Hello, and welcome to Wizz Air fiscal year 2021 results call. Throughout this call, all participants will be in a listen-only mode, and afterwards, there will be a question- and- answer session. Just to remind you that this conference call is being recorded. Today, I am pleased to present József Váradi, CEO of Wizz Air. Please go ahead with the meeting. Good morning, everyone. Thanks for joining this call. This is to present the fiscal 2021 annual results of the company. With that, let me take you through the presentation we prepared for you. Moving the presentation. Upfront, let me just give you some highlights how we are seeing this business performing and what views we have with regard to the future. Clearly, it's been a very challenging year, the toughest year for the industry, the toughest year for Wizz in our history. At the same time, I think as every reset, it has also created a significant number of opportunities for the airline, and we have been trying to take advantage of those opportunities. Of course, we've been dealing with issues as they arise day by day. We have been keeping an eye on our future, and we have been strongly invested against the opportunities as we moved along the lines. We believe that we are a stronger airline today than a year ago, despite the fact that our own performance was almost marginal relative to previous times. We lost 75% of our revenues during the year. Relative to the market, relative to our competitors, we believe that we are a better airline, a stronger business than ever before. We have been very disciplined on managing liquidity. We ended the financial year with EUR 1.6 billion of cash. This is significant, and that makes us obviously very resilient, and not only resilient, but kind of investable when it comes to investing into new markets, into aircraft. Those two strategies have been fundamental for building long-term structural competitive advantages for the airline during the pandemic. We retained our investment-grade rating by both Moody's and Fitch. That is relevant not only for the feel of it and the look of it, but certainly for financing aircraft. We have been taking significant new aircraft deliveries during the past year, and we'll continue to do so going forward. As a matter of fact, our fleet has grown 13% during this period. We need to take out financing in quite a significant magnitude for those new aircraft deliveries. Obviously, our credit rating flows through the cost of capital deployed against of our aircraft delivery stream. It is very important that we maintain investment-grade credit. It's not just been the fleet that has grown during the period, but we have much broadened and enlarged our network, our footprint during this period. We opened up 18 new operating bases in this period, or at least announced some of them yet to be opened. We have been trying to take advantage of the market opportunities as they arose during the period. Obviously, our capacity, our growth, have been much wanted by the market. We are one of the very few airlines in Europe that actually can deliver a growth to airports, and we have been benefiting from that reset, striking good commercial deals for the long run, and tapping into very attractive markets. We are ready to move. We have created a lot of flexibilities in the company. We can move aircraft. We can move people with the aircraft. That has made us very agile, and I think we continue to be very agile going forward. Depending on the operating circumstances, we will see how restrictions will evolve. We are ready to go, and we think that the consumer is there. The consumer actually wants to fly, wants to move. There is nothing wrong with willingness to travel. If you look at the U.S., the U.S. is already at 80% levels versus 2019, and we expect it to exceed actually 100% for domestic flying in peak summer. We think the consumer is totally intact and want to come back into the franchise. It all boils down to travel restrictions, and Europe has not done too well with that regard. It's been a rollercoaster, and there are still significant uncertainties going forward. That kind of taints, in a way, our ability to guide you on fiscal 2022, because I think it is actually quite a broad range of outcome that we may end up with in the end, depending on our ability to operate within the framework of restrictions or no restrictions. I think we need to see how markets get unrestricted. The good news, obviously, is vaccination. I mean, vaccination has been rolled out. More aggressively in certain countries, but now everyone I think is catching up, certainly in Europe. That should make a significant difference. I think we also understand that various new variants could affect this whole paradigm, but this is yet to be seen. We are cautiously bullish. We are certainly very upbeat with regard to our ability to move quickly as the market opens up, and we will do so. If you move to the next slide. This is the footprint of the airline today. A lot of expansion during the pandemic. Hundreds of new routes launched and a very significant network today. We are operating to 48 countries in total. As said, we added 80 new operating bases during the year. This is a much enlarged and enhanced operating network. Certainly, a much enhanced commercial network. We are selling them what we had a year ago. We've got a number of recognitions during the year. I would note that Wizz Air is the very first European airline, if you can think of such thing as a European airline, you should certainly think Wizz Air. Our license number is 001. We are the first European airline licensed by EASA. We think it's a significant move, that gives a significant path for our ability to expand and scale our business, not only from a commercial perspective, but also from a regulatory and operational perspective. If you move the page. As you can see, as I said at the beginning, we are a better airline than what we were a year ago relative to the market. We have gained strength pretty much in every core market we operate from in Central and Eastern Europe, but also in select markets in Western Europe. Some of it is obviously our ability to have been able to take advantage of the pandemic, some of it obviously is rising from the weakness of our competitors. Clearly what I think is going to happen post-pandemic is that we will be a much-strengthened business platform operating a newer fleet of aircraft at much lower operating costs than our competitors that will have to rely on aging aircraft and higher operating costs. This is being a commodity, obviously it triggers the winner on the basis of who delivers the lowest cost, lowest cost prevails and we are just going to further enhance our lowest cost position in the marketplace. With that, let me hand it over to Jourik. Thanks, József, and good morning to all. Let me just add a few financial highlights for the year and also some color on the last quarter. On page five here in the deck, you will see that our revenue was down 73%, and quarter four revenue decline was not different. It was down 74%, given the restrictions that continued also into the entire quarter. We reported an underlying loss of EUR 482 million for the full year, with a loss for quarter four at EUR 222 million. The reported loss for the year was EUR 