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Wizz Air to undershoot reduced guidance suggests Citi

Published 08/08/2024, 13:32
© Reuters Wizz Air to undershoot reduced guidance suggests Citi
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Proactive Investors - Wizz Air Holdings PLC (LON:WIZZ) is in danger of undershooting its own recently reduced guidance this year, analysts at Citi predict.

The US bank sees the ongoing grounding delays caused by the GTF engine issue also affecting its growth trajectory.

In the current year, Citi has reduced its net income forecast to €345 million, which is below the company guidance of €350m to €450m.

Lower pricing (partly offset by lower fuel costs) is behind the reduction, with pricing (RASK) to be up c.5% year-on-year and unit capacity (CASK ex Fuel) to be up c.8%.

Based on the revised estimates, Citi has lowered its target price to £13, though in the near term, the loss of market opportunity and higher costs is likely to be partly compensated by Pratt & Whitney.

Shares fell 3.7% to 1,357p.

Read more on Proactive Investors UK

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