the existing aircraft and engines considering the unscheduled engine
replacement. The risk appetite for hedging changed to minimal from open in line with the internal
procedures to minimise the risk exposure resulting from exchange rates, jet fuel price changes and
counterparties.
As part of this process, the Group’s Leadership Team, as the final risk owners and decision makers, and the
Senior Internal Audit Manager meet regularly (minimum two times per year), to consider and update the
emerging and principal risks identified and the status of the response plans. The resulting risk report is then
reviewed with the Audit and Risk Committee and presented to the Board. The Board is therefore satisfied
that it has carried out a robust assessment of the emerging and principal risks facing the Group, including
those that would threaten its business model, future performance, solvency or liquidity.
Risks relating to the Group
Introduction
The principal risks identified by the Group’s Leadership Team fall into nine broad groupings which are largely
consistent with the groupings of F23 and include a deeper assessment of external factors, ESG and global
geopolitical risks. Additionally, climate risks have been separated from social and governance risks,
facilitating enhanced risk and opportunity identification, as well as more effective action planning in each
respective domain:
▶
information technology and cyber risk, including website availability, protection of our own and our
customers’ data, and ensuring the availability of operation-critical systems in a significantly escalating
threat landscape;
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▶
external factors, ensuring the Company has capabilities and resilience to deal with risks such as
geopolitical risks, inflation, fuel cost, foreign exchange rates, risk of higher cost of doing business,
competition, general economic trends, and the default of a partner financial institution;
▶
fleet development, ensuring the Company has the right number of aircraft available at the right time to
take advantage of commercial opportunities and grow in a disciplined way without any supply chain
disruption;
▶
operations, including safety events and terrorist incidents and employee and passenger security;
▶
network development, making sure that we are making the best use of our capacity, driving maximum
utilisation and ensuring that we have access to the right airport infrastructure at the right price so that
we can keep on delivering the superior Wizz Air service at low fares across an expanding network;
▶
regulatory risk, making sure that we remain compliant with regulations affecting our business and
operations and we remain agile to react to the changing governmental actions due to a slowing
economic landscape, ownership and control, loss of traffic rights, and changing policies due to
sustainability (taxation, etc.);
▶
human resources, ensuring we are able to recruit the right quality and the right number of colleagues to
support our ambition to grow and, once recruited, that they remain engaged and motivated and that the
Company has appropriate succession management in place for key colleagues;
▶
social and governance risks, making sure we operate in accordance with our core values and our value
of integrity, respected throughout our business processes and deals, and providing transparency to all
our stakeholders through responsible reporting and disclosure; and
▶
environmental risk, ensuring that we are able to answer the growing need of environmental protection
and consciousness, mitigate the emerging transition and physical risks and create a sustainable, climate-
friendly service for our customers at all times, respecting the planet.
Principal risks requiring the most attention in F25
Out of the principal risks the following will need the most attention in F25:
▶
Information technology and cyber risk – due to increasing IT dependence and the complexity of the IT
landscape, cyber security, data protection and security are highly critical elements of our operations, and
one of the areas also closely and regularly monitored by our Board. As cyber security is a constantly
evolving challenge, we have continued to invest in and strengthen the relevant processes, systems and
policies, a comprehensive and compulsory e-learning training programme for all colleagues is maintained
and the Company’s Cyber Security team is made up of skilled professionals with extensive experience in
the field, focusing on the people, process and technology aspects of cyber by running multiple
workstreams.
▶
External factors, of which the most critical are the changes in oil prices affecting fuel costs, as well as
adverse movements in the EUR/USD exchange rate or in other currency pairs. Both factors can have a
significant negative impact on Wizz Air’s net profit. Given the sustained and ongoing volatility in
commodity prices Wizz Air maintains its hedging policy and ensures its policy is aligned to those of its
peers. The Company maintains hedge coverage at broadly similar levels to its main peers via a Board
approved systemic hedging policy rolling positions forward quarterly, 18 months out.
•
The ongoing war between Ukraine and Russia creates further challenges and a hostile business
environment, especially for WIZZ, whose flight operations must accommodate restricted airspace
and other related air traffic effects. All Russian operations continue to be suspended indefinitely and
all contracts and third-party providers are reviewed to ensure there are no Russian or otherwise
sanctioned ties.
•
Tel Aviv (TLV) operations were suspended due to the safety and security reasons as a result of the
emerged conflict zone in Israel and Palestine. After due consideration and detailed risk assessments,
Wizz Air resumed flights to TLV as of 1 March 2024. Our dedicated teams will continue assessing the
Israeli airspace as well as the overall state of geopolitics in the region as we are committed to taking
immediate necessary actions to uphold safety standards.
▶
Fleet development-related risks, because of which our long-term plans were facing a temporary
challenge due to the Pratt & Whitney GTF engine inspections, causing the grounding of aircraft from our
fleet. Given the prevailing challenges in achieving our main targets (like completion rate, aircraft
utilisation, crew productivity and on-time performance), we have decided to follow a wide range of risk
mitigation measures, including increasing the number of spare engines, extending the leases of existing
unaffected aircraft and securing additional aircraft from third parties. Aircraft manufacturers still suffer
supply chain related delays in the production as a result of COVID-19 and geopolitical material sourcing
constraints. Wizz Air is in constant dialogue with Airbus ensuring sufficient capacity to deliver the
planned growth.
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▶
Human resources risks pose a large challenge, which the Company had to face during the engine
inspection period while trying to maintain the utilisation of the fleet and the crew at the same time, as
well as to keep up with the continued growth of the airline within the upcoming and forecasted ramp-up
period once the engine inspections are completed, which will require a constant supply of staff. An
insufficient number of flight crew and the inability to find, develop and retain the appropriate office staff
represent one of the most critical risks in this area.
▶
Environmental/climate-related risks require significant focus from the Company. Climate change is
acknowledged as a potential risk to Wizz Air, affecting our business in the short, medium and long term
due to the physical and climate policy risks as well as the related reporting requirements. During F24 we
continued to improve our existing climate risk assessment approach, working with expert sustainability
and climate consultants from Deloitte Ltd. Hungary. Through a detailed assessment, which was
supplemented by interviews and a data collection exercise covering all key business areas (such as
Wizz Air’s services, operations and supply chain), the main climate risks were identified including those
categorised as high-impact risks in any time horizon, or those that have at least medium risk impacts for
each time horizon. Taking into consideration the latest scientific findings and relevant literature, we also
evaluated Wizz Air’s vulnerability with regard to key operational areas, critical airport bases within our
network, and the location of our tier one suppliers.
Information technology and cyber risk
As in prior years, over 90 per cent of bookings were made directly on our website (at wizzair.com) and via
our mobile app in F24 and refunds were mostly handled through digital channels. The Wizz Air flight crew
leverages a recently implemented Electronic Flight Bag solution to optimise flight performance. We are
therefore dependent on our information technology systems to enable and manage ticket reservations and
other payments and we need to handle and protect data in compliance with industry standards and GDPR
requirements. We leverage technology to check in passengers, manage our traffic network, perform flight
operations and engage in other critical business tasks. Our website and our mobile app are our shop window
and therefore it is critical that they are functional, reliable and secure.
As cyber security is a constantly evolving challenge, we have continued to invest in and strengthen the
relevant processes, systems and policies and have cooperated with the Data Protection Officer to further
increase our security preparedness. Wizz Air follows a multi-layered approach to ensure stringent standards
in both cyber security and data protection matters. It involves safety mechanisms for prevention as the first
line of defence and detection and response mechanisms as its second line of defence, while implementing
robust recovery procedures.
Besides employing an experienced internal IT and Cyber Security team, we continue to involve external
cyber security experts and service providers. This option delivers a more stable cyber security capability,
which is more important to deliver continued progress on strengthening cyber security to protect
business-critical systems and data. Beyond Wizz Air, we focus on supplier processes and practices to ensure
all possible gaps are adequately identified and addressed where needed.
During F24 as part of the continuous improvement efforts, several of the Company’s business continuity
plans were reviewed and updated to ensure they remain appropriate and sufficient for the Company’s
continued growth. The up-to-date state and the operability of the business continuity plans are ensured
through regular testing and maintenance. Business continuity and crisis management plans were activated
and are used with success due to the ongoing war between Ukraine and Russia.
The recently established IT Service Continuity Management (ITSCM) workstream acts as an enabler to
achieve the Company’s business continuity objectives via seamless integration into the organisation-wide
Business Continuity Management (BCM) Programme.
Cyber risk is a hugely important consideration for our business and is one of the areas closely monitored by
the Board. Our systems could be attacked in a number of ways and with varying outcomes – for example,
unavailability of wizzair.com or operation-critical systems or theft of our customers’ data that could result in
considerable loss of customer confidence. Regarding customer card data handling, we successfully passed
the annual PCI DSS accreditation audit again in January 2024.
During F24, we have continued to invest in and strengthen such processes, systems and policies and have
closely worked together with the Data Protection Officer. Cyber security is a constantly evolving challenge
and one of the key issues related to cyber security is our colleagues’ awareness of the risk and of
the possible ways in which our business could be attacked and, therefore, a comprehensive and compulsory
e-learning training programme for all colleagues is maintained. Training, tests and exercises conducted by
the Digital team were continuous in F24 and will be ongoing in F25 as well. Our IT Security department
continues to review emerging threats and the Board oversees the actions being taken to safeguard our
Company.
Regional conflicts during F24 further changed the cyber security landscape. The cyber security threat level
increased in all industries around the world. Threats include website attacks, end-user phishing, ransomware
attacks, compromises via a trusted third party and many others.
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A growing business, both in headcount and geographic reach, combined with more distributed working
patterns, places more pressure on Wizz Air’s IT infrastructure and its reliability is more important than
before in ensuring business continuity. The Company strengthened its Cyber Security team by adding
additional resources and hiring a new digital leader with several decades of experience gained in the
telecommunications and banking sectors.
External factors
The International Air Transport Association (IATA) announced stabilised profitability projections for the global
airline industry for the calendar year 2024. However, net profitability at the global level is expected to be
well below the cost of capital. Very significant regional variations in financial performance remain. In 2024,
the airline industry is expected to reach net profit of $25.7 billion – a 2.7 per cent net profit margin. That will
be a slight improvement compared to profit and margin figures achieved.
According to IATA’s forecast released on 6 December 2023, jet kerosene is expected to average $113.8/
barrel in 2024. Regardless, the actual jet kerosene price remained slightly above $100/barrel in the first
quarter of 2024.
We are exposed to global political, economic and epidemic events and trends. A worldwide economic
downturn affects demand for air travel. Our business extends beyond the borders of the EU and into regions
including the Caucasus, North Africa, Central Asia and the Middle East.
The ongoing war between Ukraine and Russia not only closes two emerging markets for Wizz Air but also
borders other significant WIZZ base countries. Additionally, the war between Israel and Gaza further
increased the extent of the conflict zones affecting Wizz Air's operational activities. The conflict activated the
crisis management protocols and the continuous and active monitoring of the situation. Employee and
passenger security is of utmost importance for Wizz Air and our Company adjusts its internal protocols and
policies to protect its employees and passengers while flying with Wizz Air.
Some of the other regions we operate in have, in the past, experienced, and may also in the future be
subject to, further potential political and economic instability caused by changes in governments, political
deadlock in the legislative process, contested election results, tension and local, regional or international
conflicts, corruption among governmental officials, social and ethnic unrest and currency instability. Certain
countries were more affected by COVID-19 than others and may have a longer path to recovery, requiring
us to diversify our network and approach. We maintain close relationships with local authorities and, as an
organisation, we are able to react quickly to adverse events.
Given the sustained and ongoing volatility in commodity prices, Wizz Air decided to continue trading based
on the reinstated hedging policies that were aligned to those of its peers. These revised policies were
approved by the Board and are being rolled forward quarterly, 18 months out. As a result, the Company will:
1.
maintain hedge coverage at broadly similar levels to its main peers; and
2.
put jet fuel price caps in place, according to the policy limiting the exposure for the Company should
further extreme volatility in jet fuel prices be observed in market.
We are an international business and, while we report in Euros, we transact in over 20 currencies. A large
proportion of our payments are denominated in US Dollars. Appreciation of the US Dollar against the Euro
may negatively impact results and margins. The Company’s hedging policies call for similar hedging of
transactional USD exposure with regard to jet fuel. In all cases, hedging transactions are subject to the
approval of the Audit and Risk Committee.
During F24 fuel including ETS and into-plane premium (IPP) accounted for 40 per cent of our total Group
operating costs and a rise in fuel prices will significantly affect our operating costs.
Competition is one of the key risks to our business. Our competitors continuously strive to protect or gain
market share in markets in which we operate, by offering discounted fares or more attractive schedules.
States are often large and/or majority shareholders in competitive airlines. Competition can adversely affect
our revenues and so we constantly monitor our competitors’ actions and the performance of our route
network to ensure that we take both reactive and proactive actions in a timely manner. Ultimately, our key
competitive strength is our commitment to driving our costs ever lower while delivering a superior service
and building a loyal customer base. We firmly believe that in tough market conditions lowest cost ultimately
wins and therefore we are relentlessly committed to the strictest cost discipline day in and day out.
Regardless of the future discussions, we believe diversification of our network and markets is a key part of
a sustainable business strategy and we remain confident that CEE, Western Europe, the Middle East and
their surrounding regions are large addressable markets which will continue to provide opportunities for
profitable growth.
Financial counterparties
We believe that a strong cash position is a vital foundation for the Company’s continued aggressive growth
and its ability to capture commercial opportunities as they arise. Therefore, we actively manage the
safeguarding of our financial assets and monitor the viability of our banking and hedging counterparties. In
fact, all of the Company’s cash is invested in accordance with a Board-approved counterparty risk policy
which assigns investment limits to each counterparty based upon its credit rating.
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Network development
During F24 Wizz Air Group continued its market expansion and diversification strategy. Wizz Air Group has
reported net fleet growth by 29 ACs in F24, further expanding its market footprint.
Additional capacity has been deployed to existing as well as new markets across the network (like Türkiye).
Fleet development
In order to support its growth plans, Wizz Air requires additional aircraft. Wizz Air puts emphasis on new
aircraft – currently operating one of the youngest fleets in Europe with an average age of just 4.3 years.
Having a modern and reliable fleet means Wizz Air can utilise it for over twelve hours a day in normal
circumstances. For the business it means lower unit operating costs and, for Wizz Air customers, lower
prices. Since early 2019 the Company started to take delivery of the A321neo aircraft and currently operates
these narrow-body aircraft which are the most efficient technology today and likely to remain that way over
the next few years. As at 31 March 2024, Wizz Air’s delivery order book comprises a firm order for 13x
A320neo, 266x A321neo and 47x A321XLR aircraft, a total of 326 aircraft.
Aircraft deliveries materially continued during the pandemic which will allow Wizz Air to gain advantage in
the near future. A large aircraft order is a significant financial commitment and requires financing. During
F24 delivered aircraft were financed through 30 sale and leaseback arrangements and 9 Japanese Operating
Leases with Call Options (JOLCOs). In the upcoming few years, Wizz Air will take delivery of a record number
of aircraft per year and as a Company is focused on multiple possibilities to finance its future fleet to ensure
it secures the most cost competitive terms. Wizz Air is confident that, given both the A320 family’s
desirability as a result of its superior operating economics and Wizz Air’s established strong financial track
record, financing will be readily available on competitive terms for the foreseeable future.
Due to a worldwide cycle-driven mandatory inspection programme issued by Pratt & Whitney for its GTF
PW1100 engines, Wizz Air had to ground between 40 and 45 aircraft at the beginning of 2024. Because of
the groundings, which are expected to last for at least 18 to 24 months, Wizz Air has extended multiple
existing aircraft leases and taken on a few aircraft as dry leases to cover the affected period. This includes
13 secured lease extensions for calendar year 2024 and Wizz Air is working to secure a further eleven,
subject to internal approvals and contracting. The lease extensions range between two and four years and
are being agreed at both discounted and original lease rates. Wizz Air also secured three former Wizz Air
aircraft on dry lease (to be delivered in F25), while also adding eight wet leased aircraft for periods ranging
from six to twelve months, providing additional capacity in F25. In addition, the continuous stream of new
aircraft from Airbus ensures that Wizz Air can offer the same seat capacity to the market in 2025 compared
to 2024 and will continue its growth plans from 2026 onwards. Wizz Air is in constant dialogue with Pratt &
Whitney to mitigate the impact on its operations and has concluded a compensation agreement with Pratt &
Whitney to mitigate the financial impact of the grounded aircraft until the end of the 2024 calendar year. The
extension of the agreement for the following period is currently being negotiated with Pratt & Whitney.
With the advances in technology, aircraft computer technology intended to make flight operations safer is
becoming more sophisticated and may sometimes fail. Similarly, design flaws of aircraft components may
lead to costly delays of aircraft delivery. Wizz Air is in close contact with its key suppliers, such as Airbus and
Pratt & Whitney, to ensure sufficient capacity to deliver its planned growth and that crews are trained to the
highest standard possible and are adept at using the latest aircraft technology innovations in order to avoid
such failures and delays.
Regulatory risks
Aviation remains a highly regulated industry. Wizz Air Group’s operations are reliant on the Air Operator
Certificates (AOCs) and operating licences (OLs) issued by competent national and EU-level authorities.
Wizz Air Hungary Ltd. was the first airline to obtain an AOC from the European Union Aviation Safety Agency
(EASA), while its OL was issued by the Hungarian Civil Aviation Authority. Wizz Air Malta Ltd.’s AOC was also
issued by the EASA, while its OL was granted by the Maltese Civil Aviation Directorate. Wizz Air UK Ltd.’s
AOC and OL were granted by the UK Civil Aviation Authority. Finally, Wizz Air Abu Dhabi LLC’s issuance of an
AOC and grant of an OL were obtained from the General Civil Aviation Authority of the United Arab Emirates.
In each airline’s case, an AOC is needed to operate air services while observing the aeropolitical agreements
between the designating and destination country. In terms of traffic rights, the most common requirement
to meet is that the given airline’s substantial ownership and effective control are vested in the Contracting
Party designating the airline, or its nationals. In the European Union (EU), as long as the departing and
arriving points fall inside the EU’s borders, the airline is allowed to fly the desired frequencies.
Furthermore, the European Union is continuously engaging with third countries to negotiate and sign air
services agreements (so-called “open skies” or “horizontal” agreements). These agreements reduce some of
the administrative burdens when accessing a third country’s market; however, in some cases, the concept of
EASA AOC (Wizz Air as a “European airline”) can be challenging to get accepted. These EU agreements are
not applicable to the UK and UAE operations; those airlines’ operations are dependent on the bilateral air
services agreements (ASAs) of their respective countries.
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Operational risks
The Company’s Crisis Management team and several business continuity plans remain on alert due to the
conflict zones which fall under our spectrum of operation. One of the conflict zones which is under constant
monitoring is Russia’s war in Ukraine. The ongoing war contributed to several principal risks for Wizz Air.
Therefore, the Company adjusted and revised its internal protocols and policies to ensure maximum
employee and passenger security and minimise the damage of property and equipment as much as possible.
The Security team reviewed contingency planning, revised the scope and business intelligence capabilities,
and enforced the Group Security and Standardisation department’s internal resources. Our Security team
also maintains close contact with relevant authorities and intelligence experts in order to assess any
potential security or other threats to our operations. Any serious threat will be escalated to senior
management. Since F23, we also suspended operations to destinations where the safety of our passengers,
crew and aircraft could not be guaranteed.
Another conflict zone which is under constant monitoring is Israel. Tel Aviv (TLV) operations were suspended
due to safety and security reasons. However, as operations became stable for the TLV Ben Gurion Airport,
we resumed flights as of 1 March 2024. We maintain the close contact with the relevant authorities and we
are getting support from intelligence providers. Furthermore, risk assessments are updated according to
geopolitical changes, complemented by recommendations and mitigation actions.
Although the operations to TLV resumed, we still refrain from operating from the northern part of the Gulf of
Aqaba, due to the ongoing military activities. Accidents, incidents or terrorist attacks can adversely affect an
airline’s reputation and customers’ willingness to travel with that airline.
Safety is our utmost priority at Wizz Air. We maintain a young and dependable aircraft fleet, partnering with
top-tier maintenance organisations, and fostering a robust safety culture. A dedicated safety council,
comprising both senior management and operational staff, convenes quarterly to address any issues from
the preceding three months and review corresponding actions taken. Furthermore, we meticulously collect
operational data to discern patterns, with biannual meetings held within our Operations department to
address identified trends. Our anonymous safety reporting system empowers our flight and cabin crew to
raise concerns confidently. We maintain rigorous entry standards for our operating crew, ensuring that all
pilots undergo training of the highest calibre through our Approved Training Organisation (ATO). As a
participant in the International Air Transport Association’s Operational Safety Audit (IOSA) programme, we
continuously uphold best-in-class airline safety management and control systems.
Wizz Air has also joined the campaign launched by the European Union Aviation Safety Agency (EASA)
aiming to reduce the number of unruly passengers on all European flights and protect passengers’ right to a
peaceful travel experience.
Human resources
Wizz Air is a people business and remains persistent in its commitment to its employees, fostering an
inclusive environment where equal opportunities prevail. Our team thrives in a supportive environment with
tools that fuel professional growth, backed by anti-discrimination policies for equitable opportunities. Wizz Air
is dedicated to recruiting and attracting top talent, providing essential tools, offering tailored development at
all levels, and championing diversity and inclusion across our organisation. Wizz Air is:
▶
Continuing recruitment to attract additional key experts from the airline sector. In addition, Wizz Air is
putting special focus on offering new and alternative career opportunities for existing employees (like
through the Crew to Office Programme) to further develop their expertise or explore new spheres within
various departments. Internal career advancement opportunities also played an important role at both
the employee and management team levels.
▶
Focusing on the development of the workforce to increase the values inherent in knowledge. Flight and
cabin crew training is organised by a dedicated in-house training team and a fully integrated digital
Training Management System has been successfully implemented. The Wizz Air Pilot Academy (WAPA)
Programme has been continued and a comprehensive training programme tailored for all levels within
the organisation has been introduced. Different management and development programmes have been
launched and continued fostering leadership skills and managerial capabilities.
▶
Performing regular performance and talent reviews through the annual People Cycle process, ensuring
alignment of talent within the organisation through goal setting, performance appraisal and talent
review.
▶
Committed to providing equal opportunities and an inclusive environment to all candidates, employees
and partners, with over 109 nationalities within its employee base. We have a strong commitment to
close the diversity gap in our boardroom and at leadership level and have included management
diversity in our reward structure, with a target to have 40 per cent female Officers by 2026. Equal
opportunities are also presented during recruitment and relevant management KPIs are integrated into
the incentive plan of all managers. Wizz Air is focusing on gender diversity in its flight crew as a major
opportunity and aims to be an industry leader.
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▶
Still continuing to value employee engagement, which is supported by key pillars, including the WIZZ
People Council – which serves as a space where team members feel secure sharing their insights,
concerns and innovative ideas – regular engagement surveys, base visits, informative floor talks and
management updates on Workplace.
▶
Designing its remuneration practices with a focus on base salaries and providing a non-financial benefit
that can factor in customer experience and employee experience. The yearly salary review is supported
by recurring market benchmark processes and adjustments are possible through performance and
career progression.
▶
Re-evaluating processes, making them more effective with complex platform development including
internal solutions monitoring and boosting careers and opportunities, crew lifecycle management and
implementing new digital solutions to make onboarding more effective.
Social and governance
At Wizz Air, we are committed to transparency. Our passengers trust us every day to operate a safe service
at the lowest cost to bring them to their desired destination. Equally, stakeholders trust Wizz Air to operate a
sustainable business model, not only from an environmental point of view but equally operating with high
integrity with regard to all other stakeholders, our passengers and how we treat them, communities of
people and how our service may affect their daily life, investors and how we make the most out of their
investments, and how we partner with suppliers and governmental bodies.
Our core values include integrity. We have strong governance for the operation through our Board of
Directors and the Sustainability Council established and led by the Corporate and ESG Officer. We continue
to invest in being a more transparent organisation and have significantly improved our disclosure around
sustainability, environmental, social and how the Company is governed. We have laid out mid and long-term
targets and have incentivised management to deliver the highest priority targets.
For more information please see our dedicated Sustainability and Governance sections of the Annual Report.
Environment/climate
Climate change is one of our principal risks and it may impact our business in the short (0–1 years), mid
(1–5 years) and long (5–10 years) term. Risks identified in the climate scenario analysis were compiled
into materiality/likelihood heatmaps, following the logic and risk ranking framework of our in-house ERM.
The methodology considered four different climate change scenarios, in accordance with the
Intergovernmental Panel on Climate Change (IPCC). These scenarios are ~1.5°C, 2°C, 3°C and 4°C. The
four potential scenarios had been previously chosen as they cover a broad spectrum of outcomes.
The qualitative scenario analysis of transitional and physical risks considered the IPCC’s Atlas and climate
change map for additional insight into key risks within the Wizz Air network. The 1.5°C and 2°C scenarios
are based on an ambitious decarbonisation pathway, with more stringent climate policies, leading to
increased transition risks. These scenarios, as regulation and policy implementation is effective, would
reduce the impacts of physical climate risks, but at the same time could lead to a significant increase in
transitional risks and higher compliance costs for the Company. On the other hand, in the 3°C and 4°C
scenarios, the world falls short of achieving ambitious climate targets, due to the less efficient
implementation of climate policies worldwide, causing more severe physical risks in the long run.
The potential physical and transition risks identified by Wizz Air are outlined in detail in the Sustainability
section of this Annual Report.
Environment/climate – transitional risks
Policy changes and new legislation by governments have been and will be implemented in order to price
and penalise GHG emissions. Adverse movements in carbon pricing (including ETS and CORSIA) might
have a negative impact on Wizz Air’s portfolio. A reform in tax policies to incentivise carbon-efficient
technologies would double the overall level of taxation in the mid-term. Increased taxation will slow
industry growth.
Emissions reduction regulations and varying national policies without a standardised approach may
increase operational costs while the differing timelines and reporting requirements across the network
pose risks to achieving adequate reductions. New fossil fuel and related taxes may impact overall taxation
costs in the medium and long term, especially considering the potential risk of double taxation through
national policies. Sustainable aviation fuel mandates will lead to higher operational and upstream costs in
the medium term. Non-compliance and continued dependence on fossil fuels could lead to penalties.
Compliance with new ESG-related (for example the EU’s Corporate Sustainability Reporting Directive
(CSRD)) reporting standards will require additional administrative capacities at various functions of
Wizz Air. As Wizz Air operates in different geographies the new and changing reporting expectations
create parallel reporting obligations with different requirements. The rate at which low-carbon
technologies are embraced influences the competitiveness of airlines, the cost of operations, and the
value of assets. Investments in capital expenditures (CapEx), research and development (R&D) and
innovation need to strike a balance between risk and reward. Failure to invest or investing in the wrong
technology can be risky, leading to increased costs and/or a decrease in competitiveness. In terms of
market and reputation-related transitional risks, potential disinvestment could lead to an increase in the
Company’s capital costs in the long term in case of a growing green investor sentiment.
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Environment – physical risks
While the potential impacts connected to physical risks have more relevance the further we look into the
future, the awareness and careful analysis of such risks are key for the Company to guarantee continued
resilience and preparation of applicable risk mitigation plans in the long run.
The climate scenario analysis for physical risks reveals no high-impact physical risks within the evaluated
time horizons, i.e. within ten years. Based on climate science and the current forecasts, the implications
of physical risks become more significant around 2050 and beyond. We anticipate no substantial
alterations in the next decade relative to current temperature or weather pattern changes. If the
implementation of climate policy proves to be ineffective, physical risks could lead to increased
disruptions in operations, markets and supply chains, or cause damage to assets.
Extreme heatwaves may impact aircraft performance and flight operations, while airports can also
decrease runway capacity due to damaged runway surfaces or taxiways. Based on the past years’ trend,
wildfires may increasingly impact travel decisions, leading to flight cancellations and revenue losses.
Severe storms have the potential to disrupt airspace and airport operations, as well as cause damage to
infrastructure, while also leading to increased fuel consumption. Heavy rainfall and flooding could occur
across all regions, which have the potential to harm airport infrastructure and runways, causing reduced
capacity, flight delays or cancellations. Overall, significant changes in weather phenomena, in terms of
frequency and intensity, are likely in the long term; however, we expect no critical change within the next
ten years.
Wizz Air aspires to be the greenest choice for flying. Today this is a key strength and contributor to our
competitive advantage, as also proven by our recent awards. However, in view of climate change, our
responsibility towards the environment is our single biggest opportunity in creating a pathway towards
decarbonisation. This is why we have aligned ourselves to our goal of reducing emissions intensity to
43 grammes per RPK by the end of the decade, while also aiming to have at least 10 per cent of jet fuel
sourced from sustainable origins by 2030.
For more information, please see our detailed Sustainability section of the Annual Report. The Group’s
going concern and viability statements are included in the Directors’ Report.
József Váradi
Chief Executive Officer
14 June 2024
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113
GOVERNANCE
“The Board and I are
proud of the Company’s
ability to deliver strong
financial, operational
and commercial results
despite the challenges
of the global political
and economic
environment.”
William Franke
Chairman of the Board of Directors
CHAIRMAN’S STATEMENT ON
CORPORATE GOVERNANCE REPORT
Introduction
Dear Shareholders,
On behalf of the Board I am
pleased to present the Corporate
Governance Report for the year
ended 31 March 2024. The
report aims to demonstrate
Wizz Air’s corporate governance
framework and highlights how
this governance has effectively
led the Company throughout
the fiscal year, contributing to
Wizz Air’s long-term success.
The Board and I are proud of
the Company’s ability to deliver
strong financial, operational and
commercial results despite the
challenges of the global political
and economic environment and
unexpected and uncontrollable
supply chain issues. On the
occasion of the Company’s
20th anniversary, I would like
to thank the Directors and
management for ensuring
rigorous corporate oversight and
employing agile leadership in
response to evolving changing
circumstances, ensuring the
safety of the Group’s operations.
The Company’s approach to
safety and sustainability remain
key enablers to driving long-
term sustainable growth. The
Board has placed significant
emphasis on sustainability
leadership. This commitment is
evident through ongoing
investments in cutting-edge
technology aircraft and
alternative fuels. Additionally,
increased transparency initiatives
have led to industry-leading
results in ESG ratings and
substantial reductions in
emissions intensity.
Wizz Air’s strategic foundation
rests on rigorous corporate
governance standards. The
diligent efforts of the Board and
its Committees play a pivotal
role in upholding this framework.
Activities in F24
Strategy
During F24, the Company
continued its strategic growth
despite challenges presented by
conflict in its markets and the
unexpected grounding of aircraft
due to engine manufacturing
defects outside of the Company’s
control.
In the current fiscal year, we
achieved profitability, settled
one of our two outstanding
€500 million bonds, and
confirmed our investment grade
rating with Fitch at BBB-.
Additionally, our cash position
strengthened significantly,
reaching €1,588.9 million by
the end of the fiscal year. This
remarkable result, in light of
the supply chain and geopolitical
events globally, is a testament to
management and the Board.
The Wizz Air fleet grew to 208
aircraft including 39 additional
game-changing Airbus A321neo
aircraft, taking the Company’s
total Airbus A321neo fleet to
121 aircraft at the end of
March 2024. The Board approved
a class 1 transaction approving
a firm contract for an additional
75 aircraft in July 2023, ensuring
the Company maintains its fleet
strategy which enables
sustainable growth and long-
term profitability.
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114
People and culture
Wizz Air has a diverse and
inclusive culture, and these
values are embedded within the
Company. Creating a diverse and
inclusive culture remains a focus.
The Company is on track to
reach its targets of 40 per cent
female representation in
management and the Board by
2026. We are proud that two of
our Board Committees are
chaired by women. This fiscal
year, in accordance with the
Parker Review and targets set by
the UK Listing Rules, the Board
appointed a Director from an
ethnic background.
On engagement, a number of
Non-Executive Directors
embarked on engagement
activities with employees across
the Group, including from
corporate, customer and
operational functions, in addition
to interactions with crew and the
People Council. Non-Executive
Directors participated in running
events and the Company’s
inaugural “Women on Air”
gender diversity forum, featuring
accomplished female leaders
from various roles within Wizz
Air and related industries.
Throughout these interactions,
Directors received direct
feedback from employees
enabling a better understanding
of the employee experience
at Wizz Air.
The Board maintained regular
communication with the
Employee Engagement Director
and People Officer, actively
integrating employee feedback
into decisions related to
remuneration outcomes for F24.
This inclusive approach extended
to the revised Remuneration
Policy, comprehensively outlined
in the Directors’ Remuneration
Report. When it comes to
executive pay, the Board
deliberately considers the
employee experience and the
perspectives of key stakeholders.
Their unwavering commitment
lies in sustaining workforce
investment, ensuring the
Company’s competitive edge
and market attractiveness.
Ultimately, the Board takes a
considered and responsible
approach to decisions on
remuneration.
Board composition
In accordance with the UK
Corporate Governance Code
2018 (“the Code”), the
Nomination and Governance
Committee considered the
enhancement of the Board
through the appointment of an
additional Director, adding to the
diversity of the Board and
strengthening the Board skills.
Further information can be found
on pages 124–129.
Board performance
As always, Wizz Air is committed
to corporate governance that is
in line with the Code. The
Company engaged Lintstock to
facilitate an evaluation of the
performance of the Board, its
Committees, the Chairman and
individual Directors. Lintstock is
an advisory firm that specialises
in board reviews and provides no
other services to the Company.
The Nomination and Governance
Committee oversaw the
evaluation. Further detail is
provided on page 122.
Stakeholders and
investors
The Board remains committed
to upholding rigorous corporate
governance standards and
actively engaging with
stakeholders and investors. In its
decision-making process, the
Board carefully assesses the
implications on the workforce,
customers, suppliers, society
and Shareholders.
The Board has direct
engagement with investors and
as Chairman I have had several
meetings and exchanges with
Shareholders on matters
concerning ESG, governance
and strategy.
A statement on how the
Directors have considered the
issues outlined in section 172 of
the Companies Act 2006 can be
found on page 117.
The subsequent pages of the
Corporate Governance Report
detail Board and management
composition, the governance
framework and Board and
Committee activities during
the year.
On behalf of the Board, I extend
heartfelt gratitude to the
dedicated Wizz Air workforce,
our investors, and other
stakeholders who place their
trust in us. I also want to
express my sincere appreciation
to my colleagues on the Board
for their unwavering support
to the Company and their
commitment to maintaining
high standards of corporate
governance over a period of
20 years.
William A. Franke
Chairman of the Board
14 June 2024
GOVERNANCE
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115
GOVERNANCE FRAMEWORK
THE BOARD
CHAIRMAN –
WILLIAM A. FRANKE
• Chairs the Board and sets direction.
• Ensuring highest standard of corporate governance.
• Responsibility for setting the agenda and strategic discussion.
• Responsible for ensuring engagement with investors and
stakeholders.
GROUP CHIEF EXECUTIVE OFFICER –
JÓZSEF VÁRADI
• Accountable to the Board and the Chairman.
• Responsible for the Group’s senior leadership team.
• Responsible for strategic, financial and operational performance
of the Group.
SENIOR INDEPENDENT DIRECTOR –
BARRY ECCLESTON
• Acts as a sounding board for the Chairman.
• Acts as intermediary for the other Directors.
• Available to Shareholders to address concerns.
NON-EXECUTIVE DIRECTORS –
ANNA GATTI
ANDREW S. BRODERICK
ANTHONY RADEV
BARRY ECCLESTON
CHARLOTTE ANDSAGER
CHARLOTTE PEDERSEN
ENRIQUE DUPUY DE LOME CHAVARRI
STEPHEN L. JOHNSON
WILLIAM A. FRANKE
PHIT LIAN CHONG
Responsible for key reserved matters:
• overall strategy and management;
• structure and capital;
• financial reporting and controls;
• internal control and risk management;
• approval of significant or material contracts;
• approval of Shareholder communication and communication
relating to Board decisions;
• Board membership and appointments;
• determining the executive remuneration plan and incentive plans;
• reviewing corporate governance matters; and
• reviewing Group safety, security and operational compliance.
EMPLOYEE ENGAGEMENT DIRECTOR –
ANTHONY RADEV
• Acts as link between the workforce, the People Council and the
Board.
• Provides regular updates to the Board on employee engagement,
incorporated into decisions.
COMPANY SECRETARY –
YVONNE MOYNIHAN
• Supports the Chairman, the Group Chief Executive Officer and
Chairs of Committees in agenda setting and minute taking.
• Liaison between senior management and the Directors and
responsible for timely delivery of materials.
• Advises the Board on corporate governance and is responsible for
compliance with the Share Dealing Code.
• Works with the Chairman on the Board training plan, Board
reviews and corporate governance improvements.
GOVERNANCE
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116
Statement of Compliance with UK Corporate Governance Code
The Directors support high standards of corporate governance and it is the policy of the Company to comply
with current best practice in UK corporate governance to the extent appropriate for a company of its size.
The Company welcomed the publication by the Financial Reporting Council of its new UK Corporate
Governance Code in July 2018 and its focus on the themes of corporate and board culture, stakeholder
engagement and sustainability, which are critical factors for us as we partner with our stakeholders to build
an enduring business. The Corporate Governance Code is available for review on the Financial Reporting
Council’s website: www.frc.org.uk. The Board complied with the requirements of the Corporate Governance
Code during the financial year. The only exception to this is that William A. Franke, the Chairman, does not
meet the independence criteria set out in the Corporate Governance Code (Provision 10), given that he is
the Managing Partner of Indigo. In addition, he has also exceeded the nine-year limit imposed by the Code
(Provision 19). However, Mr Franke has unrivalled knowledge of developing ultra-low-cost airlines such as
the Company and has exceptionally broad experience of the airline industry from both executive and
non-executive roles across many regions of the world. As the Company continues to grow and to expand into
different geographies, the Board believes that Mr Franke should continue as Chairman, given his recognised
experience in the airline industry and his alignment with the interests of Shareholders. The Board is of the
view that Mr Franke’s role in no way compromises his independence of judgment and character.
Application of the principles of the UK Corporate Governance Code
Board leadership and company purpose
Chairman’s Statement, p.5
Corporate culture, p.118
Investment in workforce, p.118
Board activities, p.118
Stakeholder interests, p.118
Board decisions, p.118
Section 172 Statement, p.118
Whistleblowing, p.95
Conflicts of interest, p.121
Division of responsibilities
Board of Directors’ division of responsibilities,
p.121
Directors’ independence, p.130
Governance framework, p.116
Board and Committee attendance, p.135
Board and Committee meetings, p.135
Composition, succession and evaluation
Board composition, p.124
Appointment, re-election, resignation and removal of
Directors, p.122
Nomination and Governance Committee Chairman’s
Statement, p.144
Board evaluation, p.122
Board biographies, p.124
Audit, risk and internal controls
Audit and Risk Committee Report, p.136
Risk management and internal control, p.137
Confirmation and reassessment of emerging
principal risks and uncertainties, p.137
Fair, balanced and understandable confirmation,
p.137
Remuneration
Directors’ Remuneration Report, p.146
Remuneration Committee Chairman’s Statement,
p.146
Alignment with provisions of UK Corporate
Governance Code, p.151
GOVERNANCE
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117
1. Board leadership and
company purpose
The Board plays a crucial role in
setting the Company’s strategic
direction and ensuring alignment
with long-term value creation.
It actively participates in the
development, review and
approval of corporate strategies,
business plans and major
initiatives.
The Board upholds the highest
standards of corporate
governance and provides
effective leadership and
oversight for the Group. Our
values – integrity, dedication,
inclusivity, positivity, and
sustainability – guide our
decisions.
The Company’s purpose revolves
around providing no-frills travel
that is accessible to everyone,
everywhere, at the lowest price
possible, while maintaining a
strong commitment to
environmental consciousness.
The Board continually reviews its
strategic decisions to align with
this mission.
Corporate culture
Culture is a core focus of the
Board and the Sustainability
and Culture Committee. Our
corporate culture nurtures
engagement and excellence.
The Board closely monitors
employee engagement
feedback, including the results
of surveys and action plans.
Our employee engagement is a
dynamic strategy that evolves
with our changing needs and
aspirations.
Our Company’s purpose is
simple yet profound: no-frills
travel for everyone, everywhere,
at the lowest price possible and
with the lowest emissions
possible. We’re democratising
the skies, making adventure
accessible.
Investment in workforce
The Board’s commitment
extends beyond strategy and
governance – it reaches the very
heart of our organisation: our
people. The Board works to
ensure fair terms and conditions
for employees, in addition to
relevant training and
development. Through the Board
Committees the Board ensures
Wizz Air remains an attractive
and competitive employer.
We don’t settle for mediocrity.
Our commitment to diversity,
inclusion and sustainability sets
us apart.
Stakeholders
The Board engages with both
Shareholders and investors and
the workforce. The Chairman
and Chair of the Remuneration
Committee have ongoing
dialogue with investors. The
Board receives regular updates
from the Employee Engagement
Director who is a link between
the Board and the workforce
and People Council. There was
further engagement with other
Directors and the workforce
during the year.
Board activities
The Board met on seven
occasions during the year.
The agenda for each meeting is
agreed with the Chairman, the
Group Chief Executive Officer
and the Company Secretary.
Regular updates are provided by
the President, Group Chief
Financial Officer, Group Chief
Operations Officer, Group Chief
Commercial Officer and Group
Corporate Affairs Officer. The
Board reviewed and approved
a number of significant and
material contracts. The Board
also approved a class 1
transaction, which was
subsequently approved by the
Shareholders at the Annual
General Meeting in August 2023.
The Board receives updates
from the Committee Chairs
throughout the year. Further,
it deliberates on a number of
matters of strategic importance
to the Company. In addition, all
meetings include an agenda
item to cover a private executive
session for Non-Executive
Directors.
The Company Secretary
maintains minutes of the Board
and Committee meetings and
reviews all minutes with the
Chairman and Chairs of the
Committees.
Section 172 Statement
The UK Companies Act 2006,
section 172(1), provides that
“a director of a company must
act in the way he considers, in
good faith, would be most likely
to promote the success of the
company for the benefit of its
members as a whole, and in
doing so have regard (amongst
other matters) to:
• the likely consequences of any
decision in the long term;
• the interests of the company’s
employees;
• the need to foster the
company’s business
relationships with suppliers,
customers and others;
• the impact of the company’s
operations on the community
and the environment;
• the desirability of the company
maintaining a reputation for
high standards of business
conduct; and
• the need to act fairly as
between members of the
company”.
The Company has multiple
stakeholders. The Board
considers the most significant
stakeholder groups to be
employees, customers,
Shareholders and investors,
suppliers, governments and
regulators including the
European Union institutions.
As part of their induction, the
Directors of the Company are
briefed on their duties and can
access professional advice about
them as appropriate. Input from
stakeholders received by
different business units
contributes to the decision-
making process overseen by
the Board.
Section 172 considerations
included:
• Shareholder engagement:
Over the course of the past
year, the Company’s Investor
Relations department has
arranged a number of
roadshows, timed around the
release of financial results, as
well as other meetings with
investors. This included a
dedicated Capital Markets Day
held in Budapest. Ahead of the
2023 Annual General Meeting,
the Chairman, the Senior
Independent Non-Executive
Director, and the Chairs of
the Audit and Risk Committee
and of the Remuneration
Committee were available to
answer questions from
investors. At the Company
AGM held on August 2023 all
resolutions proposed were
approved by Shareholders.
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118
• Community and environment:
The Board received regulator
reports from the Corporate
and ESG Officer and Group
Chief Corporate Affairs Officer
highlighting key policy and
government affairs issues and
engagement with authorities.
The Board considered ESG
positions and strategy and
investment decisions were
taken considering the impact
on the environment.
• Safety: The Board received
regular updates regarding
discussions with safety
regulators and authorities
regarding the war in Ukraine,
Israel, fatigue management,
engine reliability, cabin odour
issues and operational ramp-
up and disruption matters.
• Employee interest: The Board
reviewed and received regular
updates on employee
engagement and consideration
of remuneration and incentive
plans. The Board was updated
and considered actions taken
through People Council
initiatives and general culture
topics. There were relevant
discussions about
organisational changes in
senior management and talent
succession.
• Customers: There was ongoing
consideration of the customer
proposition, in particular with
respect to customer care
handling. The Board was
updated about relevant
discussions and engagement
with authorities.
Our key Shareholders
As at 31 March 2024, the Company had been notified pursuant to DTR 5 of the Financial Conduct
Authority’s Disclosure Guidance and Transparency Rules (DTRs) that the following Shareholders held
more than 3.00 per cent of the Company’s issued Ordinary Shares:
Shareholder
Reported shareholding
Reported number of shares
Indigo Hungary LP
18.3 per cent
18,950,611
Capital International Investors
7.4 per cent
7,666,713
Indigo Maple Hill LP
5.5 per cent
5,734,284
Artisan Partners Limited Partnership
4.9 per cent
5,014,531
Fidelity Management & Research Company LLC
4.6 per cent
4,729,210
Baillie Gifford & Co.
4.2 per cent
4,343,882
Fidelity International
4.1 per cent
4,268,812
Capital Research Global Investors
3.8 per cent
3,885,735
Platinum Asset Management
3.5 per cent
3,590,469
BlackRock Investment Management (UK) Ltd.
3.3 per cent
3,412,761
Between 1 April and 15 May 2024 Capital International Investors bought 24,130 shares, Artisan Partners
Limited Partnership bought 53,147 shares, Fidelity Management & Research Company LLC sold 380,039
shares, Baillie Gifford & Co. bought 850,759 shares, Fidelity International sold 7,106 shares, and
BlackRock Investment Management (UK) Ltd. sold 667,595 shares.
Changes in interests that have been notified to the Company pursuant to DTR 5 of the DTRs can be
found in the Regulatory News section of the Investor Relations page of the Company’s corporate website:
http://corporate.wizzair.com/en-GB/investor_relations/news/press_releases.
GOVERNANCE
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119
Our relationship with Indigo
As at 31 March 2024, Indigo
(Indigo Hungary LP and Indigo
Maple Hill LP together) held
23.9 per cent of the Company’s
issued Ordinary Shares. Indigo
holds a number of Convertible
Notes which may be converted
into Ordinary Shares, provided
that the Company’s ownership
remains compliant with EU
ownership and control rules.
The terms of these Convertible
Notes are governed by a note
purchase agreement dated
24 February 2015 and entered
into between the Company,
Wizz Air Hungary Ltd. and
Indigo. Our Chairman, William
A. Franke, is the Managing
Partner of Indigo.
According to the Financial
Conduct Authority’s Listing Rules
(“the Listing Rules”), any person
who exercises or controls the
exercise, on their own or
together with any person with
whom they are acting in concert,
of 30 per cent or more of the
votes able to be cast on all or
substantially all matters at
general meetings of a company
are known as “controlling
shareholders”. During its
preparation for its initial public
offering in February 2015, the
Company discussed with the
UK Listing Authority that, in
the circumstances, Indigo would
be treated as a controlling
shareholder of the Company
for these purposes. The Listing
Rules require companies with
controlling shareholders to enter
into a written and legally binding
agreement, which is intended
to ensure that the controlling
shareholder complies with
certain independence provisions.
The agreement must contain
undertakings that:
▶
transactions and
arrangements with the
controlling shareholder (and/
or any of its associates) will
be conducted at arm’s length
and on normal commercial
terms;
▶
neither the controlling
shareholder nor any of its
associates will take any
action that would have the
effect of preventing the
listed company from
complying with its
obligations under the
Listing Rules; and
▶
neither the controlling
shareholder nor any of its
associates will propose or
procure the proposal of a
Shareholder resolution which
is intended or appears to be
intended to circumvent the
proper application of the
Listing Rules.
Wizz Air entered into a
relationship agreement with
Indigo dated 24 February 2015.
The key terms of this
relationship agreement
are set out below.
Independence
Indigo has undertaken to
exercise its voting powers in
relation to the Company to
ensure that the Company is
capable of operating and making
decisions for the benefit of the
Shareholders of the Company as
a whole and independently of
Indigo at all times. In addition,
Indigo has undertaken that it will
not, and will procure that none of
its associates will: (a) take any
action that would have the effect
of preventing the Company from
complying with its obligations
under the Listing Rules; and
(b) propose or procure the
proposal of a Shareholder
resolution which is intended
or appears to be intended
to circumvent the proper
application of the Listing Rules.
Board
Indigo may nominate: (a) three
Directors to the Board if Indigo
and its associates hold in excess
of 30 per cent of the fully
converted share capital of the
Company (i.e. assuming the
conversion in full of all
Convertible Notes); (b) two
Directors to the Board if Indigo
and its associates hold in excess
of 20 per cent of the fully
converted share capital; or
(c) one Director to the Board if
Indigo and its associates hold in
excess of 10 per cent of the fully
converted share capital (each
an “Indigo Director”). If Indigo
and/or its associates no longer
hold at least 30, 20 or 10 per
cent, respectively, of the fully
converted share capital of the
Company, then Indigo has
agreed to procure, insofar as it
is legally able to do so, that the
appropriate number of Indigo
Directors resigns from the
Board unless a majority of the
independent Directors resolve
that any Indigo Director should
remain on the Board.
Indigo may not nominate any
person to be an Indigo Director
whose re-election has been
proposed to, but not approved
by, the holders of Ordinary
Shares in a general meeting,
or who has been removed from
office by a resolution of the
holders of Ordinary Shares.
The Board shall manage the
Company independently of
Indigo in accordance with the
articles of association, the Listing
Rules and applicable law. The
parties have also agreed that at
least half of the Board (excluding
the Chairman) shall comprise
independent Non-Executive
Directors, the Nomination and
Governance Committee shall
consist of a majority of
independent Directors, and the
Remuneration and Audit and
Risk Committees shall consist
only of independent Directors.
The Board confirms that since
the entry into the relationship
agreement on 24 February 2015,
the Company and Indigo have
complied with the independence
provisions provided in the
relationship agreement.
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120
Arm’s length transactions
All transactions and relationships
between the Company and
Indigo or any of their associates
shall be conducted at arm’s
length, on a normal commercial
basis and in accordance with the
related party transaction rules
set out in Chapter 11 of the
Listing Rules.
Provision of information and
confidentiality
Indigo shall, subject to the
Company’s obligations under
all applicable laws (including,
without limitation, the Listing
Rules and the DTRs), be
provided with financial,
management and/or other
information relating to any
member of the Group as Indigo
(or any of its associates) may
reasonably require for the
purposes of any internal or
external reporting requirements
which the relevant party is
required by internal compliance,
law or regulation to make. Indigo
may disclose any such financial,
management and/or other
information to its associates
provided that: (a) Indigo will
(and will procure that any
associate to whom any
information is passed will)
keep confidential any such
information; (b) such
information does not include
information relating to any
transaction between the
Company and Indigo or any of
their associates obtained as a
result of an Indigo Director’s
position as a Director;
(c) disclosure would not result
in the breach by the Company
of the DTRs or require the
Company to make a public
announcement; and (d) the
name of such persons to whom
information is disclosed is added
to the Company’s insider list.
Annual General Meeting
The AGM was held in Geneva
on August 2023. All resolutions
put to the Shareholders were
passed. There were some
resolutions that were opposed by
more than 20 per cent of voting
Shareholders. This resulted in
further consultations with
Shareholders regarding the low
votes and subsequent reporting
on the matter to the market.
Further information can be found
in the Directors’ Remuneration
Report on page 146.
2. Division of
responsibilities
Roles
The role of the Board is to
uphold the highest standards
of corporate governance and
ensure effective leadership and
oversight of the Group’s strategy
and performance.
The Board retains a Schedule of
Reserved Matters which sets
out the Board’s responsibilities.