575 million with the difference between those two numbers being the exceptional losses linked to the discontinued hedge losses. Given where the fuel prices are and the hedge coverages are for FY 2022, we don't believe we will have major exceptional items going forward, and over time we can just go back to one reported profit number. As József highlighted, the total cash number was EUR 1,670,000,000, and we'll come back to that a little bit later. On the next slide, page six, you will see that the total costs were reduced with 46% and Ex-Fuel CASK by 38% versus last year. Recall the ASKs were down 64%, 63.5% for the period. You will see that the costs that were almost fully variable were obviously fuel, airport charges, distribution, and marketing costs. We also reduced staff costs 43%. Recall we don't meaningfully benefit from furlough schemes in our region. We reduced roles with 19% back in April 2020. The same went also with the salaries with 14% on average. That was a big reduction on the employee cost, on the staff cost, even though during the last quarter four, we reversed some of those trade salary reductions for the lower earning incomes, cabin crew, and office staff, while we kept obviously these reductions in place for executives and pilots. Maintenance and depreciation are the two cost buckets that were more rigid. Obviously, we want to keep our aircraft airworthy even if we don't fly them, and we also started to redeliver a certain amount of aircraft and even accelerated some of that into the year into quarter four. This brings us to liquidity on the next page. If you look at liquidity here, we're finishing the year, as said, at EUR 1.6 billion. It's ahead of the EUR 1.5 billion where we started the year. Of course, a lot has happened in between. We issued EUR 300 million commercial paper with the Bank of England under their CCFF program, and we issued a three-year bond in January 2021 of EUR 500 million. From a cash point of view, you can see from a cash burn point of view, you can see that we've actually done, despite all the adversity, a relatively good job with the cash burn highest in the first quarter of the fiscal year and in the third quarter of the year, making up 95% of the Q1 to Q3 cash burn, with a pretty good summer cash performance, even at a time when we're not back to full schedules. Also, in Q4, it was a relatively difficult quarter in terms of operation, with still a lot of restrictions. We only burned EUR 84 million. Recall our guidance had been in the last six months of the fiscal year to burn EUR 70 million per month in case of full grounding. We're burning only EUR 84 million in a quarter where we operated just over 20% of capacity is a pretty good performance. On slide eight, you see a little bit more color on the last quarter with the all-in cash burn, as mentioned, EUR 28 million per month or EUR 84 million for the quarter. As we mentioned, we maintained the investment-grade rating. We do not have overdue refunds with passengers other than some French cases linked to, for example, expired cards. The unflown revenue remains at the level where it was in December, so around EUR 65 million, which obviously holds a lot of potential for the future as bookings will come back in and that balance sheet account will kind of fill back up. Obviously, we continue to focus on the contribution positive flying as a key principle for the operation. On slide nine, just to close off on the financials. Speaking a little bit on the ancillary revenue, we continue to reiterate our strong performance and capability on ancillary revenue. On a like-for-like basis, ancillary revenue was up EUR 5.7 per passenger. Of course, there's some tailwinds here because of COVID-19, both in terms of uptake on fare products in the portfolio, but equally in terms of pricing, because obviously pricing in the last couple of months has been relatively inelastic, or at least the demand has been relatively inelastic. Still, we have strong confidence for the future to have ancillary being in line on a like-for-like basis with our long-term target of EUR 1 per passenger per year. With this, ancillary makes up more than a majority of our total revenue, which again, is really critically important for our model as we try to stimulate demand with low fares and have a partial or full offset within ancillary. With that, József, back to you. Thank you, Jourik. If you look at the focus of the business going forward and the focus what we have been really putting into this business, of course, we remain very intact on our ultra low-cost model. As a matter of fact, we're seeing that given the times, given the challenges in the industry, the ultra low-cost model prevails more than ever. It is the model that is expandable, that is scalable, and we have been trying to take advantage of that and making ultra low-cost even more ultra low-cost going forward. As said, we have much focus on diversifying our network. We have a significantly enhanced and enlarged geographical footprint today than before, and we're seeing that benefits the business. Clearly, we see that due to the rollercoaster effect of the past 15 months, you saw certain markets performing well in a period and some others performing much weaker, then they kind of reversed. We always had markets outperforming the rest, giving us sources for financial solid performance, liquidity performance. Clearly, the more diversified you are as a network, I think the greater your ability is to deal with issues like the current pandemic. We're seeing sustainability is a big deal, it will be an increasingly big deal going forward. Clearly, we are best positioned for sustainability given the aircraft we operate, the efficiency of that flowing through from a sustainability standpoint, as well as the operating model what we have and how efficiently we are flying a passenger. We are already leading the pack when it comes to sustainability carbon impact of the European airline industry. We're seeing that our continuous investment into aircraft and technology will give us more scope for leadership, and we are working on exploiting that leadership profile. We have been further digitalizing our business, our operating platform, many ways, and I will touch base on that later on. If you move to the next page, please. I would just like to highlight a few things here, how we are enhancing our ultra-low-cost model going forward. If you look at the first chart, we are upgauging. We are going to operate a younger fleet of aircraft going forward. Both will significantly benefit the business from an economic standpoint. Obviously, a younger fleet of aircraft delivers lower unit cost and a gauge, an upgauged fleet of aircraft delivers lower production cost. We are going to benefit from both in the coming years, which I think is a significant source of competitive advantage going forward. Jourik touched base on ancillary revenues. Ancillary revenues are a significant source of competitive advantage for the business. You can see that we have outperformed the industry, and we would expect to outperform it going forward as well. We will remain very focused on this line of business. We'll be on secondary airports. Secondary airports are strategically important to us. We are a high-utilization model, so we want