Low-cost airline Wizz Air has reduced its projections to the range of €350–400 million, in an announcement that made its share price drop by 6.3%.
Hungarian low-cost airline Wizz Air has unveiled its financial results for the six months leading up to 30 September 2023, revealing profits of €400 million yet a reduced net income outlook in the range of €350–400 million.
The announcement, made on Wednesday, caused share prices to fall by 6.3%, according to Reuters.
The Hungarian company put its narrow forecast down to external factors such as macroeconomic uncertainty, infrastructure and supply chain issues “for which [the] company has limited visibility at this point in time”.
For example, the company was impacted by issues with RTX (RTX.N) engines, explaining that the engine manufacturers said in September that 600 to 700 engine units had to be grounded to be checked.
For Wizz Air, the checks meant the “grounding of 45 aircraft, on average, commencing 15 January 2024 and spanning 18 months”.
“We are narrowing our F24 net income guidance, initially set in June 2023, to a range of EUR 350-400 million,” said József Váradi, Wizz Air’s CEO.
Despite the difficulties faced by the company, Wizz Air “has the strategy and expertise to achieve our profitable growth ambitions,” Váradi added.
Expansion in Italy
Wizz Air – created in 2003 – carried over 33 million passengers, an increase of 25% compared to last year.
Moreover, the company announced in October an expansion in its route offering, the biggest push being to Italian destinations.
However, the company is facing a barrage of criticism regarding its customer service, with one survey going as far as ranking it as the worst airline for the way it deals with its clients.
Source: Euro News