The Board has delegated the
day-to-day management of the
Company to the Chief Executive
and the senior leadership team.
Matters in the Schedule which
the Board considers suitable for
delegation to its Committees
are contained in the terms of
reference of its Committees.
The Board has four Committees
comprised of Non-Executive
Directors and, in the case of the
Nomination and Governance
Committee, the Chairman. At
each Board meeting, Committee
Chairs report to the Board in
relation to the Committee
meetings and decisions. The
Committee activities are referred
to in the individual Committee
Chair reports.
The roles of the Chairman and
Chief Executive Officer are
clearly separated. The Chairman
is responsible for maintaining the
efficient performance of the
Board. The Chief Executive
Officer and the senior leadership
team are responsible for the
day-to-day management of the
Group and the implementation
of its strategy.
Board meetings and attendance
The total number of Board
meetings held during the year
was seven. A number of key
strategic and commercial
decisions require Board approval
and, as and when any such
decision is needed outside the
scheduled meeting cycle, an ad
hoc Board meeting may be
arranged. The Board also
engaged in a number of dinners
and extra curricular activities
with the senior leadership team.
Prior to Board meetings, each
Director receives an information
pack containing a comprehensive
review of the Company’s
business as well as detailed
proposals for approval of
transactions and developments
falling within the Board’s remit.
The Company believes that
this enables each Director to
properly discharge his or her
responsibilities. At each Board
meeting, Directors who have a
conflict of interest in any agenda
item declare that interest and
are not entitled to vote on that
agenda item.
At each Board meeting, the
Board approves the minutes of
the previous Board meeting. At
the end of each Board meeting,
there is a private session for
Non-Executive Directors to meet
with the Chairman to discuss any
relevant matters.
Directors are encouraged to
attend all Board and Committee
meetings, but in certain
circumstances meetings are
called at short notice and due to
prior business commitments and
time differences Directors may
be unable to attend. If a Director
is unable to attend a meeting
because of exceptional
circumstances, they continue
to receive the papers in advance
of the meeting and have the
opportunity to discuss with the
relevant Chairman or the
Company Secretary any matters
on the agenda which they
wish to raise.
The Board and Committee
attendance can be found on
page 135.
External appointments
In accordance with the UK
Corporate Governance Code
Non-Executive Directors
are required to seek approval
for additional external
appointments. The Directors’
external appointments are
outlined in the Board
biographies.
During the year the following
external appointment was
approved:
• Enrique Dupuy’s appointment
to Mobico Group plc.
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121
3. Composition,
succession and evaluation
The Nomination and Governance
Committee has responsibility for
all appointments to the Board.
The selection and appointment
process is detailed in the
Nomination and Governance
Committee Report. The
Committee approved a change
in the term of appointment
from one year to three years,
in line with the UK Corporate
Governance Code
recommendation. Appointments
and re-appointments are subject
to annual performance reviews
and AGM re-election.
There was one new appointment
to the Board during the financial
year. There were a number of
changes to the composition of
the Board, which are outlined
on page 129.
Upon appointment new
Non-Executive Directors follow
an induction process to ensure
an overview of the strategy and
business environment, and to
become familiar with the key
areas of business. The induction
process also includes meetings
with relevant stakeholders across
the business and training on
handling of inside information
and share dealing.
Re-election
All Directors will offer themselves
for re-election at the Company’s
next AGM. This is in line with the
Company’s articles of association
and is subject to satisfactory
performance.
Training
All Directors are offered training
in accordance with their needs.
During the year training
opportunities were provided
through workshops and seminars
where internal and external
advisers participated. During the
year there was a focus on ESG
for the entire Board, and safety
training for the Safety, Security
and Operational Compliance
Committee.
The Company has adopted a
Share Dealing Policy. As a
consequence, the Directors are
continually reminded of their
obligations in accordance with
this policy. Face-to-face training
on handling inside information
and obligations in relation to the
Listing Rules was also provided
to the Board by the Corporate
Secretary.
Board performance
In line with the Code, the
Company engaged Lintstock to
facilitate an evaluation of the
performance of the Board, its
Committees, the Chairman and
individual Directors. Lintstock is
an advisory firm that specialises
in board reviews and provides no
other services to the Company.
The evaluation comprises the
preparation and completion of
questionnaires and the collation
of responses, followed by
interviews if necessary. Once
all stages of the review are
completed the Board reviews
the findings and implements
any relevant actions. Lintstock
was invited to the Board meeting
to present its findings and
answer any questions from
the Board members.
Support materials were made
available and provided by the
Company Secretary, including
minutes and supporting Board
and Committee materials.
The Chairman discussed
the main conclusions of the
evaluation with the Evaluation
team and subsequently with
the Board.
The overall conclusion of the
evaluation was positive and that
the Board and the Committees
satisfactorily fulfilled their
duties and responsibilities
and adequately addressed
the strategic priorities of
the Company. The key
recommendations from
the evaluation were:
(i) general feedback:
• Board satisfaction with the
composition, expertise and
performance of the Board; and
• opportunity for reduction in
materials and less focus on
past performance;
(II) composition:
• continue focus on diversity
and inclusion;
(III) strategy:
• continue focus on planning;
and
• increase focus on the customer
proposition; and
(IV) Company Secretariat:
• improved support; and
• focus on high quality material.
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122
Case study of relevant Board decision – transforming
operations systems
In August 2023 the Board approved the commencement of a multi-year project with the aim of improving
Wizz Air’s operations software solutions. This project is expected to transform business processes and
introduce optimisations to the airline’s operations management to support growth plans for the Company’s
WIZZ 500 strategy.
The Board was provided with a detailed analysis of the proposal, cost analysis and feasibility and risk
assessment. The Company identified operational and financial risks in managing individual airline systems
independently. Taking into consideration industry headwinds including challenges in ground operations and
air traffic control, it was understood that there was additional pressure on planning and disruption recovery
solutions. Therefore, a new approach to software solutions was considered by the Board to deliver the
optimal efficiency at market appropriate cost to allow the airline operations software solutions to scale. The
Board had the following section 172(1) considerations:
• alignment of the Group’s strategic objective of maintaining a ULCC airline model and growing both the
airline and systems at scale;
• significant customer benefits through less disruption due to system improvements and enhanced
operations;
• significant employee benefits through less disruption due to system improvements and enhanced
operations;
• ensuring good governance through resource management and phasing of rollout of project;
• benefits for investors in better understanding operational performance, having an impact on CASK and
RASK; and
• benefits for consumer and other authorities to understand improvements in operational performance.
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123
GOVERNANCE
MANAGEMENT OF THE COMPANY
BOARD COMPOSITION
Board of Directors
membership
Effective oversight of Wizz Air’s
business is the key function of
the Board. Key to this oversight
is the approval of the Company’s
long-term strategy and
commercial objectives and these
matters are reserved to the
Board, along with the approval
of annual operating and capital
expenditure budgets and any
changes thereto.
Other key areas also reserved
to the Board include financial
reporting and controls, internal
controls, the review and
approval of key contracts, Board
membership, the remuneration
of Directors and senior executive
employees, corporate
governance including ESG
matters and the review of
safety issues.
Wizz Air’s Board currently
comprises one Executive and
ten Non-Executive Directors.
The current Directors bring a
wealth of experience from both
the worldwide aviation industry
and other international industries
and so together bring to the
Company an appropriate
breadth, depth and balance of
skills, knowledge, experience
and expertise.
The Directors who have served
during F24 and since year end
are:
Name
Position
Committee membership (as at 31 March 2024)
Executive Director
József Váradi
Chief Executive Officer
Non-Executive Directors
William A. Franke
Chairman
Nomination and Governance Committee
Stephen L. Johnson
Non-Executive Director
and Deputy Chair
Barry Eccleston
Non-Executive Director
Nomination and Governance Committee,
Remuneration Committee, Safety, Security and
Operational Compliance Committee, Senior
Independent Director
Charlotte Pedersen
Non-Executive Director
Safety, Security and Operational Compliance
Committee
Andrew S. Broderick
Non-Executive Director
Sustainability and Culture Committee, Safety,
Security and Operational Compliance Committee
Dr Anthony Radev
Non-Executive Director
Sustainability and Culture Committee,
Remuneration Committee, INED overseeing
employee engagement
Charlotte Andsager
Non-Executive Director
Nomination and Governance Committee,
Sustainability and Culture Committee
Enrique Dupuy de Lome Chavarri
Non-Executive Director
Audit and Risk Committee
Anna Gatti
Non-Executive Director
Remuneration Committee, Audit and Risk
Committee
Phit Lian Chong
Non-Executive Director
Audit and Risk Committee
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124
Board competency matrix
Conditions for indicating competence in the table: qualifications, certification of training and/or
professional background and experience.
*
Strong knowledge base and understanding of the entire ESG spectrum, including aviation’s climate impact, the physical and
transition risks of the various climate pathways and how the Company will be affected.
Board gender diversity, ethnic diversity and tenure
Gender diversity
36.4%
63.6%
Female
Male
Tenure
3
3
5
7+ years
4-6 years
0-3 years
Ethnic diversity
9.1%
90.9%
Ethnic Director
White/Caucasian
Board nationalities
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125
William A. Franke
Chairman
Nationality: US
Appointed: 2015
Key skills:
Airlines, legal and regulatory
Current external
appointments:
Chair, Frontier Airlines Holdings,
Inc.; Chair, Lynx Air; Chair,
JetSMART Airlines SpA; Chair,
APiJET LLC.
Relevant experience:
Founder and Managing Partner
of Indigo Partners LLC, a
private equity fund focused
on investments in air
transportation, including
Wizz Air.
Served as Chair and Chief
Executive Officer of America
West Airlines from 1993 to 2001,
as Chair of Spirit Airlines Inc.
from 2006 to 2013 and as Chair
of Tiger Aviation Pte. Ltd, a
Singapore-based airline, from
2004 to 2009. He was a Director
of Volaris (Concesionaria Vuela
Compañía de Aviación S.A.B. de
C.V.), a Mexican airline, from
2012 to 2023.
József Váradi
CEO
Nationality: Hungarian
Appointed: 2015
Key skills:
Airlines, sales and marketing,
finance
Current external
appointments:
Board Member, JetSMART
Airlines; Trustee, Corvinus
University of Budapest.
Relevant experience:
One of the founders of Wizz Air
in 2003.
Worked at Procter & Gamble
between 1991 and 2001 and
became Sales Director for global
customers where he was
responsible for major clients
throughout eleven EU countries.
Served as Chief Commercial
Officer and Chief Executive
Officer of Malev Airlines from
2001 to 2003. He also held
board memberships with
companies such as Lufthansa
Technik Budapest (Supervisory
Board, 2001–2003) and Mandala
Airlines in Indonesia (Board of
Commissioners, 2007–2011).
Stephen L. Johnson
Deputy Chair
Nationality: US
Appointed: 2011
Key skills:
Airlines, legal and regulatory
Current external
appointments:
Vice Chair and Chief Strategy
Officer, American Airlines Inc;
Board Member, Executive
Advisory Board, University
of Berkeley Center for Law
and Business.
Relevant experience:
Mr Johnson served as Executive
Vice President of Corporate
Affairs from 2009 to 2022.
In that role, he was responsible
for corporate governance
and legal affairs, government
and regulatory affairs, labour
relations, and real estate and
airport affairs. From 2003 to
2009, he was a Partner at Indigo
Partners LLC, a private equity
firm specialising in investments
in the airline industry.
Between 1995 and 2003, held
positions at America West
Airlines, including Executive Vice
President of Corporate. Prior to
that, Steve served as Senior Vice
President and General Counsel
at GPA Group PLC and practised
law at the Seattle-based law firm
Bogle & Gates.
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126
Barry Eccleston
Senior Independent
Director
Nationality: British/US
Appointed: 2018
Key skills:
Aviation, safety, manufacturing
Current external
appointments:
None.
Relevant experience:
Recently retired as Chief
Executive Officer of Airbus
Americas Inc., where he was
responsible for all aspects of
Airbus’ commercial aeroplanes
business in North America, a
position he held from 2005. Prior
to this, Mr Eccleston was VP/GM
for Honeywell’s Propulsion
Systems Enterprise and had
earlier served as Honeywell’s
VP Commercial Aerospace.
Before joining Honeywell in
2002, he was Executive VP of
Fairchild Dornier Corporation,
a provider of regional aircraft.
He started his career with Rolls-
Royce where he held several
senior positions, culminating
as CEO of International Aero
Engines, a joint venture with
Pratt & Whitney. He is past
Chairman of the British-American
Business Association in
Washington DC, and past
President of The Wings Club
of New York, as well as being
appointed an OBE in 2019 by
Her Majesty the Queen.
Charlotte Pedersen
Non-Executive Director
Nationality: Danish/
Luxembourgish
Appointed: 2020
Key skills:
Aviation, safety, regulatory, ESG
Current external
appointments:
CEO/Owner, Pegasus Consilium
SarL; Board Member, Alpha
Trains Group SarL; Board
Member, Air Greenland A/S.
Relevant experience:
Ms Pedersen started her career
as an Air Force Officer and
Helicopter Search and Rescue
Pilot, graduating in the US Navy
on the Commodore’s List with
Distinction. After 17 years of
military service she joined the
Civil Aviation Authority in
Luxembourg as a Flight
Operations Inspector. She
supported the initial EASA
regulatory working groups as
a Helicopter Safety Team and
Human Factors Expert.
She joined Luxaviation in 2012
and was appointed Chief
Operating Officer of the Group
in 2014 before becoming the
President of Helicopter Services
and Chief Executive Officer
of Luxaviation Helicopters.
Ms Pedersen holds an MBA
with Honours and is a certified
INSEAD International Director
as well as an Institut
Luxembourgeois des
Administrateurs (ILA) certified
Director. She is an Elected Fellow
of the Royal Aeronautical
Society. Ms Pedersen is actively
supporting “Women in Aviation,
Maritime and Racing” initiatives.
Andrew S. Broderick
Non-Executive Director
Nationality: US
Appointed: 2019
Key skills:
Airlines, finance
Current external
appointments:
Board Member, JetSMART
Airlines SpA; Board Member,
Frontier Airlines Holdings Inc.;
Board Member, APiJET LLC;
Board Member, Controladora
Vuela Compañía de Aviación,
S.A.B. de C.V.
Relevant experience:
Has served as Managing Director
of Indigo Partners LLC, a private
equity fund focused on air
transportation, since 2008. Has
served on the board of directors
of Frontier Airlines Holdings,
Inc., an airline based in the
United States, since January
2018; JetSMART Airlines SpA,
an airline based in Chile, since
September 2018; APiJET, LLC,
a software company focused
on providing real-time cost
saving analytics to airlines,
since November 2020; and
Controladora Vuela Compañía
de Aviación, S.A.B. de C.V.,
an airline based in Mexico
doing business as Volaris,
since April 2023.
Prior to joining Indigo,
Mr Broderick was employed at a
macroeconomic hedge fund and
a stock-option valuation firm.
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127
Anthony Radev
Non-Executive Director
Nationality: Bulgarian
Appointed: 2021
Key skills:
Listed company, finance
Current external
appointments:
President, Corvinus University of
Budapest; Board Member, MOL
Hungarian Oil and Gas PLC;
Board Member, Hungary Football
Federation; Board Member, DSK
Bank PLC.
Relevant experience:
For over 20 years, Dr Radev has
been involved with McKinsey &
Co., in various roles, the last one
culminating in a Senior Partner
role from 2001 until 2013. His
engagement has spanned many
sectors of the economy and
included leading McKinsey’s
financial institutions practice in
Central and Eastern Europe as
well as being a member of the
senior leadership team in
European banking practice.
Today, Dr Radev is a Director
Emeritus of McKinsey (honorary
membership). In 2014, Dr Radev
founded the School for Executive
Education and Development
(SEED) in Budapest to serve the
needs of Central and Eastern
European companies.
Charlotte Andsager
Non-Executive Director
Nationality: Danish
Appointed: 2020
Key skills:
Airlines, aviation, regulatory
Current external
appointments:
None.
Relevant experience:
Ms Andsager has held multiple
regulatory roles within the
Ministry of Transport and
Communications of Norway as
well as Telenor, the Norwegian
majority state-owned
multinational
telecommunications company.
In 2005, Ms Andsager served as
Vice President, European and
US Public Affairs for SAS Group.
In this capacity, Ms Andsager
advised SAS Group on European
and US public affairs and
maintained contacts with the
European institutions and the
US Administration.
In 2010, Ms Andsager joined
Rolls-Royce Plc as Vice President
EU Affairs where she served until
2014. Prior to joining the Wizz
Air Board, Ms Andsager served
six years as an independent
Director on the board of Avinor
Flysikring AS, the state-owned
air navigation services provider
in Norway.
Enrique Dupuy de Lome
Chavarri
Non-Executive Director
Nationality: Spanish
Appointed: 2020
Key skills:
Airlines, finance
Current external
appointments:
Board Member, Nadisla
investments SL; Senior Adviser,
A.T. Kearney; Senior Adviser,
Bluepeak Aviation; Board
Member, Mobico Group plc.
Previous experience:
Served as Finance Director, and
ultimately Chief Financial Officer,
at Iberia. He also played a key
role in the merger of Iberia with
British Airways in 2011 and the
creation of the International
Airlines Group (IAG). He became
Chief Financial Officer at IAG, a
position he held until he retired
in June 2019.
During his time at IAG, he led
the financial strengthening and
expansion of IAG, driving a
significant improvement in its
market capitalisation,
profitability and returns. He also
played a critical role in the
Group’s acquisitions of BMI,
Vueling and Aer Lingus and
the creation of Level.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
128
Anna Gatti
Non-Executive Director
Nationality: Italian
Appointed: 2021
Key skills:
Digital, consumer, sales and
marketing
Current external
appointments:
Board Member, Intesa Sanpaolo
S.p.A; Board Member, WiZink
Bank S.L.
Previous experience:
Served as digital sales executive
driving customer success at scale
for companies such as Google,
YouTube and Skype. She worked
at launching YouTube in more
than 22 countries and she built
an entirely new advertising
product business for Skype that
laid the foundation for the
company’s planned IPO and
eventual sale to Microsoft.
Ms Gatti is also an active angel
investor. In Silicon Valley, where
she has been living for over
20 years, she co-founded two
start-ups leveraging artificial
intelligence applied to big data.
Prior to her career in technology,
Ms Gatti spent years in research
and public policy, working at the
World Health Organization and
at the University of Berkeley,
California, Goldman School of
Public Policy.
Phit Lian Chong
Non-Executive Director
Nationality: Singaporean
Appointed: 2023
Key skills:
Airlines, aviation, manufacturing,
lifestyle and leisure
Current external
appointments:
Board Member, Rokt Inc;
Board Member, Eu Yan Sang
International Ltd.; Chair,
Singapore Science Centre
Global Pte Ltd.
Previous experience:
Ms Chong has held multiple
senior roles in aviation, travel
and logistics. Ms Chong was the
CEO of award-winning low-cost
carriers Jetstar Asia Airways and
ValuAir from 2006 to 2012.
Ms Chong also served as an
independent Board Director on
the board of Tiger Airways Ltd, a
low-cost subsidiary of Singapore
Airlines. Other previous
commercial roles included CEO/
Board Member of Singapore
Mint, Safe Enterprises Group,
Avis Car Rental, Pacific Internet
and SingBridge Corporate.
Ms Chong holds an Honours
Degree in Production Engineering
and Manufacturing Technology
and an Honorary Doctorate of
Science. She also pursued a
Master’s in Business
Administration.
Changes to the Board
during F24
The Nomination and Governance
Committee, acting on behalf of
the Board, conducts a regular
review of the Board’s
composition. During this review,
it identifies areas where skills,
experience and knowledge can
be further strengthened.
The Committee gives due
consideration to all aspects of
diversity, including gender,
ethnicity, age, sexual
orientation, disability, education,
professional backgrounds, socio-
economic backgrounds and
personal strengths.
Creating a diverse and inclusive
culture was a focus for the Board
in F25. It was decided to
enhance both gender and
ethnicity in the Board
composition.
Phit Lian Chong was appointed to
the Board as a Non-Executive
Director in July 2023 and
subsequently to the Audit and
Risk Committee in January 2024.
In connection with the addition
of Phit Lian Chong to the Audit
and Risk Committee, Charlotte
Pedersen stepped down from the
Committee.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
129
Independence
The UK Corporate Governance
Code recommends that at least
half the members (excluding
the chairman) of the board of
directors of a company with a
premium listing should be
non-executive directors,
determined by the board to be
independent in character and
judgment and free from
relationships or circumstances
which are likely to affect, or
could appear to affect, their
judgment.
The Board has considered the
independence of the Company’s
Non-Executive Directors and has
concluded that:
a) William A. Franke, the
Chairman, does not meet the
independence criteria set out in
the Corporate Governance Code,
given that he is the Managing
Partner of Indigo (a significant
Shareholder). However, given
the benefits to the Company of
his recognised experience in the
airline industry, the Board
believes that it is in the
Company’s best interest that
Mr Franke should continue as
Chairman of Wizz Air;
b) Stephen L. Johnson is not
considered to be an independent
Non-Executive Director given his
past position with Indigo; and
c) Andrew S. Broderick, who was
appointed effective from 16 April
2019, is not considered to be an
independent Non-Executive
Director as he is a Managing
Director of Indigo.
In all cases, the Board is
assured that the roles of the
aforementioned Non-Executive
Directors are in no way
compromised of independence
of judgment and character.
Other than William A. Franke,
Andrew S. Broderick and Stephen
L. Johnson, the Company regards
all of its Non-Executive Directors
who are currently serving or have
served on the Board during F24,
Barry Eccleston, Charlotte
Pedersen, Charlotte Andsager,
Enrique Dupuy de Lome Chavarri,
Anthony Radev, Phit Lian Chong
and Anna Gatti, as independent
Non-Executive Directors within
the meaning of “independent”
as defined in the Corporate
Governance Code and free from
any business or other relationship
which could materially interfere
with the exercise of their
independent judgment.
Accordingly, as an absolute
majority of the Directors are
independent Non-Executive
Directors, the Company complies
with the requirement of the
Corporate Governance Code that
at least half of the board
(excluding the chairman) of a
company with a premium listing
should comprise independent
non-executive directors.
Senior Independent
Non-Executive Director
The Corporate Governance Code
recommends that the Board
should appoint one of its
independent Non-Executive
Directors as the Senior
Independent Non-Executive
Director. The Senior
Independent Non-Executive
Director should be available to
Shareholders if they have
concerns that contact through
the normal channels of the
Chairman or Chief Executive
Officer has failed to resolve or
where such contact is
inappropriate. On 28 January
2022, Barry Eccleston was
appointed as the Company’s
Senior Independent
Non-Executive Director.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
130
Independent
Non-Executive Director
overseeing engagement
with employees
In order to strengthen workforce
engagement, Wizz Air decided
to appoint an independent
Non-Executive Director to
oversee engagement with
employees.
The key purpose of the role is to
ensure that the employee voice
reaches the boardroom. The
relevant Non-Executive Director
is expected to engage
independently of management
with the Company’s employees
and to report back to the Board
any issues arising which could
affect employees’ ongoing
engagement with the Company.
Dr Anthony Radev was appointed
as the Company’s independent
Non-Executive Director
overseeing engagement with
employees. In that role, Dr
Radev also sits on and reports
regularly to the Sustainability
and Culture Committee. During
F24, Dr Radev attended a
number of engagement events
with employees, as well as
engaging through the Wizz Air
People Council members.
Data on the diversity of the Board and executive management for the year ended 31 March 2024
Gender diversity
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, SID
and
Chairman)
Number in
executive
management
Percentage
of executive
management
The data on gender and ethnic
diversity of the Board and
executive management was
collected on a confidential and
voluntary self-reporting basis.
Men
7
64%
3
10
67%
Women
4
36%
_
5
33%
Other categories
_
_
_
_
_
Not specified/prefer not to say
_
_
_
_
_
Ethnic background
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, SID
and
Chairman)
Number in
executive
management
Percentage
of executive
management
Wizz Air is fully committed to
promoting equality and
diversity to enhance decision
making, which is crucial for the
long-term success of Wizz Air
and its stakeholders. The
Company’s commitment to
diversity is set out in the
Sustainability and TCFD
Reports. The Board is mindful
of the Listing Rule
requirements in relation to
gender and ethnic diversity of
the Board and executive
management. The targets set
out in LRs 9.8.6R (9)(a)(i), (ii)
and (iii) have not been met in
respect of gender diversity.
Ethnic diversity has been met.
While diversity criteria are
taken into consideration during
recruitment processes,
decisions are subject to the
principle of merit. Addressing
diversity remains a priority for
the Nomination and
Governance Committee in F25.
White British or other White
(including minority White
groups)
10
91%
3
15
100%
Mixed/multiple ethnic groups
_
_
_
_
_
Asian/Asian British
1
9%
_
_
_
Black/African/Caribbean/Black
British
_
_
_
_
_
Other ethnic group, including
Arab
_
_
_
_
_
Not specified/prefer not to say
_
_
_
_
_
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
131
Senior management team
The Group Chief Executive Officer and the senior management team are responsible for the management of
the Group’s business and implementation of the Group’s strategy on a day-to-day basis.
As of 1 April 2024, the Group’s senior management team, in addition to the Group Chief Executive Officer, is:
Wizz Air Hungary Ltd.:
Name
Position
Robert Carey
President
Michael Delehant
EVP and Group Chief Operations Officer
Ian Malin
EVP and Group Chief Financial Officer
Owain Jones
EVP and Group Chief Corporate Affairs Officer
Silvia Mosquera
EVP and Chief Commercial Officer
Janos Pal
Revenue Officer
Ervin Banyai
Digital Officer
Yvonne Moynihan
Corporate and ESG Officer
Veronika Jung
People Officer
Zsuzsa Poós
Customer and Marketing Officer
Boris Rogoff
Central Operations Officer
Roland Tischner
Officer Wizz Air Hungary Operations
Wizz Air UK Limited:
Name
Position
Marion Geoffroy
Managing Director
Wizz Air Abu Dhabi Ltd.:
Name
Position
Johan Eidhagen
Managing Director
Wizz Air Malta Ltd.:
Name
Position
Diarmuid O’Conghaile
Managing Director
Robert Carey, President
Mr Carey joined Wizz Air in June 2021 as President. Mr Carey is an American and French citizen who has a
Bachelor of Science degree in Industrial Engineering from Arizona State University as well as a Master’s in
Business Administration degree from Harvard Business School. Mr Carey started his career in aviation
20 years ago with America West Airlines, followed by Delta Airlines, after which he has spent over a decade
at McKinsey & Company, where he was a Partner prior to joining easyJet as Chief Commercial and Strategy
Officer in 2017. As President, Mr Carey has oversight of both the commercial and operational functions.
Ian Malin, Executive Vice President and Group Chief Financial Officer
Mr Malin joined Wizz Air in 2022 with over 24 years of finance experience. Most recently, he served as the
Chief Strategy and Commercial Officer of Unical Aviation in Los Angeles, after ten years as Chief Financial
Officer for the UK-based AJW Group, where he directed overall financial strategy and corporate
development. He also served as CEO of AJW Leasing, the group’s aircraft, engine and component leasing
platform. Prior to AJW Group, Ian served as a Senior Vice President at Seabury Aviation & Aerospace Asia
Limited, an investment bank based in Hong Kong where he opened and developed the firm’s first office in
Asia. Ian also spent eight years in asset finance with the Allco Finance Group of Australia, having joined it as
a tax manager from KPMG. Ian attended New York Law School where he earned his Juris Doctorate and
holds a Bachelor’s degree from Middlebury College in Vermont. Mr Malin has oversight of financial
operations, purchasing and digital functions.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
132
Michael Delehant, Executive Vice President and Group Chief Operations Officer
Mr Delehant joined Wizz Air in April 2021 as Executive Vice President, Operations. Mr Delehant is an
American citizen who has a Bachelor’s degree in Psychology from the University of Michigan and obtained his
MBA from Southern Methodist University in Dallas. He brings two decades of executive airline experience and
a long track record of leadership, strategy and corporate transformation. After a long career at Southwest
Airlines in the US, he joined Wizz Air from Vueling in Europe. In his last role at Vueling, Mr Delehant was the
Chief Strategy and Network Officer. Mr. Delehant has oversight over the group operations of the Company,
including central operations, safety management, security, maintenance and engineering, and the operations
of the Group’s four AOCs.
Owain Jones, Executive Vice President and Group Chief Corporate Affairs Officer
Mr Jones joined Wizz Air as General Counsel in September 2010. He was promoted to Chief Corporate Officer
in June 2014 before becoming the Managing Director of Wizz Air UK Ltd. in September 2018 and
Development Officer in September 2021. He was promoted to his current role as the Group’s Executive Vice
President and Chief Corporate Affairs Officer, with oversight of legal, government affairs, ESG and people
matters, together with fleet procurement and fleet finance, in February 2023. Mr Jones is a Solicitor of the
Senior Courts of England and Wales. Having trained at Nicholson Graham and Jones (1994 to 1996),
Mr Jones joined Wilde Sapte (now Dentons LLP) in 1996 as a Solicitor in its aviation group, specialising in
finance and regulatory matters. He spent time in the firm’s Paris and Hong Kong offices before being
appointed a Partner in 2006, following which he spent three years in the firm’s Abu Dhabi office, becoming
acting Managing Partner of the office. He left the firm in 2009 to spend 18 months training for a frozen air
transport pilot’s licence with CTC Aviation Training. Mr Jones holds a Bachelor of Laws degree from
University College London.
Silvia Mosquera, Executive Vice President and Chief Commercial Officer
Silvia Mosquera joined WIZZ on 13 July as EVP and Chief Commercial Officer from her current position as
Chief Commercial and Revenue Officer at TAP Air Portugal. Silvia is a seasoned executive with over 20 years
of experience in the airline industry and consulting to airlines with leadership roles across commercial
functions including network, revenue management, sales, marketing and customer experience. She started
at Clickair and moved through various commercial roles in the IAG Group (Clickair, Vueling and Iberia
Express), culminating in CCO of Iberia Express. From there, she moved to Avianca, and then most recently
to TAP Air Portugal where she was the Chief Commercial and Revenue Officer responsible for the commercial
area, including pricing and revenue management, distribution, sales, branding and marketing, ancillaries,
customer service and the loyalty programme. She holds a Chemical Engineering degree from Santiago de
Compostela University and postgraduate certifications from APICS (The Educational Society for Resource
Management) and IESE Business School – University of Navarra.
Yvonne Moynihan, Corporate and ESG Officer
Ms Moynihan joined Wizz Air in July 2022 as Corporate Officer, leading the Legal, Regulatory and
Government Affairs functions. She took over ESG in March 2023. Ms Moynihan is an Irish lawyer with Law
degrees from University College Cork and The Honourable Society of Kings Inns. She has practised as a
litigator in the Irish Courts and held roles as a researcher for the Irish Superior Courts and the European
Court of Justice. Ms Moynihan pivoted into aviation and has a track record in the low-cost industry, having
held legal roles in Ryanair and Vueling where she held the position of General Counsel and Board Secretary.
Ms Moynihan leads the legal, government affairs, regulatory and ESG teams, in addition to performing the
role of Corporate Secretary to the Board of Directors.
Veronika Jung, People Officer
Ms Jung joined Wizz Air as the Head of Human Resources in March 2021. Between 2000 and 2011 Ms Jung
held various human resources roles at Nicholson International and HBO. In 2012 she joined Telenor as the
Human Resource Business Partner and was later promoted to the role of Human Resource Regional Manager
and from September 2018 to Chief Human Resource Officer at Telenor Common Operation. Before joining
Wizz Air Ms Jung worked as the Chief Human Resource Officer of Cetin Hungary, a telecom network
infrastructures operator with a CEE footprint. In her new role as Wizz Air Group’s People Officer, Ms Jung will
be responsible for the Group’s human resources, recruitment and organisational development. Ms Jung holds
an MSc degree in Economics from Corvinus University of Budapest.
Zsuzsa Poós, Customer and Marketing Officer
Ms Poós joined Wizz Air in April 2017 as Head of Marketing and moved to the role of Head of Retail and
Customer Experience in April 2019. Ms Poós was appointed Chief Customer and Marketing Officer in
July 2020. Prior to Wizz Air, Ms Poós built an extensive career at Procter & Gamble and strengthened the
management capacity of Hungarian Telekom. Ms Poós is a Hungarian national and holds a Master’s degree in
Business, Management and Marketing from Corvinus University of Budapest. Ms Poos is responsible for the
marketing, customer experience, ancillary and e-commerce teams.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
133
Boris Rogoff, Central Operations Officer
Boris joined Wizz Air in October 2023 as the Central Operations Officer. Prior to joining Wizz Air he was a
Technical Director at Vueling Airlines in Barcelona, Spain, for five years where he was responsible for the
maintenance and engineering function at the airline. Before moving to Europe, he spent 15 years at various
maintenance and engineering leadership roles at JetBlue Airways. Earlier in his career he worked in several
engineering positions at Boeing, Raytheon Technologies, and U.S. Navy. Boris holds a Bachelor of Science
degree in Aeronautical and Astronautical Engineering from the University of Washington and an MBA in
Technology Management from the University of Phoenix.
Ervin Banyai, Digital Officer
Mr Banyai joined Wizz Air in February 2024 as a Digital Officer, responsible for e-commerce, data analytics
and automation, IT innovation and infrastructure and cyber security functions reporting to the Company’s
Executive Vice President and Group Chief Financial Officer. Mr Banyai was formerly a member of the
managing board of Raiffeisen Bank Hungary responsible for IT and operations. Prior to this role, Mr Banyai
worked in executive IT roles at various multinational companies including GE Budapest Bank, OTP and
Citibank.
Roland Tischner, Officer Wizz Air Hungary Operations
Mr Tischner joined Wizz Air as Head of Human Resources in November 2011. Between 1998 and 2009
Mr Tischner held various human resource leadership roles at General Electric in Hungary and in the United
States. In 2009 he joined NBC Universal in the United Kingdom as Vice President of Human Resources.
At Wizz Air, following the human resource role, he was appointed to Head of Cabin Operations in 2016, and
four years later to Head of Ground Operations. He was named Officer Wizz Air Hungary Operations in
June 2022, responsible for flight, cabin and ground operations, crew training, continuing airworthiness
management organisation and safety and compliance. Mr Tischner holds a Bachelor of Arts degree in
Business Studies from Oxford Brookes University.
Marion Geoffroy, Managing Director, Wizz Air UK Ltd.
Ms Geoffroy joined Wizz Air as Head of Legal and General Counsel in March 2015. Between 2000 and 2011,
Ms Geoffroy held senior leadership roles in the Legal department of Air France-KLM. In 2011, she joined
Verlingue Insurance Brokers where she served as General Counsel for four years. She was appointed Chief
Corporate Officer of Wizz Air in September 2018 overseeing the Legal, Data Protection and Health and
Safety departments. Ms Geoffroy holds a Master of Laws (LLM) from Paris XI University (France), a Lawyer-
Linguist Master from ISIT (Paris, France), a law degree from Philipps University (Marburg, Germany) and a
Master of Laws (LLM) from McGill University Institute of Air and Space Law (Montreal, Canada).
Johan Eidhagen, Managing Director, Wizz Air Abu Dhabi
Mr Eidhagen joined Wizz Air in January 2015 as Head of Brand and Marketing, became Chief Marketing
Officer on 1 February 2016 and was named Chief People Officer on 1 November 2019 and ESG and People
Officer on 1 June 2021. Starting from 1 April 2023, Mr Eidhagen took the position of Managing Director,
Wizz Air Abu Dhabi Ltd. Before joining Wizz Air, Mr Eidhagen built an extensive sales and marketing career
at Nokia, holding several senior global and regional marketing positions. He joined Nokia in 1998 from a
background in retail and was Head of Marketing for the Nordic region until 2004, when he moved to Nokia
HQ in Finland to run global marketing services for the entertainment category. Between 2005 and 2007 he
was based in New York as the Director of Marketing for Nokia Multimedia in North America before returning
to Finland where he was Director and Head of Marketing for the Nokia Nseries category. In 2009 he became
Country Manager for Nokia in Sweden and was appointed as Managing Director for the Scandinavian region
in 2011. Mr Eidhagen is a native of Stockholm and is a DIHM marketing graduate from the IHM Business
School in Stockholm.
Diarmuid O’Conghaile, Managing Director, Wizz Air Malta
Mr O’Conghaile joined Wizz Air as Managing Director of Wizz Air Malta Ltd. on 1 November 2022.
Mr O’Conghaile has a long background in aviation, having served as Chief Executive of the Irish Aviation
Regulator, 2021–2022, and with Ryanair from 2016–2021 as Chief Executive of Malta Air (Ryanair Group)
and before that Director of Public Affairs. Mr O’Conghaile was General Manager of Strategy, Pricing &
Economic Regulation with Dublin Airport Authority from 2011–2016. He holds BA Mod, MA and MLitt degrees
from Trinity College Dublin in Economics and a postgraduate diploma in EU Competition Law from King’s
College London. Prior to entering the aviation sector, he worked in a number of industry and government
positions, including with the European Commission and the Irish Department of Finance.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
134
Attendance at Board meetings
The following table sets out the attendance by Directors at the Board and Committee meetings held during
the 2024 financial year. For completeness, the total for each Director represents the total number of
meetings during the year.
Board
attended/total
Audit and Risk
attended/total
Remuneration
attended/total
Nomination
and
Governance
attended/total
Sustainability
and Culture
attended/total
Safety, Security
and Operational
Compliance
attended/total
Executive Director
József Váradi
7/7
6/6*
8/8*
5/5*
6/6*
6/6*
Non-Executive Directors
William A. Franke
6/7
—
—
5/5
—
—
Stephen L. Johnson
7/7
6/6
8/8
5/5
—
—
Barry Eccleston
6/7
—
7/8
5/5
—
5/6
Andrew S. Broderick
8/8****
6/6
—
—
6/6
6/6
Charlotte Pedersen
7/7
5/5**
—
—
—
6/6
Charlotte Andsager
8/8****
—
—
5/5
6/6
—
Enrique Dupuy de Lome
Chavarri
8/8****
6/6
—
—
—
—
Dr Anthony Radev
7/7
—
8/8
—
6/6
—
Anna Gatti
7/7
6/6
8/8
—
—
—
Phit Lian Chong
5/5***
2/2***
—
—
—
—
*
The Executive Director was invited to attend these various Committee meetings in order to discuss certain matters but did not
have a vote. Occasionally Non-Executive Directors also attend meetings of Committees that they are not a member of – these
cases are not reflected in this table.
**
Ms Pedersen stepped down from the Audit and Risk Committee in January 2024.
***
Ms Chong joined the Board in August 2023 and the Audit and Risk Committee in January 2024.
****
There were seven scheduled Board meetings. An eighth Board meeting was delegated by the Board for a special purpose
Transaction Committee to approve a class 1 transaction. Three members of the Board were delegated to the Transaction
Committee.
Wizz Air Board of Directors
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
135
REPORT OF THE CHAIRMAN OF THE AUDIT AND RISK COMMITTEE
“The Audit and Risk Committee evaluates
and manages financial risks, ensures
accurate financial reporting and maintains
the integrity of the internal control
environment.”
Enrique Dupuy de Lome Chavarri
Chairman of the Audit and Risk Committee
Introduction
Dear Shareholder,
I am pleased to present the
Audit and Risk Committee (ARC)
Report for the financial year
ended 31 March 2024.
F24 marked a turning point for
Wizz Air, which included several
notable achievements, including
a return to profitability after
three years of losses, strong
cash flow generation, a
deleveraging of the business and
the retirement of certain debt
obligations. We were able to
harness record consumer
demand, capacity growth, higher
asset utilisation, cost control and
a solid fuel hedging policy to
deliver this result. This is despite
unprecedented challenges –
predominantly manifested
through a combination of: a)
engine durability issues; b) a
lack of a reliable supply chain to
support contractual spare engine
obligations; and c) a
manufacturer’s service bulletin
that introduced an engine
inspection programme that
caused almost a quarter of our
fleet to be grounded. This
hampered operational
performance during the first half
of the financial year, which Wizz
Air restored in the second half.
In the autumn, Wizz Air signed a
compensation framework
agreement with Pratt & Whitney
that will mitigate the costs of
grounding aircraft in F24 and
F25 and deliver significant
economic improvement to the
business.
Main functions of the
Audit and Risk Committee
The Audit and Risk Committee
focuses on developing leading
financial policies, practices,
internal controls and risk
management systems, with
consistent evolution to improve
performance and controls as the
Company expands its fleet over
the next decade. Key recurring
topics focus on liquidity
management, hedging
strategies, financing,
counterparty risk, cyber risk
management, finance systems,
oversight of Internal Audit, and
our relationship with external
auditors. These are discussed bi-
monthly in the Audit and Risk
Committee meetings and, after
each, I provide a Board update
on the key issues discussed in
our meetings. In addition to the
members of the Audit and Risk
Committee, our meetings are
routinely attended by the Group
Chief Financial Officer, the Head
of Accounting, the Senior Audit
Partner and other senior
members of the External Audit
team from our auditors, PwC. In
addition, other senior executives
are invited to attend meetings,
as required, to provide the
Committee with a deeper level of
insight on relevant matters.
Membership, meetings
and attendance
The Committee consists of three
Non-Executive Directors,
appointed by the Board
according to experience,
commitment and capacity. The
Company Secretary acts as
Secretary to the Committee and
relevant members of the senior
leadership team are invited to
attend meetings.
During F24, the composition of
the Audit and Risk Committee
was subject to change. With
effect from 24 January 2024,
Charlotte Pedersen stepped
down from the Audit and Risk
Committee and, in the
meantime, Phit Lian Chong,
Non-Executive Director, has been
appointed as a member of the
Audit and Risk Committee with
immediate effect. Ms Chong was
the CEO of award-winning low-
cost carriers Jetstar Asia Airways
and ValuAir from 2006 to 2012.
Ms Chong also served as an
independent Board Director and
member of the audit committee
on the board of Tiger Airways
Ltd, a low-cost subsidiary of
Singapore Airlines.
The Corporate Governance Code
recommends that the Audit and
Risk Committee should comprise
at least three members, who
should all be independent
Non-Executive Directors, and
that at least one member should
have recent and relevant
financial experience. During the
financial year ended
31 March 2024, the membership
of the Committee comprised
three members:
https://wizzair.com/en-gb/
information-and-services/
investor-relations/governance/
board-committees
a)
Enrique Dupuy de Lome
Chavarri (Chairman)
b)
Anna Gatti
c)
Charlotte Pedersen (four out
of six meetings)
d)
Phit Lian Chong (two out of
six meetings)
All the members are independent
Non-Executive Directors, have
appropriate knowledge and
understanding of financial
matters, and have commercial
expertise gained in industries
with similar characteristics,
giving the ARC as a whole
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competence relevant to the
sector in which the Group
operates. No members of the
Company have links with the
Company’s external auditors.
The Company therefore
considers that it complies with
the Corporate Governance Code
recommendation regarding the
composition of the Committee.
Activities
Risk management
Details of our governance
structure can be found in the
Risk Management section of this
Annual Report. While the Board
is responsible for the Group’s
risk management, the Audit and
Risk Committee supports the
Board in the role of monitoring
the adequacy and effectiveness
of the Group’s systems to ensure
they are effective and operate as
intended. This Committee carries
out the review on behalf of the
Board ensuring that the Board
maintains effective oversight of
financial reporting and risk
management and that it deems
the internal controls to be
sufficient and effective, ensuring
the long-term integrity and
viability of the business. The
day-to-day management of risk
is delegated to the Leadership
Team, which is responsible for
implementing risk management
procedures, ensuring compliance
with these procedures and
reporting back to the Committee
on risk exposures and mitigation
activities.
The Group’s comprehensive
Enterprise Risk Management
(ERM) process, which identifies
and collects risks within our risk
universe and groups them into
risk categories, allows risks to be
analysed for likelihood and
impact. In particular:
▶
each risk identified was
considered in detail in terms
of the inherent risk, existing
mitigating measures and
residual risk, along with a
determination of how each
risk should be dealt with in
accordance with the
Company’s risk appetite;
▶
the resulting risk register
was then used to prepare a
Principal Risk Report. Each
risk owner is required to
review each risk at least
semi-annually;
▶
key members of the
Company’s senior
management team review
the risk register and the
emerging and principal risks
and uncertainties report at
least semi-annually and
share them with the Board;
▶
the Committee, among other
things, approves changes to
the emerging and principal
risks and uncertainties
report, including updates and
consequent mitigating
actions; and
▶
the principal risk report,
once approved by the
Committee, is delivered to
the Board as a whole for
approval.
The Committee reviews the
Company’s risk register twice per
year and assesses whether its
risk management systems
accord with the Financial
Reporting Council’s (FRC)
Guidance on Risk Management,
Internal Control and Related
Financial Business Reporting.
Both at the half-year review and
at the full-year review, the
Committee concluded that the
Company’s risk management
and internal control systems are
in accordance with applicable
guidance. No significant failings
or weaknesses were identified in
the review process.
Climate risks
The Company’s financial
disclosures follow the
recommendations established by
the Task Force on Climate-
related Financial Disclosures
(TCFD), for use by companies in
providing information to
investors and other stakeholders
about their climate-related
financial risks and opportunities.
Since F21 the Company has
been aligning its disclosure with
the recommendations of the
TCFD and during F24 we have
further improved our disclosures.
These improvements versus last
year include amongst others:
▶
the continuous development
of our climate risk
assessment approach and its
effectiveness in supporting
the organisation’s resilience.
We continue to work with
expert sustainability and
climate consultants from
Deloitte Ltd. Hungary who
support our materiality and
heat mapping processes.
Climate risk assessment is a
recurring exercise, and
based on updated scientific
forecasts or new policies, the
risks and their impact
evaluation were revised.
Following qualitative scenario
analysis, based on TCFD
recommendations, the key
risks retained were also
quantified;
▶
the cooperation with third-
party sustainability
consultants Climate Partner
to assess Wizz Air’s
greenhouse gas inventory
and calculate its emissions
(Scope 1, 2 and 3) based on
recognised standards; and
▶
the appointment of a third
party, KPMG Hungary, for
the limited assurance of the
Company’s carbon footprint
and greenhouse gas
emissions reporting for F24.
The Company’s ESG team has
also begun preparations to
ensure compliance with the EU’s
Corporate Sustainability
Reporting Directive (CSRD) from
next year. As part of that, to
expand ESG risk assessments
to the supply chain, Wizz Air
entered into a partnership with
Integrity Next, a company
specialised in third-party risk
and supply chain sustainability
management. This will help
Wizz Air to identify and manage
potential supplier ESG risks
before and after contracting.
While the Company’s emissions
intensity (emissions per
passenger kilometre) is among
the lowest in the industry and on
that critical metric the Company
leads the industry, as evidenced
by the CAPA sustainability
award, the Board recognises that
more progress needs to be made
to work towards climate
transition planning ensuring we
keep our pace in emissions
reduction in line with set goals.
The Company’s target to reduce
emissions intensity by at least 25
per cent by F30 is supported by
a combination of new technology
adoption, fuel-saving initiatives
and a robust SAF strategy (see
pages 46 to 48 of the
Sustainability Report).
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Cyber Risks Review
The Committee continued to
review regular updates from
management on the Company’s
position with respect to cyber
security and on the actions
implemented or planned to
mitigate cyber risks, even more
so given a continued rise in
cyber activity in the industry and
in the Company’s supply chain.
The Digital Officer provides an
update on cybersecurity at each
Committee meeting, with ad
hoc updates as needed. These
reports provide the Committee
with information on compliance
progress, cyber monitoring and
any notable incidents.
Internal Audit and effectiveness
The purpose of Wizz Air’s
Internal Audit function is to
provide independent, objective
assurance and internal
consulting services designed
to add value and improve
operations of all the entities and
functions within the Group.
The Senior Internal Audit
Manager is responsible for the
proper operation of Wizz Air’s
Internal Audit function and
actively involves outsourced
service provider(s) to perform
mainly assurance projects
and to a limited extent
consulting services.
The Internal Audit Plan
The Senior Internal Audit
Manager prepares a risk-based
plan of internal audits for the
upcoming year, which is
approved by the Audit and Risk
Committee.
This Internal Audit Plan also
covers:
▶
internal audits over
operational processes;
▶
fraud-specific audits to be
performed by the designated
Anti-fraud and Investigations
Manager under the
supervision of the Senior
Internal Audit Manager; and
▶
periodic review of the
Internal Controls over
Financial Reporting (ICFR)
project. The plan is
supervised by the Senior
Internal Audit Manager, who
has direct responsibility to
the Chairman of the
Committee as well as an
administrative reporting line
to the Company’s Chief
Financial Officer.
Each audit and project is
preceded by a detailed scoping
and resource planning exercise
which forms the basis of the
procedures. Following the
completion of an internal audit or
a fraud-specific audit, a report is
compiled which sets out findings,
makes recommendations for
control improvements and
presents the improvement
actions already undertaken by
management. These reports are
submitted and presented to the
Audit and Risk Committee for
discussion, input and approval.
The Chairman subsequently
provides the Board with detail
of the internal audit and fraud
investigation reports completed.
Internal Audit tracks and verifies
that any recommendations as a
result of the Internal Audit Plan
or the external audit work are
being implemented, and reports
back to the Audit and Risk
Committee on the status of
such implementation.
To expand the Internal Audit
function’s perspective, in
January Wizz Air entered the
International Association of
Airline Internal Auditors (IAAIA)
for the first time since the
association’s foundation to
exchange information on
challenges and best practices.
Currently, 45 airlines are
members of the association.
The association offers many
benefits with the membership,
such as audit tool licence, airline
industry specific benchmarks,
key Internal Audit department
initiatives across education,
automation and methodology
pillars, and audit plan priorities.
Based on all the interactions
with the Senior Internal Audit
Manager and the reviews of
the internal audit work, the
Committee concluded that
the Company’s Internal Audit
function is effective in the
context of the Company’s overall
risk management system.
Anti-Fraud
Wizz Air’s Anti-Fraud function
continued the development of
its anti-fraud framework to be
aligned with international anti-
fraud requirements and good
practices. These requirements
and good practices were
provided in F23 by EY Hungary
which was commissioned as an
independent consulting service
provider to review and analyse
the Company’s anti-fraud
strategy and related internal
policies. As a result of its
analysis, recommendations
related to the development of
the anti-fraud framework have
been presented and agreed.
The Anti-Fraud and
Investigations Manager functions
as the second line of defence
while monitoring and supporting
other Wizz Air personnel and
departments in ensuring
business operations and
performing operational tasks that
align with the established anti-
fraud programme and policy.
To complement the development
of our anti-fraud framework, we
decided to enter the European
Airlines Fraud Prevention Group
and the Anti-Fraud and
Investigations Manager
increased her involvement in the
UK Airlines Fraud Forum as well
to exchange information on
challenges and best practices.
The regular meetings focus on
discussing fraud trends and
exploring methods to counter
or prevent emerging fraudulent
activities.
Reporting procedures and
controls
Management is responsible for
internal controls over financial
reporting for the Group. Each
week, the Board receives an
update on key performance
metrics and each month an
outline of the Group’s financial
results (actual and forecast) is
shared. At least annually, the
Board reviews the strategic plan
for the Company and, following
that strategic review, in a
separate review will review the
mid-term financial plan for the
Company.
The controls over the integrity
of financial reports include,
amongst others, reconciliation of
key balances, variance analysis
to forecast and prior year
results, and review meetings
within the Finance and
Accounting team and with the
respective business owners
including the Leadership Team.
The Annual Report is produced
by the Group Accounting team
based on the reports from
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several departments across the
Company, including Investor
Relations, Financial Planning and
Controlling, Treasury, Internal
Audit, Legal, HR, Corporate
Office, Commercial and
Customer Experience,
Sustainability and Operations.