to keep the aircraft in the air. When you devote capacity to primary airports, you become more constrained, and that operation requires more ground time. Secondary airports are not only important because of cost, delivering a lower cost operation, but also for utilization, delivering a more asset-utilized operating model. We have a way to go to catch up to previous productivity levels. If you look at load factor, currently we are performing 64% load factor, and this is a significant gap to 94% where we were in 2019. We believe that we're going to be back to that level very quickly once the markets become unrestricted. Same with asset utilizations, when we basically dropped to a third versus where we were before. As we are ramping up and the markets become unconstrained, we're going to be revamping our operating platform to these levels. There is a significant way to improve productivity to get back to previous levels. If we move to the next slide, please. We have talked a lot about this, how we have been diversifying our markets. We opened up 18 new operating bases during this period. You can see that it's been very diverse. Some of it happened in Western Europe, some of it in our core Central and Eastern European markets, and we also opened up Abu Dhabi in the East. It's a much more diversified network than before. Obviously, that gives us a significantly improved ability to deal with the headwinds coming from situations like COVID. Some of these market openings, obviously, are trying to take advantage of the pandemic situation. Once we gain experience, obviously we will have to make some choices possibly. I think we've already started making some choices. The choices that we have made, on the one hand, we are going for Italy very strategically. We think Italy is an investable market, and we should follow through our early investments by expanding our network, expanding our operations in the country, and continue to invest by opening new operating bases and bringing more aircraft, more crews into the country. We made a strategic investment decision when it comes to Italy. We feel very comfortable that the market resonates very well with Wizz product and services. Italy has been largely constrained during the period. But when there was a bit of an easing, the market reaction was very positive to Wizz. We also made a decision to pull out of Norway as a domestic operator. We will continue to serve the market as an inbound airline flying international routes. Basically, this is the trade-off of disinvesting in one market for being able to invest in another market in Italy, as we said. Also, we are quite excited about the investment that we are making in the U.K. We need to see those investments through once the market opens up. We've already opened Gatwick and Doncaster, and we are looking forward to opening Cardiff in the near future as well. We think that the U.K. remains a good investment market opportunity for Wizz Air. If you please move to the next slide. Sustainability and ESG in a broader scale are important issues, and we think that Wizz Air is very well-positioned for those metrics. You can see that we are already the leading airline in terms of carbon footprint, and we continue to reduce our carbon footprint going forward. Obviously, this is the function of the aircraft age, the seat count, and the efficiency of operation. Gender diversity is another important metric we are focused on, and that is important at management level as well as crew, especially pilot level. We are really making significant efforts and putting programs in place to make sure that we are dynamizing our gender diversity. We are a very diverse business in terms of nationalities. We have 53 nationalities in the company, and I think our culture benefits a lot from that. Obviously, we have a lot more other measures we are looking at, like noise or other sustainability-related measures. We think that we are going to be able to do very well within our scope of influence in the industry. Obviously, we need to see other kinds of bricks in the wall, how they play out in terms of technologies developing, affecting the sustainability performance of the industry, and some of the other issues like sustainable aviation fuel, like the whole navigation system how that will evolve and how that would affect the industry's performance. We are here much focused on what we can do as an airline to operate more efficiently and more sustainably in the future. If you please move the presentation. With regard to our digital investments, a lot of investments actually have been happening in that area. As you know, we are probably the most digital airline to start with. We have most of our revenues flowing through digital channels. Very interestingly, over the past few years, we are now seeing the app becoming the core channel for interactions with consumers. There is a very significant shift. I think our investment into that platform is now bearing fruits. You can see that revenues are reaching record highs. That's important. That's totally digital channel for the company. We think that all this digitalization is very relevant to the consumer, especially for the up-and-coming consumers coming into the franchise of flying. We launched electronic flight bag, making us totally paperless in the cockpit. It's not only the consumer interface we are focused on, but we are also looking at the operations of the business, the operations of the company to make sure that we benefit from digitalization there. Recently, we just launched Amelia, our virtual assistant, helping our customer service and helping customers with their interactions with the company. If you please move. Talking about the outlook of the business, as said, it is difficult to give exact guidance to you, taking the uncertainties into account out there with regard to the regulatory framework and travel restrictions. Certainly what you can see is that we have been incredibly agile during the last year. When the market opened up, we significantly outperformed the market. I think it just comes down to our ability to move very quickly. Also when the market became highly restricted, we took more capacity out than the rest of the industry. I think that comes on the basis of our financial responsibility. We are not sentimental. We fly cash contribution positive flying. If that doesn't make sense, then we simply don't fly. We are not going to fly for the sake of flying, as many airlines do that. We are financially very disciplined when it comes to operating flights under distressed financial or regulatory environment. The good news is that we start seeing some easing. There was a long period when every single flight we operated fell under some restriction. Now we are seeing that around 10%, 15% of all flights are becoming unrestricted. As a result, you see immediately how the market reacts and how consumers react and want to come back to the franchise. If I look at last week, we operated 30% of our 2019 capacity of the same week, but we sold 70% of the revenues versus the same reference period. Clearly, we are seeing a turn of the market consumers coming back. If you please move. Just to give you a quick outlook for so much as we can say. Travel restrictions, mobility restrictions remain the key issue and will