Wizz Air shares plunge 24% on weak FY26 outlook, EBITDA miss

Published 05/06/2025, 08:44
© Reuters.

Investing.com -- Shares of Wizz Air sank over 24% on Thursday following disappointing early guidance for the airline’s fiscal year 2026, along with an EBITDA miss.

Wizz Air reported fiscal year 2025 group sales of €5.27 billion, against consensus of €5.30 billion. EBITDA came in at €1.13 billion, missing consensus of €1.20 billion. 

Net profit for fiscal year 2025 was €214 million, exceeding consensus of €155 million, and company guidance of €125-175 million. 

This net income beat was attributed to larger than expected income tax credits. The company’s net debt to EBITDA stood at 4.4x, compared to 4x at the third quarter of fiscal year 2025.

For the first half of fiscal year 2026, Wizz Air anticipates "low to mid-teens" Available Seat Kilometers (ASK) growth, while consensus projected 17%. 

The guidance for the full fiscal year 2026 indicates ASK growth of 20%, slightly above the consensus of 19%. Load factor is guided to increase by 2%, exceeding the consensus of a 0.2% increase. 

Revenues are expected to be "higher than FY25," contrasting with a consensus of an 18% increase. 

Cost per Available Seat Kilometer (CASK) excluding fuel is projected to be "slightly higher" due to increased depreciation and amortization, and maintenance costs, diverging from a consensus expectation of a 6% decrease. Fuel CASK is anticipated to be "better," compared to a consensus of an 11% decrease.

In fiscal year 2025, Wizz Air’s Revenue per Available Seat Kilometer (RASK) increased by 3.9%. CASK rose by 10.9% year-over-year, while CASK excluding fuel increased by 19.9%. Fuel CASK decreased by 3.1%. The load factor improved by 1 percentage point to 91.2%. ASKs saw a marginal decrease of 0.1%.

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