Their submissions are thoroughly
reviewed prior to inclusion and
independently validated by the
Accounting team and reviewed
by the respective Officers.
The Company has continued to
work to improve its financial
reporting operation with a focus
on digitalisation of manual
transactions allowing higher
pixelation of data and shorter
lead times, leveraging the
opportunities highlighted as part
of the Company’s ICFR project
and some of the best technology
available. During F25, EY
Hungary will continue to provide
consultancy services regarding
ongoing ICFR projects supporting
management and the Audit and
Risk Committee to maintain
effective oversight on financial
reporting, risk management and
effective internal controls and to
prepare for and adopt the
improved FRC internal control,
assurance and resilience
requirements over the course
of F25.
Financial information flow
An annual operating plan (OP) is
produced and monthly results
are reported against this. The OP
is prepared using a bottom-up
approach, determined by a high-
level assessment of market and
economic conditions. Reviews
are performed and ultimately
approved by the Leadership
Team and the Board. The Plan is
also compared to the top-down
Mid-Term Plan that projects the
business’ performance over a
three-year period to March 2027
(MTP) as a sense check.
Management performs Group
consolidation monthly with a
month-end pack produced that
includes the income statement,
balance sheet analysis along with
key performance indicators and
a cash flow statement for every
quarter, which are reviewed by
the Leadership Team and
the Board. Actual results are
compared against the Group’s
plan and a monthly forecast is
prepared and compared against
both the plan and the prior
forecast. A narrative is provided
by management to explain
significant variances.
The Audit and Risk Committee
reviews and approves all interim
and annual financial statements,
as well as the content of the
Company’s Annual Report. The
Company’s external auditors
provide the Audit and Risk
Committee with a briefing on any
issues arising during their audits.
The Committee also reviews and
approves any regulatory
announcements that are made
in connection with such financial
information. It is only after the
Committee’s approval that
statements are put to the Board
as a whole for approval.
With regard to our reporting
procedures and the financial
controls over these procedures,
the Committee concludes that
the Company produces
comprehensive financial
statements and other financial
reporting and disclosure,
leveraging adequate and
effective reporting processes,
systems and controls.
Assess the Group’s going
concern and viability statements
The Directors must satisfy
themselves as to the Group’s
viability and confirm that they
have a reasonable expectation
that it will continue to operate
and meet its liabilities as they fall
due. The period over which the
Directors have determined it is
appropriate to assess the
prospects of the Group has been
defined as three years. In
addition, the Directors must
consider if the going concern
assumption is appropriate.
The Committee reviewed
management’s schedules
supporting the going concern
assessment and viability
statement.
These included the Group’s Mid-
Term Plan (MTP) and cash flow
forecasts for the period to
March 2027. The Committee
discussed with management the
appropriateness of the three-
year period, and discussed the
correlation with the Group’s
principal risks and uncertainties
as disclosed on pages 106 to
113. The feasibility of mitigating
actions and the potential speed
of implementation to achieve any
flexibility required were
discussed. Scenarios covering
events that could adversely
impact the Group were
considered. The Committee
evaluated the conclusions over
going concern and viability
and the proposed disclosures in
the financial statements and
satisfied itself that the financial
statements appropriately reflect
the conclusions.
Corporate Reporting Review
In F24, the Committee received
notice from the Financial
Reporting Council (FRC) that it
had carried out a review of the
Company’s annual report and
accounts for the F23 financial
reporting year, in accordance
with Part 2 of the FRC Corporate
Reporting Review Operating
Procedures. The FRC's review
was not to verify the information
disclosed, but to assess
compliance with reporting
requirements. The letter stated
that, based on their review,
there were no questions or
queries the FRC wishes to raise
with the Company and only a
limited number of disclosure
improvements were
recommended for the benefit of
users of the accounts. The Audit
and Risk Committee has
discussed the findings of the
Corporate Reporting Review with
PwC and management and is
satisfied where appropriate
disclosure enhancements have
been made.
Relationship with external
auditors
With the completion of the F24
audit, PricewaterhouseCoopers
LLP have been the auditors of
the Company for 17 years
uninterrupted, covering the
years ended 31 March 2008 to
31 March 2024. The Committee
carefully considered the
performance of the external
auditors and the quality and
effectiveness of the external
audit process. In line with the
FRC’s Audit Quality Practice Aid
for audit committees, the
Committee reviewed materials
from independent sources,
including the Adviser Rankings
Guide, to gain additional insights
into the effectiveness and quality
of the external auditors.
As a normal responsibility of the
Audit and Risk Committee, we
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have regular correspondence and
discussions with the engagement
partner of the Group’s external
auditors, Mr Jason Burkitt, of
PricewaterhouseCoopers LLP
(PwC), outside the formal cycle
of Committee meetings.
External audit plan and fees
The Committee approved the
fees to be paid and the external
audit plan for the F24 financial
year and reviewed the reports
of the auditors on the half-year
review and annual audit.
The audit of the F24 financial
statements and the review of the
half-year financial statements
were all completed on time and
to a high standard and
addressed the key issues arising
from the Company’s business
that could have a material
impact on the financial
statements.
The Committee has had a
number of interactions with PwC
during the audit process and has
obtained feedback from the
Group Finance team on their
performance. Based on this the
Committee noted that PwC’s
focus was aligned to their audit
plan, which the Committee
had previously approved. The
Committee is satisfied that PwC
have appropriately challenged
management, robustly but
constructively, during the audit
process and remained sceptical
in their approach as well as
reporting their findings
transparently to the Committee.
Audit fees further increased in
F24 compared to prior years.
The increase reflects professional
pay inflation rates in the UK and
in Hungary and the growth in
size and complexity of the
Company.
External audit non-audit
services and independence
A primary focus of the
Committee is to ensure the
independence of the Company’s
external auditors. The
Committee reviewed the
independence letter of the
auditors and considered in
particular the non-audit services
performed and the non-audit
fees paid to the external auditors
during the year (see Note 7 to
the financial statements).
The Audit and Risk Committee
was satisfied that non-audit
services and fees did not
compromise the objectivity and
independence of the auditors:
(i) the engagement leaders
from the relevant assurance
departments are not part of the
audit team; and (ii) no such
services were ordered by the
Company that carried a self-
review threat for the auditors.
Furthermore, non-audit fees
have been on a declining trend
for several years, both in terms
of their absolute amount and as
a proportion to audit fees. As a
result, non-audit fees earned by
PwC in F24 were materially less
than the audit fees. Details of
non-audit fees paid to the
auditors are set out on page
208.
The last external audit services
tender was conducted in the
summer of 2017, when
PricewaterhouseCoopers LLP
were re-appointed to perform
the external audit for five years
(2018–2022). The Company
confirms compliance with the
provisions of the Statutory Audit
Services for Large Companies
Market Investigation Order 2014
relating to tendering. The
Company tested the market
early again in 2021 and
concluded that PwC will be
proposed to remain as auditors
for F24 and the next tender
process will be scheduled during
2026, to award the auditors in
charge for the year ending
31 March 2028.
Significant matters relating to
the Annual Report
In the course of the preparation
of the Company’s financial
statements, the following issues,
among others, were considered
by the Committee, relying on its
professional and industry
experience, and constantly
challenging management’s
judgment:
▶
The continued uncertainty
around the geopolitical
situation including the
impact on commodity
markets required a review
of the going concern
assumptions and the viability
statement. The Committee
participated in rigorous
reviews and analysis of the
assumptions and
methodologies used by
management in undertaking
the work required to provide
the forecasts to underpin the
going concern and viability
statements. At the
conclusion of this process,
which included frequent
interaction with the
engagement partner of the
external auditors, the
Committee determined that
the positions adopted by
management on these issues
were appropriate.
▶
The review of the hedging
policy for jet fuel pricing and
associated USD foreign
exchange exposure for the
Company. The Board
approved a reinstatement of
its hedging policy in F23 and
this remains in effect. The
Committee is briefed each
time management proposes
adding additional hedges,
including the details of such
hedges, the conformity of
these hedges with policy and
the achieved outcome of any
prior approved hedge
requests. The policy and its
efficacy are reviewed at each
Committee meeting.
▶
Capital commitments and
financing: the Committee
undertook a detailed review
of the Company’s capital
commitments including the
required repayment of the
Company’s bond in January
2024. The Committee and
the Board of Directors
reviewed in detail the
working capital assessment
led by the Company and
noted that management had
secured, or will generate,
sufficient trading cash flow
over the term covered by the
going concern period to meet
its obligations.
▶
The Committee reviewed
treasury risk management
policies and suggested
enhancements around
controls over counterparty
credit limits.
▶
The Committee reviews the
status of the Company’s
tax returns and tax audits
in the key jurisdictions it
operates in.
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▶
The impact of the war in
Ukraine: in February 2022,
the airspace of Ukraine,
Russia and Moldova was
closed until further notice as
a result of the war in
Ukraine. Three of Wizz Air’s
aircraft were stranded in
Kyiv while all of the engines
affixed to these aircraft have
been exported and after due
maintenance rejoined the
Wizz Air fleet as spare
engines effectively utilised in
daily operations. While three
airframes remain grounded
on Ukrainian territory,
management is actively
pursuing all safe options to
facilitate the return of these
assets to support the
Wizz Air fleet while at the
same time carefully
evaluating impairment
calculations should such
efforts be unsuccessful.
▶
The impact of the latest
Israel–Hamas War: The
Committee increased its
scrutiny towards the Group’s
financial forecasts and the
ongoing geopolitical
disruption in Israel and
Palestine and the impact
thereof to the affected
Wizz Air destinations
including Jordan, Egypt
and the Middle East and
the Group’s financial
performance as a whole.
The Committee also considered
whether the Annual Report,
as written by the respective
business or subject matter
owners, taken as a whole,
was fair, balanced and
understandable and whether
it provided the necessary
information for Shareholders to
assess the Company’s financial
position, performance, business
model and strategy. In reaching
its judgment the Committee
reviewed all the issues that
had been raised by both
management and the external
auditors during the audit process
and at other times during the
year and debated whether they
had been fully, fairly and clearly
disclosed and discussed in the
Annual Report. The Committee
also considered whether
appropriate emphasis was
placed on each issue. At the
conclusion of this process the
Committee determined that
the Annual Report taken as a
whole is indeed fair, balanced
and understandable and
recommended it to the Board
for approval.
Other matters considered and
monitored during the year
▶
The Committee noted
the redrawing of a
$211.6 million pre-delivery
payment (PDP) facility in
multiple stages starting
from November 2023 and a
€253.6 million ETS sale and
repurchase agreement in
December 2023.
▶
The Company retained its
investment grade rating
with Fitch (BBB-).
▶
The Committee tasked the
Internal Audit department
with an IT recovery
readiness and disaster
recovery plan audit as well
as a third-party risk
management audit – both
of which are currently
underway.
▶
Work continues on anti-fraud
and ICFR matters.
▶
The Committee was regularly
briefed on matters pertaining
to Pratt & Whitney engine
performance challenges and
agreements negotiated to
mitigate the costs to the
Company.
Enrique Dupuy de Lome
Chavarri
Chairman of the Audit
and Risk Committee
14 June 2024
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141
REPORT OF THE CHAIR OF THE SAFETY, SECURITY AND
OPERATIONAL COMPLIANCE COMMITTEE
“The robust reporting practices within the
organisation reflect a strong commitment to
aviation just culture, enhancing our
confidence in the Company’s safety
management. It is testament to the collective
efforts towards a safer and more resilient
aviation environment.”
Charlotte Pedersen
Chair of the Safety, Security and
Operational Compliance Committee
Dear Shareholder,
I am pleased to present the
report of the Wizz Air Safety,
Security and Operational
Compliance Committee for the
year ended 31 March 2024.
Our Committee was established
on 26 July 2022, with a clear
mandate: to reinforce Wizz Air
Group’s robust safety culture
and enhance oversight of safety,
security and compliance
performance across the
organisation.
Safety lies at the core of
Wizz Air’s operations and
remains our highest priority. In
the current fiscal year, Wizz Air
was honoured to be recognised
once again as one of the safest
airlines in the world by
AirlineRatings.com – in the top
ten safest low-cost airlines
globally. Safety in aviation
assumes paramount importance,
especially during times when the
industry faces heightened
scrutiny due to recent incidents
that have cast doubts on aviation
safety. Engine defects and
aeroplane manufacturer events
have raised legitimate concerns,
necessitating a renewed focus on
safety. The robust reporting
practices within the organisation
reflect a strong commitment to
aviation just culture, enhancing
our confidence in the Company’s
safety management system.
The year did not pass without
significant security challenges
across the Wizz Air network as a
result of geopolitical instability
impacting the airspace. The
outbreak of war in Israel and
Gaza on 7 October 2023 resulted
in the temporary suspension of
Group operations to Israel.
The Company also faced a
unique challenge as a result of
the recall of engines by its
engine supplier, Pratt & Whitney,
leading to the grounding of
45 aircraft. The Committee
oversaw the Company’s
approach to managing the
system of engine removals
and inspections, as well as the
mitigations introduced to ensure
safe operations.
The Committee, in collaboration
with the Chief Operations Officer,
the Operations department, the
Safety, Security and Compliance
Managers, and the Managing
Directors of the AOCs, plays a
crucial role in maintaining the
Group’s impeccable safety
record. We assist the Board by
overseeing the Group’s policies,
practices, objectives and
performance related to safety,
security and operational
compliance management.
This responsibility became even
more critical during times of
geopolitical insecurity, which
directly impacted our operations.
The Wizz Air Group is comprised
of four airlines and Aircraft
Operator Certificates (AOCs)
with individual safety
responsibilities, regulatory
frameworks and reporting
obligations.
The respective AOCs are
regulated by the European Union
Aviation Safety Agency, the UK
Civil Aviation Authority and the
General Civil Aviation Authority
of the United Arab Emirates
(UAE). The Committee carries
out oversight of the effectiveness
of the Group’s safety systems
and standards in respect of AOC
structures, facilitating the
Group’s safe expansion.
In my role as Chair I provide
regular updates to the Board and
provide my fellow Directors with
safety materials and information
to allow comprehensive
knowledge sharing of safety
matters and the Group safety
management system.
Membership, meetings
and attendance
• Charlotte Pedersen (Chair)
• Barry Eccleston
• Andrew S. Broderick
The Committee consists of
three Non-Executive Directors,
appointed by the Board
according to experience,
dedication and capacity.
The Company Secretary acts
as Secretary to the Committee
and relevant members of the
senior leadership team and the
different AOCs are invited to
attend meetings.
The terms of reference of the
Committee are available at:
https://wizzair.com/en-gb/
information-and-services/
investor-relations/governance/
board-committees.
The Committee had six meetings
during the year. The Committee
focused on the following
activities:
• received regular updates on
risks related to airspace
security and geopolitical
matters;
• received regular updates on
the measures implemented to
mitigate the grounding of
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142
aircraft as a result of the recall
of Pratt & Whitney engines;
• reviewed the Group safety
and security principles;
• reviewed risks relating to
safety, security and
compliance management and
emergency response;
• received regular reports on
safety performance, audit
findings and incidents; and
• received regular updates from
the AOC Managing Directors.
In addition, the Committee
received training on the Group
Safety Management system;
Security Management; and
Directors’ liability in the event of
a serious incident.
Key activities
Operational stability
Following a challenging
operational year in F23, the
Committee was pleased to
oversee significant
improvements in the stability of
the Group’s operations, leading
to robust operational results and
ultimately less disruption for its
valued customers.
The Committee was updated
about investment in the
decentralisation of operations
and consequent strengthening of
operations at each of the Group’s
respective AOCs – adding
additional resources and
operational buffers. The
Committee reviewed the
Company’s response which
included identifying mitigating
strategies which led to these
structural changes.
In addition, the Company
introduced fixed roster patterns,
eliminated complex flying and
implemented buffers in the flying
schedules. These collective
efforts resulted in industry
leading completion rates and
minimised disruptions in a
safe manner.
Despite notable improvements in
operational performance, the
Company encountered significant
disruptions due to the grounding
of aircraft from the recall of
engines by Pratt & Whitney, a
critical event that impacted flight
schedules and reliability.
Additionally, a prolonged process
of scheduled engine removal and
inspection further strained
operations. In response, the
Committee collaborated closely
with management to mitigate
the impact; evaluate the risks
associated with prolonged engine
inspections; and ensure effective
contingency planning. The
Committee receives regular
updates on the status of the
engine issues.
Risk management
The Committee was updated
about safety risks and incidents
and how they were managed by
the Group and the respective
AOCs. The Committee reviewed
the performance of the risk
mitigation strategies and
corrective actions in response
to audit findings.
The Committee observed the
number of mandatory and
voluntary occurrence reports and
reported to the Board that the
reporting balances were
indicative of a healthy safety
culture. The combination of both
types of reports indicates that
the organisation encourages
open communication and values
safety over silence, fostering a
learning environment. The
positive levels of voluntary
reporting indicate that Wizz Air
actively mitigates risks by acting
on reported issues. It also
signifies a commitment to
continuous improvement and
resilience in the face of
challenges.
The Committee’s recognition of
positive reporting levels to the
Board reinforces the Company’s
commitment to safety,
transparency and a culture of
continuous learning. It’s a
testament to the collective
efforts toward a safer and more
resilient aviation environment.
Security challenges
Due to several ongoing conflicts,
the Committee was updated
about continuous monitoring
and risk management related
to physical security risks due
to the proximity of the Group’s
network to various wars.
The Company constantly reviews
and updates its security risk
assessment and mitigation
process and seeks to improve
its intelligence gathering and
sharing capabilities.
The Company continued to
monitor events in Ukraine where
the airspace remains closed to
date. A further war broke out in
the Middle East. The Company
activated a crisis management
process to deal with adjustments
in the operation. While the
airspace was still technically
open, for security reasons the
Company made the decision to
stop operating to Israel on
7 October. Following a detailed
risk assessment, reviewed by the
Committee, the Group airlines
restarted operations to Israel in
March 2024. The Company
continues to react and mitigate
risks in line with safety
recommendations from
authorities to ensure safe
operations during a constantly
evolving situation.
The Committee observed an
increase in bomb threats,
particularly at airports, and
encouraged management to
work with airports to establish
effective handling in case of
disembarkation or crisis
management.
Going forward
The Committee will continue
to focus on the adoption of
policies, standards and
processes in accordance with
best practices of the airline
industry, particularly in light
of the Group’s ambitious
growth plans to new regions
with differing safety and
regulatory frameworks.
The Pratt & Whitney engine
situation will continue to be a
focus, as will the continued
monitoring of security risks
arising from geopolitical volatility
which can have a significant
impact on airline operations.
Finally, I would like to thank the
great people of Wizz, in
particular the Group operations
team and AOC management,
for their steadfast dedication to
running a solid operation and
providing safe and reliable
service for our customers,
despite the many challenges
facing the Company in terms of
disruption from engineering and
geopolitical matters.
Charlotte Pedersen
Chair of the Safety,
Security and Operational
Compliance Committee
14 June 2024
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143
REPORT OF THE CHAIRMAN OF THE NOMINATION AND
GOVERNANCE COMMITTEE
“Over the course of the year, the Committee
significantly contributed to strengthening the
Board through… a steadfast dedication to
fostering diversity within the organisation.”
William A. Franke
Chairman of the Nomination and Governance Committee
Introduction
Dear Shareholder,
I am pleased to present the
Nomination and Governance
Committee Report for the
financial year ended
31 March 2024. Over the course
of the year, the Committee
significantly contributed to
strengthening both the Board
and the senior management
team. This was realised through
supervision of talent
development, strategic
succession planning, and a
steadfast dedication to fostering
diversity within the organisation.
The Nomination and Governance
Committee assists the Board in
discharging its responsibilities
relating to the composition of the
Board and senior management.
The Nomination and Governance
Committee is responsible for
evaluating the balance of skills,
knowledge and experience on
the Board, the size, structure
and composition of the Board,
and retirements and
appointments of additional
and replacement Directors,
and makes appropriate
recommendations to the
Board on such matters.
This year, the Committee
prioritised diversity and one of
the areas we focused on was
ethnicity. We are satisfied that
the composition of the Board
aligns with the objectives
regarding gender diversity and
ethnic representation outlined
by the UK Listing Rules, the UK
FTSE Women Leaders Review
and the UK Parker Review.
Succession planning was also a
key focus of the Committee to
ensure the balance of skills,
knowledge, experience, diversity
and independence to implement
the Company’s strategic
priorities.
The Committee conducted an
internal evaluation of the
effectiveness of the Board, its
Committees, members and
processes in accordance with
corporate governance standards.
Further details of the reviews,
conclusions and
recommendations can be found
on page 122.
Membership, meetings
and attendance
• William A. Franke (Chairman)
• Charlotte Andsager
• Barry Eccleston
The Committee consists of three
Non-Executive Directors,
appointed by the Board
according to experience,
dedication and capacity. Stephen
L. Johnson attends the
Committee as an observer. The
Company Secretary acts as
Secretary to the Committee and
relevant members of the senior
leadership team are invited to
attend meetings.
The terms of reference of the
Committee can be found at:
https://wizzair.com/en-gb/
information-and-services/
investor-relations/governance/
board-committees.
The Committee had five
meetings during the year
and focused on the following
activities:
• reviewed and approved
changes to the Board
Committees;
• considered and approved
the appointment of a female
Director from Singapore, Phit
Lian Chong, to the Board;
• approved changes to the
senior leadership team and
recruitment of new Officer
appointments;
• reviewed and recommended
to the Board the amendment
of Board reserved matters;
• commenced an annual Board
review process; and
• considered talent, succession
planning and diversity of the
senior leadership team.
Key activities
Board composition
In accordance with the UK
Corporate Governance Code,
the Committee considered and
proposed a number of changes
to the Board, including the
appointment of Phit Lian Chong
and changes to the composition
of the Committees.
In connection with the
appointment of Ms Chong, the
Board approved a number of
changes to the membership
of Board Committees:
• Charlotte Pedersen stepped
down from the Audit and Risk
Committee, but continued her
other commitments; and
• Phit Lian Chong was appointed
to the Audit and Risk
Committee.
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Management changes
In ensuring the development
of a solid talent pipeline, the
Committee oversaw the
strengthening of the senior
leadership team. The Company
welcomed Silvia Mosquera to
the Group as Executive Vice
President and Group Chief
Commercial Officer. The
Committee considered the
appointment of Boris Rogoff
as Central Operations Officer,
Janos Pal as Revenue Officer and
Ervin Banyai as Digital Officer.
Re-election
In accordance with the UK
Corporate Governance Code
and the Company’s articles,
each Director is required to retire
by rotation and seek election or
re-election annually at the
Company’s AGM. The Board, on
the support of the Committee,
recommends the re-election of
all Non-Executive Directors at
the upcoming AGM. The
Committee and Board are
satisfied that the Non-Executive
Directors have discharged
their duties effectively and
demonstrate the requisite
mix of skills and time
commitment relevant.
External appointments
After a Director is appointed, any
proposed additional external
roles are subject to review by
the Committee. The purpose is
to ensure that these additional
responsibilities will not hinder a
Director’s ability to fulfil their
role within the Company. The
Board also regularly assesses
Directors’ interests and
commitments during Board
meetings. Based on this
evaluation, it has determined
that each Non-Executive Director
has adequate time to fulfil their
duties, considering their external
appointments and commitments.
External appointments were
considered and approved during
the course of the year for
Enrique Dupuy de Lome.
Induction and training
Our standard induction
procedures for newly appointed
Directors involve personalised
meetings with senior executives.
Additionally, Directors visit the
headquarters in Budapest.
The induction programmes are
customised to align with each
Director’s unique background
and experience. These
procedures complement existing
practices, where Non-Executive
Directors engage in relevant
business activities such as
employee interactions, and
participation in brand events.
Diversity and inclusion
Consistent with the Company’s
Diversity and Inclusion Policy,
the Board and Committee are
committed to improving diversity
on the Board and supporting
female representation on the
Board and senior leadership
team. Due consideration is
afforded to all aspects of
diversity, including gender and
social and ethnic backgrounds.
The Committee is mindful of
the recommendations of the
Financial Conduct Authority,
the UK FTSE Women Leaders
Review and the Parker Review.
In line with the Company’s policy
on diversity, new appointments
to the Board will track best
practice guidelines.
The Board has 36 per cent
female representation, two
of whom are Chairs of the
Sustainability and Culture
Committee and the Safety,
Security and Operational
Compliance Committee,
respectively. There is a
commitment to have no less
than 40 per cent female
representation on the Board
and have at least one Director
reflecting ethnic diversity.
The Committee is pleased to
confirm the latter objective has
been met with the appointment
of Phit Lian Chong. The
Committee continues to strive to
prioritise the former objective.
Diversity and inclusion is
embedded in the senior
management’s incentive
programme; the Committee
recognises the value of broader
diversity including nationality.
With over 100 nationalities
already working for the Company
– and with eight nationalities
represented on the Board and
eight on the Company’s strong
Leadership Team – the
Committee will continue to
ensure that the Company
remains a diverse organisation
that represents the communities
both within the Company and
which we serve.
In March 2024, to celebrate
International Women’s Day,
the Company launched its first
Women on Air event, to promote
gender diversity in the aviation
industry to support and thank
the accomplished female leaders
from various roles within Wizz
Air. The event underscores Wizz
Air’s broader commitment to
fostering diversity and inclusion.
William A. Franke
Chairman of the Nomination
and Governance Committee
14 June 2024
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145
DIRECTORS’ REMUNERATION REPORT
“Our employees’ dedication and effort have
been instrumental in achieving this year’s
robust results – a €900 million earnings
improvement year over year; this is reflected
in the Committee’s approach to remuneration
matters.”
Barry Eccleston
Chair of the Remuneration Committee
Introduction
Dear Shareholder,
I am pleased to present the Directors’ Remuneration Report (DRR) for the financial year ended
31 March 2024. This report includes a detailed account of how we implemented the Company’s
Remuneration Policy over the past financial year and the planned policy implementation for the financial
year ending on 31 March 2025 (F25).
Our employees’ dedication and effort have been instrumental in achieving this year’s robust financial results
– a €900 million earnings improvement year over year – despite the lingering impact of the COVID-19
pandemic and persistent volatility facing the industry. The Committee considers it essential to recognise that
context and the dedication of our management and employees, and this is reflected in the Committee’s
approach to remuneration matters.
In common with the worldwide airline industry, the Company’s operations were almost entirely grounded
during the pandemic but, with strong leadership and its entrepreneurial spirit, the Company restored
operations and exploited opportunities very successfully, even though demand remained unpredictable and
affected by short-notice restrictions across all markets. Indeed the Company emerged in a strong position
from the pandemic, having relied on its own financial strength, rather than government bailouts which were
the lifeline for many other airlines.
However, subsequently, the Company has faced a number of unique challenges: first, the Russia-Ukraine
war, which brought to an immediate end the Company’s operations in Russia and Ukraine; second, the
removal from service of a large number of aircraft following the recall of virtually all of the new generation
of engines manufactured by Pratt & Whitney; and third, as the result of the Israel–Palestine conflict, the
Company was forced to cease service to Israel and neighbouring countries. In addition to impacting
the Company’s financial performance, these black swan events made our management team’s work
meaningfully more challenging.
Notwithstanding this external context, for F24, the Group reported a profit of €365.9 million, a positive swing
in earnings of almost €900 million compared to F23. Those earnings allowed the Company to pay down debt
to further strengthen its balance sheet, which has remained investment grade with strong liquidity; increase
capacity by 24.5 per cent and grow its fleet with an additional 39 latest-technology Airbus A321neo aircraft,
all successfully and competitively financed; regain its position as one of Europe’s most reliable airlines with a
schedule completion rate of 99.8 per cent in March 2024; and achieve record carbon emissions intensity
reductions and improved sustainability ratings, extending its lead with the lowest emissions per passenger
kilometre in Europe and globally. Despite the external challenges and at the same time as delivering the
Company’s remarkable recovery, management has been resolute in its focus on driving down unit costs,
with the aim to re-establish the Company’s position as the most efficient airline operating in Europe: at the
end of F24, ex-fuel CASK had been reduced by 7.8 per cent, year on year.
These are exceptional results, delivered by our management team and all our employees under the most
challenging of circumstances. However, these results have not resulted in corresponding financial rewards.
Given the STIP and LTIP for our senior management team together account for some 75 per cent of
the earning potential of senior management, remuneration outcomes have been below our airline peer group
for a number of years. Over those same years, significant inflation has reduced the value of incentives
created by our compensation programmes and created significant retention risk among the Company’s
management team.
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One of the core principles underpinning the Company’s remuneration schemes is pay for performance, and
this principle has been consistently applied by the Committee over the years. In designing the schemes, the
Committee benchmarks salaries each year, with the various elements together, including performance-based
elements, to ensure we are delivering market-competitive remuneration packages. However, the various
black swan events already discussed have adversely affected the Company’s financial performance and, so,
the outcomes of management’s and employees’ remuneration schemes. As a result, for F24 and F25, the
Committee has approved changes in executive remuneration to restore the management team’s incentives,
to reflect shifting market dynamics and volatility, and to ensure competitiveness of pay outcomes and
ensure retention, all while having regard to the interests of Shareholders amidst the prevailing economic
unpredictability. The Committee believes that these interests continue to be served by ensuring that the
Company’s remuneration schemes are highly leveraged to drive performance and attract entrepreneurial
talent, maintain a strong link between pay and performance and incentivise through high rewards for stretch
performance, but with a realistic prospect of achievement.
Key activities
“One of the core principles underpinning the Company’s remuneration
schemes is pay for performance. Remuneration outcomes have been
below our airline peers for a number of years during highly volatile
external market events. Against this backdrop, the Committee needs
to take into account talent management and retention.”
Workforce engagement
Every member of Wizz Air’s dedicated team has played and continues to play a pivotal role in the Company’s
success, the emergence from the pandemic, the managing of geopolitical and supply chain challenges, and
the return to full year profit. The Committee recognises the need to attract, motivate and retain the most
talented management and workforce as the Company continues on its trajectory to its “WIZZ500” ambition,
which will see the Group operating a fleet of 500 aircraft by the end of the decade. Regular updates from the
Chief Corporate Affairs Officer, the People Officer and the Employee Engagement Director informed
remuneration strategies aimed at supporting employees. Additionally, direct feedback from employees
through an engagement survey led to targeted particular remuneration interventions including the exercise
of discretion to authorise a payout under the Company’s All Employee Bonus Scheme (explained in more
detail below), to recognise the flexibility, resilience and loyalty of the Company’s non-management
employees in responding to the various external events which had adversely affected the Company’s
operations and financial performance.
Shareholder engagement
At the 2023 Annual General Meeting (AGM) held on 2 August 2023, all resolutions were approved by
Shareholders. While the Board was pleased that the majority of Shareholders approved all AGM proposals,
the Company conducted a consultation exercise following the meeting to solicit further feedback from
Shareholders on the Directors’ Remuneration Report, the Remuneration Policy and the amendments to the
Value Creation Plan (VCP) which were supported by 69.02, 71.83 and 75.30 per cent of votes, respectively.
Based on the feedback from Shareholders the Committee is committed to ongoing consideration of the most
appropriate executive remuneration structure for the CEO and the wider management team. The Company
has also committed to a year of stability and therefore no amendments to the long-term incentive structure
for the CEO will be made at this AGM. Nonetheless and with a view to the need to retain and re-create
incentives for the senior management against the recent history of underperformance of remuneration
schemes, the Committee has approved changes to the LTIP for F25, which operates for management below
the CEO, as described below.
Remuneration outcomes for F24
The Committee paid careful attention to the inflationary impact on employees. Accordingly, the Committee
supported the introduction of several actions, including:
• Wider workforce
As inflation varied substantially by market, the Committee supported average salary increases for the wider
workforce ranging from 3 per cent to 12 per cent, depending on region with additional increases based on
role and pay band.
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• Pilots and Flight Attendants
Wizz Air introduced new compensation programmes to compensate Crew for longer flights alongside several
other interventions to ensure wider workforce remuneration was reflective of the economic environment and
employee effort.
• All Employee Bonus Plan
While the Company’s share price performance did not meet the threshold for payment under the All
Employee Bonus Plan, the Committee supported management’s recommendation to recognise the sustained
hard work of employees through the payment of a bonus proportionate to the average payout under the F24
STIP. It should be noted this plan only applies to employees below Head level and therefore the CEO, the
Senior Management and Head level do not participate in the All Employee Bonus Plan.
• CEO and senior management STIP
For the CEO, in F24 85 per cent of the STIP award was subject to underlying profit after tax and 15 per cent
was subject to an individual performance rating. The F24 formulaic outturn of each measure was 41.5 per
cent of 200 per cent and 75 per cent of 200 per cent respectively. As such, the bonus payout as a
percentage of maximum was 46.5 per cent. The Committee, considering the STIP scorecard along with the
wider business performance, did not believe it necessary to exercise discretion on the STIP and therefore the
formulaic outcome was followed.
Senior management colleagues (EVPs, Officers) and Heads participated in the F24 STIP but under different
performance criteria to the CEO. The Committee again did not make any discretionary adjustments to the
payout of these awards.
Remuneration implementation – changes for F25
• CEO base salary
Before the F23 salary increase of 7 per cent, the CEO last received an increase in base salary during the
fiscal year ended March 2019. The Committee aims to maintain a competitive salary for the CEO in a
dynamic market. Simultaneously, the Committee takes into account the current economic climate, broader
stakeholder perspectives, and feedback from investors and proxy advisers. High inflation has continued to
drive salaries and the Committee believes that the proposed increase reflects this, while not detracting from
the emphasis on performance pay to realise a market-competitive remuneration outcome.
During F24 the Committee reviewed his base salary and those circumstances in detail and approved a 9 per
cent base salary increase for the CEO for F25. The salary increase was determined having taken account of
relevant comparator data, reflecting the increased breadth and complexity of the role during a period of
significant uncertainty driven by external factors.
• CEO and senior management STIP
Wizz Air has always maintained a strong focus on financial performance, which is reflected in the Company’s
philosophy of pay for performance and incentivised through the STIP. Wizz Air’s management team is crucial
to the delivery of strategic and financial objectives and therefore is vital to retain. However, the recent
financial unpredictability brought about by a parade of black swan events has impacted recent STIP payouts
which rely heavily on financial performance. Consequently, the cash outcome for the Company’s
management has been significantly below market for some time. This has raised significant incentive and
retention issues within our management team.
The external uncertainty also has made setting financial targets extremely challenging. As STIP measures for
F25, the Committee chose to emphasise the delivery of strategic measures that will create value for
Shareholders in the long term and individual performance which together will represent 75 per cent of the
STIP. Financial outcomes – adjusted EBIT margin and ex-fuel CASK – will continue as metrics and represent
25 per cent of the award. This re-weighting aligns with existing typical market practice at other airlines in
the context of continuing uncertainty.
• CEO VCP and management LTIP
Whilst the Committee discussed the CEO’s sole long-term incentive, the Value Creation Plan (VCP), this was
amended last year and we agreed at that time a year of stability; consequently no changes are proposed.
However, for the senior management team, Shareholders will recall that the Committee transitioned in F24
to an LTIP award for EVPs, Officers and Heads in the form of 50 per cent performance shares and 50 per
cent time vested restricted shares, an action that was disclosed and explained in the F23 DRR. Given the
continued external pressures for talent, the continuing volatile external environment and the resulting likely
non-performance of LTIP grants for senior management made in prior years, the Committee determined that
the LTIP grant to be made in F25 for EVPs, Officers and Heads would be in the form of 100 per cent time
vested restricted shares. Although unusual, the Committee believes this one-off 100 per cent restricted stock
award is appropriate given the current external environment, retention issues and target setting challenges.
The Committee will continue to review its approach for future LTIP grants, to ensure that it remains
appropriate to the needs of the Company and its various stakeholders.
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Next steps
We aim for our DRR to be straightforward and transparent when explaining the implementation of
our Remuneration Policy during F24 and our intended implementation for F25. We also remain committed
to a continued dialogue with Shareholders including the investor feedback received following the F24 AGM.
We trust that we have provided the information you need to be able to support this DRR at the Company’s
2024 AGM.
Our ongoing dialogue with Shareholders and other stakeholders is valued greatly and, as always, we
welcome your feedback on this DRR.
Barry Eccleston
Chair of the Remuneration Committee
14 June 2024
Membership, meetings and attendance
• Barry Eccleston (Chair) (6/7)
• Anthony Radev (7/7)
• Anna Gatti (7/7)
• Stephen L. Johnson (observer)
The Committee comprises three Non-Executive Directors, appointed by the Board according to experience,
dedication and capacity. The Company Secretary acts as Secretary to the Committee and relevant members
of the senior leadership team are invited to attend meetings.
The Committee had seven meetings during the year and focused on the following activities:
• engaging with Shareholders with regard to low vote outcomes for remuneration resolutions at the 2023
AGM;
• reviewing and recommending base salary increases for management and the CEO for F25;
• reviewing and approving the performance measures for the F25 Short-term Incentive Plan (STIP);
• assessing the performance of each in-flight Long-term Incentive Plan (LTIP) and finalising vesting
outcomes of the LTIP granted during the financial year ended March 2021;
• considering and recommending the conditions of the F25 LTIP for Executive Vice Presidents (EVPs),
Officers and Heads;
• considering and approving remuneration packages for new Officer and EVP appointments; and
• reviewing Chair and Non-Executive Director fees.
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Remuneration at a glance
CEO remuneration
F24 earnings
F25 looking ahead
Base salary
€710,534
€775,000
Short-term
Incentive Plan
(STIP)
Maximum
opportunity
200% of base salary
Performance
metrics
(weightings)
Underlying profit after tax (85%)
Individual performance rating (15%)
Threshold payout requires a
performance rating “A”
Targets set on yearly basis
Financial:
Adjusted EBIT margin – 12.5%
CASK ex-fuel (normalised for wet
leases) – 12.5%
Non-financial:
Utilisation – 12.5%
Completion (without extraordinary
events) – 12.5%
Customer satisfaction – 12.5%
ESG (diversity) – 12.5%
Individual rating – 25%
Value Creation
Plan (VCP)
Opportunity
One-off award granted in F22 – seven-year performance period with 40% vesting
in year seven, and 20% vesting per year in years eight, nine and ten
Maximum payment of £100 million for delivery of end share price of £119.34
Performance
metrics
(weightings)
Increase in share price (90%)
ESG (10%)
Share ownership guidelines
Holding requirement: 400% of base salary
Post-cessation share ownership
guidelines
Holding requirement: 100% of share ownership guideline for one year after
leaving and 50% of share ownership guideline for the second year
What our CEO earned
Performance remains strong for Wizz Air (TSR)
How our CEO is aligned with Shareholders
Actual shareholding calculated using number of Ordinary Shares
and the spot price at 31 December 2023.
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Remuneration Policy
Introduction
The key elements of the Wizz Air Executive Director Remuneration Policy are summarised in this section. The
full policy was approved by Shareholders at the Company’s 2023 AGM held on 2 August 2023 and can be
found in the 2023 Annual Report which is available on our website at www.wizzair.com.
How our Remuneration Policy addresses the factors set out in the UK Corporate Governance Code
Clarity
Remuneration
arrangements should be
transparent and promote
effective engagement with
Shareholders and the
workforce.
The Remuneration Committee has incorporated transparency
into the design and delivery of our Remuneration Policy. We
believe our remuneration structure is simple to understand
both for participants and Shareholders. We aim for disclosure
of the policy and how it is implemented to be in a clear and
succinct format.
Simplicity
Remuneration structures
should avoid complexity
and their rationale and
operation should be easy to
understand.
Our remuneration arrangements for our Executive Director
are simple and easy to understand, comprising fixed pay
(base salary and benefits), a Short-term Incentive Plan
(STIP) and a one-off long-term arrangement in the form of a
Value Creation Plan (VCP).
Risk
Remuneration
arrangements should
ensure reputational and
other risks from excessive
rewards, and behavioural
risks that can arise from
target-based incentive
plans, are identified and
mitigated.
The Remuneration Policy includes a number of points to
mitigate potential risks:
There are defined limits on the maximum opportunity levels
under incentive plans.
Performance targets are calibrated at appropriately stretching
but sustainable levels.
The Remuneration Committee has the ability to use
discretion to ensure that a fair and balanced outcome is
achieved, taking into account the overall performance of the
Company and the experience of Shareholders.
Incentive plans, including the VCP, include provisions to allow
malus and clawback to be applied, where appropriate.
Recent introduction of in-employment and post-employment
shareholding requirements ensures that there is an alignment
of interests between our Executive Director and Shareholders
and encourages sustainable performance.
Predictability
The range of possible
values of rewards to
individual Directors and any
other limits or discretion
should be identified and
explained at the time of
approving the policy.
We believe our disclosure is clear to allow Shareholders to
understand the range of potential values which may be
earned under the remuneration arrangements. Our
Remuneration Policy clearly sets out relevant limits and
potential for discretion.
Proportionality
The link between individual
awards, the delivery of
strategy and the long-term
performance of the
Company should be clear.
Outcomes should not
reward poor performance.
The majority of our Executive Director’s potential reward is
linked to performance through the VCP with a clear line of
sight between business performance and the delivery of
Shareholder value. The Remuneration Committee may adjust
formulaic outcomes of incentive arrangements to ensure that
a fair and balanced outcome is achieved, taking into account
the overall performance of the Company and the experience
of Shareholders.
Alignment to culture
Incentive schemes should
drive behaviours consistent
with Company purpose,
values and strategy.
The incentive arrangements and the performance measures
used are strongly aligned to those that the Board considers
when determining the success of the implementation of the
Company’s purpose, values and strategy.
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Policy table: Executive Director
Element
Purpose and link
to strategy
Operation and
opportunity
Framework used to assess performance
and provisions for the recovery of
sums paid
Base salary
To provide the core
reward for the role.
To attract, retain and
motivate high-calibre
executive
management.
Salaries are reviewed
annually, with any increase
being awarded at the
discretion of the
Remuneration Committee.
The Remuneration
Committee may take into
account a number of factors
in deciding whether an
increase should be made,
including benchmarking
against selected comparator
companies, the individual’s
skills and experience,
internal relativities, and the
Executive’s personal
performance contribution.
The Remuneration Committee will consider the
individual salary of the Executive Director at a
meeting each year.
Benefits
To attract, retain and
motivate executive
management without
paying more than
necessary.
The benefits to the
Executive Director are in
line with those provided to
employees and those
deemed necessary for the
role or job to be taken.
They include the following:
The Executive Director is
covered by the Company’s
group personal accident
and life assurance cover,
which is in place for all
employees (2x salary).
Free return tickets usable
on the route network of the
Group, consistent with the
number of free tickets
made available for all
employees.
At its discretion, the
Committee may provide
reasonable support for
costs associated with
relocation where required at
Company request and other
benefits as deemed
necessary by the
Remuneration Committee.
Pension
Not applicable.
Not applicable. The
Company does not provide
a pension scheme for the
Executive Director (unless
contributions are required
by law).
Not applicable.
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Element
Purpose and link
to strategy
Operation and
opportunity
Framework used to assess performance
and provisions for the recovery of
sums paid
Short-term
Incentive Plan
(STIP)
To incentivise the
successful execution
of the Company’s
business strategy.
To reward the
achievement of
annual financial and
operational goals.
Payments under the STIP
are made in cash and/or
shares, subject to certain
specified performance
requirements as determined
by the Remuneration
Committee being met and
up to a maximum STIP set
as a percentage of base
salary by the Remuneration
Committee. The maximum
payout is 200 per cent of
base salary. A threshold
level of performance is
specified in 50 per cent of
at target bonus; if
performance falls below this
level, there will be no
payout for that proportion
of the award.
Performance requirements are determined by
the Remuneration Committee. They are
intended to align the performance of the
Executive Director with the Group’s near-term
objectives of delivering against its strategy.
The Committee may use its discretion to
ensure that a fair and balanced outcome is
achieved, taking into account the overall
performance of the Company and the
experience of Shareholders.
The STIP is based on a combination of
financial and non-financial measures as
selected by the Committee in any given year.
Financial measures would typically represent
no less than 50 per cent of weighting. The
Committee has concluded, for the purposes of
the F25 STIP that, given the continued effects
of a number of uncontrollable external events,
a balanced portfolio of measures will be used
for F25. These include a number of
operational and personal performance metrics
but also financial measures.
The annual STIP is subject to malus and/or
clawback in the event of serious misconduct
which could have served as a reason for
termination of the employment for cause, or if
the employee was involved in fraud,
dishonesty or other types of illegal activity.
The policy does not determine the timeframe
of the malus and/or clawback.
Value Creation
Plan (VCP)
To retain the Chief
Executive Officer and
deliver Shareholder
value.
One-off award of shares
granted in 2021 (F22).
Award vests after a seven-
year period (40 per cent of
the overall award at the
end of year seven and 20
per cent per year after
years eight, nine and ten).
The award is based on the
following performance
conditions:
90 per cent share price
growth; and 10 per cent
ESG (5 per cent based on
CO2 emissions reduction
goals; and 5 per cent based
on gender diversity target).
Maximum payout is capped
at £100 million. Threshold
payment is £20 million for
delivery of share price of
£77.24.
ESG criteria are
independent of share price
growth criteria.
Straight-line vesting in
between.
The award will pay out at
100 per cent if the
maximum share price is
achieved during two
consecutive quarters before
end date.
To ensure that vesting outcomes are
consistent with superior Shareholder
experience, the Remuneration Committee has
discretion to adjust the level of vesting
downwards (including for the avoidance of
doubt to nil) where it considers that the level
of vesting resulting from applying a
performance condition would not be a fair and
accurate reflection of the performance of the
Company, the Group, any Group member or
the participant and/or such other factors as
the Remuneration Committee may consider
appropriate.
If the participant ceases to be employed by
reason of ill health, injury, disability, death,
retirement with the agreement of the
Remuneration Committee, or for any other
reason at the discretion of the Remuneration
Committee, 40 per cent of the award will vest
as soon as practicable after the cessation date
and 20 per cent in each of the next three
years, to the extent that the performance
conditions have been met. The award will
lapse in all other circumstances.
Malus and clawback may be applied at any
time before an award vests or for three years
after the fifth anniversary of the grant date in
the following circumstances: material
misstatement of the results of the Company,
errors or inaccuracies or misleading
information leading to incorrect grant or
vesting of the award, gross misconduct,
material failure of risk management by the
Company, corporate failure (e.g.
administration or liquidation) or any other
circumstance which in the opinion of the
Remuneration Committee could have a
significantly adverse impact on the Company's
reputation.
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Scenario chart
The annualised value of the VCP is demonstrated in the chart below showing the payout scenarios in the
breakdown of total compensation.
The scenario chart presented above shows the VCP: at nil value where the performance conditions are not
met (minimum); at a threshold value of £20 million annualised over the seven-year performance period;
and at the maximum value of £100 million annualised over the seven-year period should the maximum
share price and ESG performance conditions be met. In addition to this, target value has also been
presented which reflects 50 per cent of the maximum value of the award. The VCP is based on a number of
shares and the Pound Sterling value has been translated into Euro at 1.17 for the purposes of this chart,
which represents a three-month average as of the time of drafting. The illustration does not provide a bar
for additional share price growth as the value is capped at the maximum £100 million regardless of any
future share price growth.
The chart above shows the annual illustration of the application of the Executive Directors’ Remuneration
Policy for F25 at minimum, threshold, target and maximum levels, where minimum reflects base salary only
as benefits are negligible and Wizz Air does not provide provisions for retirement to the Executive Director.
The chart presents the annualised value over a seven-year period as only one VCP award was made in 2021
with the time horizon now extended to run over seven years.
At the maximum level of remuneration, the share price will have reached £119.34 and the ESG portion of
the award will have to be achieved in full. If the share price increases beyond the target of £119.34, the
value of the award will not exceed the maximum, as the value of the VCP is capped. If the value of Wizz Air’s
share price does not reach the threshold share price of £77.24 no value will be delivered under this portion
of the award. Similarly, if the threshold ESG criteria are not met then no value will be delivered under this
portion of the award.
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Non-Executive Director remuneration
The Non-Executive Directors are only paid fees.
Element
Purpose and
link to strategy
Operation and opportunity
Framework used to
assess performance and
provisions for the recovery
of sums paid
Fees
To remunerate
Non-Executive
Directors to
reflect their level
of responsibility.
Each Non-Executive Director receives an annual fee
which is inclusive of one Committee fee. Additional
fees are paid: for chairing Committees; to the
Senior Independent Director; to the Vice Chair; and
to the Director responsible for employee
engagement. Fees for Non-Executive Directors,
other than the Chairman, are determined by the
Chairman and the Executive members of the Board.
Fees for the Chairman are determined by the
Remuneration Committee without the Chairman
being present. In both cases, there is flexibility to
increase fee levels to ensure that they appropriately
reflect the experience of the individual, time
commitment of the role and fee levels in comparable
companies. Non-Executive Directors receive an
additional fee for sitting on more than one
Committee. The Non-Executive Directors will also be
reimbursed for all proper and reasonable expenses
incurred in performing their duties.
Fees are made in cash and/or shares which are not
subject to performance.
Not applicable; there are no
provisions for the recovery of
sums paid or the withholding
of any payment relating to
fees.
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Annual Report on Remuneration
The Remuneration Committee is responsible for setting the Remuneration Policy for all Executive Directors
and the Chairman, including pension rights and any compensation payments, and recommending and
monitoring the remuneration of the senior managers. Non-Executive Directors’ fees are determined by the
full Board.
A summary of the Remuneration Committee’s terms of reference can be found on our corporate website.
Further details about the Remuneration Committee are set out on pages 114 to 115 of the Corporate
Governance Report.
Barry Eccleston (Chairman), who joined the Committee in September 2020 in the Chairman position,
remains in post. Both Anthony Radev (effective 1 September 2022) and Anna Gatti (effective 28 January
2022) remained Committee members during F24.
In order to monitor the consistency between the remuneration of the CEO and his direct reports, the
Remuneration Committee is frequently updated and consulted on any remuneration changes. All external
hires and internal promotions to senior-level positions require the prior approval of the Remuneration
Committee on their future remuneration package. Only after the approval is received can the offer be
extended to the candidate. The Remuneration Committee is also consulted on and needs to approve
remuneration changes for existing Senior Executives. This includes salary revisions linked to new market
benchmark information as well as revisions arising from internal organisational changes. József Váradi, Chief
Executive Officer; Veronika Jung, People Officer; Owain Jones, Chief Corporate Affairs Officer; Stephen
L. Johnson, Non-Executive Director; and Yvonne Moynihan, Corporate Officer and Company Secretary,
attend meetings by invitation and assist the Remuneration Committee in its deliberations as appropriate,
though they are not present when their own compensation is discussed.
The Remuneration Committee is advised by WTW, as appointed by the Remuneration Committee. WTW was
re-contracted as remuneration consultant following a competitive tender process in 2020. It attends
Committee meetings as and when required. During F24, WTW received fees based on time and materials
totalling £171,900 for advice to the Remuneration Committee related to the Remuneration Policy,
governance, developments in Executive pay, benchmarking and performance analysis. Besides support on
remuneration advice, no other services were provided by WTW to the Company in F24.
WTW is a member of the Remuneration Consultants Group and, as such, voluntarily operates under the
Remuneration Consultants Group Code of Conduct in relation to executive remuneration consulting in the
UK. The Remuneration Committee is satisfied that WTW offers independent, impartial and objective advice
and brings a high degree of expertise to the Remuneration Committee’s discussions.
Shareholders’ vote on remuneration
At the 2023 AGM the Directors’ Remuneration Policy was supported by 71.83 per cent of Shareholders and
the Directors’ Remuneration Report was supported by 69.02 per cent of Shareholders.