determine the pace of recovery and timing of recovery, actually the results of our fiscal 2022 financial year. That's why we are a little blur on what guidance we can give you, because if we operate in an unrestricted market, we would deliver totally different results and financial performance versus operating through a restricted market. I think we just need to understand how that's going to play out. What's important from our standpoint is that I think we are ready to deal with any circumstances, with any situation. As said, Q1 capacity is going to come in at around 30% capacity level, the rest of the financial year will really depend on the restrictions prevailing. Having said all of that, I think we have adopted the principle of cash positive flying, and we only going to be operating a cash positive flying program. If the markets are unrestricted, we'll do more. If the markets are more restricted, we'll do less. We will stay very financially disciplined with that regard. With regard to peak summer, we are expecting 2019 levels, even higher levels than 2019. Again, subject to restrictions, this is what we are planning on. We're seeing Sort of the second half of the financial year would kind of fall in line at least, or somewhat above 2019 levels. Again, if we are seeing an unrestricted market, we can do much better than that. We are adopting or readopting the cost disciplines of the business model, to make sure that we are getting asset utilization back to standards, 12+ hours. We are getting productivity back to standards when it comes to personal productivity, labor productivity of the business. We believe we'll continue to perform strongly on cash. Liquidity has been our most important priority. We think we have preserved liquidity quite well, and going forward, this business will be very strong on liquidity position. We are returning to some normalities to the proven model, and that is around stimulating demand, growing ancillary revenues, penetrating more and more consumers through digital platforms. We're seeing that as the market gets somewhat normalized, our model will also be operated in a much more normalized way, similar to previous experience. With regard to fiscal 2023, this is kind of long time out. Certainly, given the times we are in, we think we should be kind of swinging back full steam, at that time. Certainly, in capacity, but we also think that given the competitive advantages, this business will be able to deliver at that time, that kind of a demand will flow through the financial metrics, largely as well. If you please move. Just to wrap it up, we think we are well-positioned to take advantage of the pandemic. It is an issue we have to deal with day in, day out. At the same time, it is also a great opportunity for the business to reset ourselves in the new competitive landscape. We think Wizz Air will come out of this as a structural winner. We have a very strong liquidity position, probably much stronger than the rest of the industry and balance sheet. Those are enablers of the airline to capture these market opportunities. Actually, we can invest. We are not just surviving every day, but we are investing into our future. We are investing into markets, we are investing into aircraft, and we will follow through those investment lines going forward as well. We are totally geared for pretty much an immediate restart of that event, subject to market conditions, subject to regulatory restrictions. We have developed the flexibilities to move capacity, to move aircraft, move people with the aircraft pilots and cabin crew as required by the market or as the markets allow us to move. We are well-positioned for sustainability. We think it is going to be one of the strategic agenda items of the world in the next decade. We think actually there is no better airline in Europe to perform against ESG sustainability expectations than Wizz Air. We think it will be another source of competitive advantage for the business going forward. As said, fiscal 2022 outlook remains uncertain because it is largely subject to prevailing restrictions imposed by governments. As far as we are concerned, we are ready to go, and I think we are able to restore many of the operating parameters of our business model that have been making us successful in the past. And we are fairly confident in our ability to recover quickly, quicker than the industry, and to start seeing kind of full swing performance standards on capacity, on revenue, and the financial metrics going into fiscal 2023. Thank you. I think that gives you the floor for questions. Thank you. Ladies and gentlemen, if you do wish to ask a question, press zero one on your telephone keypad now. That is zero one to register for a question. We have a question from the line of Daniel Roeska from Bernstein Research. Please go ahead. Good morning, gentlemen. Three if I may. One, you said your outlook for 2022 is cloudy but referenced that you're back at kind of full speed in 2023. What's the min-max range you're currently considering for financial year 2022? Maybe in terms of passenger numbers or relating to the size you had in 2019. Following on from that, could you talk a little bit about your staffing levels and kind of, since the lack of furlough schemes makes it a little bit more difficult, how do those staffing levels impact your min and max scenarios in the next 12 months? Lastly, you mentioned the EASA AOC. I guess this was granted back in August. What's the impetus here? Are you planning more operators in Europe? What's the key advantage for you since the U.K. AOC isn't related to the EASA AOC? Thanks. Okay. Thanks, Daniel, for the questions. On the first one, I would say even the min-max could be very difficult to call. I would say between 60%-100% of capacity flying is what we would be looking at. For the remainder of the fiscal year, maybe 100% would not be there immediately yet on your second point from a staffing level, because that's not where we are at this point in time. We will gradually build up the capacity of our crewing as we see a progressive linear progress on the amount in, let's say, a more solidified way. That's kind of the range you should look at for the rest of the fiscal year. With regard to staffing level, I think we are able to ramp up to around 90% operation at this point in time. Obviously with a few more months down the line, we can reinstate some formal employments with the pilots and cabin crew, and we can recruit from the market. Our current capacity level allows us to ramp back up to around 90% level in a very short space of time for peak summer. I think we are fairly relaxed with that issue. It is not really our ability and our internal capacity to be able to ramp up. I think it's much more down to what the restrictive nature of the regulatory framework will allow us to achieve in summer. With regard to EASA, I think the benefit of being governed by EASA is that, first of all, it is the European regulator, so you are closest to the fire with them too. EASA has capacity to expand its regulatory oversight. Hungary is a relatively small country with somewhat constrained resources available at regulatory level, and we just wanted to make sure that we don't run into bottlenecks with that regard. Being able to deal with the regulator