Wizz Air Holdings Plc plummeted 26% in early trading after discount airlines reported revenues that were not giving guidance citing low visibility.
The drop marks the sharpest decline for Hungary’s low-cost carriers in over five years. Stocks fell 19% at 1,350p as of 8:28am in London.
Wizz reported net profit of 225.8 million euros ($258 million) for the fiscal year ending in March, losing its target of 250 million to 300 million euros. The company said operating expenses excluding fuel increased almost 19% to 3.3 billion euros. This is a number that Panmure Liberum analysts called “amazing” considering Wizz’s capabilities growth.
The airline expects 42 aircraft to be grounded at the end of March, with around 34 planes on the ground by the end of the first half of 2026.
Wizz is one of the airlines that was forced to temporarily ground the Airbus SE narrowbody jet for the repairs required with the Pratt & Whitney GTF engine. This situation has impacted the carrier’s growth plans and final lines as they wait for the turbine to be removed and inspected.
“The impact of GTF-related grounding has long-term negative impacts on unit costs,” said Gerald Khoo, analyst at Panmure, in a memo. The increase in non-fuel costs is “worse than previous comments, and it’s a shame for airlines with 20% capacity growth.”
Wiz is storing spare parts and engines to compensate for the grounded units, the company said. Chief Executive Jozsef Varadi said Thursday that 2027 will be “a big turning year.” Until then, engine issues will remain with the company, he said.
This story was originally featured on Fortune.com.
