Wizz Air Earnings: Will Headwinds Weigh on Summer Bookings?

Low-cost airline Wizz Air (LON: WIZZ) is set to publish its full-year 2024 results on Thursday, May 23, and with the company having faced some headwinds, all eyes will be on summer bookings. 

Wizz Air Guidance

In its F24 post-close trading statement, Wizz said it expects to report net income in the range of €350 million to €370 million for the full year, which is in line with guidance.

Total revenue is expected to be between €5,050 million and €5,100 million, reflecting stronger ticket revenue and pricing. However, this is partially offset by softer ancillaries in H2 due to the combination of network-related impacts from geopolitical events.

Looking ahead, Wizz reiterated its expectation of roughly flat year-on-year capacity growth for the first half and full year 205. 

Going into the summer of 2024, Wizz is trading positively, with selling load factors and pricing trending higher year-on-year in the first two fiscal quarters. 

“Based on improved operational metrics, current trading dynamics, and continuing capacity constraints in the wider market, the company expects to expand operating margins, increase operational cash, and further reduce net debt in F25,” said Wizz.

Wizz Air Headwinds

While the airline remains confident, it has had to deal with some headwinds impacting the business. 

The stock is down 10% so far in 2024 as geopolitical unrest and uncertainty, as well as the Pratt & Whitney GTF engine recall and air traffic control disruptions, have impacted the business. 

As Bloomberg stated, “the grounding of 45 of its planes at the end of March could hamper summer bookings.”

Analyst Ratings

In a note earlier in the year, analysts at Bernstein said they are bullish on Wizz Air, maintaining an Outperform rating on the stock. They see it as having the potential for long-term value as well as structural growth despite challenges arising from GTF groundings.

After downgrading the stock to Underperform in March, Exane BNP Paribas changed its mind once again in April, lifting the Wizz Air rating to Neutral with a 2,500p price target, citing the company's improving earnings outlook for the upgrade.