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Investing.com -- Shares of Wizz Air (LSE:WIZZ) fell sharply by 12% today following the company’s third-quarter financial results, which revealed a net loss significantly wider than market expectations.
The low-cost airline reported a net loss of €241 million for the third quarter of fiscal year 2025, compared to a loss of €105 million in the same period last year. This loss included a substantial non-cash foreign exchange (FX) loss of €159.5 million due to the strengthening of the U.S. dollar during the quarter.
Analysts had anticipated a smaller net loss, with Visible Alpha consensus predicting a €77 million loss. The forecast had accounted for non-cash FX translation losses, but the actual figures reported by Wizz Air far exceeded these estimates.
The airline’s revised guidance for full-year 2025 now stands at a net profit of €125 million to €175 million, taking into account current FX rates. This is a significant reduction from the previously forecasted range of €350 million to €450 million.
Even without unrealized FX losses in the second half of the year, the revised guidance would have been lowered to €250 million to €300 million.
The updated guidance falls below the Visible Alpha consensus of €237 million for the fiscal year 2025 earnings. Despite having delivered approximately €74 million in net profit during the first nine months of fiscal year 2025, Wizz Air faces the challenge of achieving profitability in the fourth quarter without the benefit of Easter timing.
RBC analysts commented on the situation, stating, "Wizz Air is set to deliver materially lower net profit than initially guided in FY25E, with the downgrade relative to consensus expectations driven by worse than expected non-cash FX losses.
Beyond FX, the downgrade to Wizz Air’s previous FY25E expectations is also driven by ex-fuel CASK pressure, where we expect a brighter outlook from FY26E as some costs incurred in FY25E fade, and Wizz Air returns to growth."
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