itself, I think we have much greater influence in standards reflecting some operating procedures. I think as we are learning from EASA, they also will learn from us. Certainly, we are eliminating potential bottlenecks in the future for expanding our business. With regard to the U.K. AOC, I think the U.K. AOC is important because that gives us the regulatory platform for being able to serve the U.K., not only from the European Union but also from certain countries. We can have operations from the U.K. to those countries, and we will be looking at expanding that network in the future. It is important that we have the right way to go about it. I mean, we have to recognize that U.K. is no longer a member of the European Union. That requires a different level of regulatory compliance than before. Great. Thanks. Our next question comes from the line of Mark Simpson from Goodbody. Please go ahead. Yeah, morning. A couple of questions, some on cash flow maybe for Jourik and one on revenue mix. On the cash flow, deferred income, obviously marginal at the end of March. On the current run rate, would it be reasonable to think that deferred income would be circa EUR 350 million-EUR 400 million by the end of this quarter? Obviously, very strong pre-sales beginning to be seen. On the cash flow on a longer-term view, FY 2022 and FY 2023, can you give us a net CapEx after refund of advances, assuming all deliveries are based on a certain leaseback platform? More annual data for those. Finally on the revenue mix, obviously significant progress continues on the ancillary, but pricing on the ticket within the pandemic. I'm wondering as we look into summer 2022, Michael O'Leary, Ryanair, was talking about potentially ticket prices being above 2019 levels. I wonder if the mix will favor some inflation on ticket prices going into summer next year. Okay. Thanks, Mark. On deferred income, I mean, we are indeed seeing a build-up, as you've also seen from the chart that was shown right, on the weekly sales progress. We're not building up to EUR 350 million levels for the quarter. It's still significantly lower. We will see a lower cash burn in the quarter than the EUR 84 million, in part thanks to the good cash discipline, but also due to deferred income. The levels are still relatively modest because the booking window is still 50% of the booking or within two weeks, 80% of the booking are within a month. It's not yet that we're already booking year August and September to a large extent. On the CapEx levels, I mean, this is also like our fleet, a number that sometimes changes during the year, but the outflows are relatively modest. I mean, below EUR 100 million or so for FY 2022. That should not be a big ticket item. Then on the revenue mix, I mean, and the pricing more generally. I think it's clear that there will be a lot of pressure on pricing over this summer, so summer 2021. I think even more so what we see on leisure routes as they open up, there's capacity piling in very often, relatively undisciplined, uncontrolled, which then leads to depressed pricing. I think VFR is a little bit more hedged from that point of view. Probably on a relative basis, we'll be a little bit better protected. I think it shouldn't be an expectation that pricing levels this summer will be strong. I mean, for next summer, in theory, so 2022, in theory, they could be higher and they should be higher because a lot of the cost structure of the other airlines have significantly gone up. We're one of the only airlines that did invest in fleet, that did invest in the network. If you look at all the other airlines, they haven't done, so they've continued to operate old fleet. There are some cost headwinds that they will be seeing, which we're not seeing. Yeah, it could be that fair pricing is higher. Again, history doesn't really speak in advantage of a very rational pricing environment in this industry. Yeah, Jourik, just coming back on that. It's not so much a comparison, FY 2022 summer on this summer. It would be surprising if prices didn't rise. It was more the comparison FY 2022 on the summer 2019 on the basis that as I say, by that stage, we should be in a full demand recovery. Yeah. The summer of 2022 versus the summer of 2019, it could be that we're back at those levels, because rationally speaking, it should be the case. We will need to see what the capacity discipline is in that summer. Yes, I think that's a good baseline, that it would be roughly the same level as summer 2019. This summer 2021, I don't see that. Yeah. That's great. Okay. Mark, I think one thing you can certainly say is that the unit cost level of the industry in 2022, summer 2022, will be higher than what it was in summer 2019. A lot of headwinds will develop for many airlines. We shall see how state monopoly charges will evolve, like Eurocontrol, et cetera. Certainly, the cost stress coming from an aging fleet will be significant. With that regard, I think 2022 is going to be a deteriorating kind of cost platform for the entire industry. This was really the point I was trying to make, that I think when you put our business in context of that, we're going to be delivering a significant competitive advantage coming out of an up-gauged and renewed fleet of aircraft. We should be in a really good position to benefit from that situation. Just following that up, József, looking at your forecast suggestion of 2 percentage points of intra-European market share, I know you give it as a CEE kind of originating, but on a broader basis, 2 percentage points of market share this calendar year and next. Is that kind of what your fleet is suggesting? Possibly, but to be honest, we don't really measure market share. That's not the basis of doing business for us. It is more like an outcome of what we end up with. We are not driven by market share. I think we are driven by shareholder value creation. We look at the investment on the base of profitability, return on investment, et cetera. If it comes with market share, great. I think this is going to come with significant market share, because if you just apply the logic of being more cost competitive in a commodity coming out of this, is a significant source of competitive advantage, and we will have a much enlarged fleet. On the one hand, we have the new aircraft delivery program, but we also have another lever on capacity, and this is the return of aircraft of existing leases. We can extend those, and you can extend those leases basically at no cost, almost no cost at this point in time, because lessors don't have alternatives to place those aircrafts. We are certainly looking at all these opportunities and try to model what we can actually do, and we have levers to do it properly at very low cost competitively versus the rest of the industry. That's great. Appreciate that. Our next question comes from the line of Jarrod Castle from UBS. Please go ahead. Thank you. Good morning, everyone. Can you just give a little bit of color in terms of non-EU markets, in terms of travel restrictions? Obviously, the EU is trying to get off the vaccination passport by, I guess, the end of June. How do you see things playing out in non-EU markets in terms of restrictions looking into the summer? Just coming back to the market share commentary, it's an