AGM 2023 (during F24) – Directors’ Remuneration Report voting results:
Directors’ Remuneration Policy
Directors’ Remuneration Report
Votes for
13,109,922
71.83%
12,596,781
69.02%
Votes against
5,142,656
28.17%
5,653,578
30.98%
Total votes
18,246,383
18,244,164
Votes withheld
671
2,889
The Company received Shareholder approval for our Remuneration Policy and Remuneration Report at the
2 August 2023 AGM. Ahead of the vote, the Chair of the Remuneration Committee and Company
management engaged with key Shareholders through numerous meetings on the Directors’ Remuneration
Policy. We were pleased that the majority of our Shareholders supported both the Remuneration Report and
our new Remuneration Policy, which effectively extended the timeline of the VCP, and SLGP, by two years
aligned with an extension of the CEO’s contractual commitment to Wizz Air.
However, the votes of 71.83 per cent in favour of the policy and 69.02 per cent in favour of the report both
represented less than 80 per cent support and, as such, the Chair of the Remuneration Committee and
management again met a range of Shareholders within a six-month window following the AGM vote, as
required by the Corporate Governance Code. The key points of these discussions were: in respect of the
report, the changes made to the short-term bonus structure during the financial year; and for the policy,
both the continuance of the VCP and SLGP and, in particular, debates around the VCP’s reliance on share
price. During these discussions, the Board highlighted that the rationale for the bonus structure adjustment
was to appropriately incentivise the CEO and broader management team, while managing the business
through a highly volatile trading period. The Company also reiterated that, given prevailing circumstances at
that time, previous plans in place were unlikely to pay out in the timeline proposed, so an alternative
approach was required to ensure effective incentives for the CEO and management.
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In these meetings, we heard support for the VCP and especially in relation to the extension of the
performance period of the plan. However, some Shareholders queried whether the plan’s reliance on the
share price was appropriate given its sensitivity to market forces which are outside of management’s control.
External factors will always influence the market, but over the long term the share price provides a fair
measure of Wizz Air’s performance and growth potential. The Board believes that the VCP, in combination
with other remuneration and incentive plans, acts to align the CEO and the wider management team to the
interests of all stakeholders and will continue to keep the plans under review given the continuing volatile
market conditions. The Board appreciates the time and engagement of its shareholders during this process
and acknowledges and respects the views expressed by some Shareholders. The Board would like to thank
all Shareholders that took part in engagement and values the feedback and insight it has gained through
the process.
Executive Director’s remuneration
Full details of the Chief Executive Officer’s remuneration for F24 and F23 are set out below (in Euros):
Single total figure of remuneration table (audited)
József Váradi
Fees and
salary
€
Benefits
€
STIP
€
LTIP
€
Pension
€
Total
€
Total fixed
remuneration
€
Total variable
remuneration
€
F24
710,534 23,000 660,868
—
1,530 1,395,932
735,064
660,868
F23
687,292
8,978 568,759
—
1,482 1,266,511
697,752
568,759
Base salary
The Chief Executive Officer had voluntarily taken a reduction to his base salary for F22 and for F21 from his
contracted base salary of €664,050 in response to the long, drawn-out COVID-19 pandemic. The Chief
Executive Officer’s salary was reinstated at the beginning of F23 back to the level of his contracted salary
before COVID-19. During F23 the Remuneration Committee reviewed and approved a 7 per cent increase to
a salary of €710,534 annually with an effective date of 1 October 2022. There was no increase to this level
during F24 and the Chief Executive Officer’s salary remained at €710,534. Prior to this the last salary
increase that was not derived from restoring pre-COVID-19 status was in April 2018.
Short-term Incentive Plan F24 – audited
During F21 and F22 the maximum bonus opportunity was reduced to 100 per cent of base salary to
acknowledge the impact of COVID-19. In F23 the maximum opportunity was reinstalled to 200 per cent of
base salary, but the Committee decided that due to the unstable external environment of supply chain issues
and cost of living crisis, the performance conditions should be tested on a quarterly basis, keeping the
practice of the uncertain COVID-19 years. Although in F24 the tight labour market and the fierce competition
for talents remained in place, the Committee determined to return to the annual valuation of the
performance year instead of the quarterly valuation. The Committee established that 85 per cent of the STIP
award would be subject to underlying profit after tax and 15 per cent of the STIP will be subject to the
individual performance rating for the CEO. The entire bonus (both financial and individual portions) is subject
to a minimum achievement of an “A” individual rating. The bandwidth (minimum to maximum) for the profit
target was +/-25 per cent of target. More information on the target and achievement result can be found in
the table below. At target, the STIP pays out the annual base salary of the CEO (i.e. 100 per cent of salary).
Threshold payout is 50 per cent of target and maximum payout is 200 per cent of target. As per the policy,
payout for performance between threshold and target and between target and maximum has been
calculated by using linear interpolation (straight-line percentage performance). For individual performance,
threshold payout is provided for performance rating “A”, target payout for performance rating “AA”, 150 per
cent payout for performance rating “AAA” and maximum payout for performance rating “1”.
Weighting
Performance
indicators
Threshold
(50% payout)
Target
(100% payout)
Stretched
(150% payout)
Maximum
(200% payout)
Outcome
Formulaic
outcome
85%
Financial
performance
Underlying profit
after tax (million
EUR)
300
400
450
500
365.9
70.5%
15%
Individual
performance1,2
Individual
performance
rating
Rated A
Rated AA
Rated AAA
Rated 1
Rated AAA
22.5%
1.
The CEO’s performance is assessed by the Nomination and Governance Committee (between 0 per cent and 200 per cent) and
payout approved by the Remuneration Committee.
2.
Threshold payout requires a performance rating “A”.
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The evaluation of the Chief Executive Officer’s personal performance during F24 has primarily been
measured against his response and leadership throughout another challenging year. He has managed to
drive growth and has continued to evolve over the course of the full financial year by swiftly adjusting
capacity to match demand in the event of both upside and downside, while focusing on maintaining the
Company’s strong cash position.
The individual performance of the CEO was remarkable, given the number of challenges that the business
faced, and Wizz Air returned to profitability under his management in F24. With his team he led successful
negotiations and battled the grounded aircraft challenges due to the GTF engine inspections hitting the
Company. At the same time and following significant investment in resources, a number of operational
metrics such as on-time performance and operational reliability recovered, placing the Company once again
in the higher echelon of the European airlines. F24 was a year of building a strong and maturing pipeline of
leadership capacities, while the engagement scores in the wider workforce also increased.
As part of our sustainability commitment, we want to comply as a minimum with the Hampton-Alexander
Review guidelines calling out the need for one-third female Board members and a 40 per cent to 60 per cent
gender split by the end of F26 at management level (Head level and above). As per the current status, we
have 36 per cent female representation among the Board of Directors and 35 per cent female representation
at management level. The number of employed nationalities further grew by 17 per cent, reaching
109 nationalities at Company level, of which Wizz Air is rightly proud.
Based on the individual performance demonstrated above, the Chief Executive Officer received a
performance rating of “AAA” and therefore achieved 150 per cent of target against the individual
performance measure, which has a weighting of 15 per cent under the Short-term Incentive Plan. This,
combined with the financial performance set out above, resulted in a 93 per cent annual salary payout
(47 per cent of maximum).
Benefits
The Company covered certain accommodation expenses of Mr Váradi amounting to €23,000 and €8,978 in
F24 and F23 respectively. The F23 figure disclosed last year has been restated to correctly include the value
of this benefit.
Long-term Incentive Plan (LTIP) vested during F24 with respect to F23 (audited)
An award under the LTIP (of 250 per cent of base salary) was made to the Chief Executive Officer during F21
(in June 2020), which was due to vest during F24. This award included 42,562 performance options, valued
at £34.75 per option at the date of grant. Vesting was on 30 May 2023. The award was subject to relative
total shareholder return (TSR) performance versus selected European airlines (100 per cent weighting) as
per the below criteria:
• 25 per cent of the award will vest for median performance and 100 per cent of the award will vest for
performance equal to or exceeding the upper quartile. There will be no vesting of this portion for
performance below median and linear interpolation will apply for performance between the median and
upper quartile; and
• the TSR group consists of the following entities: Ryanair and easyJet (50 per cent weighting), Air France-
KLM, Deutsche Lufthansa, Finnair, IAG and SAS.
Under the F21 LTIP, the award vesting in F24 paid out at 0 per cent of maximum, as the relative TSR
condition was not met. Wizz Air’s TSR translated to 5.6 per cent, whilst the median of the peer group was
9.2 per cent and the upper quartile was 30.4 per cent.
Long-term Incentive Plan (LTIP) with respect to F24 (audited)
Since the introduction of the VCP in F22, no further awards have been granted to the Executive Director
under the LTIP; therefore, no LTIP awards are due to vest with respect to F24.
Pensions
The value of pension contributions in both years represent contributions as required by law. The F23 figure
disclosed last year has been restated to correctly include the value of this contribution.
Payments to past Directors (audited)
No payments were made to past Directors.
Payments for loss of office (audited)
No payments were made for loss of office.
Historical TSR performance1 – value of hypothetical £100 holding
The following performance graph shows the Company’s total shareholder return compared to the FTSE 250
index and the FTSE 100 index, as well as a selection of airlines for the financial years following IPO. TSR is
defined as share price growth plus reinvested dividends.
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1.
Growth in the value of a hypothetical £100 holding over nine years, in comparison with the FTSE 250, the airline peer group used for
measurement of relative TSR and the FTSE 100. Data based on one-month average of trading day values. Source: S&P Capital IQ.
This graph is re-based to 100 at the start of the relevant period. As a constituent of the FTSE 250, this index
represents an appropriate reference point for the Company. To provide Shareholders with additional context
we have also included a “TSR Airlines Average” reflecting the TSR of the comparator group used for the TSR
measurement under the LTIP awards including easyJet, Ryanair, Air France-KLM, Lufthansa, Finnair, IAG and
SAS. Information is also included of a comparison to the FTSE 100 given Wizz Air’s fully diluted market
capitalisation would place it within the FTSE 100 index.
In the tables below we provide a ten-year overview of the Chief Executive Officer’s remuneration and the
change in the Chief Executive Officer’s remuneration compared to that of all employees.
Ten-year overview of Chief Executive Officer remuneration
Financial
year
Executive
Director
Single figure of total
remuneration (€)1
Performance STIP
achieved against
maximum possible
LTIP shares vesting
against maximum
possible1
F15
József Váradi
1,607,587
91%
n/a
F16
József Váradi
1,812,883
95%
n/a
F17
József Váradi
1,240,812
48%
n/a
F18
József Váradi
1,281,304
58%
n/a
F19
József Váradi
4,056,438
26%
100%
F20
József Váradi
2,640,666
26%
50%
F21
József Váradi
1,620,409
0%2
50%
F22
József Váradi
1,771,652
50%
50%
F23
József Váradi
1,266,511
41%3
0%
F24
József Váradi
1,395,932
47%
0%
1.
The single figure of remuneration for the CEO has been updated to include the value of benefits provided during F23 as explained
on the previous page.
2.
There were no options vesting in F16–F18 under either the old (ESOP) or the new (LTIP) share option plan. In F21, although
targets were achieved in three out of the four quarters based on the cash targets, management’s recommendation and the
discretionary decision of the Remuneration Committee was to pay no STIP for F21 to the Chief Executive Officer or any other
employee eligible for the scheme. This voluntary decision of the management was in line with the overall industry and Company
performance for the twelve-month relevant period which was heavily impacted by the COVID-19 pandemic and the significant drop
in air traffic.
3.
The F23 STIP payout was misstated as a percentage of target instead of maximum in last year’s DRR; this has now been updated
to reflect the STIP payout as a percentage of maximum in F23.
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Change in the remuneration of the Directors compared to that of all other employees
The table below shows the year-on-year percentage change in salary, benefits and annual STIP for the
Directors, compared to the average earnings of all other Wizz Air employees. This is provided for F24,
between the year ended 31 March 2023 and the year ended 31 March 2024, as well as F23, F22 and F21.
F24
F23
F22
F21
Salary
and
fees
Benefits1
Annual
STIP
Salary
and
fees
Benefits1
Annual
STIP
Salary
and
fees
Benefits1
Annual
STIP
Salary
and
fees
Benefits1
Annual
STIP
József Váradi
3%
156%
16%
16%
100%
85%
19%
0%
(100) %
(22) %
0%
(100) %
William A. Franke
12%
0%
0%
38%
0%
0%
19%
0%
0%
(20) %
0%
0%
Stephen L. Johnson
30%
0%
0%
25%
0%
0%
20%
0%
0%
(21) %
0%
0%
Simon Duffy5
—
—
—
(100) %
0%
0%
9%
0%
0%
(21) %
0%
0%
Andrew S. Broderick
28%
0%
0%
12%
0%
0%
28%
0%
0%
(14) %
0%
0%
Barry Eccleston
27%
0%
0%
35%
0%
0%
32%
0%
0%
(27) %
0%
0%
Peter Agnefjäll6
—
—
—
(100) %
0%
0%
(98) %
0%
0%
(26) %
0%
0%
Maria Kyriacou6
—
—
—
(100) %
0%
0%
(78) %
0%
0%
(26) %
0%
0%
Guido Demuynck7
—
—
—
—
—
—
(100) %
0%
0%
(83) %
0%
0%
Susan Hooper8
—
—
—
—
—
—
(100) %
0%
0%
(87) %
0%
0%
Charlotte Pedersen
24%
0%
0%
14%
0%
0%
60%
0%
0%
0%
0%
0%
Enrique Dupuy de
Lome Chavarri
21%
0%
0%
26%
0%
0%
158%
0%
0%
0%
0%
0%
Charlotte Andsager
31%
0%
0%
21%
0%
0%
148%
0%
0%
0%
0%
0%
Dr Anthony Radev3
30%
0%
0%
16%
0%
0%
0%
0%
0%
0%
0%
0%
Anna Gatti4
28%
0%
0%
155%
0%
0%
0%
0%
0%
0%
0%
0%
Phit Lian Chong9
—
—
—
—
—
—
—
—
—
—
—
—
Average pay based
on all employees2
20%
0%
22%
22%
0%
84%
30%
0%
(100) %
(42) %
0%
(100) %
1.
Benefit value change from F23 to F24 for the CEO includes the value of benefits provided during F23 as explained on page 158.
For employees benefits.represent an insignificant part of the total compensation. The Non-Executive Directors do not receive any
benefits.
2.
The average employee figures are based on the average earnings of Group-level employees as Wizz Air Holdings Plc has no
employees.
3.
Joined as of 13 April 2021.
4.
Joined as of 4 November 2021.
5.
Resigned as of 28 January 2022.
6.
Resigned as of 27 July 2021 (did not stand for re-election).
7.
Resigned as of 28 July 2020.
8.
Resigned as of 3 June 2020.
9.
Joined as of 6 July 2023.
There was no salary increase implemented for the CEO in F24; the increase from F23 to F24 is derived from
the salary change during F23. The STIP payment for F24 resulted in a 16 per cent increase of the Short-term
Incentive Plan for the Chief Executive Officer versus the previous financial year.
In F21, in line with a commitment to cost restriction and alignment with stakeholder experience, the
Company’s Non-Executive Directors took no fees for the month of April 2020 and reduced all fees by 15 per
cent between 1 May 2020 and 31 March 2021. During F22, Non-Executive Directors also accepted a
reduction in fees of 7.5 per cent to recognise ongoing cost pressures. At the start of F23, the Committee
decided it was no longer necessary for the fee reduction to be in place and the fees for the Chairman and
Non-Executive Directors were reinstated to the contracted amount. The Remuneration Committee reviewed
and approved a change in fee structure during F23 for the Non-Executive Directors, with an effective date of
1 September 2022. Prior to reductions made in relation to COVID-19 the last time the Non-Executive
Director fees were changed was in F19.
Similar COVID-19 pay cuts were taken by the wider employee population. The salaries of cabin crew and
office employees (Heads of Functions and below) were restored to pre-reduction levels in January 2021, and
the pilot salary reduction was reversed to the original pre-COVID-19 levels in October 2021. In order to
tackle the difficult business environment represented by high inflation and by shortage of talents, the
management recommended and got an approval for a modest adjustment to base salaries of 5.4 per cent on
average across EVPs, Officers and Heads and implemented a salary increase for office staff to the extent of
13 per cent on average in F23. In F24 for the wider employee population following the market movements
and considering the different job levels and pay bands on average a 3–12 per cent salary increase was
implemented depending on region and role.
GOVERNANCE
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160
Relative importance of spend on pay
There were no dividends or share buybacks in either F24 or F23, and therefore disclosure of “relative
importance of spend on pay” has not been included.
Scheme interests (audited)
There were no scheme interests awarded in either F24 or F23.
Non-Executive Director remuneration
The Chairman and Non-Executive Directors are paid only Directors’ fees. The full details of the annual
compensation of the Non-Executive Directors are set out below:
Single total figure of remuneration table – audited
Salary and fees
€
F24
F23
William A. Franke
336,000
298,917
Stephen L. Johnson
120,000
92,500
Andrew S. Broderick
112,500
88,125
Barry Eccleston
157,500
123,750
Charlotte Pedersen
125,000
100,627
Enrique Dupuy de Lome Chavarri
125,000
103,232
Charlotte Andsager
125,000
95,419
Dr Anthony Radev1
117,500
90,625
Phit Lian Chong3
75,000
—
Anna Gatti2
112,500
88,125
Total
1,406,000
1,081,320
1.
Joined as of 13 April 2021.
2.
Joined as of 4 November 2021.
3.
Joined as of 6 July 2023.
The Committee agreed that the basic Non-Executive Director fee would be €100,000 and that all Committee
Chairs would receive an additional €25,000. For secondary Committee membership an additional fee of
€12,500 would be paid. The Senior Independent Director and Vice Chair would receive an additional €20,000
and the Director responsible for employee engagement would receive €2,500 per physical employee event
attended. The Committee also agreed that fees would be paid quarterly.
The Committee also reviewed the Chairman fee and agreed that going forward as Chairman, William
A. Franke will receive a fee of €336,000 (all inclusive) per annum for taking on that role.
In F24, the fees of the Non-Executive Directors remained unchanged.
Total Directors’ remuneration (Executive and Non-Executive)
Total remuneration of Directors for F24 was €2,801,932 (2023: €2,347,831). This is the sum of the total
Chief Executive Officer’s compensation and the total fees paid out to the Non-Executive Directors. The
increase against F23 was driven by the increased fees of the Non-Executive Directors for the full financial
year, because the fees were increased in Q2 F23.
Our conflict of interest policy prohibits any other employment (for all employees) on top of the employment
at Wizz Air. Therefore, in the case of the Chief Executive Officer any additional directorship would require
specific permission of the Chairman of the Board. The Chief Executive Officer joined the board of JetSMART
SpA in March 2018 as a Non-Executive Director, with the approval of the Board. The Chief Executive Officer
does not receive any fee for his role as a Non-Executive Director of JetSMART.
GOVERNANCE
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161
Statement of Directors’ shareholdings and share interests (audited)
For Executive Directors the shareholding requirement is equivalent to 400 per cent of base salary. The Chief
Executive Officer holds a significant shareholding in the Company through a family trust and is also eligible
to participate in the Company’s Value Creation Plan. Wizz Air considers the shareholding requirement to
have been met.
The Company therefore believes that the interests of the Directors are well aligned with those of the
Shareholders. Full details of the Directors’ and their connected persons’ interests in the Company’s shares as
of 31 March 2024 are set out below:
Direct ownership
Options (performance measures
based)
Interests2
Director1
Number of
Ordinary Shares
Vested, not
exercised yet
Unvested3
Number of
Ordinary Shares
Additional number of
Ordinary Shares (if full
principal of outstanding
Convertible Notes is fully
converted)
William A. Franke
212,917
—
—
24,759,645
24,246,715
József Váradi3, 4
1,494,472
—
837,943
1,494,472
—
Stephen L. Johnson
52,750
—
—
—
—
Anthony Radev
5,000
—
—
—
—
Charlotte Andsager
4,000
—
—
—
—
Charlotte Pedersen
685
—
—
—
—
Enrique Dupuy de Lome
Chavarri
1,421
—
—
—
—
Andrew S. Broderick
5,090
—
—
—
—
Phit Lian Chong
395
—
—
—
—
Barry Eccleston
5,000
—
—
—
—
1.
Directors not included in the table did not have any direct ownership or interest in shares as at 31 March 2024.
2.
Mr Franke is deemed to be interested in all of the Ordinary Shares held by Indigo Hungary LP, Indigo Maple Hill LP, Indigo Hungary
Management LLC and Bigfork Partners LLC for the purposes of section 96B of the Financial Services and Markets Act 2000. Indigo
Hungary LP and Indigo Maple Hill LP also hold Convertible Notes that, subject to certain conditions, are convertible to Ordinary
Shares of the Company.
3.
Mr Váradi has 837,943 options under the VCP.
4.
Mr Váradi exercised 43,539 share options on 23 June 2023 with a share price of GBP 26.45 and GBP/EUR exchange rate of
0.85479.
During F24 the Board began recommending that Non-Executive Directors should invest in the Company and
show support through holding shares in the Company to encourage alignment with Shareholder values. The
recommendation is such that Non-Executive Directors should build up their share ownership in Wizz Air over
a three-year period which is equal in value to one year’s basic fee. The CEO already has a significant number
of shares over and above the normal requirement.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
162
Application of the Remuneration Policy in F25
Application of the policy: Chief Executive Officer
a) Chief Executive Officer’s base salary
There is a 9.1 per cent increase planned to the Chief Executive Officer’s base salary for F25. The base salary
will rise from €710,534 to €775,000.
b) Short-term Incentive Plan
The Chief Executive Officer is eligible to receive a cash bonus of up to 200 per cent of base salary for F25.
The amount payable will depend on the achievement of the Balanced Scorecard:
▶
Financial measures will represent 25 per cent weighting of the award:
•
adjusted EBIT margin (12.5 per cent); and
•
CASK ex-fuel normalised for wet leases (12.5 per cent).
▶
Non-financial measures will represent 75 per cent weighting of the award:
•
utilisation – percentage of how many hours an AC flies per day (12.5 per cent);
•
completion (without extraordinary events) – percentage of operated flights compared to total number
of scheduled flights (12.5 per cent);
•
customer satisfaction (12.5 per cent);
•
ESG – diversity (12.5 per cent); and
•
individual rating (25 per cent).
There will be a straight line of payment between threshold and over-performance. Payout will be calculated
based on the performance against the above measures, requiring at least an “A” individual performance
rating or higher for payment to be made under the plan. Targets are set on a yearly basis and were decided
at the start of the performance period; however, they are not yet disclosed due to commercial sensitivity but
will be disclosed retrospectively in next year’s Remuneration Report alongside the outcome.
c) Long-term incentive awarded to Chief Executive Officer
No LTIP will be made to the Chief Executive Officer in F25.
d) VCP awarded to Chief Executive Officer
As referenced in the policy, the one-off VCP award was made during F22 and included an award of
837,943 shares.
e) Chairman and Non-Executive Directors’ fees
There is no planned increase to the Chairman and Non-Executive Directors’ fees for F25. The Remuneration
Committee has reviewed and benchmarked the fee components and kept a positive dialogue with the
Chairman and Non-Executive Directors in regard to their compensation.
Application of the policy: wider workforce
a) Short-term Bonus Plan (F25)
For senior leaders, the performance criteria under the F25 STIP for Heads, Officers, EVPs and the President
are aligned to that of the CEO.
For all employees below Head level, they are eligible for an annual award in cash subject to select
performance criteria.
b) Long-term Incentive Plan (F25)
Heads, Officers, EVPs and the President are eligible to receive the F25 LTIP. For F25, this will be a one-off
shift whereby 100 per cent of the award will be delivered in restricted stock and subject to the participants
remaining in employment to receive vesting at the end of the three-year performance period. The
Committee has approved this F25 LTIP taking into account the extraordinary uncontrollable challenges faced
by the Company over the past four years and the resulting underperformance of remuneration outcomes
against market of the Company’s remuneration schemes. The Committee considers the F25 LTIP to be an
important tool in the retention of senior management, given the non-performance of recent LTIP grants.
c) Senior Leadership Growth Plan (SLGP)
Officers, EVPs and the President are eligible to receive a one-off award in shares under the SLGP, which was
first granted in 2021. The award is subject to a seven-year performance period. This plan will continue to
operate and there are no changes to this scheme for F25.
GOVERNANCE
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163
Other disclosures
Chief Executive pay ratio
The table below sets out the Chief Executive Officer to worker pay ratios for the year ended March 2024. The
ratios compare the single total figure of remuneration of the Chief Executive with the equivalent figures for
the lower quartile (P25), median (P50) and upper quartile (P75) UK employees.
We have used the Option A methodology as of 31 March 2024 for the Chief Executive Officer and employees
over the financial year to provide the most accurate comparison. The total FTE remuneration paid during the
year for each employee was calculated on the same basis as the information set out in the “single figure”
table for the Chief Executive on page 157.
In calculating the figures, the following considerations were made:
▶
the single total figure of remuneration of our colleagues was calculated using a year’s worth of
remuneration up to and including March 2024 payroll;
▶
where employees joined part way through the reporting period, pay was pro-rated to determine the
full-year equivalent; and
▶
this data then identified those employees at the 25th (lower quartile), 50th (median) and 75th (upper
quartile) percentile points.
Pay ratio
Financial year
Method used
P25 (lower quartile)
P50 (median)
P75 (upper quartile)
F24
Option A
49:1
40:1
23:1
F23
Option A
44:1
36:1
22:1
F22
Option A
80:1
59:1
29:1
F21
Option A
80:1
62:1
37:1
For F23 the table has been updated to include the value of benefits provided during F23 as explained on
page 158. For F20 the Company was exempt from reporting pay ratios for that financial year.
The table below summarises the identified employees in 2024:
P25 (lower quartile)
P50 (median)
P75 (upper quartile)
Financial year
Base pay
Total pay
Base pay
Total pay
Base pay
Total pay
F24
€21,711
€28,526
€24,881
€34,544
€34,963
€60,857
F23
€21,121
€28,878
€23,987
€35,231
€31,705
€56,272
F22
€13,479
€24,981
€15,670
€34,022
€43,101
€70,413
F21
€16,269
€24,569
€24,044
€31,587
€36,235
€53,903
Unlike the total remuneration for the majority of employees, total remuneration for the CEO is mostly
dependent on business and share price performance over time. As a result, our ratios in the future may vary
from year to year subject to the number of shares vesting in the given financial year. The Remuneration
Committee considers the median ratio to be representative of the pay and progression policies at the
Company. For F24, the calculations reflect the impact of the salary increase implemented in F23 for the Chief
Executive Officer and the bonus payment made to the Chief Executive Officer that resulted in a higher
payout due to better performance and higher target value for the CEO.
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164
Directors’ service agreements and letters of appointment
Executive Director
Since 2 August 2023 Mr Váradi has a contract with Wizz Air UK Ltd. The Company has the right to terminate
Mr Váradi’s employment with immediate effect by payment in lieu of notice. The service agreement contains
post-termination restrictive covenants preventing Mr Váradi from competing with the Company or any of its
business partners in the EU as well as those non-EU countries where the Wizz Air Group operates, for a
period of one year following the termination of his employment. Mr Váradi will be paid a sum equal to six
months’ base salary if the Company chooses to enforce these restrictive covenants. Upon termination of
employment other than for cause, Mr Váradi is entitled to a severance payment equal to six months’ salary
in addition to any notice pay or payment in lieu of notice.
Non-Executive Directors
The Company entered into letters of appointment for each Director. Directors are appointed for an initial
term of three years. The Directors must retire by rotation.
Each Non-Executive Director’s appointment may be terminated by the Company or the Non-Executive
Director with one month’s written notice. Continuation of the appointment is contingent on continued
satisfactory performance and re-election at the Company’s Annual General Meetings and the appointment
will terminate automatically on the termination of the appointment by the Shareholders or, where
Shareholder approval is required for the appointment to continue, the withholding of approval by the
Shareholders. Re-appointment will be reviewed annually by the Nomination and Governance Committee.
In accordance with the terms of the letters of appointment, each of the Non-Executive Directors is required
to allocate sufficient time to discharge their responsibilities effectively. Each letter of appointment contains
obligations of confidentiality which have effect both during the appointment and after termination.
On behalf of the Board
Yvonne Moynihan
Corporate Secretary
14 June 2024
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
165
DIRECTORS’ REPORT
The Directors present their report and the audited consolidated financial statements for Wizz Air Holdings Plc
(“the Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2024.
Results and dividend
The results for the year are shown on page 174.
The Directors do not recommend the payment of a dividend (2023: nil). The Directors consider that
currently the existing reserves of the Group can be best utilised in supporting the significant planned future
growth of the Group.
Directors
The Directors of the Company who were in office during the year and at the date of signing the financial
statements are listed below:
▶
József Váradi;
▶
William A. Franke;
▶
Stephen L. Johnson;
▶
Barry Eccleston;
▶
Charlotte Pedersen;
▶
Andrew S. Broderick;
▶
Charlotte Andsager;
▶
Enrique Dupuy de Lome Chavarri;
▶
Dr Anthony Radev;
▶
Anna Gatti; and
▶
Phit Lian Chong.
Going concern
Wizz Air’s business activities, financial performance and financial position, together with factors likely to
affect its future development and performance, are described in the Strategic Report on pages 4 to 113.
Emerging and principal risks and uncertainties facing the Group are described on pages 106 to 113. Note 3
to the financial statements sets out the Group’s objectives, policies and procedures for managing its capital
and liquidity and provides details of the risks related to financial instruments held by the Group.
At 31 March 2024, the Group held total cash of €1,588.9 million (including cash and cash equivalents of
€728.4 million, €751.1 million of short-term cash deposits and €109.4 million of restricted cash), while
net current liabilities were €399.6 million (including deferred income of €797.4 million) and net assets
were €145.7 million. The Group’s contractual undiscounted external borrowings comprise: €500.0 million
of bonds maturing in January 2026; €206.8 million of PDP financing from Carlyle Aviation Partners Group
(see Notes 3 and 31) that is repayable by July 2025; €253.6 million of ETS financing from Standard
Chartered Bank repayable in September 2024; and convertible debt with a balance of €25.7 million. In
addition, borrowings include a carrying amount of €5,255.3 million from lease contracts accounted for
under IFRS 16 and liabilities related to JOLCO and FTL contracts (see Note 23). None of these borrowings
contain any financial covenants. The Group also receives payment for ticket and ancillary revenue in
advance through arrangements with various card acquirors which are subject to typical capacity and
security limits. Two ratings agencies, Fitch and Moody’s, issued updates during the third quarter with
Fitch maintaining Wizz Air’s BBB- investment grade profile with negative outlook, while Moody’s issued a
Ba1 rating with stable outlook.
The Group operates using a three-year planning cycle. The Directors have reviewed their latest financial
forecasts for a period of 18 months from the date of releasing the financial statements including plans to
finance committed future aircraft deliveries (see Note 32) due within this period that are currently
unfinanced and taking into account available committed financing for aircraft. Aircraft deliveries represent
the Group’s primary capital expenditure during this period, which the Group intends to finance through
various forms of sale and leaseback or other fleet financing arrangements, consistent with its past practices.
While such financing remains uncommitted, the vendor additionally offers committed backstop financing.
This backstop financing would cover a substantial portion, though not all, of the expenditure if the Group
chooses to utilise it. After making enquiries and testing the assumptions against different forecast scenarios
including a severe but plausible (downside) scenario (see below), the Directors have satisfied themselves
that the Group is expected to be able to meet its commitments and obligations as they fall due for a period
of at least the next twelve months from the date of the release of the annual report and accounts.
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166
These enquiries and the testing performed in reaching this conclusion included the review of a base case
model that projects the cash flows of the business. The base case model is derived from our contracted fleet
plan which includes notified aircraft delivery delays. We then overlay our forecast for aircraft groundings
prepared by our maintenance team given our GTF engine related supply chain issues as well as our
contracted wet lease aircraft commitments to mitigate these issues. These building blocks determine our
available fleet for the going concern period to which we apply a utilisation assumption that is consistent with
our actual utilisation in F24. We then build our network plan and make appropriate revenue, cost,
compensation, working capital and financing assumptions to develop the base case cash flows.
This base case was then flexed to produce a downside forecast that assumes lower demand leading to a
5 per cent reduction in RASK, 10 per cent higher fuel cost per metric tonne, 5c stronger USD compared to
EUR and exclusion of any supply chain related compensation that is forecast to continue for the full going
concern period but not yet contracted. These downside forecast assumptions were modelled cumulatively
across the full going concern period. The downside case also excludes any assumed financing for our
currently unfinanced aircraft deliveries (see Note 32). Mitigating actions in relation to the unfinanced aircraft
were also considered in preparation of the downside case used for the going concern assessment.
The Directors also considered the impact of climate change over the time period and concluded that it is
unlikely that material physical or transition risks that are described in our Sustainability Report on pages 33–
40 will arise over this period. As part of our base and downside forecasts, we considered the impact of
higher pricing for ETS levied in Europe and the UK as well as costs of CORSIA implementation. Combined
with changes in the amount of “free” ETS credits, this reflects in general our expected cost increases of
carbon emissions. The use of sustainable aviation fuel (SAF) with traditional fuel will likely impact the
average cost of jet fuel and was modelled as part of the downside forecast by way of increased fuel pricing.
In preparing the base and downside forecasts, the Directors also considered the requirements of security
levels in its card acquirer contracts and took into account the impact of the wars in Ukraine and Gaza and
the three aircraft stranded in Ukraine (see Note 13). Whilst our plans include continuing to fly to Israel, the
potential impact of reallocating capacity to other routes if required is known. The Directors therefore
concluded that no material adverse impact on future cash flows is likely to result from these items. The
Directors have also assumed that there will be no further significant disruption of the magnitude experienced
in recent financial years.
In this downside scenario, whilst there was a significant reduction in liquidity, headroom on the security
levels of the card acquirer contracts was maintained. Accordingly, the Directors concluded it is appropriate to
retain the going concern basis of accounting in preparing the financial statements.
Subsequent events
Based on the assessment conducted, no material subsequent events have been identified that would
necessitate disclosure in the financial statements for the reporting period.
Viability
In accordance with Provision 31 of the UK Corporate Governance Code (2018), the Directors have assessed
the prospects and the viability of the Group over a three-year period to March 2027. The Directors have
determined that a three-year period is appropriate because the Group’s strategic planning process
traditionally covers three years.
Assessment of prospects
The Group’s prospects are assessed by management and the Board primarily through the strategic planning
process. This three-year plan takes into account the current position of the Group, includes a detailed
“bottom-up” annual operating plan for the financial year starting in April of that year and then, based on that
plan, builds a sufficiently detailed forecast for a further two financial years. The Board reviews and analyses
a base plan and a downside plan scenario with sensitivities which vary key parameters around key principal
risks. The scenarios also take account of the volatility of the current macroeconomic environment and
competitive dynamics and align on the most plausible base plan. The scenarios are also used to generate
risk mitigation plans to deal with any downside and acceleration plans to capture the upside.
Assessment of viability
The plan considers the existing aircraft order book of the Group and the aircraft deliveries falling due over
the three-year plan period together with their financing. This order book underpins the Group’s planned
growth for several years ahead. The Directors believe that the growth in the fleet can be easily absorbed by
strong demand in existing and new markets based on the Company’s strengths in terms of: 1) the majority
of the Group’s customers being drawn from the younger demographic segments; 2) leveraging the historical
strength of a faster growing Central and Eastern Europe, where travel for work or to visit family and friends
is becoming an increasingly essential feature of life, but at the same time complementing this with a more
focused footprint in the West and expansion further to the Middle East, with this diversification key to buffer
demand shocks in part of the network with the rest of the network; 3) a low cost base offering a sustainable
competitive advantage and allowing the Company to sustain low fares to stimulate demand; and 4) the
agility of the business model designed to allow the airline to adapt its operations rapidly and flexibly and to
serve the most financially and strategically attractive point-to-point connections.
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167
Although the strategic plan reflects management’s and the Directors’ best estimate of the future prospects of
the business, they have also tested the resilience of the business to unfavourable deviations of certain key
variables from the base case scenario. In defining these scenarios, the Directors considered the emerging
and principal risks that could prevent the Group from delivering on its strategy and financial targets, as
summarised on pages 106 to 113 in the Strategic Report.
The Directors concluded that the same trading related sensitivities to RASK, fuel price and USD that were
applied cumulatively in the going concern assessment were also appropriate to stress test the business in
the context of the viability statement. The basis for this conclusion was that a majority of the emerging and
principal risks identified would result in lower revenues or higher costs and this combination of sensitivities
appropriately targeted the most material of these areas. Applying the sensitivities cumulatively also assumed
many of these risks could present at the same time which was considered an appropriate approach to the
stress test.
The Directors have assumed as part of their stress testing for the viability statement that the Group will be
able to continue to finance its aircraft deliveries as they fall due, have access to its Eurobond programme,
which was extended in early 2024, to refinance the €500 million Eurobond due in January 2026 with a
maturity outside the viability statement period, have access to its three-year PDP financing facility as well as
other financial products available to the Group. The results of this stress testing show that the Group will be
able to withstand the impact of the assumptions used in the stress testing.
Viability statement
Based on this assessment, the Directors have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due over the period to March 2027.
For further information on emerging and principal risks and longer-term viability please refer to pages 106
to 113.
Financial risks
The exposure of the Company to financial risks is explained in Note 3 to the financial statements. The
Group’s financial risk management objectives and policies are described on pages 195 to 203.
Environmental matters
The aviation industry has a responsibility to take steps to minimise its impact on the environment. The
Company’s ultimate goal is to ensure that by choosing to fly with Wizz Air, our customers are making the
greenest choice of air travel available. The Company’s business model is to continuously assess and
implement innovative technologies that decrease our environmental footprint. Further details on
environmental matters are outlined on pages 40 to 58.
Employee matters
Committing to diversity and equal opportunities
The Company treats its existing and potential employees fairly, regardless of anything not related to their
professional abilities and irrespective of their race, gender or age. During the recruitment and selection
process, we evaluate professional factors including experience and qualifications in light of the relevant job
requirements and this principle remains throughout employment with the Company. We expect all of our
colleagues to adhere to these same principles, which are set out in The Wizz Way and our Code of Ethics,
along with the expected standards of behaviour for every member of the WIZZ team.
Employee involvement
The Company places great value on the contributions of its employees and seeks to promote their
involvement in the business wherever possible. The Company keeps employees informed by written
communications and meetings on matters affecting them as employees and on the various factors affecting
the performance of Wizz Air. Employees are encouraged to share feedback.
Further details of employee matters are set out on pages 62 to 82.
Stakeholder engagement
Details of stakeholder engagement can be found on pages 22 to 23.
Disclosure of information to auditors
The Directors at the date of approval of the financial statements confirm that, so far as they are aware,
there is no relevant audit information of which the Company's auditors are unaware, and that they have
taken all the steps they ought to have taken as Directors to make themselves aware of any relevant audit
information and to establish that the Company’s auditors are aware of that information.
Independent auditors
A resolution for the appointment of the auditors of the Company for the financial year ending 31 March 2025
is to be proposed by the Directors at the forthcoming Annual General Meeting.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
168
Indemnities
The Company maintains Directors’ and Officers’ liability insurance. This insurance provides coverage for the
Directors and Officers protecting them from claims that may be brought against them arising from their
decisions taken when exercising their duties.
Political donations and expenditure
Wizz Air works constructively with all levels of government across its network, regardless of political
affiliation. Wizz Air believes in the right of individuals to engage in the democratic process. However, Wizz
Air itself does not make any political donations and does not incur any political expenditure.
Capital structure
On 29 December 2020, Wizz Air Holdings Plc announced its decision to treat as Restricted Shares certain
Ordinary Shares held by Non-Qualifying Nationals and to issue to such Shareholders Restricted Share
Notices (“the Disenfranchisement”). This is because from 1 January 2021 UK nationals are no longer treated
as Qualifying Nationals with regard to ongoing European airline ownership requirements, notwithstanding the
UK-EU Trade and Cooperation Agreement. Therefore, the Board has resolved to exercise its power under the
articles to serve Restricted Share Notices on Non-Qualifying National Shareholders specifying that, from 1
January 2021, in respect of their Restricted Shares they cannot attend or speak or vote at any general
meetings of the Company. The rights to attend (whether in person or by proxy) or to speak at the general
meeting of the Company or to vote on a poll in respect of the Restricted Shares shall vest in the Chairman of
such meeting, who will be a Director who is a Qualifying National. Each such Director will give an irrevocable
undertaking not to vote any such Restricted Shares.
The Board has determined, pursuant to the articles, that the fairest and most appropriate method to
implement the Disenfranchisement is for the same proportion of each Non-Qualifying National’s (including
each UK national’s) shareholding to be designated as Restricted Shares:
▶
a “Qualifying National” includes: (i) EEA nationals; (ii) nationals of Switzerland; and (iii) in respect of
any undertaking, an undertaking which satisfies the conditions as to nationality of ownership and control
of undertakings granted an operating licence contained in Article 4(f) of Regulation (EC) No. 1008/2008
of the European Commission, as such conditions may be amended, varied, supplemented or replaced
from time to time, or as provided for in any agreement between the EU and any third country (whether
or not such undertaking is itself granted an operating licence); and
▶
a “Non-Qualifying National” includes: any person who is not a Qualifying National in accordance with
the definition above.
To protect the EU airline operating licence of Wizz Air Hungary Ltd. and Wizz Air Malta Ltd. (subsidiaries of
the Company), the Board has resolved to continue to apply a disenfranchisement of Ordinary Shares held by
non-EEA Shareholders in the capital of the Company. This will continue to be done on the basis of a
“Permitted Maximum” of 45 per cent pursuant to the Company’s articles of association (“the Permitted
Maximum”). In preparation for the 2023 Annual General Meeting (AGM), on 2 August 2023 the Company
sent a Restricted Share Notice to Non-Qualifying registered Shareholders, informing them of the number of
Ordinary Shares that will be treated as Restricted Shares.
As at 31 March 2024, the Company had 103,360,705 Ordinary Shares of £0.0001 each in issue, each with
one vote. There were no shares held in treasury at that date. The rights and obligations attaching to the
Company’s shares are set out in the articles of association. Holders of Ordinary Shares have the following
rights:
a)
subject to any rights or restrictions as to voting attached to any Ordinary Shares, on a show of hands,
each Shareholder present in person shall have one vote, and on a poll each Shareholder present in
person or by proxy shall have one vote for every Ordinary Share of which he/she is the holder;
b)
a certificated share may be transferred by means of an instrument in writing, either by the usual
transfer form or in any other form that the Board approves, signed by or on behalf of the person
transferring the Ordinary Shares and, unless the Ordinary Shares are fully paid, by or on behalf of the
person acquiring the Ordinary Shares. Ordinary Shares in uncertificated form may be transferred by
means of the relevant system;
c)
the right to receive dividends on a pari passu basis; and
d)
on a winding-up, the liquidator may divide amongst the members in specie the whole or any part of the
assets of the Company.
During the 2024 financial year 77,851 new Ordinary Shares were allotted for cash, all on a non-pre-emptive
basis. These were allotted pursuant to the exercise of share options by the employees of the Group.
The aggregate nominal value of the Ordinary Shares allotted for cash in the 2024 financial year was £24.13.
The aggregate cash consideration received by the Company for the allotment of the Ordinary Shares was
£1,878,230.
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
169
Corporate Governance Statement
The Corporate Governance Statement, prepared in accordance with rule 7.2 of the UK Listing Authority’s
Disclosure Guidance and Transparency Rules sourcebook, can be found in the Wizz Air Holdings Plc
Corporate Governance Report on page 114. The Wizz Air Holdings Plc Corporate Governance Report forms
part of this Wizz Air Holdings Plc Directors’ Report and is incorporated into it by this reference.
Information required by Listing Rule 9.8.4C
In compliance with Listing Rule 9.8.4C, the Company discloses the following information:
Listing Rule
Information required
Relevant disclosure
9.8.4(1)
Interest capitalised by the Group
N/A
9.8.4(2)
Unaudited financial information as required (LR 9.2.18)
Unaudited financial information was
published by the Group in its interim
management statements (for Q1 and
Q3), half-yearly results and
preliminary announcement of results
for the year. There have been no
changes to the unaudited information
previously published.
9.8.4(4)
Long-term Incentive Plans (LR 9.4.3)
See Directors’ Remuneration Report.
9.8.4(5)
Directors’ waivers of emoluments
See Directors’ Remuneration Report.
9.8.4(6)
Directors’ waivers of future emoluments
See Directors’ Remuneration Report.
9.8.4(7)
Non-pro-rata allotments of equity for cash (the Company)
See paragraph headed “Capital
structure” in this report.
9.8.4(8)
Non-pro-rata allotments of equity for cash (major subsidiaries)
N/A
9.8.4(10)
Contracts of significance involving a Director
N/A
9.8.4(11)
Contracts of significance involving a controlling Shareholder
N/A
9.8.4(12)
Waivers of dividends
N/A
9.8.4(13)
Waivers of future dividends
N/A
9.8.4(14)
Agreement with a controlling Shareholder (LR 9.2.2.AR(2)(a))
See Corporate Governance Report.
For and on behalf of the Board
József Váradi
Chief Executive Officer
14 June 2024
Registered number: 103356
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
170
COMPANY INFORMATION
Registered number
103356
Registered office
44 The Esplanade
St Helier
Jersey
JE4 9WG
Secretary
Intertrust Corporate Services (Jersey) Limited
44 The Esplanade
St Helier
Jersey
JE4 9WG
Independent auditors
PricewaterhouseCoopers LLP
1 Embankment Place
London
WC2N 6RH
United Kingdom
Principal bankers
Citibank
Citigroup Centre
25 Canada Square
Canary Wharf
London
E14 5LB
United Kingdom
Share registrar
Computershare Investor Services
(Jersey) Limited
13 Castle Street
St Helier
Jersey
JE1 1ES
Financial public relations
MHP Group
60 Great Portland Street
London
W1W 7RT
United Kingdom
Joint corporate brokers
Barclays Bank PLC
1 Churchill Place
London
E14 5HP
United Kingdom
J.P. Morgan Cazenove
25 Bank Street
Canary Wharf
London
E14 5JP
United Kingdom
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
171
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT
OF THE FINANCIAL STATEMENTS
The Directors are responsible for preparing the Annual Report and included financial statements in
accordance with applicable law and regulation.
The Companies (Jersey) Law 1991 requires the Directors to prepare financial statements for each financial
year. Under that law the Directors have prepared the Group financial statements in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the EU.
Under the Companies (Jersey) Law 1991, the Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs of the Group and of the profit or
loss of the Group for that period. In preparing the financial statements, the Directors are required to:
▶
select suitable accounting policies and then apply them consistently;
▶
state whether applicable IFRSs as adopted by the EU have been followed, subject to any material
departures disclosed and explained in the financial statements;
▶
make judgments and accounting estimates that are reasonable and prudent; and
▶
prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Group will continue in business.
The Directors are responsible for safeguarding the assets of the Group and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for keeping adequate accounting records that are sufficient to show and
explain the Group’s transactions and disclose with reasonable accuracy at any time the financial position of
the Group and enable them to ensure that the financial statements comply with the Companies (Jersey) Law
1991 and the Directors’ Remuneration Report complies with the Companies Act 2006 as if the Company
were a quoted company under the United Kingdom Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the Group’s website. Legislation in the
United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the Annual report and accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary for Shareholders to assess the Group’s financial
position and performance, business model and strategy.
Each of the Directors, whose names and functions are listed in the Directors’ Report, confirm that, to the
best of their knowledge:
▶
the Group consolidated financial statements, which have been prepared in accordance with IFRSs as
adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss
of the Group; and
▶
the Strategic Report includes a fair review of the development and performance of the business and the
position of the Group, together with a description of the principal risks and uncertainties that it faces.
In the case of each Director in office at the date the Directors’ Report is approved:
▶
so far as the Director is aware, there is no relevant audit information of which the Group’s auditors are
unaware; and
▶
they have taken all the steps that they ought to have taken as a Director in order to make themselves
aware of any relevant audit information and to establish that the Group’s auditors are aware of that
information.
On behalf of the Board
József Váradi
Director
14 June 2024
GOVERNANCE
Wizz Air Holdings Plc Annual report and accounts 2024
172
ACCOUNTS
AND OTHER
INFORMATION
Wizz Air Holdings Plc Annual report and accounts 2024
173
FOR THE YEAR ENDED 31 MARCH 2024
Note
2024
2023
€ million
€ million
Passenger ticket revenue
5,6
2,804.2
2,024.9
Ancillary revenue
5,6
2,268.9
1,870.8
Total revenue
5,6
5,073.1
3,895.7
Staff costs
8
(507.8)
(373.9)
Fuel costs
(1,855.7)
(1,954.4)
Distribution and marketing
(117.1)
(91.5)
Maintenance materials and repairs
(285.0)
(237.0)
Airport, handling and en-route charges
(1,210.1)
(963.2)
Depreciation and amortisation
(755.3)
(601.1)
Net other income/(expense)
7
95.8
(141.3)
Total operating expenses
(4,635.2)
(4,362.5)
Operating profit/(loss)
437.9
(466.8)
Financial income
10
80.5
20.8
Financial expenses
10
(196.7)
(135.3)
Net foreign exchange gains
10
19.4
16.6
Net financing expense
10
(96.8)
(97.9)
Share of net profit of associates
18
—
—
Profit/(loss) before tax income
341.1
(564.6)
Income tax credit
11
24.8
29.5
Net profit/(loss) for the year
365.9
(535.1)
Net profit/(loss) for the year attributable to:
Non-controlling interests
17
(10.7)
(12.1)
Owners of Wizz Air Holdings Plc
376.6
(523.0)
Other comprehensive income/(expense) – items that may be
subsequently reclassified to profit or loss:
Change in fair value of cash flow hedging reserve, net of tax
28
64.6
(102.7)
Cash flow hedging reserve recycled to profit or loss
28
22.4
33.2
Cost of hedging
28
43.0
(30.0)
Cost of hedging recycled to profit or loss
28
—
6.0
Currency translation differences
28
(0.6)
4.7
Share in other comprehensive income from investments
18
—
—
Other comprehensive income/(expense) for the year, net of tax
129.4
(88.8)
Total comprehensive income/(expense) for the year
495.3
(623.9)
Total comprehensive income/(expense) for the year attributable to:
Non-controlling interests
17
(10.8)
(11.5)
Owners of Wizz Air Holdings Plc
506.1
(612.4)
Basic earnings/(loss) per share (€/share)
12
3.64
(5.07)
Diluted earnings/(loss) per share (€/share)
12
2.96
(5.07)
The Notes on pages 179 to 232 are an integral part of these financial statements.
