Reality3 Jul 2025 14:01
Although it may be getting boring, I will repeat my opinion once again. I believe that in order to finance the necessary investments, it is necessary to obtain another source of financing. A drop in inflation and, consequently, interest rates below 3% in the perspective of the next few 5 years is unlikely. Fiscal burdens and various pseudo-ecological taxes are growing and will continue to grow. Even in a very optimistic scenario, Wizzair is not able to generate the appropriate cash flows to ensure this financing. In addition, a growing group of investors is becoming impatient, waiting for the announced for years: improvement of indicators and dividend payment. So, for me, stronger external financial support is becoming a necessity. And this means either a directed issue of shares or a loan with an option to exchange for shares. Both options at a large discount to the share price on the LSE. The later the board decides to do this, the lower the issue price will be and the greater the dilution of shares resulting from the size of new issue. Of course, bankruptcy can also be declared, but who will buy it? Potential European buyers would be interested only in the small part of the fleet owned by Wizzair and with some routes. Personel will run away to them on its own. So a purchase aimed at the Asian or African market is at stake, and of course Russia, which would very willingly take everything that flies and that Wizzair owns. Although of course when I talk about Russia, I mean it as a joke - because even after the war, the largest airlines will not be able to afford such purchases for a long time and no one will endure sanctions for a long time without Russia's defeat.