interesting slide on page four, because it looks like you've taken more market share from LCC, going from 40%- 46%, rather than from the legacy airlines. Are the legacy airlines growing more on short-haul to compensate for long-haul? Am I reading that wrong, just given the relative mixes? In terms of looking a bit further out. You've obviously got at the moment very, I'd say, elevated levels of ancillary revenue mix. How do you see this normalizing as traffic recovers? Thanks. All right. Let me start with the non-EU restrictions. Yeah, I think it's fair to say that non-EU is more restricted than the EU, although the EU is also somewhat restricted inside. We are expecting more restrictions implied on non-EU flying than EU flying. We shall see how the green pass will evolve and what relevance it will really have, and how this is going to get implemented. I think it's a fair assumption that non-EU is going to be more restrictive, although I also think it depends on the very market we are talking about. We are planning on more restrictions when it comes to non-EU. In terms of the legacies, it seems legacies are maybe doing more, especially in context of bad markets. When the markets are restricted, legacies tend to fly more than low-cost carriers. I think this is just a reflection of financial discipline or the lack of financial discipline. Low-cost carriers are financially disciplined, so I think it's not only Wizz Air, but the rest of the low-cost industry also implements cash positive flying and if you have governments giving you EUR 10 billion, then you don't really care, and you don't apply the same financial discipline. Also, when you see an open market, a less restricted market, legacies are usually beaten and outperformed by low-cost carriers. I think it just comes from the agility of the model. I'm not sure how relevant what legacies are doing. They are just acting on different levels of financial discipline or lack of financial discipline. We stay focused on our course, so we are going to be flying cash positive network, and we are not going to fly for any other purposes than really making money and contributing to cash. The last question was? Yeah. I'll take that one, József. On ancillary, again, so that everybody is really clear on this. If you look at quarter four, our ancillary gross fare per passenger was up EUR 15. Our ticket fare, this is versus 2019, our ticket fare per passenger was up EUR 10 gross fare. You can't just extrapolate the current. Please hold while we connect the speaker line. Please hold. We are currently reconnecting the speaker line, so please hold the line. You are now live. I'm sorry. We got, for whatever reason, disconnected, but we are back now. Yeah. Sorry. Just, Jarrod, I don't know if you're still there, picking up on your last question. We were saying that the- Yep -the pricing trends we've seen in the last quarter four, are not to be extrapolated going forward. Really on ancillary, what we keep guiding is that we will be EUR 1 per passenger per year higher. In FY 2022 we would be basically EUR 2 per passenger higher versus FY 2020. That's why you should put in the models, and we continue to see that EUR 1 in the out years as well as we still have headroom on products and pricing. Thank you. Our next question comes from the line of Jaime Rowbotham from Deutsche Bank. Please go ahead. Morning, guys. I'll go quick because I've got two for József, two for Jourik. József, you suggest that peak summer capacity this year could exceed the levels you had in place in summer 2019. The load factor back then was about 96%. At the moment, it's 66%. What sort of load factor would you find acceptable or realistic this summer on that level of capacity? Secondly, in terms of the issues you came up against in domestic Norway, is there any risk that as the Italian government tries to relaunch Alitalia, you could come up against similar issues there? Does the experience in Norway mean you're unlikely to look at other Nordic markets that might have been of interest, like Sweden or Denmark? Jourik, you ended the year with EUR 1.6 billion in cash, or EUR 1.45 ex restricted, but you also ended it with EUR 3.15 billion in debt and lease liabilities, so EUR 1.7 billion net debt. All else the same, what do you anticipate as the approximate impact on net debt from taking delivery of 27 A321neos in the fiscal year 2022, please? Finally, could you tell us where you're at in terms of carbon credits? Has there been any resetting of your free allowance? Have you done any hedging or forward buying? Thanks, guys. Thank you for the questions. With regard to peak summer, indeed, we think we may do better on capacity than what we did in 2019, but it may not translate into higher passenger numbers. I think that's to be seen. We clearly would expect better than 66% load factor performance during the peak summer period. Although I would also say that we are launching a lot of leisure routes, and some of it is going to be one directional, at least at the beginning. That will put some pressure on load factor. Overall, we would be expecting a much stronger load factor performance. I think it's kind of hard to predict at this point in time what number exactly this business is going to deliver. Probably it's going to be less than 96%, but certainly more than 66%. With regard to Norway, I don't think it has any relevance to Italy, to be honest. The only relevance to Italy is really from a financial standpoint. That was an investment decision. We don't want to fund Western European market opportunities by constraining strategic profitable markets in Central Eastern Europe. We are only prepared to invest a certain amount of capacity in Western Europe, and you need to make choices, and the choice we made was Italy over Norway. It doesn't mean that we are leaving the Norwegian market. We are not basing operations in Norway, and we are not going to fly domestic services in Norway, but we remain an inbound carrier into Norway. Norway will still be very important, and we will serve it as an inbound carrier. We have a lot of demand to fly to Norway. If you look at the Italian situation and whether Alitalia would put pressure on us, I don't think so because of the 17 aircraft we committed to Italy, only four aircraft are going to Rome where Alitalia is actually relevant. Most of the capacity we decided to deploy in Italy has nothing to do with Alitalia. No matter what happens to Alitalia, we would be good to go with that capacity. Our Italian expansion is not really related to what's going to happen to Alitalia. My personal view is that the Italian government will figure something out for Alitalia, whether it's called Alitalia or something else, I don't know. It seems to me that under any circumstances, there will be an Alitalia or the like of Alitalia operating in Italy, but our Italian plan is not affected by that. With regard to kind of the halo effect in Scandinavia, I don't think the Norwegian decision has, again, any relevance to other Scandinavian markets like Denmark or Sweden. I think every market would be looked at on its very merits of the market, and we would be making independent decisions. Simply given the times we are in and given some of the constraints that we have and some of the investment principles we have been