Wizz Air Holdings Wizz Air sees F26 profits to be below guidance

Wizz Air Holdings Wizz Air sees F26 profits to be below guidance

Wizz Air Holdings PLC Reports FY2026 Profit Outlook Below Guidance Amid Operational Challenges

Wizz Air Holdings PLC (WI2.BE) has revised its full-year profit expectations for fiscal 2026 (F26), with projected earnings now falling short of prior guidance due to ongoing operational headwinds. The airline reported Q1 F26 revenue of €1.43 billion, a 13% year-over-year increase, with EBITDA rising 9.4%. However, management withdrew full-year guidance, citing uncertainties from geopolitical events, engine groundings, and the exit from Abu Dhabi operations.

The airline's third-quarter results, released in December 2025, showed a 10% revenue increase to €1.3 billion, alongside a narrowed net loss of €139.3 million—a 42% reduction from the prior year. Despite improved performance, Wizz Air now forecasts flat year-over-year unit revenue for F26, with total unit costs expected to rise modestly due to inflationary pressures in navigation fees, maintenance, and depreciation. Management anticipates a net income range of €-25 million to €25 million for F26, significantly below the €213.9 million net profit recorded in F25.

Operational challenges persist, including the grounding of 33 aircraft as of December 2025 due to Pratt & Whitney engine issues. While the number of grounded planes has decreased from 40 in December 2024, management targets an average of 20–25 grounded aircraft in F27. Capacity growth for F26 has been scaled back to 10%, down from previous 20% targets, as the airline prioritizes cost efficiency.

The stock initially rose over 5% following the Q3 results, driven by improved guidance and optimism about fleet recovery. However, analysts caution that profitability remains constrained by elevated costs and competitive pricing pressures in the European low-cost market. With summer bookings tracking ahead of 2025 levels, the airline's ability to execute its cost-reduction plans and stabilize unit revenues will be critical in determining its path to profitability.

[https://finance.yahoo.com/quote/WI2.BE/earnings/WI2.BE-Q1-2026-earnings_call-353614.html]: Yahoo Finance
[https://www.morningstar.com/news/alliance-news/1769684760677454300/wizz-air-shares-rise-as-cuts-3rd-quarter-net-loss-summer-bookings-up]: Alliance News
[https://finance.yahoo.com/news/wizz-air-rallies-hope-not-212726132.html]: Reuters, Yahoo Finance