ACCOUNTS AND OTHER INFORMATION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Wizz Air Holdings Plc Annual report and accounts 2024
174
AT 31 MARCH 2024
Note
31 March 2024
31 March 2023
€ million
€ million
ASSETS
Non-current assets
Property, plant and equipment
13
5,815.0
4,666.0
Intangible assets
14
92.7
76.7
Restricted cash
22
54.0
56.7
Deferred tax assets
15
109.1
50.6
Derivative financial instruments
21
3.9
0.2
Trade and other receivables
20
37.1
21.4
Investments in associates
18
5.7
—
Investments in other entities
1.6
—
Total non-current assets
6,119.1
4,871.7
Current assets
Inventories
19
333.6
295.6
Trade and other receivables
20
669.6
390.1
Current tax assets
4.7
3.8
Derivative financial instruments
21
33.0
1.0
Restricted cash
22
55.4
63.7
Short-term cash deposits
751.1
—
Cash and cash equivalents
728.4
1,408.6
Total current assets
2,575.8
2,162.8
Total assets
8,694.9
7,034.4
Q
Equity attributable to owners of the parent
Share capital
28
—
—
Share premium
28
381.2
381.2
Reorganisation reserve
28
(193.0)
(193.0)
Equity part of convertible debt
28
8.3
8.3
Cash flow hedging reserve
28
13.8
(73.2)
Cost of hedging reserve
28
19.0
(24.0)
Cumulative translation adjustments
28
2.8
3.3
Accumulated losses
(48.7)
(433.6)
Capital and reserves attributable to the owners of Wizz Air Holdings Plc
183.4
(331.0)
Non-controlling interests
17
(37.7)
(26.9)
Total equity
145.7
(357.9)
Non-current liabilities
Borrowings
23
5,159.7
4,000.5
Convertible debt
24
25.4
25.7
Deferred income
26
147.2
103.3
Deferred tax liabilities
15
—
3.2
Derivative financial instruments
21
—
4.2
Trade and other payables
25
97.2
59.1
Provisions for other liabilities and charges
29
144.3
76.3
Total non-current liabilities
5,573.8
4,272.3
Current liabilities
Trade and other payables
25
925.2
886.3
Current tax liabilities
37.5
4.1
Borrowings
23
1,084.3
1,275.0
Convertible debt
24
0.3
0.3
Derivative financial instruments
21
0.7
104.2
Deferred income
26
797.4
770.3
Provisions for other liabilities and charges
29
130.0
79.8
Total current liabilities
2,975.4
3,120.0
Total liabilities
8,549.2
7,392.3
Total equity and liabilities
8,694.9
7,034.4
The Notes on pages 179 to 232 are an integral part of these financial statements.
The financial statements on pages 174 to 232 were approved by the Board of Directors and authorised
for issue on 14 June 2024 and were signed on behalf of the Board by:
József Váradi
Chief Executive Officer
ACCOUNTS AND OTHER INFORMATION
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Wizz Air Holdings Plc Annual report and accounts 2024
175
FOR THE YEAR ENDED 31 MARCH 2024
Share
capital
Share
premium
Reorganisation
reserve
Equity part of
convertible
debt
Cash flow
hedging
reserve
Cost of
hedging
reserve
Cumulative
translation
adjustments
Accumulated
losses
Total
Non-
controlling
interest
Total
equity
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Note
28
28
28
28
28
28
28
28
17
Balance at 1
April 2023
— 381.2
(193.0)
8.3 (73.2) (24.0)
3.3 (433.6) (331.0) (26.9) (357.9)
Comprehensive
income/
(expense):
Profit/(loss) for
the year
—
—
—
—
—
—
— 376.6 376.6 (10.7) 365.9
Other
comprehensive
income/
(expense)
—
—
—
—
87.0
43.0
(0.5)
— 129.5
(0.1) 129.4
Total
comprehensive
income/
(expense) for
the year
—
—
—
—
87.0
43.0
(0.5) 376.6 506.1 (10.8) 495.3
Transactions
with owners:
Share-based
payment charge
(Note 27)
—
—
—
—
—
—
—
8.3
8.3
—
8.3
Total
transactions
with owners
—
—
—
—
—
—
—
8.3
8.3
—
8.3
Balance at
31 March 2024
— 381.2 (193.0)
8.3 13.8 19.0
2.8 (48.7) 183.4 (37.7) 145.7
The Notes on pages 179 to 232 are an integral part of these financial statements.
ACCOUNTS AND OTHER INFORMATION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Wizz Air Holdings Plc Annual report and accounts 2024
176
FOR THE YEAR ENDED 31 MARCH 2023
Share
capital
Share
premium
Reorganisation
reserve
Equity part of
convertible
debt
Cash flow
hedging
reserve
Cost of
hedging
reserve
Cumulative
translation
adjustment
Retained
earnings/
(Accumulated
losses)
Total
Non-
controlling
interest
Total
equity
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Note
28
28
28
28
28
28
28
28
17
Balance at 1 April
2022
— 381.2
(193.0)
8.3 (3.8)
—
(0.7)
87.3 279.3 (15.4) 263.9
Comprehensive
(expense)/income:
Loss for the year
—
—
—
—
—
—
— (523.0) (523.0) (12.1) (535.1)
Other
comprehensive
(expense)/income
—
—
—
— (69.5) (24.0)
4.1
— (89.4)
0.6 (88.8)
Total
comprehensive
(expense)/income
for the year
—
—
—
— (69.5) (24.0)
4.1 (523.0) (612.4) (11.5) (623.9)
Transactions with
owners:
Share-based payment
charge (Note 27)
—
—
—
—
—
—
—
2.2
2.2
—
2.2
Total transactions
with owners
—
—
—
—
—
—
—
2.2
2.2
—
2.2
Balance at 31
March 2023
— 381.2
(193.0)
8.3 (73.2) (24.0)
3.3 (433.6) (331.0) (26.9) (357.9)
The Notes on pages 179 to 232 are an integral part of these financial statements.
ACCOUNTS AND OTHER INFORMATION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Wizz Air Holdings Plc Annual report and accounts 2024
177
FOR THE YEAR ENDED 31 MARCH 2024
2024
2023
Note
€ million
€ million
Cash flows from operating activities
Profit/(loss) before income tax
341.1
(564.6)
Adjustments for:
Depreciation
13
736.1
587.6
Amortisation
14
19.2
13.5
Financial income
10
(80.5)
(20.8)
Financial expenses
10
196.7
135.3
Unrealised fair value (gains)/losses on derivative financial instruments
(8.9)
8.2
Unrealised foreign currency gains
(34.2)
(9.1)
Realised non-operating foreign currency losses/(gains)
7.2
(13.2)
Gain on sale of property, plant and equipment
(244.8)
(99.7)
Share-based payment charges
27
8.3
2.2
Other non-cash operating income
(12.2)
(3.4)
Share of net profit of associates
18
—
—
928.0
36.0
Changes in working capital
Increase in trade and other receivables
20
(301.5)
(186.1)
Decrease in restricted cash
22
12.3
48.3
Increase in inventory
19
(35.9)
(226.4)
(Decrease)/increase in provisions
29
(2.8)
8.0
Increase in trade and other payables
25
70.2
316.7
Increase in deferred income
26
23.9
432.4
(233.8)
392.9
Cash generated by operating activities before tax
694.2
428.9
Income taxes paid
(17.4)
(7.0)
Net cash generated by operating activities
676.8
421.9
Cash flows from investing activities
Purchase of aircraft maintenance assets
(107.6)
(69.7)
Purchase of tangible and intangible assets
(230.6)
(94.7)
Proceeds from the sale of tangible assets
546.5
242.0
Advances paid for aircraft
13
(370.7)
(475.5)
Refund of advances paid for aircraft
13
480.4
463.4
Interest received
77.8
17.4
(Increase)/decrease in short-term cash deposits
(748.5)
450.0
Payment for acquisition of investments
(7.3)
—
Net cash (used in)/generated by investing activities
(360.0)
532.9
Cash flows from financing activities
Proceeds from new loans*
67.9
63.0
Repayment of loans*
(580.4)
(492.5)
Interest paid – loans – IFRS 16 lease liability
(124.4)
(97.7)
Interest paid – loans – JOLCO and FTL
(15.7)
(14.8)
Repayment of unsecured debt
(500.0)
—
Proceeds from secured debt
415.0
245.5
Repayment of secured debt
(248.4)
—
Interest paid – unsecured debt
(11.8)
(11.8)
Interest paid – secured debt
(14.5)
(0.2)
Interest paid – other
(3.8)
(2.7)
Net cash used in financing activities
30
(1,016.1)
(311.2)
Net (decrease)/increase in cash and cash equivalents
(699.3)
643.7
Cash and cash equivalents at the beginning of the year**
1,402.6
766.6
Effect of exchange rate fluctuations on cash and cash equivalents
13.1
(7.7)
Cash and cash equivalents at the end of the year**
716.4
1,402.6
* Mostly JOLCO, FTL and IFRS 16, ‘Leases’.
** Cash and cash equivalents at 31 March 2024 include €359.4 million (31 March 2023: €197.3 million; 31 March 2022:
€235.6 million) of cash at bank and €145.6 million (31 March 2023: €1,211.3 million; 31 March 2022: €531.0 million) of cash
deposits maturing within three months of inception, €223.4 million money market funds (31 March 2023: €nil; 31 March 2022: €nil)
and overdrafts (repayable on demand) of €12.0 million (31 March 2023: €6.0 million; 31 March 2022: €nil), which are an integral
part of cash management activities.
The Notes on pages 179 to 232 are an integral part of these financial statements.
ACCOUNTS AND OTHER INFORMATION
CONSOLIDATED STATEMENT OF CASH FLOWS
Wizz Air Holdings Plc Annual report and accounts 2024
178
1. General information
Wizz Air Holdings Plc (“the Company”) is a public limited company incorporated in Jersey, registered under
the address 44 The Esplanade, St Helier, Jersey JE4 9WG. The Company is managed from Switzerland,
under the address Route François-Peyrot 12, 1218 Le Grand-Saconnex, Geneva. The Company and its
subsidiaries (together referred to as “the Group” or “Wizz Air”) provide low-cost, low-fare passenger air
transportation services on scheduled short-haul and medium-haul point-to-point routes across Europe and
the Middle East. The Company’s Ordinary Shares are listed in the premium segment of the Official List of the
Financial Conduct Authority and admitted to the Main Market of the London Stock Exchange.
2. Material accounting policies
The material accounting policies applied in the presentation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the years presented, unless otherwise
stated.
Basis of preparation
These consolidated financial statements combine the financial information of the Company and its
subsidiaries. The audited consolidated financial statements have been prepared and approved by the
Directors in accordance with International Financial Reporting Standards as adopted by the EU (“Adopted
IFRSs”) and IFRS Interpretations Committee guidance.
Based on the exemption provided in Article 105 (11) of the Companies (Jersey) Law 1991, the Company
does not present its individual financial statements and related notes.
The financial statements are presented in Euro (EUR or €).
The Company has a policy of rounding each amount and percentage individually from the fully accurate
number to the figure disclosed in the financial statements. As a result, some amounts and percentages do
not total – though such differences are all trivial.
The consolidated financial statements have been prepared under the historical cost convention, as modified
by the revaluation of financial assets and financial liabilities (including derivative instruments) at fair value
through profit or loss.
The preparation of the consolidated financial statements in conformity with adopted IFRS requires the use of
certain critical accounting estimates and for management to exercise judgments in the process of applying
the Group’s accounting policies. The areas involving a high degree of judgment or complexity or areas where
assumptions and estimates involving significant uncertainty that have a risk of causing material adjustment
to the carrying value of assets and liabilities in the coming year are disclosed in Note 4.
New standards, amendments and interpretations
a)
Standards, amendments and interpretations adopted by the EU, effective for annual periods
beginning on or after 1 January 2023 and adopted by the Group
The Group has applied the following amended standards and amendments effective for annual periods
beginning after 1 January 2023 for the first time for its annual reporting period commencing 1 April 2023:
IFRS 17, ‘Insurance Contracts’ and Amendments to IFRS 17
IFRS 17 and its amendments require a current measurement model where estimates are remeasured in
each reporting period. Contracts are measured using the building blocks of discounted probability-weighted
cash flows, an explicit risk adjustment and a contractual service margin (CSM) representing the unearned
profit of the contract which is recognised as revenue over the coverage period.
The standard allows a choice between recognising changes in discount rates either in the statement of profit
or loss or directly in other comprehensive income. The choice is likely to reflect how insurers account for their
financial assets under IFRS 9. An optional, simplified premium allocation approach is permitted for the liability
for the remaining coverage for eligible groups of insurance contracts, which are often written by non-life
insurers. There is a modification of the general measurement model called the “variable fee approach” for
certain contracts written by life insurers where policyholders share in the returns from underlying items. When
applying the variable fee approach, the entity’s share of the fair value changes of the underlying items is
included in the CSM. The new rules affect the financial statements and key performance indicators of all
entities that issue insurance contracts or investment contracts with discretionary participation features. The
amendments aimed to ease the implementation of the standard by reducing implementation costs and
making it easier for entities to explain the results from applying IFRS 17 to investors and others. Further
amendments made in December 2021 added a transition option that permits an entity to apply an optional
classification overlay in the comparative period(s) presented on initial application of IFRS 17. The classification
overlay applies to all financial assets, including those held in respect of activities not connected to contracts
within the scope of IFRS 17. It allows those assets to be classified in the comparative period(s) in a way that
aligns with how the entity expects those assets to be classified on initial application of IFRS 9. The
classification can be applied on an instrument-by-instrument basis. The standard and its amendments do not
have significant impact on the Group’s consolidated financial statements.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
179
Definition of Accounting Estimates – Amendments to IAS 8
The amendments clarify how companies should distinguish changes in accounting policies from changes in
accounting estimates. The distinction is important, because changes in accounting estimates are applied
prospectively to future transactions and other future events, whereas changes in accounting policies are
generally applied retrospectively to past transactions and other past events as well as the current period.
The application of these amendments does not have a material effect on the Group’s consolidated financial
statements.
International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12)
“Pillar Two taxes” are taxes arising from tax laws enacted or substantively enacted to implement the Pillar
Two Model Rules published by the Organisation for Economic Co-operation and Development. The Pillar Two
Model Rules aim to ensure that large multinational groups pay taxes at least at the minimum rate of 15 per
cent on income arising in each jurisdiction in which they operate by applying a system of top-up taxes. There
are three active mechanisms under Pillar Two Model Rules that countries can adopt: the income inclusion
rule, the undertaxed payment rule and a qualified domestic minimum top-up tax. They are often referred to
as “global minimum top-up tax” or “top-up tax”.
The amendments address stakeholders’ concerns about deferred tax accounting in relation to the new top-up
tax under IFRSs by providing entities with a temporary mandatory relief from deferred tax accounting
for top-up tax and requiring entities to provide new disclosures in relation to the top-up tax and the relief.
New disclosures required by the amendments are included in Note 15 of the Group’s current consolidated
financial statements.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
The amendments to IAS 12, ‘Income Taxes’ require companies to recognise deferred tax on transactions
that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences, and
will require the recognition of additional deferred tax assets and liabilities. The amendments should be
applied to transactions that occur on or after the beginning of the earliest comparative period presented. In
addition, entities should recognise deferred tax assets (to the extent that it is probable that they can be
utilised) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and
taxable temporary differences associated with right-of-use assets and lease liabilities, and decommissioning,
restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the
related assets. The cumulative effect of recognising these adjustments is recognised in the opening balance
of retained earnings, or another component of equity, as appropriate. These amendments are enacted in the
consolidated financial statements of the Group and disclosure in Note 15 was further detailed to show gross
deferred tax balances in relation to leases under the amendments. The amendments had no material impact
on the net deferred tax balances of the Group, as the exemption for deferred tax recognition in relation to
leases was not applied at initial recognition.
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
The amended IAS 1 requires entities to disclose their material rather than their significant accounting
policies. The amendments define what is “material accounting policy information” (being information that,
when considered together with other information included in an entity’s financial statements, can reasonably
be expected to influence decisions that the primary users of general purpose financial statements make on
the basis of those financial statements) and explain how to identify when accounting policy information is
material. They further clarify that immaterial accounting policy information does not need to be disclosed. If
it is disclosed, it should not obscure material accounting information. To support this amendment, the IASB
also amended IFRS Practice Statement 2, ‘Making Materiality Judgements’ to provide guidance on how to
apply the concept of materiality to accounting policy disclosures. These amendments are enacted in the
consolidated financial statements of the Group.
b)
Standards, amendments and interpretations effective and not adopted by the Group
There are no effective standards, amendments and interpretations that are not adopted by the Group.
c)
Standards early adopted by the Group
There are no standards early adopted by the Group.
d) Interpretations and standards that are not yet effective and have not been early adopted by the Group
New standards adopted by the EU, effective for periods beginning after 1 January 2024:
▶
Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
▶
Non-Current Liabilities with Covenants (Amendments to IAS 1)
▶
Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
180
▶
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7):
The amendments introduce additional disclosure requirements for a company to provide information
about its supplier finance arrangements that would enable users (investors) to assess the effects of
these arrangements on the company’s liabilities and cash flows, and the company’s exposure to liquidity
risk. The amendments apply to supplier finance arrangements (also referred to as supply chain finance,
payables finance or reverse factoring arrangements) that have all of the following characteristics: a
finance provider (also referred to as the factor) pays amounts a company (the buyer) owes its suppliers;
a company agrees to pay under the terms and conditions of the arrangements on the same date or at a
later date than its suppliers are paid; and the company is provided with extended payment terms or
suppliers benefit from early payment terms, compared with the related invoice payment due date. The
Group is currently in the process of reviewing the possibly affected contracts to determine the size of the
effect on the Group’s consolidated financial statements.
New standards not yet endorsed by the EU, effective for periods beginning after 1 January 2024:
▶
Lack of exchangeability (Amendments to IAS 21)
▶
IFRS 18, ‘Presentation and Disclosure in Financial Statements’: IASB issued IFRS 18 on 9 April 2024.
The new standard will give investors more transparent and comparable information about companies’
financial performance. IFRS 18 introduces three sets of new requirements to improve companies’
reporting of financial performance and give investors a better basis for analysing and comparing
companies: three defined categories for income and expenses – operating, investing and financing – to
improve the structure of the income statement, and requiring all companies to provide new defined
subtotals, including operating profit; explanations of those company-specific measures that are related
to the income statement, referred to as management-defined performance measures; and enhanced
guidance on how to organise information and whether to provide it in the primary financial statements or
in the notes. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, but
companies can apply it earlier. The standard is not yet endorsed by the EU. The Group will assess the
effects of the new standard on its consolidated financial statements in due course.
▶
IFRS 19, ‘Subsidiaries without Public Accountability: Disclosures’
The above new accounting standards and interpretations, other than Supplier Finance Arrangements
(Amendments to IAS 7 and IFRS 7) and IFRS 18, are not expected to have a material impact on the Group
in the current or future reporting periods. The analysis of the impact of Supplier Finance Arrangements
(Amendments to IAS 7 and IFRS 7) on the Group’s financial statements is in progress.
Basis of consolidation
The Company controls an entity when the Company is exposed, or it has rights, to variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The
Company controls an entity if the Company has all of the following:
▶
power over the entity;
▶
exposure, or rights, to variable returns from its involvement with the entity; and
▶
the ability to use its power over the entity to affect the amount of its returns from the entity.
Generally, there is a presumption that a majority of voting rights results in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an investee, the
Group considers all relevant facts and circumstances in assessing whether it has power over an investee,
including:
▶
the contractual arrangement(s) with the other vote holders of the investee;
▶
rights arising from other contractual arrangements; and
▶
the Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control.
Non-controlling interests (NCIs) in the results and equity of subsidiaries are shown separately in the
consolidated statement of comprehensive income, statement of changes in equity and balance sheet
respectively. NCIs are measured initially at their proportionate share of the acquiree’s identifiable net assets
at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of
control are accounted for as equity transactions.
Subsidiaries are all entities that from an IFRS perspective are deemed controlled by the Company. The
financial statements of subsidiaries are included in the consolidated financial statements from the date when
control commences until the date when control ceases. The results of all the subsidiaries (including their
branches) are consolidated up to 31 March, which is the financial year end of the Company. Intra-group
balances, and any unrealised gains and losses or income and expenses arising from intra-group transactions,
are eliminated in preparing the consolidated financial statements.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
181
Going concern
Wizz Air’s business activities, financial performance and financial position, together with factors likely to
affect its future development and performance, are described in the Strategic Report on pages 5 to 113.
Emerging and principal risks and uncertainties facing the Group are described on pages 106 to 113. Note 3
to the financial statements sets out the Group’s objectives, policies and procedures for managing its capital
and liquidity and provides details of the risks related to financial instruments held by the Group.
At 31 March 2024, the Group held total cash of €1,588.9 million (including cash and cash equivalents of
€728.4 million, €751.1 million of short-term cash deposits and €109.4 million of restricted cash), while
net current liabilities were €399.6 million (including deferred income of €797.4 million) and net assets
were €145.7 million. The Group’s contractual undiscounted external borrowings comprise: €500.0 million
of bonds maturing in January 2026; €206.8 million of PDP financing from Carlyle Aviation Partners Group
(see Notes 3 and 31) that is repayable by July 2025; €253.6 million of ETS financing from Standard
Chartered Bank repayable in September 2024; and convertible debt with a balance of €25.7 million. In
addition, borrowings include a carrying amount of €5,255.3 million from lease contracts accounted for
under IFRS 16 and liabilities related to JOLCO and FTL contracts (see Note 23). None of these borrowings
contain any financial covenants. The Group also receives payment for ticket and ancillary revenue in
advance through arrangements with various card acquirors which are subject to typical capacity and
security limits. Two ratings agencies, Fitch and Moody’s, issued updates during the third quarter with
Fitch maintaining Wizz Air’s BBB- investment grade profile with negative outlook, while Moody’s issued a
Ba1 rating with stable outlook.
The Group operates using a three-year planning cycle. The Directors have reviewed their latest financial
forecasts for a period of 18 months from the date of releasing the financial statements including plans to
finance committed future aircraft deliveries (see Note 32) due within this period that are currently
unfinanced and taking into account available committed financing for aircraft. Aircraft deliveries represent
the Group’s primary capital expenditure during this period, which the Group intends to finance through
various forms of sale and leaseback or other fleet financing arrangements, consistent with its past practices.
While such financing remains uncommitted, the vendor additionally offers committed backstop financing.
This backstop financing would cover a substantial portion, though not all, of the expenditure if the Group
chooses to utilise it. After making enquiries and testing the assumptions against different forecast scenarios
including a severe but plausible (downside) scenario (see below), the Directors have satisfied themselves
that the Group is expected to be able to meet its commitments and obligations as they fall due for a period
of at least the next twelve months from the date of the release of the annual report and accounts.
These enquiries and the testing performed in reaching this conclusion included the review of a base case
model that projects the cash flows of the business. The base case model is derived from our contracted fleet
plan which includes notified aircraft delivery delays. We then overlay our forecast for aircraft groundings
prepared by our maintenance team given our GTF engine related supply chain issues as well as our
contracted wet lease aircraft commitments to mitigate these issues. These building blocks determine our
available fleet for the going concern period to which we apply a utilisation assumption that is consistent with
our actual utilisation in F24. We then build our network plan and make appropriate revenue, cost,
compensation, working capital and financing assumptions to develop the base case cash flows.
This base case was then flexed to produce a downside forecast that assumes lower demand leading to a
5 per cent reduction in RASK, 10 per cent higher fuel cost per metric tonne, 5c stronger USD compared to
EUR and exclusion of any supply chain related compensation that is forecast to continue for the full going
concern period but not yet contracted. These downside forecast assumptions were modelled cumulatively
across the full going concern period. The downside case also excludes any assumed financing for our
currently unfinanced aircraft deliveries (see Note 32). Mitigating actions in relation to the unfinanced aircraft
were also considered in preparation of the downside case used for the going concern assessment.
The Directors also considered the impact of climate change over the time period and concluded that it is
unlikely that material physical or transition risks that are described in our Sustainability Report on pages 33
to 40 will arise over this period. As part of our base and downside forecasts, we considered the impact of
higher pricing for ETS levied in Europe and the UK as well as costs of CORSIA implementation. Combined
with changes in the amount of “free” ETS credits, this reflects in general our expected cost increases of
carbon emissions. The use of sustainable aviation fuel (SAF) with traditional fuel will likely impact the
average cost of jet fuel and was modelled as part of the downside forecast by way of increased fuel pricing.
In preparing the base and downside forecasts, the Directors also considered the requirements of security
levels in its card acquirer contracts and took into account the impact of the wars in Ukraine and Gaza and
the three aircraft stranded in Ukraine (see Note 13). Whilst our plans include continuing to fly to Israel, the
potential impact of reallocating capacity to other routes if required is known. The Directors therefore
concluded that no material adverse impact on future cash flows is likely to result from these items. The
Directors have also assumed that there will be no further significant disruption of the magnitude experienced
in recent financial years.
In this downside scenario, whilst there was a significant reduction in liquidity, headroom on the security
levels of the card acquirer contracts was maintained. Accordingly, the Directors concluded it is appropriate to
retain the going concern basis of accounting in preparing the financial statements.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
182
Foreign currency
The Group’s presentational currency is Euro (EUR). The functional currency of Wizz Air Hungary Ltd.
generating the vast majority of the Group’s revenues is EUR. The other airline companies’ functional
currency is different by entity. The functional currency of Wizz Air Abu Dhabi LLC is the United Arab Emirates
Dirham (AED), the functional currency of Wizz Air UK Ltd. is the British Pound (GBP or £) and the functional
currency of Wizz Air Malta Ltd. is EUR. Transactions in foreign currencies are translated into functional
currency at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the statement of financial position date are translated into EUR at the
exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the
statement of comprehensive income as net foreign exchange gain/loss within net financing income/expense.
Non-monetary assets and liabilities denominated in foreign currencies and which are recognised at their
historical cost are translated into EUR at the exchange rate at the date of the transaction. Non-monetary
assets and liabilities denominated in foreign currencies and which are stated at fair value are translated into
EUR at exchange rates ruling at the dates the fair value was determined.
The results and financial position of all the Group entities that have a functional currency different from the
presentational currency are translated into the presentational currency as follows:
▶
assets and liabilities for each statement of financial position presented are translated at the closing rate
at the date of that statement of financial position;
▶
equity is translated at historical rate (except for the cash flow hedging reserve within equity);
▶
income and expenses for each statement of comprehensive income are translated at monthly average
exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the
rates prevailing on the transaction dates, in which case income and expenses are translated at the rate
on the dates of the transactions); and
▶
all resulting exchange differences are recognised as a separate component of equity (cumulative
translation adjustments).
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
183
Financial assets and liabilities
The Group classifies its financial assets and liabilities – in line with IFRS 9, ‘Financial Instruments’ – into the
following categories:
Description in the statement of financial position
IFRS 9 category
Non-current assets
Restricted cash
Derivative financial instruments
Trade and other receivables
Investments in other entities
Financial assets measured at amortised cost
Fair value through profit or loss
Financial assets measured at amortised cost
Fair value through other comprehensive income
Current assets
Trade and other receivables
Derivative financial instruments
Restricted cash
Short-term cash deposits
Cash and cash equivalents
Money market funds
Financial assets measured at amortised cost
Fair value through profit or loss
Financial assets measured at amortised cost
Financial assets measured at amortised cost
Financial assets measured at amortised cost
Fair value through profit or loss
Non-current liabilities
Borrowings
Convertible debt
Derivative financial instruments
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost
Fair value through profit or loss
Current liabilities
Trade and other payables
Borrowings
Convertible debt
Derivative financial instruments
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost
Fair value through profit or loss
The classification of financial assets depends on the business model for managing the financial assets and
contractual cash flow characteristics of the financial assets determined by the management at initial
recognition.
a)
Financial assets measured at amortised cost
These are non-derivative financial assets held by the Group in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
The Group’s financial assets measured at amortised cost comprise trade and other receivables excluding
prepayments, cash and cash equivalents and restricted cash in the statement of financial position. They are
included in current assets, except for maturities greater than twelve months after the statement of financial
position date, which are classified as non-current assets. The Group invests excess cash primarily in short-
term time deposits which are also measured at amortised cost.
b)
Financial assets measured at fair value through other comprehensive income
These are non-derivative financial assets held by the Group in order to both collect contractual cash flows
and sell the financial assets. The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
c)
Financial assets measured at fair value through profit or loss
Financial assets not valued either at amortised cost or at fair value through other comprehensive income are
valued at fair value through profit or loss. Derivatives are measured at fair value through profit or loss.
d)
Financial liabilities measured at amortised cost
All financial liabilities are measured at amortised cost unless they are measured at fair value through profit
or loss. The Group’s other financial liabilities comprise trade and other payables and interest-bearing loans
and borrowings (including convertible debt) in the statement of financial position. They are included in
current liabilities, except for maturities greater than twelve months after the statement of financial position
date that are classified as non-current liabilities.
e)
Financial liabilities measured at fair value through profit or loss
Derivatives are measured at fair value through profit or loss by the Group. The recognition and
measurement criteria for each class of asset and liability are described in the relevant accounting policy
section.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
184
Derivative financial instruments and hedging
Derivative financial instruments
Derivative financial instruments are recognised initially at fair value. The gain or loss on remeasurement to
fair value is recognised immediately in the statement of comprehensive income within financial income or
expenses. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss
depends on the nature of the item being hedged (see below). Derivatives can only be entered into with
counterparties with investment-grade credit rating.
Cash flow hedges
The Group uses zero-cost collars to hedge jet fuel price and foreign exchange risks related to highly probable
future cash flows.
The Group designates only the intrinsic value of the options as hedging instruments. Changes in time value
are accumulated in the cost of hedging reserve, within other comprehensive income, and are recycled into
profit and loss, within fuel cost, in the months when the hedged transactions take place.
Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a
recognised asset or liability, or a highly probable forecast transaction, the effective part of any unrealised
gain or loss on the derivative financial instrument is recognised directly in the hedging reserve within other
comprehensive income. Any ineffective portion of the hedge is recognised immediately in the statement of
comprehensive income as an exceptional income or expense in the respective operating expense line.
The associated cumulative gain or loss on the effective part is removed from other comprehensive income
and recognised in the statement of comprehensive income in the respective operating expense line(s) in the
same period or periods as the hedged forecast transaction.
The Group considers a hedge relationship to be effective if:
▶
an economic relationship exists between the hedged item and the hedging instrument, and there is an
expectation that the value of the hedging instrument and the value of the hedged item would move in
the opposite direction as a result of the common underlying or hedged risk;
▶
the effect of credit risk does not dominate the value changes associated with the hedged risk; and
▶
the hedge ratio is aligned with the requirements of the Group’s risk management strategy.
In line with IFRS 9, as long as the risk management objectives are met, the Group does not de-designate
and thereby discontinue a hedging relationship that still meets the risk management objective and continues
to meet all other qualifying criteria (after taking into account any rebalancing, if applicable).
The hedge ratio applied by the Group is always 100 per cent. The hedge ratio is defined as the relationship
between the quantity of the hedging instrument and the quantity of the hedged item.
When a hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss at that
point remains in other comprehensive income and is recognised in accordance with the above policy when
the hedged transaction is recognised in the statement of comprehensive income. If the hedged transaction is
no longer expected to take place, from an accounting point of view the hedging relationship is discontinued
and the cumulative unrealised gain or loss recognised in other comprehensive income is recognised in the
statement of comprehensive income immediately.
Before expiry, the fair value of an option comprises: (i) its intrinsic value, being a function of the difference
between contracted and market (or spot) prices; and (ii) its time value, being the difference between the fair
value and the intrinsic value at any point in time. Subject to hedge effectiveness, any increase or decrease in
the fair value of the hedging instrument is taken to equity within other comprehensive income or expense.
Accordingly:
▶
initial recognition: the open position on the derivative hedging instrument is recorded as an asset or
liability in the statement of financial position at fair value;
▶
subsequent remeasurement of unexpired options: (i) the effective portion of changes in the fair value is
recorded in other comprehensive income; and (ii) the ineffective or discontinued portions, if any, are
recorded in the statement of comprehensive income; and
▶
the realised gains or losses on the hedging instrument, to the extent it was not previously classified as
ineffective or discontinued, are recorded against the respective operating expense line(s) in the
statement of comprehensive income.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
185
The qualitative technique to test the hedge effectiveness of a hedging relationship is the critical terms match
method. Hedge effectiveness testing is performed at inception, at each reporting date, and upon a significant
change in the circumstances affecting the hedge effectiveness requirements. Such significant change can
occur as follows:
▶
changes in timing of the payment of the hedged item;
▶
reduction in the total amount or price of the hedged item;
▶
location differences; and
▶
a significant change in the credit risk of either party to the hedging relationship.
The ineffective part of changes in fair value, if any, is recorded in the statement of comprehensive income as
operating income or expense.
Trade and other receivables
▶
Subsequent to initial recognitions, trade and other receivables are measured at amortised cost using the
effective interest rate method less impairment losses.
▶
The carrying amount of the asset is reduced through recognising the impact of impairment losses in the
statement of comprehensive income within other expenses. Subsequent recoveries of amounts
previously written off are credited against other expenses in the statement of comprehensive income.
▶
Other receivables include amounts receivable from aircraft and spare engine lessors (in the form of
security deposits and maintenance reserves paid) and also prepayments, deferred expenses and accrued
income (see Note 20). The accrued income within other receivables also comprises insurance claims
related to events that are covered by insurance contracts. The Group recognises the income in the
financial statements only from those insurance claims which, based on management’s judgment, are
virtually certain to be received by the Group.
Impairment policy of trade and other receivables
Management reviewed the Group’s different customer payment channels and the receivables from these
channels. The most significant component is ticket sales and the various forms of payment for tickets. The
vast majority of tickets are paid either by bank cards or by bank transfer, in any case prior to flight. Based
on their nature, in practice there is no impairment required for these. The other, less significant components
involving credit risk are commissions receivable from non-ticket revenue partners and marketing support
receivable from airports and other parties.
In accordance with IFRS 9 requirements on expected credit loss recognition, management reviewed
historical payment and impairment statistics for transactions in these channels. The historical loss rates were
adjusted to reflect current and forward-looking information on macroeconomic factors affecting the
customers’ ability to settle receivables. Based on this analysis, management concluded that the impairment
of receivables in these channels does not have a material impact on the Group’s financial statements, in
compliance with IFRS 9.
Cash and cash equivalents
Cash and cash equivalents comprise bank balances on current accounts and on deposit accounts, as well as
equity investments made to money market funds that are readily convertible into cash without there being
significant risk of a change in value to the Group. Cash and cash equivalents do not include restricted cash.
The money market funds are held at fair value through profit and loss, with the remaining balance of cash
and cash equivalents carried at amortised cost.
Short-term cash deposits
Short-term cash deposits comprise cash deposits maturing within three to twelve months of inception, the
balance of which was €751.1 million at 31 March 2024 (2023: €nil).
Restricted cash
Restricted cash represents cash deposits held by the banks that cover letters of credit, issued by the same
bank, to certain suppliers. Restricted cash is split between non-current and current assets depending on the
maturity period of the underlying letters of credit.
Trade and other payables
Trade and other payables are initially recognised at fair value when the Group becomes party to the
contractual provisions of the instrument and subsequently measured at amortised cost using the effective
interest rate method. Trade and other payables comprise balances payable to suppliers, authorities and
employees.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
186
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less directly attributable transaction costs.
Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any
difference between cost and redemption value being recognised in the statement of comprehensive income
as a financial expense over the period of the borrowings on an effective interest rate basis. Financial
expenses also include withholding tax paid on the interest if according to the loan agreement the payment of
withholding tax is the liability of the Group.
Convertible debt
Convertible debt instruments that can be converted to share capital at the option of the holder, where the
number of shares issued does not vary with changes in their fair value, are accounted for as compound
instruments. Transaction costs that relate to the issue of a compound instrument are allocated to the liability
and equity components in proportion to the allocation of proceeds. The liability component is recognised
initially at the fair value of a similar liability that does not have an equity conversion option. The equity
component of the compound instrument is calculated as the excess of the issue proceeds over the value of
the liability component.
Classification of compound instruments issued by the Group
Compound instruments issued by the Group are treated as equity (i.e. forming part of Shareholders’ funds)
only to the extent that they meet the following two conditions:
a)
they include no contractual obligations upon the Company (or Group as the case may be) to deliver cash
or other financial assets or to exchange financial assets or financial liabilities with another party under
conditions that are potentially unfavourable to the Company (or Group); and
b)
where the instrument will or may be settled in the Company’s own equity instruments, it is either a
non-derivative that includes no obligation to deliver a variable number of the Company’s own equity
instruments or it is a derivative that will be settled by the Company exchanging a fixed amount of cash
or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability
measured at amortised cost. Where the instrument so classified takes the legal form of the Company’s own
shares, the amounts presented in these financial statements for called up share capital and share premium
account exclude amounts in relation to those shares.
Where a compound instrument that contains both equity and financial liability components exists, these
components are separated by recognising the liability at fair value and accounted for individually under the
above policy. The finance cost on the financial liability component is correspondingly higher over the life of
the instrument.
Finance payments associated with financial liabilities are dealt with as part of finance expenses. Finance
payments associated with compound instruments that are classified in equity are dividends and are recorded
directly in equity.
Impairment of financial assets
The Group considers the probability of default upon initial recognition of a financial asset and whether there
has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess
whether there is a significant increase in credit risk, the Group compares the risk of a default occurring on
the financial asset as at the reporting date with the risk of default as at the date of initial recognition.
At each reporting date, the Group measures the loss allowance for financial assets at an amount equal to the
lifetime expected credit losses; if there is a significant increase in credit risk or the financial assets are not
settled in accordance with the terms stipulated in the agreements, management considers these financial
assets as underperforming or non-performing and to be impaired.
The historical loss rates are estimated based on the historical credit losses experienced over the expected life
of the receivables and are adjusted to reflect current and forward-looking information on macroeconomic
factors affecting the ability of the counterparties to settle the receivables.
A loss allowance is recognised on financial assets carried at amortised cost or fair value through other
comprehensive income for expected credit losses. When management considers that there is no reasonable
expectation of recovery, the financial assets will be written off.
If at the reporting date the credit risk on a financial asset has not increased significantly since initial
recognition, the Group measures the loss allowance for that asset at an amount equal to twelve-month
expected credit losses.
If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime
expected credit losses in the previous reporting period, but determines at the current reporting date that the
credit risk on a financial asset has not increased significantly since initial recognition, the Group measures
the loss allowance at an amount equal to twelve-month expected credit losses at the current reporting date.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
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The Group recognises in profit or loss, as an impairment gain or loss, the amount of expected credit losses
(or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required
to be recognised in accordance with IFRS 9.
Current trade and other receivables are discounted where the effect is material.
Non-financial assets and liabilities
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for
as separate items of property, plant and equipment.
Depreciation is charged to the statement of comprehensive income on a straight-line basis to write off cost
to residual value over the estimated useful economic lives of each part of an item of property, plant and
equipment. In the case of certain aircraft maintenance assets, the useful economic life of the asset can be
defined in terms of flight hours or flight cycles, and in this case the depreciation charge is determined based
on the actual number of flight hours or flight cycles.
The estimated useful lives of the relevant asset categories, reflecting the Group’s intention for the period of
use in the business, are as follows:
Land and buildings – investments made on
leased buildings
3–5 years, being the shorter of useful economic life
of the investment and the lease term of the building
Aircraft (A320neo and A321neo family)1
14 years
Aircraft (A320ceo)2
20 years
Aircraft spare engines (V2500 and GTF)
20 years (part of aircraft parts in Note 13)
Aircraft and spare engines – prepaid
maintenance
4–10 years (part of aircraft assets in Note 13)
Aircraft maintenance assets (for leased
aircraft or spare engine)
1–10 years, or 2,000–10,000 flight cycles in case of aircraft engines,
being the shorter of useful economic life and the lease term
Aircraft parts (other than engines)
7 years
Fixtures and fittings (incl. computer
hardware)
3–5 years
Right-of-use assets (from leases)
The lease term over one year (typically 8–12 years for leased aircraft,
which is significantly less than its estimated useful economic life)
1. The useful lives stated above correspond to nil residual value except in the case of A320neo and A321neo aircraft where the 14-year life
corresponds to 50 per cent of the residual value of the asset component excluding the maintenance condition of the aircraft. This
aircraft type is otherwise, and having considered the impact of climate change, estimated to be capable of flying for 28 years.
2. The useful life of aircraft assets that were first leased and then purchased by the Group is estimated based on the date of the major
overhaul events that are no longer economical to perform. Within the current aircraft fleet the maximum estimated useful life of
A320ceo aircraft is 20 years.
The residual values and useful lives are reassessed, if applicable, annually.
Assets received free of charge
In certain cases, the Group receives assets free of charge. These items are classified as non-cash items in
the statement of cash flows. The Group recognises these as assets and a connected deferred income. Both
the assets and the deferred income are systematically amortised over the assets’ useful life. Consequently,
the transaction does not affect the statement of income statement. Exceptions are assets received as
compensation for costs already incurred or financial losses. In these cases, the fair value of the assets is
recognised immediately as other income in the financial statements.
Leases
The Group leases most of its aircraft and spare engines. Other than aircraft and spare engines, the Group
has only a limited number of leases related to offices, flight training simulator buildings (and earlier also
equipment) and maintenance hangars.
The Group elected to use the following practical expedients permitted by IFRS 16:
▶
lease payments associated with short-term leases (contracts with a duration of twelve months or less)
and with leases for which the underlying asset is of low value (defined by the Group as below €5,000)
are recognised on a straight-line basis over the lease term; and
▶
it did not reassess whether a contract that the Group entered into before the date of initial application
was a lease or contained a lease – that is, IFRS 16 has only been applied to contracts that were
previously classified as leases.
The Group has short-term lease rentals from F24 and related expenses are recognised in the aircraft rentals
line. The Group does not apply IFRS 16 to other leases of intangible assets. Some lease contracts contain
variable payment terms that are linked to floating market interest rates.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
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The Group chose to treat compensation expected to be payable to lessors, either in the form of recurring
maintenance reserve payments or compensation payable at lease end, as “non-lease components” under
IFRS 16. These payments are therefore not included in the measurement of the lease liability. Contractual
maintenance obligations which are not dependent on the use of the aircraft or spare engine are recognised
in full on commencement of the lease.
Lease extension options
Some of the Group’s lease contracts contain lease extension options. The extension option is taken into
account in the measurement of the lease liability only when the Group is reasonably certain that it would
later exercise the option. Such judgment is relevant both at inception, for the initial measurement of the
lease liability, and also for a subsequent remeasurement of the lease liability if the initial judgment is revised
at a later date.
Sale and leaseback transactions after transition
The existing aircraft and spare engine lease contracts were all entered into by the Group through sale and
leaseback transactions.
Most of these contracts do not include a repurchase option for Wizz Air. On such contracts, where sale
proceeds received are judged to reflect the aircraft’s fair value, the gain or loss arising on the disposal is
directly recognised in the statement of comprehensive income to the extent that it relates to the rights that
have been transferred to the lessor, while the gain or loss that relates to the rights that have been retained
by the Group are included in the carrying amount of the right-of-use asset recognised at commencement of
the lease. With regard to gains and losses arising from these sale and leaseback agreements, the
determination of the amounts to be deferred and to be recognised immediately, respectively, requires
estimating the fair value of these assets at the date of the transaction. In determining fair values, the Group
relies on independent third-party valuation reports prepared by specialist aircraft and engine valuation
experts. The Group has not sold any aircraft above fair value.
Some sale and leaseback contracts include a repurchase option for Wizz Air. These leases relate to some of
the aircraft that arrived after 1 April 2019 and are commonly referred to as JOLCO (special Japanese Tax
Lease) contracts. Such contracts do not meet the definition of a sale under IFRS 15, ‘Revenue from
Contracts with Customers’, and are not accounted for as a lease contract under IFRS 16. As a result, the
treatment of such contracts for Wizz Air (as the lessee) is to: (i) retain the asset as aircraft assets and parts
(as if there were no sale at all); and (ii) recognise a liability under IFRS 9 (as if the sale proceeds received
from the lessor were receipts from debt financing).
Foreign exchange
The lease liability (being a monetary liability) is revalued on a monthly basis to reflect the changes in
currency exchange rates where the currency of the future lease payments differs from the functional
currency of the legal entity having the lease liability. In this respect, currently the relevant currency pairs for
the Group are the USD to EUR and the USD to GBP, as most future payments under the aircraft lease
contracts of the Group are defined in USD while the functional currency of Wizz Air Hungary Ltd. is EUR and
of Wizz Air UK Ltd. is GBP.
Discount rate
The Group is not able to readily determine the interest rate implicit in its lease contracts; therefore, the
Group applied its incremental borrowing rate for discounting lease liabilities, as required by paragraph 26 of
IFRS 16. The incremental borrowing rate, in turn, was determined with reference to the market rate of
interest observable on financial instruments with appropriate value, term and currency, and adjusted, as
required, to reflect risks specific to the leased asset as well as the risk specific to the entity in the Group
leasing the asset. These rates have been calculated for each identified asset, reflecting the underlying lease
terms and based on observable inputs.
Right-of-use assets and depreciation
With respect to depreciation, the requirements of IAS 16, ’Property, Plant and Equipment’ are applicable also
to the right-of-use assets (“RoU assets”) recognised under IFRS 16. Therefore, in the case of aircraft and
spare engines, component accounting is required for the RoU assets, similar to that applicable to owned
aircraft or spare engine assets. The RoU assets associated with aircraft and spare engine lease contracts are
split into asset components on the basis of value proportions that could be observed on an owned aircraft of
the same type and age.
The useful economic life of the asset components that represent the maintenance condition of the aircraft
and of its key components is estimated to last until the respective aircraft component no longer meets the
return conditions defined in the lease contract (at which point the lease-related asset component is
derecognised and a maintenance asset is recognised – see also below). The useful economic life of the
residual asset component (which is not related to the maintenance condition of the underlying asset) is the
lease term.
The asset components related to maintenance conditions are depreciated either on a straight-line basis or
based on usage, depending on their nature.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
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Variable lease payments
In part of the extended lease agreements, the Group applies a power by the hour lease payment scheme.
The minimum payable amount in such agreements is included in the measurement of lease liabilities. In
agreements of this nature, the maximum amount is not deemed in substance to be an unavoidable, fixed
lease payment according to management’s best estimates. Consequently, it is categorised as a variable
lease payment and, thus, it is not factored into the calculation of lease liabilities.
Component accounting
For aircraft and for spare engines purchased, on acquisition, an element of the total cost of the asset is
attributed to its service potential, reflecting its maintenance condition. Such “prepaid maintenance” asset is
recognised separately because it has a shorter useful economic life than that of the underlying aircraft or
spare engine. The prepaid maintenance asset is depreciated until the estimated date of the first heavy
maintenance event that will restore the service condition to original level (and thus lend enhancement to
future periods). Such “subsequent costs” are capitalised as aircraft maintenance assets and depreciated over
the length of the period benefiting from these enhancements.
The residual cost of the acquisition of the aircraft or spare engine, representing the part of the total asset
value that is independent from the service condition of the asset, is depreciated until the end of the
estimated useful economic life of the asset.
Advances paid for aircraft – pre-delivery payments (PDPs)
PDPs are paid by the Group to aircraft and engine manufacturers for financing the production of the ordered
aircraft or spare engine as determined by the contractual terms. Such advance payments for aircraft or
spare engines are recognised at cost and classified as property, plant and equipment in the statement of
financial position. PDPs, when paid, are recorded at historical exchange rate at the date of payment. As
these payments are made in USD by EUR functional currency entities within the Group, when PDPs are
refunded, it might result in some realised foreign exchange gain or loss. The Group started converting PDP
payments to EUR in order to reduce the exposure to EUR/USD foreign currency exchange rate significantly in
the years ahead. There are no other gains or losses incurred in relation to PDPs. The amount is not
depreciated.
The Group will usually enter into sale and leaseback arrangements with lessors to finance future aircraft or
spare engine deliveries. These arrangements are structured such that the right and the commitment to
purchase the aircraft or spare engine are assigned to the lessor only on the date of delivery (“delivery date
assignment”); as such, the recognition and classification of the PDP balance does not change when the sale
and leaseback contracts are signed. On the delivery of the aircraft or spare engine, the lessor pays the full
purchase price of the asset to the manufacturer and the Group receives from the manufacturer a refund of
the PDPs paid in USD. At this moment, the fixed asset is derecognised from the statement of financial
position and any gain or loss arising is transferred to the statement of comprehensive income as an
operating income or expense.
Advances paid for aircraft maintenance assets – engine flight hour agreements (FHAs)
Advances paid for aircraft maintenance assets represent advance payments made in relation to heavy
maintenance scheduled to be performed in the future (for the definition of heavy maintenance see the
accounting policy section on maintenance). Such advance payments are made by the Group particularly
to the engine maintenance service provider under FHAs. Such advance payments are recognised at cost and
classified as property, plant and equipment in the statement of financial position. This amount is not
depreciated.
The balance of such assets is re-categorised into aircraft maintenance assets within property, plant and
equipment at the time when the aircraft maintenance asset is recognised in respect of the same component
and the same heavy maintenance event. This is when the component no longer meets the conditions set out
in the lease agreement. Advances paid for aircraft maintenance are not depreciated.
In the statement of cash flows, the FHA payments are shown under the purchase of maintenance assets line
together with other aircraft maintenance asset purchases.
French Tax Leases
The Group started to apply an additional aircraft financing method in F21, namely the French Tax Leases
(FTL). Since these financing arrangements are special forms of structured asset financing, which provide
local tax benefit for French investors, from an accounting point of view, they are “in-substance purchases”
and not leases; therefore, IFRS 16 lease accounting is not applicable. The related liability is considered as
financial debt under IFRS 9 and the asset as an aeronautical asset, according to IAS 16.
Intangible assets
Intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and
impairment losses.
Web development costs are capitalised to the extent they are expected to generate future economic benefits
and meet the other criteria described in IAS 38, ‘Intangible Assets’.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
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Subsequent expenditure on capitalised intangible assets is capitalised only when it increases the future
economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed
as incurred.
Amortisation is charged to the statement of comprehensive income on a straight-line basis over the
estimated useful economic lives of intangible assets, except where the asset is expected to have indefinite
useful economic life. Intangible assets are amortised from the date they are available for use. The estimated
useful lives are as follows:
Software licences
3–8 years
Web and other software development costs
3–5 years
Airport landing rights
Indefinite
Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be
impaired.
Landing and take-off rights are recognised at cost less any accumulated impairment losses. They are
recorded as intangible assets with an indefinite useful life as based on an analysis of all the relevant factors;
there is no foreseeable limit to the period over which the assets are expected to generate net cash inflows
for the entity provided minimum utilisation requirements are observed. They are not amortised; however,
their value in use is tested for impairment (in accordance with IAS 36) at each reporting date together with
the fleet of aircraft as a single CGU, or where there is any indication of impairment.
Inventories
Inventory of the Group consists mainly of aircraft spare parts for aircraft maintenance and Emissions Trading
Scheme (ETS) allowances.
Aircraft spare parts
Parts are purchased for internal use and are stated at cost unless impaired or at net realisable value if any
items are to be sold. Net realisable value is the estimated selling price less the estimated selling expense.
Cost is based on the weighted average price method and includes expenditure incurred in acquiring the
inventories and bringing them to their existing location and condition.
Emissions Trading Scheme
The Group is subject to Emissions Trading Schemes (ETS) in both the European Union (EU) and the United
Kingdom. It is required to formally report its annual carbon emissions to the relevant authorities and
surrender ETS allowances equivalent to the emissions.
ETS allowances are recognised as inventory in the statement of financial position. A decreasing portion of the
allowances are received for free and recognised at nil cost. Purchased allowances are recognised at cost.
Both types of allowance are incorporated in the total weighted average cost of the inventory.
In accordance with actual carbon emissions, a liability is recognised within trade and other payables and a
corresponding expense within fuel cost based on the expected weighted average cost of the allowances that
will be surrendered. This calculation includes the allowances already purchased and the forward transactions
that mature before the surrender. If further allowances need to be purchased to meet the surrender
requirement, their value is factored in at the prevailing market price.
The inventory and the liability are derecognised at the time of the surrender.
In F24, the Group entered into an ETS repurchase financing agreement according to which EU allowances
were sold with a repurchase commitment. According to IFRS 15, this is not a sale transaction. The units are
not derecognised from inventory and no income is accounted for. The consideration received is recognised as
a financial liability within borrowings. The difference between the sale price and the repurchase price is
recognised as interest expense over the period between the sale date and the repurchase date.
