DAVY VIEW

Wizz has reported a Q2 PAT of €285.1m, 8% ahead of median consensus of €264m (Davy: €280m) reflecting a 14.9% margin. RASK was soft in Q2 (-0.9%) while ex-fuel CASK improved, down 6% year-on-year (yoy), driven by operational performance and reducing disruption costs. Following the renegotiation with Airbus, the new airbus deal equates to a four-year CAGR of 6.9% in the number of aircraft and 11.7% in seats, assuming the return of the grounded planes. However, H2 will come with transitional inefficiencies ahead of the slowing of fleet growth. Full-year PAT consensus of €4m loss largely reflects the widely communicated headwinds coming in H2. We expect estimates to broadly settle at breakeven (Davy: €36.4m). We expect a Capital Markets Day at end of calendar Q1, which will set mid-term profit expectations.