MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Wizz Air (WIZZLN 26s; Ba1/NR/BBB- Neg) Sept. Traffic

TRANSPORTATION
Credit BulletsBulletHomepagemarkets-real-timeCredit

As we have said before traffic is not a focus - load factors are a tad more useful but still it is costs and yields (including where capacity is being deployed) that are the drivers of earnings right now. Wizz actually did well on pricing last quarter but costs an obvious issue - which it will blame on Pratt & Whitney engine issues/groundings. €26s are trading at Z+230/4.8%/€95.3 on mids - we are still skewed to see value there. Equities are down -12% this week (~normal vol) and on the Israel/Iran tensions we'd only note it was already stretching itself on capacity though costly wet leases and its focus is on Central & Eastern Europe corridor - i.e. we don't see significant impacts. On the small reversal higher in Oil - Wizz will still face a tailwind in spot prices; it was hedged 65% for year ending March '25 at circa $800 vs. spot $707. Our commodities analyst see this as a risk premia NOT fundamentals/supply impact driven and go on to add oversupply concerns for next year is keeping a lid on the moves. 1H (3m to Sept) results come on the 7th of Nov.


Keep reading...Show less
242 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

As we have said before traffic is not a focus - load factors are a tad more useful but still it is costs and yields (including where capacity is being deployed) that are the drivers of earnings right now. Wizz actually did well on pricing last quarter but costs an obvious issue - which it will blame on Pratt & Whitney engine issues/groundings. €26s are trading at Z+230/4.8%/€95.3 on mids - we are still skewed to see value there. Equities are down -12% this week (~normal vol) and on the Israel/Iran tensions we'd only note it was already stretching itself on capacity though costly wet leases and its focus is on Central & Eastern Europe corridor - i.e. we don't see significant impacts. On the small reversal higher in Oil - Wizz will still face a tailwind in spot prices; it was hedged 65% for year ending March '25 at circa $800 vs. spot $707. Our commodities analyst see this as a risk premia NOT fundamentals/supply impact driven and go on to add oversupply concerns for next year is keeping a lid on the moves. 1H (3m to Sept) results come on the 7th of Nov.


Keep reading...Show less