Cautious consumers disappoint EU airline industry
We revisited our model following Wizz Air’s fiscal 2025 Q1 earnings results.We cut our 12m TP to 25 GBP/sh from 33 GBP/sh, implying a 69% upside
potential. Lowered TP reflects the softer than expected fare environment
and the downgraded net profit guidance of the Company. The management
now sees this in the range of between EUR 350-450mn, but our forecast is
slightly below the lower end of the range at EUR 344mn, down by 37%
compared to our previous forecast. Going forward, we are very cautious
over the mid-term profitability as consumers’ behaviour changed
significantly as they have started to pile up savings instead of consumption.
Wizz Air Holding is a European airline. As of Mar 31 2017, Co. provided more than 500 routes from 28 bases, connecting 141 destinations across 42 countries. Co. has two reportable segments: the airline and the tour operator business units, marketed under the Wizz Air and Wizz Tours brand names, respectively. Wizz Air sells flight tickets and related services to external customers and, to an extent, to Wizz Tours. Wizz Tours sells travel packages to external customers covering the network of Wizz Air.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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