Wizz Air Holdings Plc plunged 26% in early trading after the discount airline reported earnings that missed estimates and refrained from providing guidance, citing poor visibility.
The drop marks the steepest decline for the Hungarian low-cost carrier in more than five years. The shares were down 19% at 1,350 pence as of 8:28 am in London.
Wizz reported net income of €225.8 million ($258 million) for the year ending March, missing its target of €250 million to €300 million. The company said operating expenses excluding fuel rose by almost 19% to €3.3 billion, a figure that analysts at Panmure Liberum called “staggering” given Wizz’s capacity growth.
The airline said 42 aircraft were grounded at the end of March and it expects to have about 34 planes on the ground by the end of the first half of fiscal 2026.
Wizz is among the airlines that have been forced to temporarily ground Airbus SE narrowbody jets because of repairs required on Pratt & Whitney GTF engines. The situation has impacted carriers’ growth plans as well as their bottom lines as they wait for the turbines to be removed and inspected.
“The impact of the GTF-related groundings are having a prolonged adverse impact on unit costs,” Gerald Khoo, an analyst at Panmure, said in a note. The increase in non-fuel cost is “worse than previous comments and disappointing for an airline with 20% capacity growth.”
Wizz has been hoarding spare parts and engines to make up for the grounded units, the company said. Chief Executive Officer Jozsef Varadi said on Thursday said 2027 “will be the big turning year.” Until then, the engine issue will remain with the company, he said.
This story was originally featured on Fortune.com
