Return to Systemic Jet Fuel Hedging
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.
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For more information: |
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Investors: |
Zlatko Custovic, Wizz Air |
+36 1 777 9407 |
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Media: |
Zsuzsanna Trubek, Wizz Air Edward Bridges / Jonathan Neilan, FTI Consulting LLP: |
+36 70 652 4115 +44 20 3727 1017 |
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