Wizz Air Rises on Fiscal 2026 Profit Beat; Outlook for Next Year Withheld Amid Middle East Crisis
Wizz Air (WIZZ.L) shares rose more than 6% in early Thursday morning trade after it reported better-than-expected profit for fiscal 2026, while withholding guidance for the next year due to a "lack of visibility" across its trading seasons and the ongoing US-Iran conflict.The budget airline said the crisis in the Middle East led to several "significant one-off" headwinds in the 12 months ended March 31, 2026, including the forced cancellation of Tel Aviv and other Middle East routes during the 2025 peak summer period and the cancellation of Middle East and Cyprus routes in March 2026.Consequently, fiscal 2026 profit attributable to owners plunged year over year to 2.2 million euros from 225.8 million euros. While earnings diminished 99.4%, Wizz Air surpassed expectations for losses of 75 million euros by RBC Capital Markets and 50 million euros by Visible Alpha consensus.Total revenue of the carrier increased annually to 5.69 billion euros from 5.27 billion euros earlier, coming "broadly in line" with RBC and Visible Alpha estimates of 5.78 billion euros and 5.76 billion euros, respectively, amid lower fuel and higher other income. The company also carried a record 69.7 million passengers, with seat capacity up 10.5% to 76.9 million seats.While Wizz Air did not provide a financial outlook, it projected a reduction in GTF engine-related groundings to between 15 and 20 aircraft at the end of fiscal 2027, from 30 in the reported period. The groundings are expected to be zero by the end of the calendar year 2027."We are cautious on the outlook into FY27E given poor earnings quality in FY26, higher exposure to the Middle East and jet fuel, low margins, and less scope to pass on fuel headwinds in short-haul. Geopolitics offers both elevated upside potential and downside risk," RBC Capital Markets said.