applying in the business, we simply decided to fund the expansion of Italy from previous investments in Norway. That's a rational business decision-making. Jaime, on your two other questions. Yes, it's true, obviously, as we've shown in the liquidity chart, the liquidity position is good, but we are significantly higher indebted than when we were at the start of the year. If you look at our FY 2023, FY 2024 projections, we're confident that we can steer the leverage back to close to 1 ratio by FY 2024. Clearly with the cash-generating potential of this business and the business model, we're quite confident to do that. We'll repay the CCFF fund in February and take it from there. We do not need to do any other balance sheet repair activities other than just operating our business. With regards to carbon credits, if you look at it, 1/3 of our operation is not exposed to carbon credits. One-third of our operation is having free credits, and 1/3 is kind of exposed to market pricing. That's kind of the exposure we are having. We're not hedging that, but we're taking it as it comes. That market is, I think, under a significant amount of regulatory development with potentially going from 40% industry coverage to a much higher percentage with potentially speculative money coming in. We'll need to see how it goes instead of speculating, just being focused on our own business and our own operation. Great. Thank you. Our next question comes from the line of Ross Harvey from Davy. Please go ahead. Hi. Morning, Jourik and József. I just wanted to return to FY 2023, if possible. I know you say in the statement that you'll be operating full capacity. I'm just wondering, does this mean capacity will equal the FY 2020 levels? Given the fleet additions, and József, you mentioned the lease returns and the flexibility you have there, could capacity be more than FY 2020? Secondly, I might ask on the Ex-Fuel CASK. Obviously, there's a lot of factors around that. You have some benefits coming through on staff, benefits coming through on airports, maybe maintenance and D&A under pressure. Can you just talk about where the Ex-Fuel CASK level will normalize post-COVID and what factors are larger or smaller than the others? With regard to your first question, I think we are very keen on getting utilization back to previous standards at 12+ hours. Essentially, that means for fiscal 2023 that we want to operate the entire fleet of aircraft we have at that point in time with full strength, 12+ hours of utilization. In terms of capacity, we are expecting it to be 2019 level in terms of utilization, but in terms of seat capacity, obviously that would add the growth to it. We would be probably 30% up versus 2019. In terms of the Ex-Fuel CASK, Ross, yes, I think you're saying it in the right way. We obviously need to have all, let's say, lingering effects of COVID-19 kind of fully disappear. Restrictions. We need to be able to do the speed of the turnaround and the operation, et cetera. If all of that kind of comes in the right place, we find the right load factors, we should be steering the Ex-Fuel CASK very close to the FY 2020 levels. That's kind of our target. Yeah, thanks for that. One follow-up, if I may. Jourik, I noticed that the FX gains swung by about EUR 100 million between, or almost EUR 100 million between Q3 and Q4. You should get a gain in Q1 given the movement, but it's obviously sensitive. I'm just wondering, would you consider stripping this out of the underlying net income or would you consider additional hedging on this line? Just wondering, any thoughts on there would be helpful. Thanks. Actually, it's a good question. We have kind of stepped away from hedging as a company. We decided, with management, with the board, to no longer hedge any input costs. Not jet fuel. We decided not to hedge any currencies anymore, and we decided not to hedge any translational currency exposures. You're rightly pointing out that at this point in time, it's leading to increased volatility on the P&L. Again, if you would have hedged that, you would have had that volatility from a cash point of view. Imagine you would have hedged the dollar exposure on the balance sheet, we would have been looking at probably close to $100 million liquidity loss. We need to do what's right for the business. Hedging has an inherent cost. It's around 4% of the underlying, let's say, commodity or currency that you're hedging. If you would look at our exposures, that would probably mean if it truly is 4% and not more, around EUR 50 million per year. That's a very large cost for frankly, no benefit other than, let's say, some stability in earnings. Which from a balance sheet point of view, we just need to work more on natural hedging, which we're looking at. It's not something that we can switch on overnight, but there is things that we can do that we're looking at to get less exposed from a U.S. dollar point of view on the liability side, et cetera. We'll keep working on the natural hedge. We're a bigger company now. We're no longer an IPO-sized company. At that point in time, companies typically around IPO, it's good to have some stability in projections, in earnings, obviously. Critical to establish market credibility. Now, given that we do have the balance sheet and the strength on the balance sheet, we have stepped away from hedging in this environment, which is significantly more volatile from a trading point of view than it used to be. Great. Thank you very much for the detail, Jourik. Our next question comes from the line of Carolina Dores from Morgan Stanley. Please go ahead. Hi. Good morning, everyone. I have two questions. Looking at the changes in the fleet plan, you went down from 159 aircraft for the end of this fiscal year 2022 to 148. I guess a part of it's early return of leases and postponement of deliveries. I wanted to know if you could give us a color on savings and what has driven the postponement. It's just you're not going to use the capacity or there has been a delay at Airbus? Secondly, could you give some color on your negotiations with airports when you're resetting tariffs? Are you getting deals mainly for short-term slots or you're actually locking in better deals for the medium term? Thank you. Thank you for your questions. I think the way to look at the fleet plan is that this is an evolving line. This is where we are at right now, and we have rearranged some of the assumptions in a way. Are we with you? Yeah. I'm clear. I can hear you. Okay. That was just some incoming calls or something. You're going to see changes to it. This is what I'm trying to say, that this is today what you are seeing, but we are working on the fleet program, and obviously we are looking at each of the market opportunities we have been tapping into. We are looking at ways of best sourcing capacity for those market opportunities. I think this is as much as I can comment on the current fleet plan. Please just put some flexibility to the numbers, because that can change, not necessarily to lower numbers. With regard to airports, no, we are striking long-term deals here. I don't think we would ever open a base for getting attracted with a good deal for a year or two. We at least want to see five years as a horizon, we want to make sure that the economics of the