Operating across multiple jurisdictions and currencies, Wizz Air, like many multinational corporations, faces “currency mismatch” when intercompany payables and receivables are denominated in different currencies. This can contribute to FX-driven earnings volatility and added operational complexity for treasury teams managing cross-border flows. To manage this risk, companies often rely on traditional netting solutions, which consolidate intercompany payables and receivables to reduce foreign currency transaction volumes. However, because these solutions depend on periodic cycles and timing, they may inadvertently lock in realized FX gains or losses and limit flexibility.

To address these challenges, Wizz Air adopted J.P. Morgan Payments’ virtual netting solution, enabling cashless, invoice-by-invoice settlement through virtual account structures. Rather than grouping invoices into netting cycles or physically moving funds between entities, group companies settle invoices individually using virtual accounts provided by the in-house bank in each currency. Standard Enterprise Resource Planning (ERP) payment-run operations are then used to settle open invoices without requiring intercompany cash transfers through external banks.

This model replaces invoice aggregation and the traditional netting cycle while maintaining streamlined reconciliation through individual invoice payments.

By implementing virtual netting, Wizz Air benefits from:

• Automated, invoice-by-invoice settlement of intercompany invoices

• Centralized visibility into group-wide FX exposures and funding positions

• Reduced manual processing and improved FX efficiency

• Support for more streamlined account structures across entities

“Cashless, invoice-by-invoice virtual netting, backed by virtual accounts and automated funding, eliminates realized FX on intercompany trades, re-centers risk at the IHB and stops paying banks to move their own money. That helps deliver hard savings and radical simplification that fully aligns with our ultra-low-cost carrier principles.” – Gabor Bojtos, Head of Treasury at Wizz Air Group

The solution enhances the airline’s in-house banking model, enabling treasury teams to monitor and manage exposures more dynamically while improving operational efficiency.

“Corporate treasurers today are navigating increasingly complex, multi-currency environments. Virtual netting provides a more flexible framework to manage intercompany flows, reduce friction and deliver clearer visibility into FX exposure, helping clients like Wizz Air modernize treasury operations.” – J.P. Morgan Payments

Virtual netting builds on J.P. Morgan Payments’ broader liquidity and risk management capabilities, including virtual account management and integrated FX solutions. As companies optimize cross-border operations, the solution offers an additional tool to reduce volatility and streamline internal settlement processes.