Wizz Air falls 4.7% after issuing profit warning

Wizz Air falls 4.7% after issuing profit warning

Wizz Air’s shares fell 4.7% following the airline’s revised profit outlook for fiscal 2026, citing ongoing operational challenges and external disruptions. The company reported a quarterly operating loss of €123.9 million, wider than the €110 million loss in the prior year, despite a 10% revenue increase to €1.3 billion. Persistent issues with Pratt and Whitney engine failures have grounded 33 aircraft as of December 2025, though this represents an improvement from 40 grounded planes in the prior year. Management now expects an average of 20–25 grounded aircraft in 2027, up from earlier guidance of fewer than 20.

The airline revised its full-year 2026 net income guidance to a range of ±€25 million, contingent on fuel prices, currency fluctuations, and seasonal demand. This update reflects heightened exposure to the Middle East crisis, which has disrupted fuel supply chains and increased operational costs. While Wizz Air raised its revenue forecast to flat year-on-year growth from a low-single-digit decline, capacity expansion is now capped at 10%, half the previously targeted pace, due to maintenance constraints.

Investors reacted cautiously to the mixed signals, with shares rising sharply in late 2025 on improved grounding forecasts but now retreating amid profit uncertainties. CEO Jozsef Varadi emphasized progress in fleet recovery, aiming to return all aircraft to service by 2027, but acknowledged elevated costs from leasing, maintenance, and navigation fees will persist. Analysts note that while operational stability has improved, Wizz Air remains vulnerable to macroeconomic headwinds and competitive pressures in the European low-cost sector.