Wizz Air Shares Fall As June Passenger Numbers Edge Lower YoY

Shares of low-cost airline Wizz Air (LON: WIZZ) dipped more than 2% at the start of Tuesday's session after the company revealed its passenger numbers fell in June.

Wizz Air revealed that for June 2024, passenger numbers were 5,305,676, down -0.2% from the 5,314,584 reported during June 2023.

Capacity operated during the month was up 0.4% year-on-year, with Wizz Air highlighting the continuing impact of GTF engine-related groundings as a factor impacting its performance during the month.

June's load factor was down -0.6 percentage points year-on-year (at 91.7%), with Wizz stating it reflects the company's focus on overall revenue management. Seat capacity for the month rose 0.4% to 5,786,609.

At the time of writing, Wizz Air shares are trading at 2,098p, down -2.4% from Monday's close. So far this year, Wizz Air shares have fallen by -4.8%.

Over a week ago, analysts at Barclays downgraded Wizz to Underweight from Equal Weight with a new price target of 1,950p, up from 1,900p a share. The bank said European low-cost carrier revenue trends are less dynamic than anticipated. Barclays sees less weakening for upscale carriers and more for ultra low cost carriers.

Earlier this year, analysts at Exane BNP Paribas cut Wizz Air to Underperform from Neutral with a 2,200p price target. The firm highlighted supply constraints, telling investors in a note that they are not diminishing for global airlines.