Wizz Air Holdings PLC Return to Systemic Jet Fuel Hedging (1290P)
16 Junho 2022 - 5:28AM
UK Regulatory
TIDMWIZZ
RNS Number : 1290P
Wizz Air Holdings PLC
16 June 2022
RETURN TO SYSTEMIC JET FUEL HEDGING
LSE: WIZZ
Geneva, 16 June 2022: Wizz Air Holdings Plc ("Wizz Air" or "the
Company"), the fastest growing and one of the most sustainable
European airlines, today announces it will be returning to a
systemic jet fuel hedge policy.
During the earlier phases of the Covid-19 crisis, key players in
the airline industry, including Wizz Air, were severely impacted
with significant financial hedge losses. As a result, during that
time and as agreed with its Board of Directors, Wizz Air moved to a
no hedge policy to avoid hedge losses in the future.
In Europe however, key competitors continued to hedge, albeit at
lower coverage levels versus pre-pandemic.
Given the sustained and ongoing volatility in commodity prices
Wizz Air has decided to reinstate a hedging policy and aligning its
policy to those of its peers. As a result, the Company will:
1. Mirror hedge coverage levels of our main peers as of F24 -
leveling the playing field on jet fuel prices.
2. Put additional jet fuel price caps in place for H2 F23 -
limiting the exposure for the Company should further extreme
volatility in jet fuel prices be observed in market.
This revised policy was approved by the Board and will be
executed over the next few weeks, and the systemic hedge policy
will be rolled forward quarterly, 18 months out, with coverage
levels over time reaching indicatively between 65% for the first
quarter of the hedging horizon and 15% for the last quarter of the
hedging horizon.
The Company will equally hedge transactional USD exposure with
regards to jet fuel.
József Váradi, Wizz Air Group Chief Executive Officer commented
on the results:
"Wizz Air has a superior competitive advantage on its fleet,
enabling lower operating cost and lower fuel burn versus any major
player in the industry. Equally Wizz Air has a sustainable
competitive advantage given its exposure to a faster growing CEE
footprint, characterized by higher GDP growth and market
growth.
To fully benefit from our key sustainable competitive
advantages, Wizz Air will return to neutralizing fuel price as a
competitive differentiator.
This will allow us to focus on what we are best at - attracting
consumers into our franchise at the lowest fares versus
competition, enabled by lowest cost, operated by the youngest fleet
in a fast growing region."
ABOUT WIZZ AIR
Wizz Air, Europe's fastest growing and most sustainable
ultra-low-cost airline , operates a fleet of 15 4 Airbus A320 and
A321 aircraft . A team of dedicated aviation professionals delivers
superior service and very low fares, making Wizz Air the preferred
choice of 40 million passengers in the financial year F20 ending 31
March, 2020 and 27.1 million passengers in the financial year F22
ending 31 March 2022. Wizz Air is listed on the London Stock
Exchange under the ticker WIZZ. The company was recently named one
of the world's top ten safest airlines by airlineratings.com, the
world's only safety and product rating agency, and 2020 Airline of
the Year by ATW, the most coveted honour an airline or individual
can receive, recognizing individuals and organizations that have
distinguished themselves through outstanding performance,
innovation, and superior service. Wizz Air was also rated the most
sustainable airline in Europe by Sustainalytics in January
2022.
For more information:
Investors: Zlatko Custovic, Wizz Air +36 1 777 9407
Zsuzsanna Trubek, Wizz Air
Edward Bridges / Jonathan Neilan, +36 70 652 4115
Media: FTI Consulting LLP: +44 20 3727 1017
- Ends -
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June 16, 2022 04:28 ET (08:28 GMT)
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