Hey,
WIZZ Air crashed 50% this year. Wall Street screamed "structural impairment" and fled.
Here's what they missed while running for the exits:
WIZZ just reported H1 results with +26% operating profit growthdespite having 20% of the fleet grounded.
Let me repeat that: Profit grew faster than revenue while operating with fewer planes.
The Math Wall Street Ignored
Each grounded plane = €9M in annual profit when it returns.
40 planes grounded × €9M = €360M profit recovery
Management expects all aircraft back by end-2027
Current market cap: €1.3B
The market is pricing this €360M profit recovery at ZERO.
Why This is Asymmetric
While operating in "crisis mode" with 20% fewer planes, WIZZ is:
✓ Growing profit faster than revenue (+26% operating profit)
✓ Taking market share (29.4% CEE, up from 26.3%)
✓ Printing cash (€349M FCF in H1 vs. €85M last year)
Most companies in crisis bleed cash and lose share. WIZZ is doing the opposite.
Cost structure: €4.46 CASK today (matching Ryanair's industry-leading LCC costs). When planes return: €3.95 CASK target (best-in-class).