Impairment of non-financial assets
The carrying amounts of the Group’s assets are reviewed at each statement of financial position date or
earlier if there is an impairment trigger to determine whether there is any indication of impairment. If any
such indication exists, the asset’s recoverable amount is estimated. The recoverable amount is the higher of
an asset’s fair value less costs to dispose and value in use. An impairment loss is recognised whenever the
carrying amount of an asset or cash-generating unit exceeds its recoverable amount. Impairment losses are
recognised in the statement of comprehensive income.
Employee benefits
Share-based payment transactions
The Group operates an equity-settled share option programme that allows Group employees to acquire
shares in the Company. The options are granted by the Company. The fair value of options granted is
recognised as an employee expense within staff costs with a corresponding increase in equity. The fair value
is measured at grant date and spread over the period during which the employees become unconditionally
entitled to the options. The fair value of the options granted is measured using an option valuation model,
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
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taking into account the terms and conditions upon which the options were granted. The amount recognised
as an expense is adjusted at any measurement date so that the cumulative expense to date reflects the
actual number of share options that are expected to vest (except where the number of shares to vest
depends on the share price performance of the Company, which is a market condition under IFRS 2 and is
therefore not updated).
Provisions
A provision is recognised in the statement of financial position when the Group has a present legal or
constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will
be required to settle the obligation.
If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability (please see further details of aircraft maintenance provisions in the accounting policy
section on maintenance).
Revenue
The Group’s revenue disaggregation differs from the requirements under IFRS 15, ‘Revenue from Contracts
with Customers’. The revenue is disaggregated into two main categories: passenger ticket revenues
(representing the invoiced value of flight seats) and ancillary revenues. Any compensation payable to
passengers for delays and cancellations is deducted from the revenue up to the level of the original revenue,
in accordance with IFRS 15. Any excess compensation beyond the original revenue is accounted for as an
expense. This treatment is consistent with the principle under IFRS 15 that revenue should only be
recognised to the extent that it is highly probable that a significant reversal of revenue recognised will not
occur when uncertainties are resolved.
Passenger ticket revenue arises from the sale of flight seats and is recognised net of government taxes in
the period in which the service is provided, that being when the aircraft has departed. Where charges levied
by airports or government authorities on a per passenger basis represent a government tax in fact or in
substance, then such amounts are presented on a net basis in the statement of comprehensive income
(netted between revenue and airport, handling and en-route charges lines). Unearned revenue represents
flight seats sold but not yet flown and is included in deferred income. Refunds made to passengers are
recorded as reductions in revenue. Refunds are measured at initial transaction price, excluding
non-refundable services.
Ancillary revenue arises from the sale of other services made by the Group and from commissions earned in
relation to services sold on behalf of other parties where the Group is an agent rather than principal in the
relationship. For details of main ancillary revenue categories, see Note 5. Commission revenue arises in
relation to the sale of on-board catering, where the Group is an agent, accommodation, car rental, travel
insurance, bus transfers, premium calls and co-branded credit cards. Ancillary revenues are recognised as
revenue when performance obligations have been satisfied (i.e. all the benefits associated with the
performance obligation have been transferred to the customer). This, depending on the type of service,
might be either the date of sale, the date of flight or (in the case of membership fees) over the period when
customers take benefit of a paid membership.
The Group considers if it is a principal or an agent in relation to contracts with other partners. Wizz
recognises revenue on a gross basis if it is the principal in the arrangement and on a net basis if it is an
agent. The Group recognises revenue from contracts with other partners as agent if it is the other partners
that:
▶
enter into contracts with the passengers/customers and bear the liability towards customers for
delivering the products and services;
▶
define the majority of the product portfolio, manage the inventory, are responsible for product
availability/outage, have title to the inventory and, the effect of the profit share notwithstanding, bear
the risk of loss; and
▶
have the discretion in establishing the prices.
The disaggregation of revenues into passenger ticket revenues and ancillary revenues, as applied in
the statement of comprehensive income, is a non-IFRS measure (or alternative performance measure).
The existing revenue presentation is considered relevant for the users of the financial statements because:
(i) it is regularly reviewed by the Chief Operating Decision Maker for evaluating financial performance; and
(ii) it mirrors disclosures presented outside of the financial statements.
Revenues under IFRS 15 are disaggregated into revenues from contracts with passengers and with other
business partners, respectively. These two categories represent revenues that are distinct from a nature,
timing and risks point of view. This split, as required under IFRS 15, is presented in Note 6.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
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Accounting for membership fees
The Group operates the Wizz Discount Club (WDC) loyalty programme for its customers. Under this
programme, customers can pay an annual membership fee, with the key benefit being that during most of
the twelve-month membership period they get access to special fares that are lower than the standard ticket
prices.
The Group recognises the revenue from membership fees following the pattern of customers utilising
benefits from the programme. This pattern is determined by management once a year, on the basis of the
actual distribution of member flights in the preceding twelve months, and then applied prospectively as an
estimate for the future. It is unlikely that there would be a material change in the pattern within one year,
because the underlying fact patterns (for customers to buy membership, to buy tickets and then to fly those
tickets) are reasonably stable.
Maintenance
Aircraft maintenance provisions
For aircraft held under lease agreements, the Group is contractually committed to either return the aircraft
in a certain condition or to compensate the lessor based on the actual condition of the aircraft and its major
components upon return. If the condition defined in the lease contract can only be met by performing
maintenance, then provision is made for the minimum unavoidable costs of the future maintenance
obligation at the time when such obligation becomes certain. This is when the respective aircraft component
no longer meets the lease re-delivery conditions. The provision is used through the completion of a
maintenance event such that the component again meets the re-delivery conditions. If it is probable that on
returning the aircraft compensation will be payable to the lessor, because performing maintenance is not or
is no longer planned, then the Group accrues for such obligation in line with the compensation rates defined
in the lease contract and recognises the respective expense within operating expenses (maintenance
materials and repairs) in the statement of comprehensive income.
Aircraft maintenance assets
Heavy maintenance relates to the overhaul of engines and associated components, the replacement of life
limited parts, the replacement of landing gears and the non-routine airframe inspection and rectification
works. Under normal operating conditions, heavy maintenance relates to work expected to be performed no
more frequently than every two years.
The cost of heavy maintenance is capitalised and recognised as a tangible fixed asset (and classified as
“aircraft maintenance assets”) at the earlier of: (a) the time the lease re-delivery condition is no longer met
(see above under aircraft maintenance provisions); or (b) when maintenance, including enhancement, is
carried out. Other maintenance costs are expensed as incurred.
Such maintenance assets are depreciated over the period the Group benefits from the asset, which is the
shorter of: (a) the estimated period until the next date when the lease re-delivery condition is no longer
met; or (b) the end of the asset’s operational life; or (c) the end of the lease.
For engines and associated components, depreciation is charged on the basis of flight hours or cycles, while
for other aircraft maintenance assets depreciation is charged evenly over the period the Group expects to
derive benefit from the asset.
Components of newly leased aircraft such as life limited parts and engines are not accounted for as separate
assets, and the inherent benefit of these assets which are utilised in the period from inception of the lease
until the time the assets no longer meet the lease re-delivery condition is reflected in the payments made to
the lessor over the life of the lease.
Aircraft maintenance assets are non-monetary items. Non-EUR amounts are translated on inception to EUR
and are not retranslated.
The recognition of aircraft maintenance assets against provisions for other liabilities and charges in the
statement of financial position is a transaction not involving cash flows. In the statement of cash flows, the
spending on these assets is presented as “purchase of aircraft maintenance assets” in the period when cash
actually flows out of the Group. This can happen either before or after the recognition of the asset,
depending on the exact facts and circumstances associated with the relevant asset or assets.
Please refer also to the property, plant and equipment section of accounting policies.
Other receivables from lessors – maintenance reserve
Payments for aircraft and engine maintenance, as stipulated in the respective lease agreements, are made
to certain lessors as a security for the performance of future heavy maintenance works. The payments are
recorded as receivables from the lessors until the respective maintenance event occurs and the
reimbursement with the lessor is finalised. Any payment that is not expected to be reimbursed by the lessor
is recognised within operating expenses (maintenance materials and repairs) in the statement of
comprehensive income.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
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Other
The Group enters into agreements with maintenance service providers that guarantee the maintenance of
major components at a rate defined in the contract, the prime example being FHAs for aircraft engines. Such
FHAs cover the cost of both scheduled and unscheduled engine overhauls. FHA payments are accounted for
as follows:
▶
payments for scheduled maintenance work are recognised as advances paid for aircraft maintenance
assets until the maintenance asset for the respective engine overhaul is created. After this point, any
further FHA payments are either used to settle previously established aircraft maintenance provisions (to
the extent a provision for the respective FHA contract exists) or, in the absence of a provision, are added
to the amount previously capitalised within property, plant and equipment as advances paid for aircraft
maintenance assets; and
▶
payments that are made to provide guaranteed coverage for the performance of unscheduled
maintenance events are considered as insurance payments and are expensed as incurred.
Please refer to the property, plant and equipment section of accounting policies.
Supplier credits and compensation
In certain cases, the concessions receivable from a component manufacturer are linked to the Group’s
commitment to purchase a number of new aircraft with the manufacturer’s components installed on those.
In such cases, in substance, the right to the concessions is earned by the Group through the delivery of the
respective aircraft. In certain cases, the concessions might be delivered by the component manufacturer
later than the date when the respective aircraft delivery is taken by the Group.
Cash credits received in connection with the acquisition of aircraft and major aircraft parts are applied to
reduce the acquisition cost of that asset. If the asset is then financed with a sale and leaseback transaction,
then the lower acquisition cost will translate into a higher gain (or smaller loss) on the sale and leaseback
transaction.
Credits that can be used for the purchase of goods and services are accounted for as other income at the
time of the purchase.
Credits related to assets that are not available when or as they were expected to be used are recognised as
other income over the period during which that circumstance existed. This includes Original Equipment
Manufacturer compensation to mitigate the financial impact of grounded aircraft or delayed deliveries.
Net financing expense
Net financing expense comprises interest payable, finance charges on finance and operating (under IFRS 16)
leases, interest receivable on funds invested and foreign exchange gains and losses that are recognised in
the statement of comprehensive income.
Interest income and interest payable are recognised in the statement of comprehensive income using the
effective interest method.
Non-cash elements of financial income and expenses are eliminated from the statement of cash flows as an
adjusting item whereas cash elements, e.g. realised foreign exchange gains and losses, are included in the
statement of cash flows.
Share capital
Ordinary Shares are classified as equity. Qualifying transaction costs directly attributable to the issue of new
shares are debited to equity, reducing the share premium arising on the issue of shares.
Taxation
Taxation on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in
the statement of comprehensive income except to the extent that it relates to items recognised directly in
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the
statement of financial position date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. The following temporary
differences are not provided for: the initial recognition of goodwill; and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of
deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using applicable tax rates enacted or substantively enacted at the statement of
financial position date.
A deferred tax asset is recognised to the extent that it is probable that sufficient future taxable profits will be
available against which the asset can be utilised.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
194
Segment reporting
Operating and reportable segments
The Group is managed as a single business unit that provides point-to-point, low-cost, low-fare passenger
air transportation services using a fleet of single-aisle aircraft. The Group has only one reportable segment,
being its entire route network.
Management information is provided to the senior management team, which (in the context of IFRS 8,
‘Operating Segments’) is the Group’s Chief Operating Decision Maker (CODM). Resource allocation decisions
are made by the CODM for the benefit of the route network as a whole, rather than for individual routes
within the network. The performance of the network is assessed primarily based on the operating profit or
loss for the period.
3. Financial risk management
Financial risk factors
The Group is exposed to market risks relating to fluctuations in commodity prices, interest rates and
currency exchange rates. The objective of financial risk management at Wizz Air is to minimise the impact of
commodity price, interest rate and foreign exchange rate fluctuations on the Group’s earnings, cash flows
and equity. To manage commodity and foreign exchange risks, Wizz Air uses foreign currency and jet fuel
zero-cost collar contracts.
Risk management is carried out by the treasury department under policies approved by the Board of
Directors. The Board provides written principles for overall risk management, as well as written policies
covering specific areas, such as foreign exchange risk, fuel price risk, credit risk, use of derivative financial
instruments, adherence to hedge accounting, and hedge coverage levels. The Board has mandated the Audit
and Risk Committee of the Board to supervise the hedging activity of the Group and the compliance with the
policies approved by the Board.
Risk analysis
Market risks
Wizz Air operates under a clear set of treasury policies approved by the Board and supervised by the Audit
and Risk Committee.
Given the sustained and ongoing volatility in commodity prices, Wizz Air kept its systematic jet fuel hedging
policy and maintained hedge coverage in line with the policy and its peers. The hedges under the hedge
policy will be rolled forward quarterly, 18 months out, with coverage levels over time reaching indicatively
between 65 per cent for the first quarter of the hedging horizon and 15 per cent for the last quarter of the
hedging horizon. In line with the hedging policy, Wizz Air also hedges its fuel consumption-related US Dollar
exposure in a similar fashion.
Foreign currency risk
The Group is exposed to foreign currency risk on sales, purchases and commitments that are denominated
in a currency other than the functional currency of its operating entities. The foreign currency exposure of
the Group is predominantly attributable to: (i) only a small portion of the Group’s revenues are denominated
in or linked to the USD while a significant portion of the Group’s expenses are USD denominated, including
fuel and aircraft leases; and (ii) there are various currencies in which the Group has significantly more
revenues than expenses, primarily the British Pound (GBP) and – to a smaller extent – the Polish Zloty (PLN)
and the Romanian Leu (RON).
EUR/USD foreign currency rate is the most significant underlying foreign currency exposure to the Group.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
195
The table below analyses the financial instruments by the currencies of future receipts and payments as
follows:
EUR
USD
Other
Total
At 31 March 2024
€ million
€ million
€ million
€ million
Financial assets
Trade and other receivables
315.3
156.7
99.2
571.2
Investments in other entities
—
1.6
—
1.6
Derivative financial assets
—
36.8
—
36.8
Cash and cash equivalents
138.4
523.8
66.2
728.4
Short-term cash deposits
154.0
597.1
—
751.1
Restricted cash
3.1
103.4
2.9
109.4
Total financial assets
610.8
1,419.4
168.3
2,198.5
Financial liabilities
Unsecured debt*
511.6
—
—
511.6
Secured debt
257.5
205.7
—
463.2
IFRS 16 aircraft and engine lease liability
637.4
2,947.4
—
3,584.8
IFRS 16 other lease liability
16.8
—
10.3
27.1
JOLCO and FTL lease liability
1,122.4
401.9
119.1
1,643.4
Loans from non-controlling interests
—
13.9
—
13.9
Convertible debt
25.7
—
—
25.7
Trade and other payables
461.4
93.7
197.2
752.3
Derivative financial liabilities
—
0.7
—
0.7
Deferred income
4.8
—
—
4.8
Total financial liabilities
3,037.6
3,663.3
326.6
7,027.5
Net financial liabilities
(2,426.8)
(2,243.9)
(158.3)
(4,828.9)
EUR
USD
Other
Total
At 31 March 2023
€ million
€ million
€ million
€ million
Financial assets
Trade and other receivables
193.4
65.4
11.6
270.4
Derivative financial assets
—
1.2
—
1.2
Cash and cash equivalents
964.4
373.0
71.2
1,408.6
Short-term cash deposits
—
—
—
—
Restricted cash
0.7
119.3
0.4
120.4
Total financial assets
1,158.5
558.9
83.2
1,800.6
Financial liabilities
Unsecured debt*
1,005.5
—
—
1,005.5
Secured debt
—
250.0
—
250.0
IFRS 16 aircraft and engine lease liability
405.1
2,371.4
—
2,776.5
IFRS 16 other lease liability
5.7
—
12.8
18.5
JOLCO and FTL lease liability
850.8
288.4
72.0
1,211.2
Loans from non-controlling interests
—
13.8
—
13.8
Convertible debt
26.0
—
—
26.0
Trade and other payables
558.1
68.7
78.8
705.6
Derivative financial liabilities
—
108.4
—
108.4
Deferred income
4.8
—
—
4.8
Total financial liabilities
2,856.0
3,100.7
163.6
6,120.2
Net liabilities
(1,697.5)
(2,541.8)
(80.4)
(4,319.6)
*
Unsecured debt represents the European Mid Term Note and bank overdrafts.
Trade and other receivables in this table, and also in the other disclosures in this Note, exclude balances that
are not financial instruments, being prepayments, deferred expenses and part of other receivables (see Note
20). Similarly, trade and other payables and deferred income in this table, and also in the other disclosures
in this Note, exclude balances that are not financial instruments, being part of accruals and other payables
(see Note 25).
Commodity risks
One of the most significant costs for the Group is jet fuel. The price of jet fuel can be volatile and can directly
impact the Group’s financial performance. See further details regarding jet fuel at market risks and hedge
transactions within this Note.
The Group is also exposed to price risk related to Emissions Trading System (ETS) schemes. In order to
comply with regulations, ETS allowances must be purchased and surrendered on a yearly basis. To reduce
the exposure to price volatility and inflation, the Group enters into spot and forward purchase transactions.
As at 31 March 2024, all requirements for calendar year 2023 and 100 per cent of total forecast
requirements for calendar year 2024 were covered. This coverage includes forward purchase agreements to
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
196
the value of €219.2 million. These forward purchase agreements qualify for the own use exemption and
therefore are not accounted for as a financial instrument under IFRS 9.
Interest rate risk
The Group’s objective is to reduce cash flow risk arising from the fluctuation of interest rates on financing.
The Group has a small portion of future commitments under certain lease contracts that are based on
floating interest rates. The PDP refinancing credit facility (see Note 23) is a variable rate loan, which is
expected to be gradually settled over one and a half years. The floating nature of these interest charges
exposes the Group to interest rate risk. Interest rates charged on Eurobond, convertible debt liabilities and
on the majority of the leases to finance the aircraft are not sensitive to interest rate movements as they are
fixed until maturity.
The Group has not used financial derivatives to hedge its interest rate risk during the year.
The Group has floating rate instruments within restricted cash, but given their short-term (within three
months) maturity, the interest rates are not expected to move significantly during this short period.
Hedge transactions during the year
The Group uses zero-cost collar instruments to hedge its jet fuel-related foreign exchange exposures and jet
fuel price exposures. In order to ensure economic relationship, the Group enters into hedge relationships
where critical terms of the hedging instrument match exactly with that of the hedged item.
The gains and losses arising from hedge transactions during the year were as follows:
Foreign exchange hedge:
2024
2023
€ million
€ million
Gain recognised within fuel costs
Effective cash flow hedge
1.9
—
Total gain recognised within fuel costs
1.9
—
Fuel hedge:
2024
2023
€ million
€ million
(Loss)/gain recognised within fuel costs
Effective hedge
(24.3)
(33.2)
Cost of hedging recycled to profit or loss
—
(6.0)
Total loss recognised within fuel costs
(24.3)
(39.2)
Hedge year-end open positions
The Group measures its derivative financial instruments at fair value, as calculated by management using an
independent derivative valuation platform. Such fair values might change materially within the near future
but these changes would not arise from assumptions made by management or other sources of estimation
uncertainty at the end of the period but from the movement of market prices. The fair value calculation is
most sensitive to movements in the jet fuel and foreign currency spot prices, their implied volatility and
respective yields.
At the end of the year, the Group had the following open hedge positions:
Foreign exchange hedges with derivatives:
Derivative financial instruments
At 31 March 2024
Notional
amount
US$ million
Non-current
assets
€ million
Current
assets
€ million
Non-current
liabilities
€ million
Current
liabilities
€ million
Net
asset
€ million
Effective cash flow hedge positions
801.0
0.7
7.9
—
(0.5)
8.1
Total foreign exchange hedges
801.0
0.7
7.9
—
(0.5)
8.1
Derivative financial instruments
At 31 March 2023
Notional
amount
US$ million
Non-current
assets
€ million
Current
assets
€ million
Non-current
liabilities
€ million
Current
liabilities
€ million
Net
liability
€ million
Effective cash flow hedge positions
312.0
—
—
—
(0.4)
(0.4)
Total foreign exchange hedges
312.0
—
—
—
(0.4)
(0.4)
For the movements in other comprehensive income, refer to the consolidated statement of changes in
equity.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
197
The open foreign currency cash flow hedge positions at year end can be analysed according to the maturity
periods and price ranges of the underlying hedge instruments as follows:
EUR/USD foreign exchange hedge:
F25
F26
At 31 March 2024
12 months
6 months
Maturity profile of notional amount (million)
$686.0
$115.0
Weighted average ceiling
$1.1303
$1.1304
Weighted average floor
$1.0867
$1.0873
F24
F25
At 31 March 2023
12 months
6 months
Maturity profile of notional amount (million)
$312.0
—
Weighted average ceiling
$1.1154
—
Weighted average floor
$1.0724
—
Foreign exchange hedge with non-derivatives:
Non-derivatives, such as cash, are existing financial assets or liabilities that hedge highly probable foreign
currency cash flows in the future and therefore act as a natural hedge.
Fuel hedge with derivatives:
Derivative financial instruments
At 31 March 2024
‘000
metric
tonnes
Non-current
assets
€ million
Current
assets
€ million
Non-current
liabilities
€ million
Current
liabilities
€ million
Net
asset
€ million
Effective cash flow hedge positions
987.0
3.1
25.1
—
(0.3)
28.0
Total fuel hedge
987.0
3.1
25.1
—
(0.3)
28.0
Derivative financial instruments
At 31 March 2023
‘000
metric
tonnes
Non-current
assets
€ million
Current
assets
€ million
Non-current
liabilities
€ million
Current
liabilities
€ million
Net
liability
€ million
Effective cash flow hedge positions
1,258.5
0.2
1.0
(4.2)
(103.8)
(106.8)
Total fuel hedge
1,258.5
0.2
1.0
(4.2)
(103.8)
(106.8)
For the movements in other comprehensive income, refer to the consolidated statement of changes in
equity.
The fuel hedge positions at year end can be analysed according to the maturity periods and price ranges of
the underlying hedge instruments as follows:
F25
F26
At 31 March 2024
12 months
6 months
Maturity profile (‘000 metric tonnes)
841.0
146.0
Blended capped rate
$860.0
$844.0
Blended floor rate
$751.0
$732.0
F24
F25
At 31 March 2023
12 months
6 months
Maturity profile (‘000 metric tonnes)
1,081.0
177.5
Blended capped rate
$994.0
$884.0
Blended floor rate
$864.0
$767.0
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
198
Effects of hedge accounting on the financial position and performance
The effects of the foreign exchange hedges on the Group’s financial position and performance are as follows:
2024
2023
Zero-cost collars
Carrying amount net asset/(liability) (€ million)
8.1
(0.4)
Notional amount (US$ million)
801.0
312.0
Maturity date
April 2024–
August 2025
April 2023–
March 2024
Hedge ratio
1:1
1:1
Change in fair value of outstanding hedging instruments (€ million)
4.6
—
Change in value of hedged item used to determine hedge effectiveness (€ million)
(4.6)
—
The effects of the fuel hedges on the Group’s financial position and performance are as follows:
2024
2023
Zero-cost collars
Carrying amount net asset/(liability)
28.0
(106.8)
Notional amount (‘000 metric tonnes)
987.0
1,006.9
Maturity date
April 2024–
August 2025
April 2023–
October 2024
Hedge ratio
1:1
1:1
Change in fair value of outstanding hedging instruments (€ million)
12.4
(83.2)
Change in value of hedged item used to determine hedge effectiveness (€ million)
(12.4)
83.2
Hedge effectiveness
The effectiveness of hedges is tested both prospectively to determine the appropriate accounting treatment
of open positions. Prospective testing of open hedges requires making certain estimates, the most significant
one being for the future expected level of the business activity (primarily the utilisation of fleet capacity) of
the Group. Building on these estimations of the future, management makes a judgment on the accounting
treatment of open hedging instruments. Hedge accounting for jet fuel and foreign currency cash flow hedges
is discontinued where the “highly probable” forecast criterion is not met in accordance with the requirements
of IFRS 9.
There was no discontinued hedging relationship during the financial year ended 31 March 2024 and during
the financial year ended 31 March 2023.
None of the hedge counterparties had a material change in their credit status that would have influenced the
effectiveness of the hedging transactions.
Sensitivity analysis
The table below shows the sensitivity of the Group’s profits to various market risks for the current and the
prior year, excluding any hedge impacts.
2024
2023
Difference in
profit after tax
€ million
Difference in
profit after tax
€ million
Fuel price sensitivity
Fuel price $100 higher per metric tonne
Fuel price $100 lower per metric tonne
-167.1
+167.1
-142.4
+142.4
FX rate sensitivity (USD/EUR)
FX rate 0.05 higher (meaning EUR stronger)
FX rate 0.05 lower
+204.0
-221.3
+208.9
-269.0
FX rate sensitivity (GBP/EUR)
FX rate 0.03 higher (meaning EUR stronger)
FX rate 0.03 lower
-16.8
+18.0
-11.6
+12.4
Interest rate sensitivity (EUR)
Interest rate is higher by 100 bps
Interest rate is lower by 100 bps
+16.4
-16.7
+14.1
-13.9
The Group is primarily exposed to changes in EUR/USD foreign exchange rate. The sensitivity of profit or
loss to changes in the exchange rates arises mainly from USD lease liabilities and jet fuel-related USD
exposure.
The interest rate sensitivity calculation above considers the effects of varying interest rates on the interest
income on bank deposits and floating rate leases.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
199
The table below shows the sensitivity of the Group’s other comprehensive income to various market risks for
the current and the prior year. These sensitivities relate to the impact of the market risks on the balance of
the cash flow hedging reserve (which includes gains and losses related to open cash flow hedges both for
foreign exchange rates and jet fuel price).
2024
2023
Difference
€ million
Difference
€ million
Fuel price sensitivity
Fuel price $100 higher per metric tonne
Fuel price $100 lower per metric tonne
-91.0
+91.0
-114.3
+114.3
FX rate sensitivity (USD/EUR)
FX rate 0.05 higher (meaning EUR stronger)
FX rate 0.05 lower
+1.6
-1.6
-5.1
+5.1
Fuel volume sensitivity (metric tonnes)
100,000 metric tonnes reduction in forecast fuel purchases
100,000 metric tonnes increase in forecast fuel purchases
+3.7
-3.7
-7.8
+7.8
The sensitivity analyses for 2024 above were performed with reference to the following market rates, as the
base case:
▶
for profits, annual average rates: jet fuel price $978 per metric tonne; EUR/USD FX rate 1.08; EUR/GBP
FX rate 0.86; and
▶
for other comprehensive income, year-end spot rates: jet fuel price $846.5 per metric tonne; EUR/USD
FX rate 1.08.
Liquidity risks
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding.
Financial year 2024 had an extremely challenging environment of tight financial conditions, high inflation,
high energy prices and heightened geopolitical risk in some of the markets we serve. These challenges
impacted our supply chain, operational capacity and the liquidity position of the Group. As a response, a
number of actions are being taken to improve costs and liquidity, the most important ones being:
▶
continuing to ensure that the flights that are operated deliver positive cash contributions;
▶
securing nearly all lease financing for aircraft delivery positions until December 2024;
▶
working with suppliers to reduce contracted rates and improve payment terms;
▶
reducing discretionary spending and suspending non-essential capital expenditures;
▶
extending the EMTN programme in January 2024 following the repayment of a €500 million bond and
effectively reducing the liability to a four-year €500 million bond which was issued in January 2022;
▶
redrawing PDP financing from the credit facility that was contracted in February 2023 and is available for
a maximum of three years (see Note 23);
▶
entering into an ETS repurchase agreement with Standard Chartered whereby Wizz Air monetised its
ETS allowance inventory (3.3 million units) at spot price, receiving €253.6 million, in exchange for a
commitment to repurchase the units at a fixed price in mid-September 2024 before surrendering them
for calendar year 2023; and
▶
working with acquiring banks to expand our ticket sales capacity. These banks will share a portion of the
credit risk for paid tickets that have not been flown without requiring to provide collateral.
As a result of these measures, the Group is confident in its ability to maintain sufficient liquidity in case of
further unexpected events or increases in commodity prices. For further notes, refer to the going concern
assessment under Note 2.
The Group invested excess cash primarily in USD and EUR denominated short-term time deposits with
high-quality bank counterparties.
The table below analyses the Group’s financial assets and liabilities (receivable or payable either in cash or
net settled in case of certain derivative financial assets and liabilities) into relevant maturity groupings based
on the remaining period at the statement of financial position date to the contractual maturity date.
The amounts disclosed in the table below are the contractual undiscounted cash flows except for derivatives
where fair values are presented. Therefore, for certain asset and liability categories the amounts presented
in this table are different from the respective amounts presented in the statement of financial position.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
200
At 31 March 2024
Within three
months
€ million
Between three
months
and one year
€ million
Between one
and five years
€ million
More than five
years
€ million
Total
€ million
Financial assets
Trade and other receivables
529.8
4.3
37.1
—
571.2
Derivative financial assets
8.8
24.2
3.8
—
36.8
Short-term cash deposits
—
751.1
—
—
751.1
Cash and cash equivalents
728.4
—
—
—
728.4
Restricted cash
9.1
46.3
50.9
3.1
109.4
Total financial assets
1,276.1
825.9
91.8
3.1
2,196.9
Financial liabilities
Unsecured debt
12.0
5.0
505.0
—
522.0
Secured debt
39.5
388.3
54.8
—
482.6
IFRS 16 aircraft and engine lease
liability
167.2
517.0
2,149.5
1,318.9
4,152.6
IFRS 16 other lease liability
0.9
2.8
16.8
13.5
34.0
JOLCO and FTL lease liability
31.4
104.5
553.7
1,227.8
1,917.4
Loans from non-controlling interests
—
—
—
13.9
13.9
Convertible debt
0.3
—
25.4
—
25.7
Trade and other payables
687.0
10.4
26.1
28.8
752.3
Derivative financial liabilities
0.3
0.4
—
—
0.7
Deferred income
4.8
—
—
—
4.8
Total financial liabilities
943.4
1,028.4
3,331.3
2,602.9
7,906.0
Within three
months
€ million
Between three
months
and one year
€ million
Between one
and five years
€ million
More than five
years
€ million
Total
€ million
At 31 March 2023
(restated)
(restated)
(restated)
(restated)
(restated)
Financial assets
Trade and other receivables
234.4
14.7
21.3
—
270.4
Derivative financial assets
0.3
0.7
0.2
—
1.2
Cash and cash equivalents
1,408.6
—
—
—
1,408.6
Short-term cash deposits
—
—
—
—
—
Restricted cash
16.2
47.5
56.1
0.6
120.4
Total financial assets
1,659.5
62.9
77.6
0.6
1,800.6
Financial liabilities
Unsecured debt
6.0
511.8
510.0
—
1,027.8
Secured debt
77.1
180.6
—
—
257.7
IFRS 16 aircraft and engine lease
liability*
130.5
398.3
1,570.9
1,097.4
3,197.1
IFRS 16 other lease liability
0.9
2.6
12.3
7.3
23.1
JOLCO and FTL lease liability
21.6
71.9
388.3
900.9
1,382.7
Loans from non-controlling interests
—
—
—
13.8
13.8
Convertible debt
—
—
26.0
—
26.0
Trade and other payables
609.0
37.5
48.6
10.5
705.6
Derivative financial liabilities
38.7
65.4
4.3
—
108.4
Deferred income
4.8
—
—
—
4.8
Total financial liabilities
888.6
1,268.1
2,560.4
2,029.9
6,747.0
*
As of 31 March 2023, the total undiscounted balances for IFRS 16 aircraft and engine lease liabilities has been changed to
€3,197.1 million (previously reported €2,787.0 million) so as to include future interest payments. Of this, €130.5 million (previously
reported €105.0 million) will mature within three months, €398.3 million (previously reported €328.9 million) will mature between
three months and one year, €1,570.9 million (previously reported €1,348.6 million) will mature within one and five years, and
€1,097.4 million (previously reported €1,004.5 million) will mature in more than five years. This change did not impact the
consolidated statement of financial position.
The Group has obligations under financial guarantee contracts as detailed in Note 31. The most significant
financial guarantee contracts relate to aircraft leases, hedging, EMTN notes, PDP financing and Convertible
Notes. For these items, the respective underlying liabilities are reflected under the appropriate line of the
financial liabilities part of the table above (for leases, the liability is presented under borrowings). Since the
liability itself is already reflected in the table, it would not be appropriate to also include the financial
guarantee provided by another Group entity for the same obligation.
Management does not expect that any payment under these guarantee contracts will be required by the
Company.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
201
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. The Group’s exposure to credit risk from individual customers is
limited as the large majority of the payments for flight tickets are collected before the service is provided.
However, the Group has significant banking, hedging, aircraft manufacturer and card-acquiring relationships
that represent counterparty credit risk. The Group analysed the creditworthiness of the relevant business
partners in order to assess the likelihood of non-performance of liabilities and therefore assets due to the
Group. The credit quality of the Group’s financial assets is assessed by reference to external credit ratings
(published by Standard & Poor’s or similar institutions) of the counterparties as follows:
A
A-
Other
Unrated
Total
At 31 March 2024
€ million
€ million
€ million
€ million
€ million
Financial assets
Cash and cash equivalents
449.0
1.2
265.5
12.8
728.4
Short-term cash deposits
751.1
—
—
—
751.1
Restricted cash
109.4
—
—
—
109.4
Trade and other receivables
5.1
5.8
3.8
556.4
571.1
Derivative financial assets
21.0
12.1
3.8
—
36.9
Investments in other entities
—
—
—
1.6
1.6
Total financial assets
1,335.5
19.0
273.1
570.9
2,198.5
A
A-
Other
Unrated
Total
At 31 March 2023
€ million
€ million
€ million
€ million
€ million
Financial assets
Cash and cash equivalents
1,398.6
0.3
2.9
6.8
1,408.6
Restricted cash
120.4
—
—
—
120.4
Trade and other receivables
20.8
0.4
—
249.2
270.4
Derivative financial assets
0.9
0.3
—
—
1.2
Total financial assets
1,540.7
1.0
2.9
256.0
1,800.6
From the unrated category within trade and other receivables, the Group has €25.8 million (2023:
€21.0 million) receivables from different aircraft lessors in respect of maintenance reserves and lease
security deposits paid (see also Note 20). However, given that the Group physically possesses the aircraft
owned by the lessors and that the Group has significant future lease payment obligations towards the same
lessors, management does not consider the credit risk on maintenance reserve receivables to be material.
Most of the remaining balance in this category in both years relates to ticket sales receivables from
customers and non-ticket revenue receivables from business partners. These balances are spread between a
significant number of counterparties and the credit performance in these channels has historically been
good.
Based on the information above, management does not consider the counterparty risk of any of the
counterparties to be material and therefore no fair value adjustment was applied to the respective cash or
receivable balances.
Fair value estimation
The Group classifies its financial instruments based on the technique used for determining fair value into the
following categories:
Level 1: Fair value is determined based on quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2: Fair value is determined based on inputs other than quoted prices that are observable for the asset
or liability, either directly or indirectly.
Level 3: Fair value is determined based on inputs that are not based on observable market data (that is, on
unobservable inputs).
The following table presents the Group’s financial assets and liabilities that are measured at fair value at
31 March 2024:
Level 1
Level 2
Level 3
Total
€ million
€ million
€ million
€ million
Assets
Investments in other entities
—
—
1.6
1.6
Derivative financial instruments
—
36.9
—
36.9
Cash and cash equivalents
223.4
—
—
223.4
Liabilities
Derivative financial instruments
—
0.7
—
0.7
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
202
The following table presents the Group’s financial assets and liabilities that are measured at fair value at
31 March 2023:
Level 1
Level 2
Level 3
Total
€ million
€ million
€ million
€ million
Assets
Derivative financial instruments
—
1.2
—
1.2
Liabilities
Derivative financial instruments
—
108.4
—
108.4
The Group measures its derivative financial instruments at fair value, calculated by a third-party front office
system that falls into the Level 2 category. The front office platform provides comprehensive risk
management capabilities, using generally accepted valuation techniques, principally the Black-Scholes model
and discounted cash flow models. The fair value of investments in other entities is estimated using Level 3
methodology.
All the other financial assets and financial liabilities are measured at amortised cost.
Capital management
The Group’s objectives when managing capital are: (i) to safeguard the Group’s ability to continue as a going
concern in order to provide returns for Shareholders and benefits for other stakeholders; (ii) to secure funds
at competitive rates for its future aircraft acquisition commitments (see Note 32); and (iii) to maintain an
optimal capital structure to reduce the overall cost of capital.
The current sources of capital for the Group are equity as presented in the statement of financial position,
bonds and other borrowings (see Note 23), as well as, to a smaller extent, convertible debt (see Note 24).
Wizz Air’s strategy is to hold significant cash and liquid funds to mitigate the impact of potential business
disruption events and to invest in opportunities as they come along in an increasingly volatile market
environment. Accordingly, the Group has so far retained all profits and paid no dividends and financed all its
aircraft and most of its spare engine acquisitions through sale and leaseback agreements. The Group
furthered its financing options through the establishment in January 2021 of a €3.0 billion European Mid
Term Note (EMTN) programme and issuance of its debut bond by Wizz Air Finance Company B.V.,
unconditionally and irrevocably guaranteed by Wizz Air Holdings Plc. Following 2024 bond repayment, Wizz
Air renewed the EMTN programme. In addition, the Group entered into a PDP refinancing credit facility which
is available for a maximum of three years and also entered into a repurchasing agreement utilising its large
inventory of ETS units.
The existing aircraft orders of the Group create a need for raising significant amounts of capital in the
following years. The strategy of the Group is to ensure that it has access to various forms of long-term
financing, which in turn allows the Group to further reduce its cost of capital and the cost of ownership of its
aircraft fleet.
4. Critical accounting estimates and judgments made in applying the Group’s
accounting policies
a)
Maintenance policy
The estimations and judgments applied in the context of the maintenance accounting policy of the Group
impact the balance of: (i) property, plant and equipment (and, within that, aircraft maintenance assets, as
detailed in Note 13); and (ii) aircraft maintenance provisions (as detailed in Note 29).
Estimate: For aircraft held under lease agreements, provision is made for the minimum unavoidable costs of
specific future maintenance obligations required by the lease at the time when such obligation becomes
certain. The amount of the provision involves making estimates of the cost of the heavy maintenance work
that is required to discharge the obligation, including any end-of-lease costs. A 5 per cent increase in the
planned costs of heavy maintenance works at the 31 March 2024 year end would increase the balance of
both aircraft maintenance assets and aircraft maintenance provisions by €13.1 million.
Estimate: The cost of heavy maintenance is capitalised and recognised as a tangible fixed asset (and
classified as an “aircraft maintenance asset”) at the earlier of: (a) the time the lease re-delivery condition is
no longer met; or (b) when maintenance, including enhancement, is carried out. The calculation of the
depreciation charge on such assets involves making estimates primarily for the future utilisation of the
aircraft. A 9 per cent change in the F25 forecast aircraft utilisation would result in the same average
utilisation as in F24. This would cause a €2.6 million decrease in the balance of aircraft maintenance assets.
The basis of these estimates is reviewed annually at least, and also when information becomes available that
is capable of causing a material change to an estimate, such as renegotiation of end-of-lease return
conditions, increased or decreased utilisation of the assets, or changes in the cost of heavy maintenance
services.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
203
Judgment: On a lease-by-lease basis, the Group makes a judgment whether it would perform future
maintenance that would impact the condition of the respective aircraft or spare engine asset in a way that
eliminates the need for paying compensation to the lessor on the re-delivery of the leased asset. When such
maintenance is not expected, then accrual is made for the compensation due to the lessor in line with the
terms of the respective lease contract.
Judgment: The policy adopted by the Group, as summarised above, is only one of the policies available
under IFRS in accounting for heavy maintenance for aircraft held under lease agreements. A principal
alternative policy involves recognising provisions for future maintenance obligations in accordance with hours
flown or similar measure, and not only when lease re-delivery conditions are not met. In the judgment of the
Directors, the policy adopted by the Group, whereby provisions for maintenance are recognised only when
lease re-delivery conditions are not met, provides the most reliable and relevant information about the
Company’s obligations to incur major maintenance expenditure on leased aircraft and at the same time it
best reflects the fact that an aircraft has lower maintenance requirements in the early years of its operation.
The average age of the Group’s aircraft fleet at 31 March 2024 was 4.3 years (31 March 2023: 4.6 years).
Given the policy adopted, we currently do not consider that the impact of climate change has a material
impact on the maintenance provision.
b)
Hedge and derivative accounting
Estimate: The asset and liability balances at year end related to open hedge instruments can be material.
The fair value of derivatives is estimated by a third-party front office system as per their industry practice.
As required, the fair values ascribed to those instruments are verified also by management using high-level
models. These estimations are performed based on market prices observed at year end and, therefore,
according to paragraph 128 of IAS 1, do not require further disclosure. Such fair values might change
materially within the next financial year but these changes would not arise from assumptions made by
management or other sources of estimation uncertainty at the end of the year but from the movement of
market prices. The fair value calculation is most sensitive to movements in the jet fuel and foreign currency
spot prices, their implied volatility and respective yields. A sensitivity analysis for the jet fuel price and for
the FX rate on most relevant currency pairs is included in Note 3.
Estimate and judgment: The effectiveness of hedges is evaluated prospectively to ascertain the suitable
accounting treatment for hedge gains and losses. Additionally, designated hedging relationships undergo
retrospective assessment for ineffectiveness, with any ineffective portion subsequently recognised in the
Statement of profit and loss. Prospective testing of open hedges requires making certain estimates, the most
significant one being for the future expected level of the business activity (primarily the utilisation of fleet
capacity) of the Group, which is supported by the models used to prepare going concern assessments.
Building on these estimations of the future, management exercises judgment on the appropriate accounting
treatment, considering the alignment of hedge instruments with the Group’s risk management objectives
and strategies. Hedge accounting for jet fuel and foreign currency cash flow hedges is discontinued where
the “highly probable” forecast criterion was not met in accordance with the requirements of IFRS 9.
None of the hedge counterparties had a material change in their credit status that would have influenced the
effectiveness of the hedging transactions.
c)
Net presentation of government taxes and other similar levies
The Group’s accounting policy stipulates that where charges levied by airports or government authorities on
a per passenger basis represent a government tax in fact or in substance, then such amounts are presented
on a net basis in the statement of comprehensive income (netted against revenue).
Judgment: Management reviews all passenger-based charges levied by airports and government authorities
to ensure that any amounts recovered from passengers in respect of these charges are appropriately
classified within the statement of comprehensive income. Given the variability of these charges and the
number of airports and jurisdictions within which the Group operates, the assessment of whether these
items constitute taxes in nature is an inherently complex area for some airports, requiring a level of
judgment.
d)
Accounting for aircraft and spare engine assets
Judgment: When the Group acquires new aircraft and spare engines, it applies the following critical
judgments in determining the acquisition cost of these assets:
▶
engine contracts typically include the selection of an engine type to be installed on future new aircraft, a
commitment to purchase a certain number of spare engines, and lump-sum (i.e. not per engine)
concessions from the manufacturer. Management recalculates the unit cost of engines by allocating
lump-sum credits over all engines ordered and by adjusting costs between installed and spare engines in
a way that ensures that identical physical assets have an equal acquisition cost; and
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
204
▶
aircraft acquisition costs are recalculated to reflect the impacts of: (i) any adjustment on the cost of
installed engines (as above); and (ii) concessions received from the manufacturers of other aircraft
components under selection agreements. Such acquisition cost has relevance also for leased aircraft
when calculating the amount of total gain or loss on the respective sale and leaseback agreement.
e)
Accounting for leases
Judgment: Some of the Group’s lease contracts contain options to extend the lease term for a period of one
to two years. The extension option is taken into account in the measurement of the lease liability only when
the Group is reasonably certain that it would later exercise the option. Such judgment is made lease by
lease, and is relevant both at inception, for the initial measurement of the lease liability, and also for a
subsequent remeasurement of the lease liability if the initial judgment is revised at a later date.
Judgment: The Group takes the view that, as a lessee, it is not able to readily determine the interest rate
implicit in its lease contracts. Therefore, it applies its incremental borrowing rate for discounting future lease
payments.
The estimations made by management in accounting for leases do not materially impact the asset and
liability balances of the Group. The majority of aircraft and spare engine assets are leased and as such their
period of depreciation is the shorter of their useful economic lives and lease duration. As these assets are
new at the inception of the lease and typically have a useful economic life of at least twice the duration of
the lease, no further estimation has been required.
f)
Revenue from contracts with other partners
As explained in Note 6, revenue from contracts with other partners relates to commissions on the sale of
on-board catering, accommodation, car rental, travel insurance, bus transfers, premium calls and co-branded
cards.
Judgment: The Group considers that it is an agent (as opposed to principal) in relation to all its contracts
with other partners. Accordingly, Wizz Air recognises revenue from these contracts on a net (commission)
basis.
Out of these contracts, the provision of on-board catering services is the most significant in value and it is
also the most complex from the perspective of making the “agent versus principal” assessment/judgment.
The Company’s judgment is that it is an agent that was based on the facts that it is the partner that: (i)
enters into contracts with the passengers/customers and bears the liability towards them for delivering the
products and services; (ii) defines the majority of the product portfolio, manages the inventory, is
responsible for product availability/outage, has title to the inventory and bears the risk of loss; and (iii) has
discretion in establishing prices. The difference on this contract between gross sales and net commission
revenue (as recognised in the statement of comprehensive income) was €55.9 million (2023: €49.2 million).
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
205
5. Segment information
Reportable segment information
The Chief Operating Decision Maker of the Group, as defined in IFRS 8, ‘Operating Segments’, is the senior
management team of the Group.
During F24, the Group had only one reportable segment, being its entire route network. All segment revenue
was derived wholly from external customers and, as the Group had a single reportable segment, inter-segment
revenue was zero.
Reconciliation of reportable segment revenue and operating profit to consolidated profit after income tax:
2024
2023
€ million
€ million
Segment revenue
5,073.1
3,895.7
Segment operating expenses
(4,635.3)
(4,362.5)
Segment operating profit/(loss)
437.8
(466.8)
Net financing expense
(96.8)
(97.9)
Income tax credit
24.8
29.5
Net profit/(loss) for the year
365.9
(535.1)
Entity-wide disclosures
Products and services
Revenue from external customers can be analysed by groups of similar services as follows:
2024
2023
€ million
€ million
Passenger ticket revenue
2,804.2
2,024.9
Ancillary revenue
2,268.9
1,870.8
Total segment revenue
5,073.1
3,895.7
These categories are non-IFRS categories meaning that they are not necessarily distinct from a nature,
timing and risks point of view; however, management believes that these categories provide clarity over the
revenue profile of the Group to the readers of the financial statements and are in line with airline industry
practice. The categories as per the definition of IFRS 15 are disclosed in Note 6.
Ancillary revenue arises mainly from baggage charges, booking/payment currency conversion charges,
airport check-in fees, fees for various convenience services (e.g. priority boarding, extended legroom and
reserved seats), loyalty programme membership fees, commission on the sale of on-board catering,
accommodation, car rental, travel insurance, bus transfers, premium calls, co-branded cards and repatriation.
Geographic areas
Segment revenue can be analysed by geographic area as follows:
2024
2023
€ million
€ million
EU and EFTA countries
3,576.2
2,707.5
UK
533.4
474.1
Other (non-EU)
963.5
714.1
Total revenue from external customers
5,073.1
3,895.7
In the table above, other (non-EU) comprises a number of non-EU geographic areas that are all individually
less than 10 per cent of the total revenue.
Revenue was allocated to geographic areas based on the location of the first departure airport on each
ticket booking.
The Company’s revenue from external customers within the EU is mainly generated by Italy of €597.9 million
(2023: €526.7 million), Romania of €518.7 million (2023: €438.7 million) and Poland of €407.3 million
(2023: €314.0 million).
The physical location of non-current assets is not disclosed by geographic area. This is because: (i) by value,
most assets are associated either with aircraft not yet received (pre-delivery payments) or with existing
leased aircraft and spare engines (RoU and maintenance assets), the location of which changes regularly
following aircraft capacity allocation decisions; and (ii) the value of the remaining asset categories (land and
buildings, fixtures and fittings) is not material within the total non-current assets.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
206
The distribution of the non-current assets between the key operating entities of the Group is as follows:
31 March 2024
31 March 2023
€ million
€ million
Wizz Air Hungary Ltd.
2,448.9
2,755.8
Wizz Air Malta Ltd.
1,754.0
1,117.2
Wizz Air Fleet Management Ltd.
1,333.8
504.9
Wizz Air UK Ltd.
481.5
460.1
Wizz Air Abu Dhabi Ltd.
56.5
32.5
Other
44.4
1.2
Total non-current assets
6,119.1
4,871.7
No revenue or non-current asset of the Group was recognised in Jersey, the Company’s country of domicile
for the year ended 31 March 2024 (2023: €nil).
From 1 April 2023, Wizz Air Malta Ltd. commenced commercial operations and started to sell tickets for its
own flights in addition to its wet-lease operations. AOG Jet Limited, a wholly owned subsidiary of the Group,
was successfully established in July 2023.
Major customers
The Group derives the vast majority of its revenues from its passengers and sells most of its tickets directly
to the passengers as final customers rather than through corporate intermediaries (tour operators, travel
agents or similar).
6. Revenue
The split of total revenue presented in the consolidated statement of comprehensive income, being
passenger ticket revenue and ancillary revenue, is a non-IFRS measure (or alternative performance
measure). The existing revenue presentation is considered relevant for the users of the financial statements
because: (i) it mirrors disclosures presented outside of the financial statements; and (ii) it is regularly
reviewed by the Chief Operating Decision Maker for evaluating financial performance of the (now only one)
operating segment.
Revenue from contracts with customers can be disaggregated as follows based on IFRS 15:
2024
2023
€ million
€ million
Revenue from contracts with passengers
4,994.6
3,833.7
Revenue from contracts with other partners
78.5
62.0
Total revenue from contracts with customers
5,073.1
3,895.7
These two categories represent revenues that are distinct from a nature, timing and risks point of view.
Revenue from contracts with other partners relates to commissions on the sale of on-board catering,
accommodation, car rental, travel insurance, bus transfers, premium calls and co-branded cards, where the
Group acts as an agent.
The contract costs reported at 31 March 2024 as part of trade and other receivables amounted to
€6.4 million (31 March 2023: €5.9 million) and the contract liabilities (unearned revenues) reported as
part of deferred income were €790.3 million (31 March 2023: €761.1 million). Out of the €4,994.6 million
revenue from contracts with passengers recognised in F24 (2023: €3,833.7 million), €761.1 million (2023:
€326.6 million) was included in the contract liability balance at the beginning of the year (see unearned
revenue in Note 26).
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
207
7. Operating profit/(loss)
Net other income/(expense)
The following categories of transactions are included in net other income/(expense):
2024
2023
€ million
€ million
Gain on sale and leaseback transactions
244.8
99.7
Credits and compensation received from suppliers*
198.6
40.1
Flight disruption-related expenses
(186.9)
(130.6)
Crew-related expenses
(66.4)
(69.6)
Overhead-related expenses
(83.2)
(62.3)
Expense relating to short-term leases
(3.5)
(8.4)
Expense relating to variable lease payments
(0.6)
(3.0)
Auditors’ remuneration
(2.6)
(1.7)
Impairment reversal for receivables
0.7
0.2
Net other expense*
(5.1)
(5.7)
Net other income/(expense)
95.8
(141.3)
* Net other expense has been further detailed to separately display credits and compensation received from suppliers.
Credits and compensation received from suppliers related to incentives and compensation received from
Original Equipment Manufacturers (OEMs) and other suppliers.
Overhead-related expenses include fees for legal support, professional services, consulting and IT-related
services.
Net other expense is mainly related to income and expense from cargo operations.
