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Investing.com -- Wizz Air (LON:WIZZ) shares fell over 3% on Tuesday as investor sentiment weakened following the airline’s latest passenger data release.
Analysts at Jefferies pointed to concerns over the company’s ability to meet consensus growth expectations, particularly in light of upcoming seasonal headwinds.
The budget airline reported a 5.1% increase in February passengers, reaching 4.6 million, alongside a load factor improvement of 1.8 percentage points to 91.8%.
“To reach consensus (Visible Alpha), this implies passenger growth +8.2% in March. With the industry flagging Easter headwinds in March, we see very marginal risk to FY25 passenger consensus today,” Jefferies said.
Despite an increase in planned seat capacity for March, the modest February growth raised concerns that Wizz Air may struggle to reach its full-year targets.
While the impact on overall revenue projections is marginal, Jefferies warned that even slight shortfalls in passenger numbers could weigh on market sentiment.
Adding to the pressure, Jefferies maintained its “underperform” rating on Wizz Air, with a price target of £10.70—roughly 32% below the current share price.
The brokerage cited risks related to fleet deliveries, cost-saving initiatives, and the speed of reintroducing grounded aircraft.