deals remain effective for a longer period of time. That is the basis of our commercial dealing with airports. Okay, thank you. Our next question comes from the line of Andrew Lobbenberg from HSBC. Please go ahead. Morning, guys. Could you talk a little bit about the attitudes of the Eastern European governments towards the EU green certificate? Perhaps here in the U.K., we're very aware of the caution here, and we can see clearly the enthusiasm of Southern European states to open their markets. What are the attitudes out in Eastern Europe? Second question would be around EU ownership. Can you update us on where the EU ownership is perhaps now and then after the conversion of the Indig o tranche? On their call, Ryanair spoke of building their EU ownership to be majority EU ownership within 12 months. Are you seeing any need to match that commitment, or are you happy staying with your disenfranchising strategy? Then just as perhaps a short-term issue, the closure or the avoiding of Belarus airspace, is that giving you some longer routings on some of your flying? Okay. Thanks, Andrew Lobbenberg. With regard to governments in Central and Eastern Europe, I don't think they are much different from governments in other places in Europe. I think so far every government has been pursuing its own agenda, pretty much unrelated to neighbors and others. I think EU as a framework has kind of collapsed on the pandemic. Now the Green Certificate is an initiative trying to get control over matters, and we will see how successful that initiative is going to be. I don't think there is any resistance to that initiative in Central and Eastern Europe. I'm pretty sure if it makes sense, this is going to be supported. Clearly, there is one kind of hanging issue here that which vaccine is a qualifying vaccine. That may trigger some further debates, other than that, I think the willingness to play in is not geographically dependent. I don't think there is a particular Central and Eastern European interest here versus Western Europe with that regard. I think the bigger issue in my mind is that over the past 15 months, the EU has gone totally uncoordinated on pretty much anything related to the pandemic. That would be the first kind of major initiative. We shall see whether that succeeds or fails. What I'm hearing is that this is still kind of advisory as opposed to mandatory on countries, and I think we just need to learn how that's going to play out. Hopefully, it will work, and that will kind of reboost travel. We shall see. With regard to Belarus, we are very much un exposed. We don't fly the country. We have some overflights. Basically, those overflights at the moment are non-operational given the restrictions primarily in Russia. Once Russia is back, we may see more avoidance needed to be made in our route planning. At this point in time, it's almost negligible what we have. On the EU ownership, it is around 15%. Actually, on your question on Indigo, if they sell down, then obviously EU ownership goes up, and if there's a conversion back, then it goes down. It kind of moves always a little bit left and right. There's no major impact really here on this one. On your question on the EU ownership, yes, of course, we are also focused on that. We are trying to appeal more to European investors. Clearly, we're trying to manage the ownership and control regulation via disenfranchisement, as you know. On the lines of flying, yes, indeed, domestic typically is shorter stage length, and less domestic means that indeed the mix will increase again in terms of longer stage length. Our final question comes from the line of Muneeba Kayani from Bank of America. Please go ahead. Yes, good morning. Just a few follow-up questions. One, on the Indigo convertible shares to ordinary, why the decision to convert now? Two, on Abu Dhabi, now that you've been operating there, how has progress been so far, and how are the economics in Abu Dhabi so far compared to, say, the European network? Three, can you talk about on your U.K. plans, specifically on Gatwick and kind of what is your strategy at Gatwick at this point? Thank you. On Indigo, obviously the historic approach has always been for them. They basically sold down and then they converted. With the Brexit situation, basically the articles didn't allow that, but it is still in the benefit of everybody to have increased liquidity in the shares. The company has requested Indigo to convert their outstanding convertibles into ordinaries. Why now? Ideally, it would have coincided with when they sold down, obviously we are not aware when they are selling down. We as a company, had to look into the articles and how that made that possible, that just had a little bit of lead time. Typically, those events would coincide. Because of the articles, it was slightly deferred in terms of timing. Okay. With regard to Abu Dhabi, obviously Abu Dhabi remains a restricted market as we speak, although, there has been announcements made in Abu Dhabi how the country sees the reopening of the market, and I think we are gearing our operations accordingly. I think it's hard to kind of compare economics of the business to Europe. We are still in a very startup phase. At the moment, we are only operating five frequencies a week. That we'll ramp up quite quickly once the market reopens. We have made some really good progress in getting designations to markets in the sub-continent, in the Russia CIS frame, as well as some of the GCC countries. I think we'll have a really enhanced network coming out of the pandemic there. I guess once the market opens up, we have a much better ground to compare the performance of the market. Conceptually, strategically, I don't think anything has changed. We think it's the right move for the company. It is the right decision, and we just need to see the results coming out, based on our ability to essentially operate the airline, which has not really been the case to date. With regard to the U.K., especially Gatwick, as we have expressed before, we are keen on growing our presence in Gatwick. Nevertheless, that remains subject to slot rulings. At the moment, incumbent slots are protected by regulation. That kind of squeezes us and kind of closes the door for a bigger expansion in Gatwick. We have a one-aircraft base in Gatwick, and this is organic. Not related to slot alleviation. We shall see how the regulatory framework evolves and how airlines move on when the regulation changes and would create a different environment for Gatwick slots. For the time being, no one is moving because they don't have to. Thank you. I will now hand back to the speaker for any closing remarks. Well, ladies and gentlemen, thank you very much for your interest. We'll keep you posted on our developments. As said, I think we are very upbeat and very positive about our future outlook of the business. Nevertheless, short-term, the industry is fragile. The regulatory framework around the industry remains fragile. This is the situation we have to deal with, but I think we are building very robust competitive advantages during this period to come out as a better airline, as a stronger business. Thank you. Bye-bye. This now concludes our conference call. Thank you all very much for attending. You may now disconnect your lines.