Auditors’ remuneration
2024
2023
€ million
€ million
Fees payable to the Company’s auditors for the audit of the consolidated
financial statements*
1.3
1.1
Fees payable to the auditor and their associates for the audit of financial statements
of subsidiaries pursuant to legislation
1.0
0.4
Total fee for audit services
2.3
1.5
Other audit-related services fees**
0.2
0.1
Other non-audit services fees
0.1
0.1
Total fee for non-audit services
0.3
0.2
Total remuneration of auditors
2.6
1.7
* Fees payable to the Company’s auditors for the audit of the consolidated financial statements include amounts in respect of out of
pocket expenses with interim review expense for F23 further split to be separately shown as other audit-related services fees.
** Other audit-related services fee line represents fees for the interim review of the consolidated financial statements.
Inventories
Inventories totalling €23.1 million were recognised as maintenance materials and repairs expenses in the
year (2023: €21.2 million).
8. Staff numbers and costs
The monthly average number of persons employed during the year, including Non-Executive Directors but
excluding inactive employees and subcontracted staff such as rented pilots, analysed by category, was as
follows:
Number of persons
2024
2023
Non-Executive Directors
10
9
Crew and pilots
7,416
6,399
Administration and other staff
502
405
Total staff number
7,928
6,813
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
208
The aggregate compensation of these persons was as follows:
2024
2023
€ million
€ million
Wages and salaries
423.4
302.3
Pension costs
16.1
13.0
Social security costs other than pension
42.0
32.1
Share-based payments
8.3
7.2
Subtotal
489.8
354.6
Subcontracted staff costs (rented pilots)
18.0
19.3
Total staff costs
507.8
373.9
9. Directors’ emoluments
2024
2023
€ million
€ million
Salaries and other short-term benefits
2.8
2.3
Social security costs
0.2
0.4
Share-based payments
3.5
2.9
Total Directors’ emoluments
6.5
5.6
2024
2023
Directors receiving emoluments
11
10
The number of Directors who in respect of their services received LTIP share options
under long-term incentive schemes during the year
—
1
10. Net financing income and expense
2024
2023
€ million
€ million
Interest income
80.5
20.8
Financial income
80.5
20.8
Interest expenses on:
Convertible debt
(1.8)
(1.7)
IFRS 16 lease liability
(123.8)
(97.9)
JOLCO and FTL lease liability
(34.3)
(18.8)
Unsecured debt
(11.8)
(13.3)
Secured debts
(22.3)
(2.0)
Other
(2.7)
(1.5)
Financial expenses
(196.7)
(135.3)
Net foreign exchange gains
19.4
16.6
Net financing expense
(96.8)
(97.9)
Interest income and expense include interest on financial instruments. Interest income is earned on cash
and cash equivalents, short-term deposits and restricted cash.
Net foreign exchange gain in amount of €8.8 million (2023: €5.4 million gain) relates to the remeasurement
of lease liabilities denominated in USD (Note 3).
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
209
11. Income tax credit
Recognised in the consolidated statement of comprehensive income:
2024
2023
€ million
€ million
Current tax on profit for the year
39.8
1.0
Adjustment for current tax of prior years
0.7
(1.1)
Other income-based taxes for the year
7.9
9.7
Adjustment for income-based taxes of prior years
1.5
0.1
Total current tax expense
49.9
9.7
Decrease in deferred tax liabilities
(3.2)
(0.2)
Increase in deferred tax assets
(71.5)
(39.0)
Total deferred tax credit
(74.7)
(39.2)
Total tax credit
(24.8)
(29.5)
The Company, that is Wizz Air Holdings Plc, has a local corporate tax rate of 13.97 per cent (2023: 13.97 per
cent). The tax rate relates to Switzerland, where the Company is tax resident, but does not have any
commercial operations. The current tax expense significantly increased compared to the prior year due to
the swing from a loss before tax for the Group to a profit before tax. The increase in deferred tax assets
more than offset the increase in current taxes and turned the total tax charge of the Group into a total tax
credit. The increase in deferred tax assets was mainly attributable to the recognition of new deferred tax
assets as explained in the tax reconciliation table below.
Out of the total deferred tax benefit of €39.0 million in F23, €29.7 million (shown also in the tax
reconciliation table below) is a one-off credit impact attributable to the change of the tax residency of
Wizz Air Hungary Ltd. from Switzerland to Hungary effective from 1 April 2023, as temporary differences are
being reversed at a higher tax rate in F24 and beyond.
Reconciliation of effective tax rate
The tax credit for the year (including both current and deferred tax charges and credits) is different to the
Company’s standard rate of corporation tax of 13.97 per cent (2023: 13.97 per cent). The difference is
explained below.
2024
2023
€ million
€ million
Profit/(loss) before tax
341.0
(564.6)
Tax at the corporation tax rate of 13.97 per cent (2023: 13.97 per cent)
47.6
(78.9)
Adjustment for current tax of prior years
0.7
(1.1)
Adjustment for income-based taxes of prior years
1.5
0.1
Effect of the change of tax residency of Wizz Air Hungary Ltd. from 1 April 2023
—
(29.7)
Effect of different tax rates of subsidiaries versus the parent company
(25.4)
55.3
Effect of current year losses not being eligible for utilisation against taxable profits in
future years
—
15.1
Effect of newly recognised deferred tax assets
(44.0)
—
Tax losses utilised for which no previous deferred tax was recognised
(13.1)
—
Other income-based foreign tax
7.9
9.7
Total tax credit
(24.8)
(29.5)
Effective tax rate
(7.3) %
5.2%
The Company paid €17.4 million of tax in the year (2023: €6.8 million).
Other income-based foreign tax represents the local business tax and the “innovation contribution” payable
in Hungary in F24 and F23 by the Hungarian subsidiaries of the Group, primarily Wizz Air Hungary Ltd.
Hungarian local business tax and innovation contribution are levied on an adjusted profit basis.
In F23, the Group did not recognise deferred tax assets for most of its tax loss carry-forwards. Such tax
losses were incurred primarily by Wizz Air Hungary Ltd. during F21–F23. In F24, all of Wizz Air Hungary
Ltd.’s tax loss carry-forwards were utilised at a 9 per cent tax rate, resulting in a decrease in the tax charge
of the Group by €13.1 million this year.
A deferred tax asset has now been recognised following an intra-group sale of aircraft purchase rights
between two subsidiaries of the Group. These rights have no carrying value in the statement of financial
position of the Group but have a carrying value (in the form of intangible asset) in the books of the buyer
subsidiary in its local GAAP financial statements, which has been partly amortised by the end of F24 but will
mostly be amortised in future years. While the profit from the intra-group sale was recognised by the seller
subsidiary and was subject to tax in F22, the buyer subsidiary will recognise most of the corresponding
expenses (from the intangible asset) in future years, including deduction for tax purposes, that will reduce
the current tax charge of the Group in those years.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
210
The effect of different tax rates of subsidiaries is a composition of impacts primarily in Hungary, the UK and
Malta, relating to the airline subsidiaries of the Group other than in the UAE where there is currently no
corporate tax.
Global minimum tax
On 20 December 2021, the OECD released a framework for Pillar Two Model Rules which will introduce a
global minimum corporate tax rate of 15 per cent applicable to multinational enterprise groups with global
revenue over €750 million. On 15 December 2022, the EU Council formally adopted the EU Minimum Tax
Directive and the rules should apply in the EU for accounting periods starting on or after 31 December 2023
(i.e. the year ending 31 March 2025 for the Group). Switzerland, Hungary, the UK and Malta have
implemented the minimum tax rules, but with various exemptions still applicable in the accounting periods
starting in 2024. As a result, in F25 the income of the Malta and Abu Dhabi airline subsidiaries of the Group
will not be subject to global minimum tax, although Abu Dhabi is introducing tax at 9 per cent, which will
apply from F25. The income of the UK subsidiary will be subject to minimum tax but this will not result in an
increased tax burden since the tax rate in the UK is above 15 per cent. For profits generated by the
Hungarian subsidiaries of the Group, additional global minimum tax liabilities will apply from F25 and it is
estimated that the effective tax rate on these profits will approximate 15 per cent in F25.
The assessment by management of the detailed minimum tax rules is still in progress but it is expected that
beyond F25 substantially all profits of the Group will be subject to minimum tax and the effective tax rate of
the Group will approximate 15 per cent.
In line with the exception introduced by a 2023 amendment of IAS 12, ‘Income Taxes’, the Group does not
account for deferred taxes on “Pillar Two income taxes” but will account for such taxes as a current tax when
incurred in the future. Therefore, the minimum tax rules had no impact on the recognition and measurement
of deferred tax balances at 31 March 2024, and hence on the total tax charge in the year.
Tax residency change
Wizz Air Hungary Ltd. moved its place of effective management from Switzerland to Hungary with an
effective date of 1 April 2023. As a consequence, its tax residency is Hungarian from F24 onwards. This
change was already reflected in deferred taxes reported on 31 March 2023.
Recognised in the statement of other comprehensive income
2024
2023
€ million
€ million
Deferred tax related to movements in cash flow hedging reserve
(13.2)
9.9
Total tax (charge)/credit
(13.2)
9.9
Interpretation 23, ‘Uncertainty over Income Tax Treatments’ (IFRIC 23)
The Group has open tax periods in a number of jurisdictions involving uncertainties of different nature and
materiality. The Group assessed the impact of uncertainty of each of its open tax positions in line with the
requirements of IFRIC 23. The outcome of this assessment was for the Group to have a provision balance of
€0.1 million at the end of both F24 and F23. For all other tax returns, the Group concluded that it was
probable that the tax authority would accept the uncertain tax treatment that has been taken or is expected
to be taken in those tax returns and therefore accounted for income taxes consistently with that tax
treatment. The final liabilities, as later assessed by the tax authorities, are not expected to materially vary
from the amounts that have been recognised by the Group.
12. Earnings/(loss) per share
Basic earnings/(loss) per share
Basic earnings or loss per share is calculated by dividing the profit or loss attributable to equity holders of
the Company by the weighted average number of Ordinary Shares in issue during each year.
2024
2023
Profit/(loss) for the year, € million
376.6
(523.0)
Weighted average number of Ordinary Shares in issue
103,329,836 103,210,067
Basic earnings/(loss) per share, €
3.64
(5.07)
There were no Convertible Shares in issue at 31 March 2024 (2023: nil) (see Note 28).
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
211
Diluted earnings/(loss) per share
There is no difference between the basic and diluted loss per share for F23 as potential Ordinary Shares are
anti-dilutive due to incurred loss.
Diluted earnings per share is calculated by adjusting the weighted average number of Ordinary Shares in
issue with the weighted average number of Ordinary Shares that could have been issued in the respective
period as a result of the conversion of the following convertible instruments of the Group:
▶ Convertible Shares;
▶ Convertible Notes; and
▶ Employee share options (vested share options are included in the calculation).
The profit for the year has been adjusted for the purposes of calculating diluted earnings per share in
respect of the interest charge relating to the debt which could have been converted into shares.
Diluted earnings/(loss) per share
2024
2023
Profit/(loss) for the year, € million
376.6
(523.0)
Interest expense on convertible debt (net of tax), € million
1.8
—
Profit/(loss) used to determine diluted earnings per share, € million
378.4
(523.0)
Weighted average number of Ordinary Shares in issue, thousands
103,330
103,210
Adjustment for assumed conversion on convertible instruments, thousands
24,380
—
Weighted average number of Ordinary Shares for diluted earnings per share,
thousands
127,710
103,210
Diluted earnings/(loss) per share, €
2.96
(5.07)
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
212
13. Property, plant and equipment
Land and
buildings
€ million
Aircraft
maintenance
assets
€ million
Aircraft
assets and
parts
€ million
Fixtures
and
fittings
€ million
Advances
paid
for aircraft*
€ million
Advances paid
for aircraft
maintenance
assets
€ million
RoU assets –
aircraft and
spares
€ million
RoU assets
– other
€ million
Total
€ million
Cost
At 1 April 2022
25.8
374.0 690.3
11.3 734.4
224.6 3,414.1
16.1 5,490.6
Additions
0.1
106.4 652.8
1.8 481.7
69.7
745.5
11.2 2,069.2
Disposals
—
(137.2)
(38.2)
(0.9) (406.1)
—
(225.0)
— (807.4)
Transfers
—
85.2
—
—
—
(85.2)
—
—
—
FX translation effect
—
0.2
(6.6)
—
—
(0.9)
(14.0)
—
(21.3)
At 31 March 2023
25.9
428.6 1,298.3
12.2 810.0
208.2 3,920.6
27.3 6,731.1
Additions
12.3
202.0 576.9
1.1 512.7
68.7 1,048.1
11.9 2,433.7
Disposals
(0.7)
(172.1)
(72.7)
(0.1) (480.4)
—
(315.8)
(5.4) (1,047.2)
Transfers
—
127.0
—
—
—
(127.0)
—
—
—
FX translation effect
—
(3.9)
3.6
—
—
—
8.8
—
8.5
At 31 March 2024
37.5
581.6 1,806.1
13.2 842.3
149.9 4,661.7
33.8 8,126.1
Accumulated
depreciation
At 1 April 2022
4.5
263.4
83.8
7.6
—
— 1,492.7
7.2 1,859.2
Depreciation charge
1.5
117.5
59.0
1.7
—
—
405.7
2.7 588.1
Disposals
—
(137.2)
(14.1)
(0.9)
—
—
(225.0)
— (377.2)
FX translation effect
—
(1.3)
(0.1)
—
—
—
(3.6)
—
(5.0)
At 31 March 2023
6.0
242.4 128.6
8.4
—
— 1,669.8
9.9 2,065.1
Depreciation charge
1.7
156.7
92.9
1.9
—
—
479.8
2.9 735.9
Disposals
(0.3)
(166.1)
(4.3)
(0.1)
—
—
(311.0)
(4.0) (485.8)
FX translation effect
—
(6.1)
(0.5)
—
—
—
2.5
—
(4.1)
At 31 March 2024
7.4
226.9 216.7
10.2
—
— 1,841.1
8.8 2,311.1
Net book amount
At 31 March 2024
30.1
354.7 1,589.4
3.0 842.3
149.9 2,820.6
25.0 5,815.0
At 31 March 2023
19.9
186.2 1,169.7
3.8 810.0
208.2 2,250.8
17.4 4,666.0
*
Disposals represent the refunds upon delivery of aircraft of advances previously paid.
The Group entered into various financing arrangements in order to finance aircraft including sale and
leaseback, Japanese Operating Lease with Call Option (JOLCO) and French Tax Lease (FTL) structures.
Certain of these arrangements include Special Purpose Vehicles (SPV) in the financing structure and in
accordance with IFRS 10, where the Group has control of these entities, these are consolidated in the Group
balance sheet. Aircraft assets and parts leased under JOLCO as part of sale and leaseback arrangements are
not classified as leases under IFRS 16 and treated as aircraft assets and parts (as if there were no sale at all)
(Note 2).
Other right-of-use (RoU) assets include leased buildings and simulator equipment. Please refer to Note 23
for details on lease liabilities.
Additions to aircraft maintenance assets (2024: €202.0 million; 2023: €106.4 million) were fixed assets
created primarily against provision for maintenance, as the Group’s aircraft or their main components no
longer met the relevant return conditions under lease contracts.
Additions to “advances paid to aircraft maintenance assets” reflect primarily the advance payments made by
the Group to the engine maintenance service provider under power by the hour agreements.
Additions to “advances paid for aircraft” represent PDPs made in the year, while disposals in the same
category represent PDP refunds received from the manufacturer where the respective aircraft or spare
engine was delivered to the Group. During F24, in the statement of cash flows the cash inflow was
€480.4 million “refund of advances paid for aircraft” and the cash outflow was €370.7 million “advances paid
for aircraft”. In F23, the Group entered into a PDP financing loan agreement denominated in US Dollars ($),
according to which PDPs in the amount of $334.4 million were pledged as collateral as of 31 March 2023
(see Note 23). As of 31 March 2024, $260.0 million is pledged as collateral.
The Group has reviewed the expected useful lives attributed to its leased aircraft fleet and notes that the
duration of its leases is significantly less than the current expected economic life of an aircraft. No climate
risk that may impact these assets during the lease terms has been identified. Given this, no change to the
expected useful life is considered necessary as a result of climate change.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
213
Aircraft in Ukraine
In February 2022, the airspace of Ukraine, Russia and Moldova was closed until further notice as a result of
the war in Ukraine. Four of Wizz Air’s aircraft were stranded in Ukrainian territory, one in Lviv and three in
Kyiv.
The aircraft in Lviv, and all six engines of the aircraft in Kyiv were successfully repatriated. After attending
airframe structural checks and engine inspections the aircraft and the engines returned to service with no
significant extra repair work required.
The airframes remaining in Kyiv are in good condition and with no damage, evidenced by photographic
images and local employee information. Maintenance work has been performed to put parking and storage
procedures in place. The total net book value of the assets is €20.7 million. Since these stranded assets are
not generating cash inflows, an impairment assessment was performed.
Management evaluated various scenarios, including successful repatriation to the fleet, prospect of recovery
under insurance arrangements, selling the assets in full or in parts to third parties, and continued grounding
with no recovery prospects. In case of successful repatriation it is assumed that the aircraft can return to the
fleet by summer season 2025 and can continue to generate cash inflows. The other scenarios considered are
range between full recovery and complete loss of the asset values. Based on the weighted probability
assessment, management considers the carrying value of the aircraft to be recoverable from the cash flows
generated through the various scenarios assessed.
14. Intangible assets
Software
€ million
Licences
€ million
CIP intangible
assets
€ million
Total
€ million
Cost
At 1 April 2022
59.8
31.4
4.8
96.0
Additions
—
5.7
27.0
32.7
Transfers
28.1
—
(28.1)
—
Write-off
(4.2)
—
(0.4)
(4.6)
Disposals
(5.6)
(0.2)
—
(5.8)
FX translation effect
—
(0.9)
(0.1)
(1.0)
At 31 March 2023
78.1
36.0
3.2
117.2
Additions
—
—
34.5
34.5
Transfers
27.5
—
(27.5)
—
Write-off
—
—
—
—
Disposals
(4.7)
—
—
(4.7)
FX translation effect
—
0.8
—
0.8
At 31 March 2024
100.9
36.8
10.2
147.8
Accumulated amortisation and impairment
At 1 April 2022
33.2
0.3
—
33.5
Amortisation charge for the year
13.5
—
—
13.5
Write-off
(0.8)
—
—
(0.8)
Disposals
(5.5)
(0.2)
—
(5.7)
At 31 March 2023
40.4
0.1
—
40.5
Amortisation charge for the year
19.2
—
—
19.2
Write-off
—
—
—
—
Disposals
(4.6)
—
—
(4.6)
At 31 March 2024
55.0
0.1
—
55.1
Net book amount
At 31 March 2024
45.9
36.7
10.2
92.7
At 31 March 2023
37.7
35.9
3.2
76.7
Licences are mainly related to landing slots purchased at London Luton Airport and at London Gatwick
Airport. As these landing slots have no expiry date and are expected to be used in perpetuity, they are
considered to have an indefinite life and accordingly are not amortised.
Impairment assessment
Landing slots are assets with indefinite useful life and are to be tested annually for impairment. An
impairment assessment was performed for a single cash-generating unit (CGU) that includes the whole route
network, virtually all property, plant, equipment, the landing slots and other intangible assets of the Group.
No indication of impairment of any of the single CGU’s assets was identified. A separate impairment
assessment was performed for the aircraft stranded in Ukraine as disclosed in Note 13.
Wizz Air Holdings Plc Annual report and accounts 2024
214
15. Tax assets and liabilities
Deferred tax assets and liabilities recognised
RoU assets*
Lease
liabilities*
Provisions for
other liabilities
and charges
Property,
plant and
equipment
Advances
paid for
aircraft
maintenance
assets
Tax loss
carry-
forwards
Hedge
Other
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
At 1 April 2022
(78.4)
81.8
(2.8)
(1.1)
(2.2)
1.1
—
(0.1)
(1.7)
Credited/(charged)
to:
Profit or loss
(73.3)
89.9
21.2
(8.7)
2.2
10.9
—
(3.0)
39.2
Other
comprehensive
income
—
—
—
—
—
—
9.9
—
9.9
At 31 March 2023
(151.7)
171.7
18.4
(9.8)
—
12.0
9.9
(3.1)
47.4
Deferred tax
assets
(141.0)
171.7
18.3
(8.8)
—
1.0
9.9
(0.5)
50.6
Deferred tax
liabilities
(10.7)
—
0.1
(1.0)
—
11.0
—
(2.6)
(3.2)
Credited/(charged)
to:
Profit or loss
24.5
1.2
(3.8)
(9.1)
—
15.4
—
46.8
75.0
Other
comprehensive
income/(expense)
—
—
—
—
—
—
(13.2)
—
(13.2)
At 31 March
2024
(127.2)
172.9
14.6
(18.9)
—
27.4
(3.3)
43.7 109.2
Deferred tax
assets
(127.2)
172.9
14.6
(18.9)
—
27.4
(3.3)
43.7 109.2
Deferred tax
liabilities
—
—
—
—
—
—
—
—
—
Assets: + / Liabilities: -
* Deferred tax assets and liabilities recognised have been further analysed to separately show effect on RoU assets and lease liabilities.
The total balance of the deferred taxes is €109.2 million asset (2023: €47.4 million asset) that consists of
only deferred tax assets.
The €45.7 million net deferred tax asset recognised in relation to IFRS 16 RoU assets and lease liabilities is
driven by the fact that certain subsidiaries of the Group in their income tax returns recognise leasing fees in
line with contracts, on a straight-line basis, which differs from the timing of recognition under the IFRS 16
rules. Under IFRS 16, the lease-related expenses are forward loaded, i.e. throughout the lease period the
Group IFRS financial statements cumulatively include more expense and a lower profit (or higher loss) than
the tax returns.
The amendments to IAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction
– see also Note 2 on New standards, amendments and interpretations) have no material impact on the net
deferred tax balances of the Group, as the exemption for deferred tax recognition in relation to leases was
not applied at initial recognition.
The €14.6 million deferred tax asset was recognised in relation to provisions (e.g. for carbon quota
submission obligation in the EU Emissions Trading System) that are not deductible for tax purposes. This
temporary difference will be reversed when the Company makes payments to settle the related liability and
receives the tax deductions.
The deferred tax assets of €27.4 million on tax loss carry-forwards are mainly attributable to the tax losses
generated by Wizz Air UK Ltd. in the current and prior years.
Substantially all of the deferred tax asset related to other temporary differences amounting to €43.7 million
is attributable to an intra-group sale of rights to purchase aircraft – see further explanation in the
commentary to the effective tax rate reconciliation table in Note 11.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
215
16. Subsidiaries and associates
The Group has the following subsidiaries as at 31 March 2024:
Country of
incorporation
Registered
address
Principal
activity
Class of
shares held
Percentage
held
Financial
year end
Subsidiary undertakings
Wizz Air Hungary Ltd.
Hungary
1
Airline
Ordinary
100
31 March
Cabin Crew Professionals Sp. Z.o.o.
Poland
2
Dormant
Ordinary
100
31 March
Wizz Air Bosnia
Bosnia and
Herzegovina
3
Dormant
Ordinary
100
31 December
Wizz Air Nederland Holding B.V.
The
Netherlands
4
Dormant
Ordinary
100
31 March
Dnieper Aviation LLC
Ukraine
5
Dormant
Ordinary
100
31 December
Wizz Air Ukraine Airlines LLC
Ukraine
5
Dormant
Ordinary
100
31 December
Wizz Aviation Professionals
Moldova
6
Crew
Ordinary
100
31 December
WA Pilot Academy Sp. Z.o.o.
Poland
7
Special
Ordinary
100
31 December
Wizz Air UK Ltd.
UK
8
Airline
Ordinary
100
31 March
Wizz Air Finance Company B.V.
The
4
Financing
Ordinary
100
31 March
Wizz Air Fleet Management Ltd.
Hungary
1
Aircraft
Ordinary
100
31 March
Wizz Air Abu Dhabi Ltd.
United Arab
9
Holding
Ordinary
49
31 March
Wizz Air Abu Dhabi LLC
United Arab
10
Airline
Ordinary
49
31 March
Wizz Air Innovation Ltd.
Hungary
1
Service
Ordinary
100
31 December
Wizz Air Malta Ltd.
Malta
11
Airline
Ordinary
100
31 March
WAM Ventures Holding Ltd
Malta
11
Holding
Ordinary
100
31 March
AOG Jet Limited
Malta
11
Dormant
Ordinary
100
31 March
The Group has the following associate as at 31 March 2024:
Country of
incorporation
Registered
address
Principal activity
Class of
shares held
Percentage
held
Financial
year end
Firefly Green Fuels Limited
UK
12
SAF R&D
Ordinary
25
31 December
Registered offices
1.
1095 Budapest, Lechner Ödön fasor 6, Hungary
2.
ul. Wolnosci 90, 42-625 Pyrzowice, Poland
3.
Tuzla International Airport, Passenger Terminal Building, first floor – room No.12, Gornje Dubrave b.b.,
Živinice
4.
Luna ArenA, Herikerbergweg 238, 1101 CM Amsterdam, the Netherlands
5.
Bulv. Tarasa Shevchenko 33-B, 3rd floor, 01032 Kyiv, Ukraine
6.
MD-2062, bd. Dacia, 49/8, municipiul CHIŞINĂU, R.MOLDOVA
7.
26 Jasna Street, 00-054 Warszawa, Poland
8.
Percival House, 134 Percival Way, London Luton Airport Roundabout, Luton LU2 9NU, United Kingdom
9.
PO Box 35665, 34th & 35th Floor, Al Maqam Tower, Regus Adgm Square, Al Maryah Island, Abu Dhabi,
United Arab Emirates
10. Business Park 01, Plot P6, Office number 208, Abu Dhabi International Airport, Abu Dhabi, United Arab
Emirates
11. Skyparks Business Centre, Level 2, Malta International Airport, Luqa LQA 4000, Malta
12. B21 Gloucestershire Science & Technology Park, Berkeley, Gloucestershire GL13 9FB, United Kingdom
AOG Jet Limited, a wholly owned subsidiary of the Group, was successfully established in July 2023. WA Pilot
Academy Sp. Z.o.o. is under liquidation at the reporting date.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
216
The Group entered into various financing arrangements in order to finance aircraft including sale and
leaseback, Japanese Operating Lease with Call Option (JOLCO) and French Tax Lease (FTL) structures.
Certain of these arrangements include Special Purpose Vehicles (SPV) in the financing structure and in
accordance with IFRS 10, where the Group has control of these entities, these are consolidated in the Group
statement of financial position.
Certain subsidiaries have a financial year end different from the Group’s financial year end due to the
requirements of local legislation.
17. Non-controlling interests
The following table summarises the information relating to Wizz Air Abu Dhabi Ltd. and Wizz Air Abu Dhabi
LLC that has material NCI, before any intra-group eliminations.
2024
2023
2024
2023
€ million
Abu Dhabi
LLC
€ million
Abu Dhabi
LLC
€ million
Abu Dhabi
Limited
€ million
Abu Dhabi
Limited
Summarised balance sheet
Non-current assets
309.8
283.7
46.3
45.9
Current assets
89.3
56.7
—
—
Non-current liabilities
311.9
309.0
46.3
45.9
Current liabilities
210.6
119.0
—
—
Net assets
(123.4)
(87.6)
—
—
Net assets attributable to NCI
(37.7)
(26.9)
—
—
Revenue
225.0
112.9
—
—
Net loss for the year
(35.6)
(40.2)
—
—
Other comprehensive (expense)/income for the year, net of
tax
(0.4)
1.7
—
—
Total comprehensive income
(36.0)
(38.5)
—
—
Net loss for the year allocated to NCI
(10.7)
(12.1)
—
—
Other comprehensive (expense)/income for the year, net of
tax allocated to NCI
(0.1)
0.6
—
—
Cash flows from operating activities
(4.0)
1.0
—
(0.8)
Cash flows from investment activities
—
(0.2)
—
—
Cash flows from financing activities (dividends to NCI: €nil)
(6.3)
—
—
0.8
Net (decrease)/increase in cash and cash equivalents
(10.3)
0.8
—
—
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
217
18. Summarised financial information for associates
Wizz Air has interest in one individually immaterial associate, Firefly Green Fuels Limited (“Firefly”). Firefly is
an SAF research and development company that operates in the UK.
In April and September 2023, fulfilling its investment commitments stipulated in the investment
agreement concluded between Wizz Air and other owners of Firefly in two tranches, Wizz Air invested a
total of GBP 5.0 million (€5.7 million) into Firefly resulting in 25 per cent ownership. Wizz Air has no
investment commitment going forward.
As Wizz Air has significant (20 per cent) representation on the board of directors of Firefly from April 2023,
Wizz Air concluded that it has significant influence over Firefly and therefore has applied the equity method
of accounting for Firefly from April 2023.
The following table shows the carrying amount and Wizz Air’s share of net result and other comprehensive
income of Firefly:
Firefly Green Fuels
Limited
€ million
2024
Carrying amount of Firefly Green Fuels Limited
5.7
Percentage ownership interest from April 2023
14.3%
Percentage ownership interest from November 2023
25.0 %
Share of net profit of associates
—
Share in other comprehensive income from investments
—
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
218
19. Inventories
31 March 2024
31 March 2023
€ million
€ million
Aircraft consumables
37.2
33.1
Emissions Trading Scheme (ETS) allowances (refer to Note 23)
296.4
262.5
Total inventories
333.6
295.6
During the year, remnant stock with a book value of €0.3 million was written off to maintenance expenses
(2023: €0.2 million). There was no write back in either year of any write down of inventory made previously.
20. Trade and other receivables
31 March 2024
31 March 2023
(restated)
€ million
€ million
Non-current
Receivables from lessors
25.4
9.1
Other receivables
11.8
12.3
Non-current trade and other receivables
37.2
21.4
Current
Trade receivables*
320.5
170.0
Receivables from lessors
3.1
15.5
Other receivables
31.9
27.2
Total current other receivables
35.0
42.7
Prepayments, deferred expenses and accrued income*
314.2
177.3
Current trade and other receivables
669.7
390.1
Total trade and other receivables
706.9
411.5
* Current trade receivables at 31 March 2023 now total €170.0 million (previously €233.8 million) and prepayments, deferred
expenses and accrued income at 31 March 2023 now total €177.3 million (previously €113.5 million) following the reclassification of
prepayment balances made to vendors. The change had no impact on the consolidated statement of financial position.
Receivables from lessors (both current and non-current) represent the deposits provided by the Group to
lessors as security in relation to the lease contracts and in relation to the funding of future maintenance
events.
Trade receivables included €192.4 million receivables from contracts with customers (31 March 2023:
€127.0 million).
Total trade and other receivables as at 31 March 2024 included financial instruments in the amount of
€571.1 million (31 March 2023: €270.4 million).
Impairment of trade and other receivables
31 March 2024
31 March 2023
€ million
€ million
Impaired receivables
– trade receivables
(2.8)
(3.5)
Allowances on impaired receivables
– other receivables
(0.5)
(0.5)
The Group recorded €2.1 million of receivables from Warsaw Modlin Airport during 2013 as compensation for
damages which was immediately impaired in full. However, the Group is legally claiming the full amount in
court. The compensation claimed by the Group, plus interest, was awarded by the District Court of Warsaw
in June 2018. However, the airport appealed against the decision, which is currently pending. There was no
development regarding this receivable in this financial year.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
219
21. Derivative financial instruments
31 March 2024
31 March 2023
€ million
€ million
Assets
Non-current derivatives
Cash flow hedges
3.9
0.2
Current derivatives
Cash flow hedges
33.0
1.0
Total derivative financial assets
36.9
1.2
Liabilities
Non-current derivatives
Cash flow hedges
—
(4.2)
Current derivatives
Cash flow hedges
(0.7)
(104.2)
Total derivative financial liabilities
(0.7)
(108.4)
Derivative financial instruments represent cash flow hedges (see Note 3). The full value of a hedging
derivative is classified as a current asset or liability if the remaining maturity of the hedged item is less than
a year.
The changes in the net position of assets and liabilities in respect of open cash flow hedges are detailed in
the consolidated statement of changes in equity.
The mark-to-market gains (derivative financial assets) were generated on gains on call options bought (as part
of zero-cost collar instruments) that were in the money at year end.
The mark-to-market losses (derivative financial liabilities) were generated on losses on put options sold (as part
of zero-cost collar instruments) that were out of the money at year end.
22. Restricted cash
31 March 2024
31 March 2023
€ million
€ million
Non-current financial assets
54.0
56.7
Current financial assets
55.4
63.7
Total restricted cash
109.4
120.4
Restricted cash is not accessible by the Group. It comprises cash in bank against which there are letters of
credit issued or other restrictions in place governing the use of that cash, resulting from agreements with
aircraft lessors or other business partners. Restricted cash is excluded from cash and cash equivalents in the
cash flow statement.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
220
23. Borrowings
31 March 2024
31 March 2023
€ million
€ million
Lease liability under IFRS 16
563.2
444.2
Unsecured debt
12.0
506.7
Secured debt
409.4
250.0
Liability related to JOLCO and FTL contracts
99.7
74.1
Total current borrowings
1,084.3
1,275.0
Lease liability under IFRS 16
3,048.8
2,350.9
Unsecured debt
499.6
498.8
Secured debt
53.8
—
Loans from non-controlling interests
13.9
13.8
Liability related to JOLCO and FTL contracts
1,543.6
1,137.0
Total non-current borrowings
5,159.7
4,000.5
Total borrowings
6,244.0
5,275.5
Unsecured debt
On 19 January 2021, Wizz Air Finance Company B.V., a 100 per cent owned subsidiary of Wizz Air Holdings
Plc, issued a €500.0 million 1.35 per cent Eurobond, fully and irrevocably guaranteed by the Company,
under the €3,000.0 million EMTN programme. The bond was repaid upon maturity in January 2024. Further
to that, on 19 January 2022, Wizz Air Finance Company B.V., a 100 per cent owned subsidiary of Wizz Air
Holdings Plc, issued a €500.0 million 1.00 per cent Eurobond, fully and irrevocably guaranteed by the
Company, under the €3,000.0 million EMTN programme with a maturity in January 2026. These Eurobonds
do not contain any financial covenants. The EMTN programme was renewed in January 2024.
Bank overdrafts which are repayable on demand and are an integral part of cash management activities are
included within unsecured debt in the amount of €12.0 million (31 March 2023: €6.0 million).
Secured debt
In February 2023, the Group entered into a PDP financing loan agreement, according to which a part of the
PDPs made have been financed and at the same time pledged as collateral, through the novation of the PDPs
and the associated aircraft purchase rights to an orphan SPV. In October 2023, the loan facility was extended
by an additional US$270.0 million, keeping the total drawdown limit at US$280.6 million. At 31 March 2024,
$222.9 million (31 March 2023: $274.3 million) was borrowed, and PDPs in the amount of $260.0 million
(31 March 2023: $334.4 million) are pledged as collateral. The loan is subject to a variable interest rate based
on Secured Overnight Financing Rate. The Group has an obligation to repay the financed amount, its interest
and other costs related to the transaction by July 2025. When all obligations are settled, the aircraft purchase
rights and the PDPs are automatically re-novated to Wizz Air. In case of default, the Group bears the potential
risk of losing the purchase rights and the related PDP amounts. The PDP refinancing credit facility is available
for further financing for a maximum of two years and does not contain any financial covenants.
In December 2023, the Group entered into an ETS sale and repurchase agreement according to which EU
allowances were sold for €253.6 million with a commitment to repurchase it in September 2024. The
consideration received is recognised as a financial liability within secured debt. The difference between the
sale price and the repurchase price is recognised as interest expense over the period between the sale date
and the repurchase date. The facility does not contain any financial covenants.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
221
The maturity profile of borrowings as at 31 March 2024 is as follows:
IFRS 16
aircraft and
engine lease
liability
IFRS 16
other lease
liability
JOLCO and
FTL lease
liability
Unsecured
debt
Secured
debt
Loans from
non-
controlling
interests
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Payments due:
Within one month
35.8
0.2
9.6
12.0
—
—
57.6
Between one and
three months
70.2
0.4
18.5
—
35.3
—
124.4
Between three
months and one
year
454.7
1.9
71.5
—
374.1
—
902.2
Between one and
two years
535.3
2.8
107.0
499.6
53.8
—
1,198.5
Between two and
three years
488.0
2.9
110.0
—
—
—
600.9
Between three and
four years
409.0
3.1
113.0
—
—
—
525.1
Between four and
five years
365.0
3.1
116.4
—
—
—
484.5
More than five years
1,226.8
12.7
1,097.4
—
—
13.9
2,350.8
Total borrowings
3,584.8
27.1
1,643.4
511.6
463.2
13.9
6,244.0
The maturity profile of borrowings as at 31 March 2023 is as follows:
IFRS 16
aircraft and
engine lease
liability
IFRS 16
other lease
liability
JOLCO and
FTL lease
liability
Unsecured
debt
Secured
debt
Loans from
non-
controlling
interests
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Payments due:
Within one month
44.9
0.2
—
6.0
5.2
—
56.3
Between one and three
months
68.8
0.4
18.6
—
65.0
—
152.8
Between three months and
one year
328.0
1.9
55.6
500.7
179.8
—
1,066.0
Between one and two years
415.0
2.6
77.8
—
—
—
495.4
Between two and three years
385.0
2.3
79.5
498.8
—
—
965.6
Between three and four years
303.1
1.9
81.4
—
—
—
386.4
Between four and five years
222.6
1.8
83.2
—
—
—
307.6
More than five years
1,009.1
7.4
815.1
—
—
13.8
1,845.4
Total borrowings
2,776.5
18.5
1,211.2
1,005.5
250.0
13.8
5,275.5
The total cash outflow for leases, including JOLCO and FTL, during F24 was €720.5 million (2023:
€604.9 million). See Note 7 for details on expenses relating to short-term and variable lease payments, and
Note 13 for details on right-of-use assets.
24. Convertible debt
31 March 2024
31 March 2023
€ million
€ million
Non-current financial liabilities
25.4
25.7
Current financial liabilities
0.3
0.3
Total convertible debt
25.7
26.0
Convertible debt is Convertible Notes held by Indigo Hungary LP and Indigo Maple Hill LP (“Indigo”).
Principal and any accrued interest on the Convertible Notes are convertible into Ordinary Shares in Wizz Air
Holdings Plc at conversion factors in the range of €1.0–€1.5 for one share as an option to Indigo. Such
Ordinary Shares issued as a result of conversion in certain cases might be subject to restrictions on voting
and dividend rights. Until the Notes are converted, interest on the Notes is payable in cash with a coupon
rate of interest of 8 per cent per annum, twice a year in February and in August.
Convertible Notes are guaranteed by Wizz Air Hungary Ltd. – see Note 31.
For more information about the Group’s exposure to interest rate risk, see Note 3.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
222
25. Trade and other payables
31 March 2024
31 March 2023
€ million
€ million
Non-current liabilities
Accrued expenses
97.2
59.1
Other payables
—
—
Non-current trade and other payables
97.2
59.1
Current liabilities
Trade payables
215.9
173.7
Payables to passengers
68.4
95.2
Other payables
28.2
34.0
Accrued expenses
612.8
583.4
Current trade and other payables
925.3
886.3
Total trade and other payables
1,022.5
945.4
Payables to passengers include the refunds made in credits which can be used by customers for re-booking
tickets for later dates or can be requested by customers to be refunded by the Group in cash and other
liabilities towards customers. Credits not eligible for cash refund are classified as deferred income.
Accrued expenses mainly include accruals for operating expenses such as airport and ground handling, fuel,
ETS allowances, en-route and navigation, crew and maintenance-related expenses and liabilities for EU
regulation (EC) No. 261/2004 (EU261) compensation to customers, and refunds made to passengers beyond
the original paid value.
Total trade and other payables as at 31 March 2024 included financial instruments in the amount of
€752.3 million (31 March 2023: €705.5 million).
26. Deferred income
31 March 2024
31 March 2023
€ million
€ million
Non-current liabilities
Deferred income
147.2
103.3
Current liabilities
Unearned revenue
790.3
761.1
Other
7.1
9.2
797.4
770.3
Total deferred income
944.6
873.6
Non-current deferred income represents the value of benefit for the Group coming from credits and free
aircraft components received from manufacturers and component suppliers, which will be recognised as a
credit (a decrease to aircraft-related expenses) over the useful life of the respective asset.
Current deferred income represents the value of tickets paid by passengers for which the flight service is yet
to be performed (“unearned revenue”), the value of membership fees paid but not yet recognised, the
current part of the value of supplier credits received and credits provided to passengers with no cash
conversion option in the amount of €17.1 million (31 March 2023: €19.4 million). Unearned revenue
increased due to higher demand and ticket booking made further in advance.
The contract liabilities (unearned revenue) of €790.3 million existing at 31 March 2024 (31 March 2023:
€761.1 million) will become revenue during F25 (subject to further cancellations that might happen after the
year end).
27. Employee benefits
Share-based payments
The share-based payment charge in the financial statements for the year relates to employee share options
issued during 2019–2023 under the Long-term Incentive Plan (LTIP), Senior Leadership Growth Plan (SLGP)
and Value Creation Plan (VCP) of the Group. The expenses (other than social security) recognised in relation
to these instruments were €8.2 million (2023: €7.2 million).
The options are classified as equity-settled share-based payments. The Company issues new shares for any
options exercised, irrespective of the method of exercise. The fair value of the awards and options is
recognised as staff cost over the estimated vesting period with a corresponding charge to equity.
The Group announced on 6 August 2021 that it signed a new long-term service agreement with József
Váradi, the Group’s founding Chief Executive Officer. The contract term is for five years and the terms of his
service agreement are materially the same as his previous agreement with the exception of a new long-term
incentive arrangement, the Value Creation Plan (VCP), which targets a 20 per cent CAGR in the Group’s
share price over the next five years.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
223
The fair value of the awards has been calculated using a Monte Carlo simulation. This model simulates the
share price of Wizz Air over the performance period, based on a number of assumptions, to calculate the
proportion of an award which might vest and the value at the vesting date. By averaging the results of
thousands of simulations, a robust valuation can be calculated with adjustment to the volatility assumption
used for the impact of COVID-19 on the Wizz Air share price. To account for the exclusion of the seven-
month COVID-19 period, date ranges have been expanded to ensure a full period of three or five years is
covered. Had there not been a global pandemic, the assumptions would likely be three or five years to date
of grant; however, COVID-19 has caused significant volatility in particular within the industry in which Wizz
Air operates.
The reason behind the assumptions on volatility is to make an estimate about the future; as a base principle,
we apply the same volatility assumptions for the awards made on the same day. IFRS 2 states that the
historical levels should be observed for the same length of time as we are looking forward to model the
awards being valued, and this is the approach that has been taken in these valuations.
Risk free rates used to determine initial grant date fair values:
▶
F23 LTIP – yield on a zero-coupon UK government bond over three years: 1.83 per cent; and
▶
SLGP – yield on a zero-coupon UK government bond over five years: 1.91 per cent.
In accordance with IFRS 2, the resulting cost is charged to staff costs in the statement of comprehensive
income and a corresponding increase in equity over the vesting period of the awards. The total amount is
determined by reference to the fair value of the awards granted including any market performance
conditions, which are those that are based on the Wizz Air share price, and the individual remaining an
employee over a specified time period. The Group plans to settle the awards on vesting in equity.
Non-market-based performance conditions in general are not incorporated into the fair value per share at
the date of grant. Instead, the value recognised is adjusted at each reporting date to take into account
current expectations of the number of shares due to vest. At the end of the performance period, this value is
trued up to reflect the actual vesting level. The Group assumes management rotation of 19 per cent for LTIP
and 23 per cent for SLGP to calculate the number of shares to be forfeited during the vesting period.
Modifications of share-based payment arrangements
In August 2023, the Group modified both VCP and SLGP that were granted in August 2021.
Key modifications to VCP are as follows:
▶
Both the performance period and vesting period was extended by two years (from five to seven years)
▶
Market performance conditions were modified to be expressed in absolute thresholds of share prices
instead of share-price growth rates
▶
The ESG performance condition has also been de-linked from the share price performance such that
there is no longer a requirement for the threshold share price target to be met in order for the ESG
element to vest
Key modifications to SLGP are as follows:
▶
Both the performance period and vesting period was extended by two years (from five to seven years)
▶
Market performance conditions were modified to be expressed in absolute thresholds of share prices
instead of share-price growth rates
▶
The share price threshold under which no awards will vest was lowered from GBP 96.46 to GBP 77.24
The fair value of the options at the date of the modification was determined to be GBP 6.27 and GBP 4.44 for
VCP and SLGP, respectively. The incremental fair value of VCP and SLGP of GBP 4.78 and GBP 2.69,
respectively will be recognised as an expense over the period from the modification date to the end of the
extended vesting period. The expense for the original option grant will continue to be recognised as if the
terms had not been modified. The fair value of the modified options was determined using the same models
and principles.
The modification for the VCP and SLGP were approved by Shareholders on the AGM dated on 2 August
2023.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
224
Value Creation Plan (VCP)
Share options issued during the financial year
Terms and conditions:
All options
Performance options
Number of options
0
0
Exercise price
nil
nil
Vesting period
7 years
Termination
10 years
Senior Leadership Growth Plan (SLGP)
Share options issued during the financial year
Terms and conditions:
All options
Performance options
Number of options
76,030
76,030
Exercise price
nil
nil
Vesting period
5 years
Termination
8 years
Long-term Incentive Plan (LTIP)
Share options issued during the financial year
Terms and conditions:
All
options
Restricted
options
Performance
options
Number of options
531,436
268,218
263,218
Exercise price
nil
nil
nil
Vesting period
3 years
3 years
Termination
10 years
10 years
Share price at grant date: £27.25.
Share options in issue
The number of VCP, SLGP and LTIP share options in issue at year end is as follows:
All
options
Restricted
options
Performance
options
Outstanding at the beginning of the year
1,976,235.0
118,791.0
1,857,444.0
Granted during the year
607,466.0
268,218.0
339,248.0
Exercised during the year
(77,701.0)
(13,161.0)
(64,540.0)
Forfeited during the year
(150,823.0)
(7,837.0)
(142,986.0)
Outstanding at the end of the year
2,355,177.0
366,011.0
1,989,166.0
Exercisable at the end of the year
105,376.0
25,844.0
79,532.0
The weighted average remaining contractual life for the LTIP share award at 31 March 2024 was seven years
and four months (eight years and one month at 31 March 2023). The weighted average share price of the
exercised options during F24 was 24.13 GBP (F23 was 22.48 GBP).
Employee Share Option Plan (ESOP)
Share options issued during the financial years
There were no share options issued either during the year or in the prior year. The last options under the
ESOP were issued in January 2015 and therefore by January 2018 all open options vested.
There are no individual performance conditions set for the employees to exercise their vested options other
than that the employees must be in employment with one of the Group entities until and on the date of
exercise of the options.
Share options in issue
At the end of the 2023 and 2024 financial years, there were no outstanding options anymore.
Taxation
Under the terms of both programmes, all taxes payable on share options are the liability of the recipients of
these benefits. However, in certain cases the Company or its subsidiaries have a legal obligation to pay the
employer social security on the income realised by the recipients. To the extent the additional social security
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
225
obligations can be estimated, the Group makes a provision for these already during the vesting period of
the instruments.
28. Capital and reserves
Share capital
Number of shares
31 March 2024
31 March 2023
In issue at the beginning of the year
103,282,854 103,072,739
Issued during the year for cash
77,851
210,115
In issue at the end of the year – fully paid
103,360,705 103,282,854
Ordinary Shares
103,360,705 103,282,854
2024
2024
2023
2023
Value of shares
£‘000
€‘000
£‘000
€‘000
Authorised
Equity: 170,000,000 (2023: 170,000,000) Ordinary Shares
of £0.0001 each and 80,000,000 (2023: 80,000,000) non-
voting, non-participating Convertible Shares of £0.0001
each
25
34
25
34
Allotted, called up and fully paid
Equity: 103,360,705 (2023: 103,282,854) shares of
£0.0001 each
10
13
10
13
Ordinary Shares
10
13
10
13
During both F24 and F23, the increase in the total number of issued shares was due to the exercise of
certain employee share options.
Ordinary Shares
The holders of Ordinary Shares are entitled to receive dividends as declared and are entitled to one vote per
share at meetings of the Company.
Convertible Shares
In March 2015, linked to the listing of the Company’s shares on the London Stock Exchange, certain
convertible loans and notes (including accrued interest) were converted into non-voting, non-participating
Convertible Shares of the Company. There were no Convertible Shares in issue at 31 March 2024 (2023: nil
shares). The Company informed Indigo Hungary LP and Indigo Maple Hill LP (together “Indigo”) on 1 June 2021
that the Company has elected to convert Indigo’s entire holding of 17,377,203 Convertible Shares of
£0.0001 each in the capital of the Company (“Convertible Shares”) into Ordinary Shares of £0.0001 each in
the capital of the Company (“Ordinary Shares”), on a one for one basis, in accordance with the Company’s
articles of association.
Share premium
Share premium has two main components. €207.2 million was recognised as a result of the Group
reorganisation in October 2009. It represents the estimated fair value of the Group at the date of the
transaction. The remaining €174.0 million (as at 31 March 2024) was recognised as a result of new share
issues made since October 2009. These new share issues comprised the primary offering on the initial public
offering of the Company’s shares on the London Stock Exchange in March 2015, the conversion of some of
the convertible debt instruments into shares and the conversion of certain employee share options into
shares. During F24, €nil (2023: €nil) was recorded in the share premium, all related to the conversion of
employee share options.
Reorganisation reserve
A reorganisation reserve of €193.0 million was recognised as a result of the Group reorganisation in
October 2009. It is equal to the difference between the fair value of the Group at the date of reorganisation
of €209.0 million and the share capital of the Group at the same date (€16.0 million).
Equity part of convertible debt
The equity part of convertible debt comprises the equity component of compound instruments issued by the
Company. The amount of the convertible debt classified as equity of €8.3 million (2023: €8.3 million) is net
of attributable transaction costs of €8.3 million.
Share-based payment charge
The share-based payment balance of €35.6 million credit (2023: €27.4 million credit) corresponds to the
recognised cumulative charges of share options and share awards provided to the employees and Directors
under long-term incentive schemes. This balance is recognised directly in retained earnings.
Cash flow hedging reserve
The hedging reserve comprises the effective portion of the cumulative unrealised net change in the fair value
of cash flow hedging instruments related to hedged transactions that have not yet occurred.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
226
The gross amount of unrealised change in the fair value of cash flow hedging instruments was €77.8 million
gain (2023: €112.6 million loss), while the deferred tax effect was €13.2 million loss (2023: €9.9 million
gain). €22.4 million loss (2023: €33.2 million loss) was recycled to profit or loss related to cash flow hedging
instruments. For more information please see Note 3.
Cost of hedging reserve
The hedging reserve comprises the time value of the cumulative unrealised net change in the fair value of
cash flow hedging instruments related to hedged transactions that have not yet occurred.
Cost of hedging was €43.0 million gain (2023: €30.0 million loss). No cost of hedging was recycled to profit
or loss (2023: €6.0 million loss). For more information please see Note 3.
Cumulative translation adjustments
Cumulative translation adjustments included currency translation differences amounting to €0.6 million loss
(2023: €4.7 million gain), from which €0.1 million related to non-controlling interest (2023: €0.6 million).
Retained earnings
There were no dividends paid or declared in F24 or F23. Share-based payments are credited to retained
earnings.
