Wizz Air: Issues for debate post FY26 results

Research evidence excerpt

Wizz Air: Issues for debate post FY26 results

Barclays | Wizz Air

year and what booking trends is it seeing now? Has the change in tone from the industry over

fuel availability changed consumer behaviour? Wizz also indicated that the booking curve has

reverted to more normal behaviour in May, having seen very late booking in March and April. Is

this trend continuing into June? How much of the 1Q near-term pressure is a consequence of

redeployed Middle East capacity? How much benefit is there to unit revenues from the short-

haul stage-length?

Winter unit revenues: Wizz did not guide explicitly on winter capacity but intimated in its

presentation that it would maintain similar growth levels to the summer, deferring the slow-

down in capacity to spring 2027. Wizz suggested that, come winter, it expects small weak

airlines to reduce capacity and unhedged airlines to need to raise fares, creating an opportunity

for it to grow, gain market share and raise prices at the same time. We would investigate the

company's optimism here, given that its margins are weak relative to peers. Ryanair has

stronger margins and higher winter fuel hedges, leaving it far better placed to grow in the way

that Wizz describes. How are advanced loads for winter and how is pricing?

Ancillary developments – subscriptions and wi-fi: Wizz's long-term guidance is that unit

ancillaries will rise by €1 per passenger. What plans does Wizz have to drive unit ancillary

revenues higher? Wizz has sold season tickets in Poland and Italy and is selling 'all-you-can-fly'

season tickets. How are these flows being accounted for? Are they weighted to the time of sale

and are these sales supporting ancillary or ticket revenues? Wizz has now announced wi-fi, with