4th Feb 2020 09:25
(Alliance News) - JP Morgan Securities PLC on Tuesday confirmed Indigo Partners LLC has sold about GBP500 million in Wizz Air Holdings PLC stock, as the budget airline reported a double-digit rise in passenger traffic for January.
Indigo Hungary LP and Indigo Maple Hill LP, investment funds managed by Indigo Partners, sold 12.5 million shares in Wizz Air at 4,015 pence per share, raising just under GBP500 million.
Shares in Wizz Air were trading down 1.1% in London on Tuesday morning at 4,115.00p.
Following the placing, Indigo will hold 2.5 million shares in the airline. Prior to the placing, the company held 15.0 million shares, which represented a 21% stake.
Wizz Air will not receive proceeds from the placing, as it was of existing shares.
It noted the sale, and the fact that: "Indigo shareholders are non-qualifying nationals and therefore the placing will, at a minimum, maintain the company's current level of non-qualifying national ownership (but more likely increase qualifying national ownership, subject to allocations under the placing)."
Qualifying nationals are from the European Economic Area and Switzerland, meaning UK shareholders don't qualify following Brexit last Friday. Local share ownership rules apply to airlines operating in the EU.
Turning to the airline's January traffic figures, Wizz Air reported a capacity increase of 20% year on year to 3.5 million from 2.9 million, while passenger numbers increased by 23% to 3.2 million from 2.6 million.
Load factor edged higher to 90.2% from 88.1%.
Available seat kilometres was up by 20% in January year-on-year to 5.7 million from 4.8 million, as revenue passenger kilometres rose 22% to 5.2 million from 4.2 million.
On a rolling annual basis, Wizz Air's capacity was up by 17% to 43.1 million, passengers rose by 19% to 40.3 million, and load factor to 93.7% from 92.4%.
Over the rolling 12 month period, available seat kilometres grew by 19% to 70.4 million, and revenue passenger kilometres by 20% to 66.1 million.
For January, Wizz Air reported that its carbon dioxide emission rose by 21% year on year to 306,136 tonnes, and by 17% to 3.8 million tonnes on a rolling annual basis.
During the month, Wizz Air added 18 new routes, including five in Albania and Austria and three in Bulgaria. Separately, the airline will launch four new routes in Russia, out of Pulkovo Airport in Saint Petersburg, starting in the summer.
By Paul McGowan; [email protected]
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