29. Provisions for other liabilities and charges
Aircraft
maintenance
Other
Total
€ million
€ million
€ million
At 1 April 2022
88.8
18.3
107.1
Non-current provisions
43.0
0.9
43.9
Current provisions
45.8
17.4
63.2
Transferred to trade and other payables and deferred income
—
(13.0)
(13.0)
Capitalised within property, plant and equipment
86.6
—
86.6
Charged to profit or loss
7.0
4.6
11.6
Used during the year
(34.5)
(2.5)
(37.0)
FX translation effect
0.8
—
0.8
At 31 March 2023
148.7
7.4
156.1
Non-current provisions
76.2
0.1
76.3
Current provisions
72.5
7.2
79.8
Capitalised within property, plant and equipment
195.8
—
195.8
Charged to profit or loss
—
5.3
5.3
Used during the year
(81.8)
(2.0)
(83.8)
FX translation effect
0.9
—
0.9
At 31 March 2024
263.6
10.7
274.3
Non-current provisions
144.2
0.1
144.3
Current provisions
119.4
10.6
130.0
Non-current provisions mainly relate to future aircraft maintenance obligations of the Group on leased
aircraft and spare engines, falling due typically between one and five years from the balance sheet date.
Current aircraft maintenance provisions relate to heavy maintenance obligations expected to be fulfilled in
the coming financial year. The amount of provision reflects management’s estimates of the cost of heavy
maintenance work that will be required in the future to discharge obligations under the Group’s lease
agreements (see Note 4). Maintenance provisions in relation to engines and APUs covered by power by the
hour agreements are netted off with the prepayments made to the maintenance service provider under
those agreements in respect of the same group of engines and APUs.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
227
30. Financial instruments
Fair values
The fair values of the financial instruments of the Group together with their carrying amounts shown in the
statement of financial position are as follows:
Carrying
amount
Fair value
Carrying amount
Fair value
31 March 2024
31 March 2024
31 March 2023
31 March 2023
€ million
€ million
€ million
€ million
Financial asset at fair value through other
comprehensive income
1.6
1.6
—
—
Trade and other receivables due after more
than one year
37.1
37.1
21.3
21.3
Restricted cash
109.4
109.4
120.4
120.4
Derivative financial assets
36.9
36.9
1.2
1.2
Trade and other receivables due within one
year
534.0
534.0
249.0
249.0
Cash and cash equivalents
728.4
728.4
1,408.6
1,408.6
Short-term cash deposits
751.1
751.1
—
—
Trade and other payables due after more than
one year
(55.0)
(55.0)
(59.1)
(59.1)
Trade and other payables due within one year
(697.4)
(697.4)
(646.4)
(646.4)
Derivative financial liabilities
(0.7)
(0.7)
(108.4)
(108.4)
Convertible debt
(25.7)
(25.7)
(26.0)
(26.0)
Borrowings
(5,269.2)
(5,071.0)
(4,020.0)
(3,408.8)
Secured debt
(463.2)
(458.4)
(250.0)
(250.0)
Unsecured debt
(511.6)
(482.3)
(1,005.5)
(927.1)
Deferred income
(4.8)
(4.8)
(4.8)
(4.8)
Net balance of financial instruments
(liability)
(4,829.1)
(4,596.7)
(4,319.6)
(3,630.0)
The fair value of the Eurobonds is estimated using quoted prices (Level 1), derivatives (Note 3) and lease
liabilities are valued using Level 2 methodology and the fair value of all other financial assets and financial
liabilities is estimated using Level 3 in the fair value hierarchy.
Financial assets measured at fair value through profit or loss:
Carrying amount
Carrying amount
31 March 2024
31 March 2023
€ million
€ million
Derivative financial assets
36.9
1.2
Total
36.9
1.2
Financial liabilities measured at fair value through profit or loss:
Carrying amount
Carrying amount
31 March 2024
31 March 2023
€ million
€ million
Derivative financial liabilities
0.7
108.4
Total
0.7
108.4
Where available, the fair values of financial instruments have been determined by reference to observable
market prices, where the instruments are traded. The fair value of financial instruments that are not traded
in an active market (such as long-term deposits among the non-current other receivables) is determined by
estimated discounted cash flows.
The carrying value less impairment provision of trade receivables and payables is assumed to approximate
their fair values due to the short-term nature of trade receivables and payables. Long-term financial assets
and liabilities which are classified as fair value through profit and loss are recognised on fair value.
Trade and other receivables due after more than one year are almost exclusively maintenance reserves, with
an average term of approximately four years. The fair value of these assets is determined by discounting at
a rate of interest of four years’ USD swap rate prevailing on the last day of the financial year. The carrying
value of the Level 3 instruments within trade and other receivables is considered to be the fair value as
discounting has an immaterial effect.
The fair value of derivative financial instruments is estimated by a third-party front office system as per their
industry practice. The financial institutions are using generally accepted valuation techniques, principally the
Black-Scholes model and discounted cash flow models.
The fair value of lease liabilities is determined by discounting the future contractual cash flows with the
discount rate (incremental borrowing rate) prevailing at the year end.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
228
Gains and losses
The following net realised FX gains or losses were recognised in the statement of comprehensive income in
relation to derecognition of financial assets measured at amortised cost:
▶
during the year €4.7 million gain (2023: €4.1 million gain) on cash and cash equivalents;
▶
during the year €nil loss/gain (2023: €nil loss/gain) on short-term cash deposits; and
▶
no material realised FX on restricted cash and trade and other receivables.
See Note 10 for details of interest income recognised in F24 and F23.
Effective interest rates analysis
Interest-bearing financial liabilities
The following table indicates the effective interest rate of the interest-bearing liabilities of the Group on
the statement of financial position date and the periods in which they mature. Lease liability and secured
debt are mainly denominated in USD, while unsecured debt and convertible debt are denominated in EUR
(see Note 3).
31 March 2024
31 March 2023
Effective
interest
Total
Within
one year
One to
two
years
Two to
five years
Above five
years
Effective
interest
Total
Within
one year
One to
two
years
Two to
five years
Above
five years
rate
€ million
€ million
€ million
€ million
€ million
rate
€ million
€ million
€ million
€ million
€ million
Convertible
Notes
7.42%
25.7
0.3
25.4
—
— 7.42%
26.0
0.3 25.7
—
—
Unsecured
debt
1.16% 511.6
12.0 499.6
—
— 1.35% 1,005.5 506.7
— 498.8
—
Secured debt
8.45% 463.2 409.4
53.8
—
— 9.71%
250.0 250.0
—
—
—
IFRS 16
aircraft
engine lease
liability
4.19% 3,584.8 560.7 535.3 1,262.0 1,226.8 3.90% 2,776.5 441.7 415.0 910.6 1,009.2
IFRS 16 other
lease liability
3.25%
27.1
2.5
2.8
9.1
12.7 3.06%
18.5
2.5
2.6
6.0
7.4
JOLCO and
FTL lease
liability
2.71% 1,643.4
99.6 107.0 339.4 1,097.4 2.22% 1,211.2
74.1 77.8 244.1 815.2
Total
6,255.8 1,084.5 1,223.9 1,610.5 2,336.9
5,287.7 1,275.3 521.1 1,659.5 1,831.8
Interest earning financial assets
The Group invested excess cash primarily in EUR and USD denominated short-term time deposits at market
rates at major banking groups.
Changes in liabilities arising from financing activities
The following table includes changes in net borrowings (including convertible debt) reconciled with their
effects on the consolidated statement of cash flows.
31 March 2024
31 March 2023
€ million
€ million
Net borrowings at the beginning of the year
5,301.4
3,964.8
Proceeds from new loans
67.9
63.0
Repayment of loans
(580.4)
(492.5)
Proceeds from unsecured debt*
6.0
6.0
Repayment of unsecured debt
(500.0)
—
Proceeds from secured debt
415.0
245.5
Repayment of secured debt
(248.4)
—
Paid interest
(170.2)
(127.2)
Other cash items
—
(0.7)
Change in net borrowings from cash flows
(1,010.1)
(305.9)
New non-cash borrowings
1,767.7
1,487.3
Interest expense
196.4
135.0
Exchange differences
17.1
20.1
Other non-cash items
(2.8)
0.1
Net borrowings at the end of the year
6,269.7
5,301.4
* At 31 March 2024, €12.0 million (31 March 2023: €6.0 million) is related to overdrafts. In the consolidated statement of cash flows,
this amount was included within cash and cash equivalents, decreasing its total balance, instead of presenting it separately as proceeds
from unsecured debt.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
229
31. Financial guarantees
The Company has provided parent guarantees to certain lessors of its aircraft fleet, to guarantee the
performance of its airline subsidiaries under the respective lease contracts.
The Company has provided a parent guarantee to Airbus S.A.S. connected to its PDP financing arrangement
to guarantee the performance of Wizz Air Hungary Ltd.
The Company in April 2018 provided a parent guarantee to the UK Civil Aviation Authority, to guarantee
the performance of Wizz Air UK Ltd. in the context of the UK operating licence application process of Wizz Air
UK Ltd.
The note purchase agreement (for Convertible Notes) contains a guarantee and indemnity, pursuant to
which Wizz Air Hungary Ltd., inter alia, guarantees to Indigo Hungary LP and Indigo Maple Hill LP the
punctual performance by the Company of its obligations under the note purchase agreement.
The issue of a €500.0 million 1.00 per cent Eurobond in January 2022 by Wizz Air Finance Company B.V. is
fully and irrevocably guaranteed by the Company.
The Company has provided a guarantee to Runway Five Lender LLC and Airbus S.A.S., to guarantee the
performance of Wizz Air Hungary Ltd. and the SPV involved, under the PDP financing loan related
agreements.
32. Capital commitments
At 31 March 2024, the Group had the following contracted capital commitments:
▶
A commitment to purchase 326 Airbus aircraft of the A320 family in the period 2024–2029. The total
commitment is valued at US$48.7 billion (€45.2 billion) based on list prices last published in 2018 and
escalated annually until the reporting date based on contract terms (2023: US$42.2 billion
(€38.8 billion) to purchase 290 Airbus aircraft of the A320 family in the period 2023–2028 and
US$11.0 billion (€10.1 billion) in relation to 75 A321neo aircraft as approved by Shareholders in August
2023). At 17 May, out of the 326 aircraft 27 are subject to delivery in F25 and for 15 financing is already
contracted. The Group uses various financing arrangements in order to finance aircraft including Sale
and Leaseback, Japanese Operating Lease with Call Option (JOLCO) and French Tax Lease (FTL)
structures. In addition, Original Equipment Manufacturer (OEM) backstop financing may also be
available, supplemented by a partial self-contribution.
▶
Wizz Air Group has committed to purchasing eight IAE “neo” (GTF) spare engines between 2024 and
2026, valued at US$174.1 million (€161.6 million) based on 2024 list prices. This follows a previous
commitment in 2023 valued at US$572.5 million (€525.7 million), based on 2023 list prices, to acquire
27 IAE “neo” (GTF) spare engines over the period 2023–2026. At 17 May, all eight engines are
anticipated to be delivered by F25 and financing is already contracted for all of them.
▶
A commitment to purchase three full-flight simulators. The total commitment is valued at €13.6 million
based on contract terms. Payment is due in instalments with €6.4 million paid as at 31 March 2024.
33. Contingent liabilities
Legal disputes
European Commission state aid investigations
Between 2011 and 2015, the European Commission has initiated state aid investigations with respect to
certain arrangements made between Wizz Air and the following airports, respectively: Timişoara, Cluj-
Napoca, Târgu Mureş, Beauvais and Girona. In the context of these investigations, Wizz Air has submitted its
legal observations and supporting economic analyses of the relevant arrangements to the European
Commission, which are currently under review. The European Commission has given notice that the state aid
investigations involving Wizz Air will be assessed on the basis of the new “EU guidelines on state aid to
airports and airlines” which were adopted by the European Commission on 20 February 2014. Where
relevant, Wizz Air has made further submissions to the European Commission in response to this
notification. In relation to the Timişoara arrangements, the European Commission confirmed on 24 February
2020 that the arrangements did not constitute state aid. We are awaiting decisions in relation to the other
airport arrangements mentioned herein above. Ultimately, an adverse decision by the European Commission
could result in a repayment order for the recovery from Wizz Air of any amount determined by the European
Commission to constitute illegal state aid. None of these ongoing investigations are expected to lead to
exposure that is material to the Group.
No provision has been made by the Group in relation to these issues because there is currently no reason to
believe that the Group will incur charges from these cases.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
230
34. Related parties
Identity of related parties
Related parties are:
▶
Indigo Hungary LP and Indigo Maple Hill LP (collectively referred to as “Indigo” here), because of its
shareholding and its appointment of two Directors to the Board of Directors (all in service at
31 March 2024); and
▶
key management personnel (Directors and Officers).
Indigo, Directors and Officers altogether held 25.7 per cent of the Ordinary Shares of the Company at
31 March 2024 (2023: 25.6 per cent).
Transactions with related parties
Transactions with Indigo
At 31 March 2024, Indigo held 24,684,895 Ordinary Shares, equal to 23.9 per cent of the Company’s issued
share capital (2023: 24,684,895 Ordinary Shares, 23.9 per cent).
Indigo has an interest in convertible debt instruments issued by the Company (see Note 24). The Company’s
liability to Indigo, including principal and accrued interest, was €25.7 million at 31 March 2024 (2023:
€26.0 million).
During the year ended 31 March 2024, the Company entered into transactions with Indigo as follows:
▶
the Company recognised interest expense on convertible debt instruments held by Indigo in the amount
of €1.8 million (2023: €1.7 million).
Transactions with key management personnel
Officers (members of executive management) and Directors of the Board are considered to be key
management personnel. The compensation of key management personnel, including Non-Executive
Directors, is as follows:
2024
2023
€ million
€ million
Salaries and other short-term employee benefits
10.1
9.1
Social security costs
1.1
1.2
Share-based payments
7.1
6.3
Total key management compensation expense
18.3
16.6
There were no termination benefits paid to any key management personnel in the year or the prior year.
There were no post-employment benefits or other long-term benefits provided to any key management
personnel in the year or the prior year.
There were no material transactions with related parties during the financial year except as indicated below.
The Group has contracted with companies that are related to the CEO. The total paid for such goods and
services in F24 was €3.4 million. The main service purchased was to provide machine learning capabilities
with regard to ticket and ancillary sales. The amount paid for this service in F24 was €3.3 million (2023:
€2.5 million), which in the judgment of the Board was not material. On 31 March 2024, the outstanding
amount payable to the related party was €0.4 million.
35. Subsequent events
Based on the assessment conducted, no material subsequent events have been identified that would
necessitate disclosure in the financial statements for the reporting period.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
231
36. Ultimate controlling party
In the opinion of the Directors, there is no individual controlling party in relation to the Company’s issued
Ordinary Shares.
On 29 December 2020, Wizz Air Holdings Plc announced its decision to treat as Restricted Shares certain
Ordinary Shares held by Non-Qualifying Nationals and to issue to such Shareholders Restricted Share
Notices (“the Disenfranchisement”). This is because from 1 January 2021, UK nationals are no longer to be
treated as Qualifying Nationals with regard to ongoing European airline ownership requirements,
notwithstanding the UK–EU Trade and Cooperation Agreement. Therefore, the Board has resolved to
exercise its power under the articles to serve Restricted Share Notices on Non-Qualifying National
Shareholders specifying that, from 1 January 2021, in respect of their Restricted Shares they cannot attend
or speak or vote at any general meetings of the Company. The rights to attend (whether in person or by
proxy), to speak and to demand and vote on a poll in respect of the Restricted Shares shall vest in the
Chairman of such meeting, who will be a Director who is a Qualifying National. Each such Director will give
an irrevocable undertaking not to vote any such Restricted Shares.
The Board has determined, pursuant to the articles, that the fairest and most appropriate method to
implement the Disenfranchisement is for the same proportion of each Non-Qualifying National’s (including
each UK national’s) shareholding to be designated as Restricted Shares.
▶
A “Qualifying National” includes: (i) EEA nationals; (ii) nationals of Switzerland; and (iii) in respect of
any undertaking, an undertaking which satisfies the conditions as to nationality of ownership and control
of undertakings granted an operating licence contained in Article 4(f) of Regulation (EC) No. 1008/2008
of the European Commission, as such conditions may be amended, varied, supplemented or replaced
from time to time, or as provided for in any agreement between the EU and any third country (whether
or not such undertaking is itself granted an operating licence).
▶
A “Non-Qualifying National” includes: any person who is not a Qualifying National in accordance with
the definition above.
To protect the EU airline operating licence of Wizz Air Hungary Ltd. and Wizz Air Malta Ltd. (subsidiaries of
the Company), the Board has resolved to continue to apply a disenfranchisement of Ordinary Shares held by
non-EEA Shareholders in the capital of the Company. This will continue to be done on the basis of a
“Permitted Maximum” of 45 per cent pursuant to the Company’s articles of association (“the Permitted
Maximum”). In preparation for the 2023 Annual General Meeting (AGM), on 2 August 2023 the Company
sent a Restricted Share Notice to Non-Qualifying registered Shareholders, informing them of the number of
Ordinary Shares that will be treated as Restricted Shares. We will provide further details simultaneously with
the notice of the 2024 Annual General Meeting.
ACCOUNTS AND OTHER INFORMATION
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
Wizz Air Holdings Plc Annual report and accounts 2024
232
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
In our opinion, Wizz Air Holdings Plc’s group financial statements:
▶
give a true and fair view of the state of the group’s affairs as at 31 March 2024 and of its profit and cash
flows for the year then ended;
▶
have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as
adopted in the European Union; and
▶
have been prepared in accordance with the requirements of the Companies (Jersey) Law 1991.
We have audited the financial statements, included within the Annual Report and Accounts F24 (the “Annual
Report”), which comprise: the Consolidated statement of financial position as at 31 March 2024; the
Consolidated statement of comprehensive income, the Consolidated statement of cash flows and the
Consolidated statement of changes in equity for the year then ended; and the notes to the financial
statements, comprising material accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit and Risk Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and
applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for
the audit of the financial statements section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, which includes the Financial Reporting Council’s (“FRC”) Ethical
Standard, as applicable to listed public interest entities in accordance with the requirements of the Crown
Dependencies’ Audit Rules and Guidance for market-traded companies, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical
Standard were not provided.
Other than those disclosed in Note 7, we have provided no non-audit services to the company or its
controlled undertakings in the period under audit.
Our audit approach
Overview
Audit scope
▶
The group financial statements are a consolidation of Wizz Air Holdings Plc, the trading subsidiaries Wizz
Air Hungary Ltd., Wizz Air UK Limited, Wizz Air Abu Dhabi LLC and Wizz Air Malta Limited, plus a number
of insignificant intermediate holding and small trading companies, and companies that are dormant.
▶
The accounting for these entities and the group consolidation is centralised in Budapest, Hungary where
the majority of our audit work was performed.
▶
Whilst the consolidated results consist of a number of legal entities, due to the internal reporting
process, our audit approach is to audit the consolidated results as one component.
Key audit matters
▶
Accuracy of IFRS 16 “Lease” input data
▶
Aircraft maintenance provisioning
Materiality
▶
Overall materiality: €45,000,000 (2023: €35,000,000) based on 0.9% of total revenue.
▶
Performance materiality: €33,750,000 (2023: €26,250,000).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in
the financial statements.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
Wizz Air Holdings Plc Annual report and accounts 2024
233
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance
in the audit of the financial statements of the current period and include the most significant assessed risks
of material misstatement (whether or not due to fraud) identified by the auditors, including those which had
the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team. These matters, and any comments we make on the results of our
procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Ability of the group to continue as a going concern, which was a key audit matter last year, is no longer
included due to the improved profitability of the group. Otherwise, the key audit matters below are
consistent with last year.
Key audit matter
How our audit addressed the key audit matter
Accuracy of IFRS 16 “Leases” input data
The group recognised right-of-use (“RoU”) assets
of €2,845.6 million and associated lease liabilities
of €3,612.0 million as at 31 March 2024.
The right-of-use assets and lease liabilities largely
relate to aircraft leases and are calculated based
on discounted future lease payments. These
calculations involve assumptions including, but not
limited
to,
the
determination
of
the
lease
payments, the expected lease term, consideration
of extension options and the discount rate used to
determine the liabilities.
We focused on this area because input data errors
for new leases or a failure to accurately capture
changes in lease contracts in the year could
materially impact the lease accounting given the
value of an individual aircraft lease.
Refer to the Material accounting policies note (note
2), note 4 for the directors’ disclosures of the
relevant judgments and estimates involved in
determining the IFRS 16 balances at 31 March
2024 and notes 13 and 23 which disclose the right
of use assets and lease liability balances and
movements, respectively.
We understood and evaluated the process followed
by management to account for its leases under
IFRS 16.
We tested the integrity of management’s system
used to perform the lease liability and RoU asset
calculations by testing that its IT general controls
are operating.
We tested the accuracy of the underlying data
used in management’s system calculation for new
leases in the year to support lease documentation.
We also tested the appropriateness of the other
significant assumptions used for lease additions in
the year. This included the discount rates used
where we tested the rate used to discount future
lease payments, and the appropriateness of the
external sources of information used for risk-free
rates and credit spread and found that the rates
used
for
new
leases
were
a
reasonable
approximation of the incremental borrowing rate of
the group.
Where leases contained an option for early
termination
or
extension,
we
considered
management’s assessment of the likelihood of the
option being exercised, based on the nature of the
assets and the terms including changes in the
period under option.
Using a digital audit solution we reperformed the
calculation of the asset, liability, depreciation and
interest entries relating to the accounting for
leases under IFRS 16 and compared the results to
the values generated by management’s system
and found the difference to be within acceptable
thresholds.
We assessed the adequacy of disclosures in notes
2 and 4 in respect of the accounting policies and
significant judgements and estimates involved in
determining the IFRS 16 balances and the
disclosures in notes 13 and 23 for leases.
We did not identify any material uncorrected
misstatements from our work on IFRS 16.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
Wizz Air Holdings Plc Annual report and accounts 2024
234
Aircraft maintenance provisioning
The group operates aircraft which are held under
lease arrangements and incurs liabilities for
maintenance costs in respect of leased aircraft in
line with the terms of its aircraft leases.
Under these lease agreements, the group is
contractually committed to either return the
aircraft in a certain condition or to compensate the
lessor based on the actual condition of the aircraft
and its major components upon return.
The group uses the "strict obligation” method of
accounting for such costs under which provision is
made for the minimum unavoidable costs of
specific future maintenance obligations created by
the lease at the time when such obligations
become certain.
Maintenance provisions of €263.6 million for
aircraft maintenance costs in respect of leased
aircraft are recorded in the financial statements at
31 March 2024 (refer to note 29 to the financial
statements).
At each balance sheet date, the calculation of the
maintenance provision includes a number of
variable factors and assumptions including: the
likely utilisation of the aircraft; the expected cost
of the heavy maintenance check at the time it is
expected to occur; the condition of the aircraft;
and the lifespan of life-limited parts.
We focused on this area because an inherent level
of management judgement and estimation is
required in determining the above variable factors
and assumptions on an aircraft by aircraft basis.
This includes a judgement on whether to perform
future maintenance based on expected flying hours
or whether to avoid this and pay compensation to
the lessor at the end of the lease.
Refer to the Material accounting policies note
(note 2) and note 4 for management’s disclosures
of the relevant judgments and estimates involved
in calculating the maintenance provisions required,
as well as note 29 for specific disclosures relating
to the maintenance provisions.
We understood and evaluated the process followed
by management to determine its maintenance
provision, including the input data, assumptions
and significant judgements and estimates used.
We tested the integrity of the maintenance
provision system used by management by testing
the IT general controls and testing specific
automated calculations therein.
We also assessed the process by which the
variable
factors
used
within
the
provision
calculation
were
appropriately
estimated
by
performing the following procedures:
• Comparing
the
cost
assumptions
in
the
maintenance
provision
system
with
recent
invoices, inspected approved maintenance plans
as well as validated current flight hours and flight
cycles to non-financial data sources.
• Testing the input data through agreement to
underlying lease contracts, focusing specifically
on new and amended contracts and considering
whether the planned maintenance could be
materially impacted by risks associated with
climate change.
• Testing material manual adjustments to the
provision amount calculated by the maintenance
provision system.
• Re-performing calculations.
• Performing a look back test to assess the
accuracy of past estimates.
We tested the short and long-term classification of
the provision.
We assessed the adequacy of disclosures in note 4
in respect of the significant judgements and
estimates involved in maintenance provisioning.
We did not identify any material uncorrected
misstatements from our work on maintenance
provisions.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
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How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on
the financial statements as a whole, taking into account the structure of the group, the accounting processes
and controls, and the industry in which it operates.
The group consists of one reporting segment, being the airline business. It includes the results of the legal
entities of Wizz Air Holdings Plc and its trading subsidiaries, the main ones being Wizz Air Hungary Ltd., Wizz
Air UK Limited, Wizz Air Abu Dhabi LLC and Wizz Air Malta Limited, together with branch operations in base
countries. Whilst the consolidated results consist of a number of legal entities, due to the internal reporting
process and maintenance of centralised entities and consolidated general ledgers for the group, our audit
approach is to audit the consolidated results as one component. The accounting for these entities and the
group consolidation is centralised in Budapest, Hungary.
The audit is largely performed by a single engagement team comprising individuals based in the UK and in
Hungary together with an offshore support function, tax and treasury specialists and valuation experts. The
operations are audited by applying our collective knowledge and understanding of the group and its financial
reporting processes and controls.
The audit work is largely performed by members of our engagement team based in Hungary who are directed
and supervised by the UK team members both virtually and during their visits to Hungary. The UK team
members attended all Audit and Risk Committee meetings in Switzerland, London or Hungary, either in person
or virtually. This gave us the evidence we required for our opinion on the financial statements as a whole.
The impact of climate risk on our audit
The Annual Sustainability Report within the Strategic Report describes the group’s strategy to reduce carbon
emissions and explains how climate change could have a significant impact on the group’s business but also
provides a number of significant opportunities. The group has publicly set out its commitment to reducing
carbon emissions by 25% by 2030 relative to F20 levels and has a strategy aligned to meeting this including
the use of sustainable aviation fuel (“SAF”) and investments in SAF production and supply companies. It has
also disclosed that it is working on potential pathways towards an interim and final target for 2035 and 2050
respectively. A number of financial risks could arise from both the transitional and physical risks associated
with climate change. Management, assisted by an independent expert, has evaluated these as disclosed in
the Annual Sustainability Report within the Strategic Report. This has then informed the evaluation of
financial risks that have been reflected by management in the preparation of the financial statements to the
extent that they can be forecast at present or conclusions as to why no material impact is expected. The
future financial impacts of climate change are clearly uncertain given the timeframe involved and how
Governments, global markets, corporations and society respond.
As part of our audit we have made enquiries of management to understand the work performed by
management and its expert to assess the potential impacts of climate change on the group and leading to
the disclosures in the Annual Sustainability Report within the Strategic Report, which includes the group’s
Task Force on Climate-related Financial Disclosures (“TCFD”) disclosures, and the resultant impact on the
F24 financial statements. We have used this information and understanding to assess the impact on the
financial statements and our audit thereof. We have also considered the consistency of this assessment with
the communications of climate related impacts both in the F24 Annual Report and Accounts and other
sources such as its website and the group’s public submission to the Carbon Disclosure Project.
Overall management has concluded, having considered both the physical and transition risks arising from
climate change, that there is currently no material impact that it can forecast impacting the F24 results or
financial position. The key areas of the financial statements where the potential impact of climate was
considered are as follows:
▶
The accounting for ETS allowances used by the group to meet its obligations under the EU and UK ETS
schemes (see note 2);
▶
The group’s going concern assessment covering a period of at least 12 months from the date of signing
of the financial statements (see note 2 and the Conclusions relating to going concern section below);
▶
The useful economic lives of aircraft, aircraft spare engines, maintenance assets and parts and
associated depreciation of these assets (see note 2);
▶
The impact on the annual impairment assessment of the group’s aircraft fleet (see notes 13 and 14);
and
▶
The impact on maintenance provisioning (see notes 4 and 29 of the financial statements and key audit
matter above).
Where significant, further details on how climate change has been considered in the above areas and our
audit response is given in the key audit matters above. Our procedures did not identify any material impact
in the context of our audit of the financial statements as a whole for the year ended 31 March 2024. The
future estimated financial impacts of climate risk are clearly uncertain given the medium to long term
timeframes involved and their dependency on how Governments, global markets, corporations and society
respond to the issue of climate change and the speed of technological advancements that may be necessary.
Accordingly, the financial statements cannot capture all possible future outcomes as these are not yet known.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
Wizz Air Holdings Plc Annual report and accounts 2024
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Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope
of our audit and the nature, timing and extent of our audit procedures on the individual financial statement
line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate
on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as
follows:
Overall group materiality
€45,000,000 (2023: €35,000,000).
How we determined it
0.9% of total revenue
Rationale for benchmark applied
We considered various potential benchmarks including profit before
tax and concluded, using professional judgement, that total revenue
(2023: total revenue) continues to be an appropriate benchmark for
the current year audit.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance
materiality in determining the scope of our audit and the nature and extent of our testing of account
balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance
materiality was 75% (2023: 75%) of overall materiality, amounting to €33,750,000 (2023: €26,250,000)
for the group financial statements.
In determining the performance materiality, we considered a number of factors – the history of
misstatements, risk assessment and aggregation risk and the effectiveness of controls – and concluded that
an amount at the upper end of our normal range was appropriate.
We agreed with the Audit and Risk Committee that we would report to them misstatements identified during
our audit above €2,250,000 (2023: €1,750,000) as well as misstatements below that amount that, in our
view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group’s ability to continue to adopt the going concern
basis of accounting included:
▶
Testing the model used for management’s going concern assessment which is primarily a liquidity
assessment given there are no financial covenants in its committed debt facilities. Management’s
assessment covers the period to 30 November 2025.
▶
Management’s base case forecasts are taken from its normal forecasting process for the next three
years. We understood and assessed this process including the assumptions used for F25 and F26 and
assessed whether there was adequate support for these assumptions. We also considered the
reasonableness of the monthly phasing of cash flows. A similar assessment was performed of the
downside cash flows, including by comparison of actual monthly cash flows experienced in F24 and by
comparison of assumed flying levels relative to those experienced in prior periods.
▶
We read and understood the key terms of committed debt facilities to understand any terms, covenants
or undertakings that may impact the availability of the facility. We also understood the impact of the
base and downside forecasts on security levels in the card acquirer contracts of the group which
generally require a level of liquidity to be held by the business.
▶
We understood the schedule of committed aircraft and engine deliveries over the next eighteen months
and assessed management’s assessment of how these would be financed based on their available
committed financing and other plans to finance future aircraft deliveries.
▶
Using our knowledge from the audit and assessment of previous forecasting accuracy, we applied our
own sensitivities to management’s downside cash flow forecasts. We overlaid this on management’s
forecasts to arrive at our own view of management’s downside forecasts.
▶
We considered the potential mitigating actions that management may have available to it to reduce
costs, manage cash flows or raise additional financing and assessed whether these were within the
control of management and possible during the period of the assessment.
▶
We commented on draft disclosures of the Group’s Going concern assessment seeking changes to clarify
aspects of it and assessed the adequacy of the final disclosures in the Going concern statement in note 2
of the group financial statements and the Going concern statement in the Directors’ Report and found
that these appropriately reflect the key areas of uncertainty identified and assumptions made.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
Wizz Air Holdings Plc Annual report and accounts 2024
237
Based on the work we have performed, we have not identified any material uncertainties relating to events
or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as
a going concern for a period of at least twelve months from when the financial statements are authorised for
issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as
to the group’s ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the directors’ statement in the financial statements
about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The directors are responsible for the other information. Our
opinion on the financial statements does not cover the other information and, accordingly, we do not express
an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we
identify an apparent material inconsistency or material misstatement, we are required to perform procedures
to conclude whether there is a material misstatement of the financial statements or a material misstatement
of the other information. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report based
on these responsibilities.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term
viability and that part of the corporate governance statement relating to the company’s compliance with the
provisions of the UK Corporate Governance Code specified for our review. Our additional responsibilities with
respect to the corporate governance statement as other information are described in the Reporting on other
information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements
of the corporate governance statement, included within the Corporate Governance Report is materially
consistent with the financial statements and our knowledge obtained during the audit, and we have nothing
material to add or draw attention to in relation to:
▶
The directors’ confirmation that they have carried out a robust assessment of the emerging and principal
risks;
▶
The disclosures in the Annual Report that describe those principal risks, what procedures are in place to
identify emerging risks and an explanation of how these are being managed or mitigated;
▶
The directors’ statement in the financial statements about whether they considered it appropriate to
adopt the going concern basis of accounting in preparing them, and their identification of any material
uncertainties to the group’s ability to continue to do so over a period of at least twelve months from the
date of approval of the financial statements;
▶
The directors’ explanation as to their assessment of the group’s prospects, the period this assessment
covers and why the period is appropriate; and
▶
The directors’ statement as to whether they have a reasonable expectation that the company will be
able to continue in operation and meet its liabilities as they fall due over the period of its assessment,
including any related disclosures drawing attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group was substantially less
in scope than an audit and only consisted of making inquiries and considering the directors’ process
supporting their statement; checking that the statement is in alignment with the relevant provisions of the
UK Corporate Governance Code; and considering whether the statement is consistent with the financial
statements and our knowledge and understanding of the group and its environment obtained in the course
of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the corporate governance statement is materially consistent with the financial statements and
our knowledge obtained during the audit:
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
Wizz Air Holdings Plc Annual report and accounts 2024
238
▶
The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for the members to assess the group’s position,
performance, business model and strategy;
▶
The section of the Annual Report that describes the review of effectiveness of risk management and
internal control systems; and
▶
The section of the Annual Report describing the work of the Audit and Risk Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to
the company’s compliance with the Code does not properly disclose a departure from a relevant provision of
the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities in respect of the financial statements,
the directors are responsible for the preparation of the financial statements in accordance with the applicable
framework and for being satisfied that they give a true and fair view. The directors are also responsible for
such internal control as they determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the group or to cease operations,
or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of
non-compliance with laws and regulations related to the regulations of country aviation authorities such as
the European Union Aviation Safety Agency, the UK Civil Aviation Authority and the UAE General Civil
Aviation Authority Regulations and General Data Protection Regulation, and we considered the extent to
which non-compliance might have a material effect on the financial statements. We also considered those
laws and regulations that have a direct impact on the financial statements such as the Companies (Jersey)
Law 1991, the Listing Rules of the UK Financial Conduct Authority, relevant corporate tax compliance
regulations, the Air Passengers Rights Regulation 2004 (Regulation (EC) No 261/2004) and EU Emissions
Trading System. We evaluated management’s incentives and opportunities for fraudulent manipulation of
the financial statements (including the risk of override of controls), and determined that the principal risks
were related to posting inappropriate journal entries and management bias in accounting estimates such as
aircraft maintenance provisions. Audit procedures performed by the engagement team included:
▶
Discussions throughout the year with the Audit and Risk Committee, management, Internal Audit and
the group’s internal counsel, including consideration of known or suspected instances of non-compliance
with laws and regulation and fraud;
▶
Understanding and evaluating controls designed to prevent and detect irregularities and fraud;
▶
Reviewing legal expense accounts to identify significant legal spend that may be indicative of
non-compliance with laws and regulations;
▶
Identifying and testing journal entries, in particular journal entries posted with unusual account
combinations;
▶
Reading the minutes of Board and Committee meetings to identify any inconsistencies with other
information provided by management; and
▶
Challenging assumptions and judgements made by management in determining the significant
judgements and estimates used in the preparation of the financial statements, including those relating to
revenue, maintenance provisions, hedge and derivative accounting, aircraft and spare engine assets
(including those in Ukraine) and lease accounting, and the disclosure of these items.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
Wizz Air Holdings Plc Annual report and accounts 2024
239
There are inherent limitations in the audit procedures described above. We are less likely to become aware
of instances of non-compliance with laws and regulations that are not closely related to events and
transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate
concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly
using data auditing techniques. However, it typically involves selecting a limited number of items for testing,
rather than testing complete populations. We will often seek to target particular items for testing based on
their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion
about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s
website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in
accordance with Article 113A of the Companies (Jersey) Law 1991 and for no other purpose. We do not, in
giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where expressly agreed by our prior consent in
writing.
OTHER REQUIRED REPORTING
Companies (Jersey) Law 1991 exception reporting
Under the Companies (Jersey) Law 1991 we are required to report to you if, in our opinion:
▶
We have not obtained all the information and explanations we require for our audit.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee (now the Audit and Risk Committee), we were
appointed by the members on 15 August 2007 to audit the previous parent company of the Wizz Air group.
Following the company’s incorporation in 2009 we were appointed to audit the consolidated financial
statements of the company for the period ended 31 March 2010 and subsequent financial periods. We were
reappointed as auditor of the company following a competitive tendering process by the members on 21 July
2017 to audit the consolidated financial statements for the year ended 31 March 2018 and subsequent
financial periods. Our period of total uninterrupted engagement for the group (comprising the previous
parent company and now the company, and their subsidiaries) is 17 years covering the years ended
31 March 2008 to 31 March 2024 and for the Company is 15 years, covering the years ended 31 March 2010
to 31 March 2024.
VOLUNTARY REPORTING
The company voluntarily prepares a Directors’ Remuneration Report. The directors requested that we audit
the part of the Directors’ Remuneration Report specified by the United Kingdom Companies Act 2006 to be
audited as if the company were a quoted company. In our opinion, the part of the Directors’ Remuneration
Report to be audited has been properly prepared in accordance with the United Kingdom Companies Act 2006.
OTHER MATTER
The company is required by the Financial Conduct Authority Disclosure Guidance and Transparency Rules to
include these financial statements in an annual financial report prepared under the structured digital format
required by DTR 4.1.15R – 4.1.18R and filed on the National Storage Mechanism of the Financial Conduct
Authority. This auditors’ report provides no assurance over whether the structured digital format annual
financial report has been prepared in accordance with those requirements.
Jason Burkitt
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Recognized Auditor
London
14 June 2024
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WIZZ
AIR HOLDINGS PLC
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240
Glossary of terms
Definitions:
Aircraft utilisation/utilisation: the number of hours that one aircraft is in operation on one day. Rationale
– Key performance indicator in aviation business, measurement for one-day aircraft productivity.
Calculation (for one month): monthly aircraft utilisation equals total block hours divided by number of days
in the month divided by the equivalent aircraft number divided by 24 hours. Calculation (for a longer period
than one month): the given period aircraft utilisation equals the weighted average of monthly aircraft
utilisation based on the month-end fleet counts.
Ancillary revenue per passenger: ancillary revenue divided by the number of passengers (PAX) in the
given period, which gives the ancillary performance per one passenger. Rationale – Key performance
indicator for revenue performance measurement.
Calculation: ancillary revenue/PAX.
Available seat kilometres (ASK)/total ASKs: the number of seats available for scheduled passengers
multiplied by the number of kilometres those seats were flown. Rationale – Key performance indicator for
capacity measurement.
Calculation: seats on aircraft*stage length.
Average aircraft stage length (km): average distance that an aircraft flies between the departure and
arrival airport. Rationale – Key performance indicator for measurement of capacity and productivity.
Calculation: average stage length of the revenue sectors in the given period (ASKs/capacity).
Average departures per aircraft per day: the number of departures one aircraft performs in a day in the
given period. Rationale – Key performance indicator for revenue generation/utilisation of assets.
Calculation: total number of revenue sectors per number of days (in the given period) per equivalent aircraft
number.
CASK (total unit cost): total cost per ASK, where cost is defined as operating expenses and financial
expenses net of financial income. Rationale – Key performance indicator for divisional cost control.
Calculation: total operating expenses+financial income+financial expenses/total of ASKs (km)*100.
Completion factor or rate: per cent of operated flights compared to the scheduled flights. Rationale – Key
operational performance indicator for the measurement of scheduled flight completion.
Calculation: number of operated flights/number of scheduled flights.
Equivalent aircraft or average aircraft count: the average number of aircraft available to Wizz Air within
a period. The count contains spare aircraft, aircraft under maintenance and parked aircraft. Rationale – Key
performance indicator in aviation business for the measurement of average aircraft available for flying and
capacity.
Calculation (for one month): average from the daily fleet count in a given month which includes/excludes
deliveries and redeliveries. Calculation (for a longer period than one month): weighted average of the
monthly equivalent aircraft numbers based on the number of days in the given period.
Equivalent operating aircraft or average operating aircraft count: the average number of operating
aircraft available to Wizz Air within a period. The count includes all aircraft except those parked. Rationale –
Key performance indicator in aviation business for the measurement of average fleet and capacity.
Calculation (for one month): average from the daily operating fleet count in the given month which includes/
excludes deliveries and redeliveries. Calculation (for a longer period than one month): weighted average of
the monthly equivalent operating aircraft numbers based on the number of days in the given period.
Ex-fuel CASK (ex-fuel unit costs): this measure is computed by dividing the total ex-fuel cost by the
total ASKs within a given timeframe. Ex-fuel CASK defines the unit ex-fuel cost for each kilometre flown per
seat in Wizz Air’s fleet. Note that: total ex-fuel cost consists of total operating expenses and net cost from
financial income and expense but does not contain fuel costs. Rationale – It serves as an essential
performance indicator for overseeing divisional cost control. The rationale for employing this metric is rooted
in its ability to gauge and manage non-fuel operating expenses effectively.
Calculation: total ex-fuel cost (EUR)/total of ASKs (km)*100.
Foreign exchange rate: average foreign exchange rate, plus any hedge deal for the given period,
calculated with a weighted average method. Rationale – Key performance indicator for Fuel Controlling and
Treasury teams.
ADDITIONAL INFORMATION
Wizz Air Holdings Plc Annual report and accounts 2024
241
Fuel CASK (fuel unit cost): this metric is calculated by dividing the total fuel costs (plus additional fuel
consumption related costs) by the sum of available seat kilometres (ASKs) during a specific reporting period.
Rationale – Fuel CASK provides an insightful unit fuel cost measurement, representing the cost incurred for
flying one kilometre per seat within Wizz Air’s fleet. The rationale behind the use of this measure lies in its
effectiveness as a critical performance indicator for the control and management of fuel expenses.
Calculation: total fuel cost (EUR)/total of ASKs (km)*100.
Fuel price (average US$ per tonne): average fuel price within a period, calculated as fuel cost (including
other fuel cost-related items) divided by the consumption. Rationale – Key performance indicator for fuel
cost controlling.
JOLCO (Japanese Tax Lease) and French Tax Lease: special forms of structured asset financing,
involving local tax benefits for Japanese and French investors, respectively. Rationale – These measures are
employed to encapsulate specific lease contracts that facilitate enhanced cash utilisation strategies.
Load factor (%): the number of seats sold (PAX) divided by the number of seats available on the aircraft
(capacity). Rationale – Key performance indicator for commercial and revenue controlling.
Calculation: the number of seats sold, divided by the number of seats available.
Net fare (total revenue per passenger): average revenue per one passenger calculated by total revenue
divided by the number of passengers (PAX) during a specified period. Rationale – This metric is a crucial
performance indicator for commercial control, offering insights into the overall revenue generated per
passenger.
Calculation: total revenue/PAX.
Operating aircraft utilisation: the number of hours that one operating aircraft is in operation on one day.
Rationale – Key performance indicator in aviation business, measurement for one-day aircraft productivity.
Calculation (for one month): average daily operating aircraft utilisation in a month equals total monthly
block hours divided by number of days in the month divided by the equivalent operating aircraft number
divided by 24 hours. Calculation (for a longer period than one month): the given period operating aircraft
utilisation equals the weighted average of monthly operating aircraft utilisation based on the month-end
operating aircraft counts.
Passengers (alternative names: passengers carried, PAX): passengers who bought a ticket (thus
making revenue for the Company) for a revenue sector. Rationale – Key performance indicator for
Commercial controlling team.
Calculation: sum of number of passengers of all revenue sectors.
PDP: refers to the pre-delivery payments made under the Group’s aircraft purchase agreements. These
payments signify contractual commitments designed to support fleet expansion and growth.
Period-end fleet size or number of aircraft at end of period: the number of aircraft that Wizz Air has in
its fleet and that are leased and/or owned at the end of the given period. The count contains spare aircraft,
aircraft under maintenance and parked aircraft. Rationale – Key performance indicator in aviation business
for the measurement of fleet.
Calculation: sum of aircraft at the end of the given period.
Period-end operating aircraft: the number of operating aircraft that Wizz Air has in its fleet and that are
leased and/or owned at the end of the given period. The count includes all aircraft except those parked.
Rationale – Key performance indicator in aviation business for the measurement of operating aircraft at a
period end.
Calculation: sum of operating aircraft at the end of the given period.
RASK: RASK is determined by dividing the total revenue by the total ASK. This measure characterises the
unit net revenue performance for each kilometre flown per seat within Wizz Air’s fleet. Rationale – It serves
as a pivotal performance indicator for commercial control, providing insights into the revenue generation
efficiency.
Calculation: total revenue (EUR)/total of ASKs (km)*100.
Revenue departures or sectors: flight between departure and arrival airport where Wizz Air generates
revenue from ticket sales. Rationale – Key performance indicator in revenue generation controlling.
Calculation: sum of departures of all sectors.
Revenue passenger kilometres (RPK): the number of seat kilometres flown by passengers who paid for
their tickets. Rationale – Key performance indicator for revenue measurement.
Calculation: number of passengers*stage length.
ADDITIONAL INFORMATION
Wizz Air Holdings Plc Annual report and accounts 2024
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Seat capacity/capacity: the total number of available (flown) seats on aircraft for Wizz Air within a given
period (revenue sectors only). Rationale – Key performance indicator for capacity measurement.
Calculation: sum of capacity of all revenue sectors.
Ticket revenue per passenger: passenger ticket revenue divided by the number of passengers (PAX) in
the given period. Rationale – Key performance indicator for measurement of revenue performance.
Calculation: passenger ticket revenue/PAX.
Total block hours: each hour from the moment an aircraft’s brakes are released at the departure airport’s
parking place for the purpose of starting a flight until the moment the aircraft’s brakes are applied at the
arrival airport’s parking place. Rationale – Key performance indicator in the airline business for the
measurement of capacity and completed block hours by aircraft.
Calculation: sum of block hours of all sectors (in the given period).
Total flight hours: each hour from the moment the aircraft takes off from the runway for the purposes of
flight until the moment the aircraft lands at the runway of the arrival airport. Rationale – Key performance
indicator in the airline business for the measurement of capacity and flown flight hours by aircraft.
Calculation: sum of flight hours of all sectors (in the given period).
Yield: represents the total revenue generated per revenue passenger kilometre (RPK). Rationale – This
measure is integral for assessing and controlling commercial performance by quantifying the revenue
derived from each kilometre flown by paying passengers.
Calculation: the total revenue/RPK.
ADDITIONAL INFORMATION
Wizz Air Holdings Plc Annual report and accounts 2024
243
Alternative performance measures (APMs)
Alternative performance measures are non-IFRS standard performance measures aiming to introduce the
Company’s performance in line with management’s requirements. The existing presentation is considered
relevant for the users of the financial statements because: (i) it mirrors disclosures presented outside of the
financial statements; and (ii) it is regularly reviewed by the Chief Operating Decision Maker for evaluating
the financial performance of its single operating segment.
Ancillary revenue: generated revenue from ancillaries (including other ancillary revenue-related items).
Rationale – Key financial indicator for the separation of different revenue lines.
Average capital employed: average capital employed is the sum of the annual average equity and
interest-bearing borrowings (including convertible debt), less annual average cash and cash equivalents, and
short-term cash deposits. Rationale – This key financial indicator is integral for evaluating the profitability
and effectiveness of capital utilisation.
Calculation: average equity+interest-bearing borrowings (including convertible debt)-cash and cash
equivalents-short-term cash deposits.
Earnings before interest, tax, depreciation and amortisation (EBITDA): EBITDA represents the profit
or loss before accounting for net financing costs or gains, income tax expenses or credits, and depreciation
and amortisation. Rationale – This measure serves as a key financial indicator for the Company, providing
insights into operational profitability.
Calculation: operating profit/(loss)+depreciation and amortisation.
EBITDA margin %: EBITDA margin % is computed by dividing EBITDA by total revenue in millions of
Euros. Rationale – This metric presents EBITDA as a percentage of total net revenue and offers valuable
financial insights for the Company’s performance assessment.
Calculation: EBITDA/total revenue (€ million)*100.
2024
2023
€ million
€ million
Operating profit/(loss)
437.9
(466.8)
Depreciation and amortisation
755.3
601.1
EBITDA
1,193.2
134.3
Total revenue
5,073.1
3,895.7
EBITDA margin (%)
23.5%
3.4%
Leverage ratio: the leverage ratio is computed by dividing net debt by the last twelve months’ EBITDA.
Rationale – It serves as a crucial key financial indicator for the Group, facilitating an assessment of the
organisation’s financial leverage and debt management.
Calculation: please see in the table under the definition of net debt.
Liquidity: represents cash, cash equivalents and short-term cash deposits, expressed as a percentage of
the last twelve months’ revenue. Rationale – This key financial indicator offers a comprehensive view of the
Group’s cash position and financial stability.
Calculation: please see the table below.
31 March 2024
31 March 2023
€ million
€ million
Cash and cash equivalents
728.4
1,408.6
Short-term cash deposits
751.1
—
Total revenue
5,073.1
3,895.7
Liquidity
29.2%
36.2%
Net debt: interest-bearing borrowings (including convertible debt) less cash and cash equivalents. Rationale
– Plays a pivotal role as a key financial indicator, offering valuable information regarding the Group’s
financial liquidity and leverage position.
ADDITIONAL INFORMATION
Wizz Air Holdings Plc Annual report and accounts 2024
244
31 March 2024
31 March 2023
€ million
€ million
Non-current liabilities
Borrowings
5,159.7
4,000.5
Convertible debt
25.4
25.7
Current liabilities
Borrowings
1,084.3
1,275.0
Convertible debt
0.3
0.3
Current assets
Short-term cash deposits
751.1
—
Cash and cash equivalents
728.4
1,408.6
Net debt
4,790.2
3,892.8
EBITDA
1,193.2
134.3
Leverage ratio
4.0
29.0
Passenger ticket revenue: generated revenue from ticket sales (including other ticket revenue-related
items). Rationale – Key financial indicator for the separation of different revenue lines.
Return on capital employed (ROCE): operating profit or loss after tax divided by average capital
employed, expressed as a percentage. Rationale – ROCE is a key financial indicator that facilitates an
assessment of the Group’s profitability and the efficiency of capital utilisation.
Calculation: please see the range below.
2024
2023
€ million
€ million
Operating profit/(loss)
437.9
(466.8)
Effective tax rate for the year
(7.3) %
5.2%
Operating profit/(loss) after tax
469.7
(442.5)
Average Shareholders’ equity
(106.1)
(47.0)
Average borrowings
5,785.6
4,633.1
Average cash and cash equivalents
(1,068.5)
(1,087.6)
Average short-term cash deposits
(375.6)
(225.0)
Average capital employed
4,235.4
3,273.5
ROCE (%)
11.1 %
(13.5) %
Total cash: non-statutory financial performance measure and comprises/is calculated from cash and cash
equivalents, short-term cash deposits and total current and non-current restricted cash. Rationale – This key
financial indicator offers a comprehensive view of the Group’s cash position and financial stability.
Calculation: please see the table below.
31 March 2024
31 March 2023
€ million
€ million
Non-current assets
Restricted cash
54.0
56.7
Current assets
Restricted cash
55.4
63.7
Short-term cash deposits
751.1
—
Cash and cash equivalents
728.4
1,408.6
Total cash
1,588.9
1,529.0
Total revenue: total ticket and ancillary revenue for the given period. The split of total revenue presented
in the consolidated statement of comprehensive income. Rationale – Key financial indicator for the
Company.
ADDITIONAL INFORMATION
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