ii view: Wizz Air shares take off despite Iran war uncertainty
Significantly underperforming shares of rival easyJet year-to-date. Analyst Keith Bowman assesses prospects.
12th June 2026 12:30
by Keith Bowman from interactive investor
Full-year results to 31 March
- Revenue up 8% to €5.69 billion (£4.89 billion)
- Adjusted profit (EBITDA) up 16% to €1.32 billion
- Operating profit down 17% to €139.7 million
- Net debt down 0.3% to €4.94 billion
Chief executive József Váradi said:
"F26 has been a year of relentless focus on our strategy and aim to be the reliable travel partner of choice across Central and Eastern Europe, and key markets across the whole European continent.
“The actions taken during F26 have further strengthened our resilience and the foundations of our business. With a clear strategy, a highly efficient operating model, a young fleet and financial resilience we are well positioned to deliver sustainable growth and create value over the long term.”
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ii round-up:
Eastern Europe focused carrier Wizz Air Holdings (LSE:WIZZ) offered no forecasts for the year ahead given the ongoing war in the Middle East, but detailed underlying signs of improving financial and operational performance.
Passenger numbers up 10% to 69.7 million over the full year to late March pushed revenues up 8% to €5.69 billion (£4.89 billion). Adjusted profit climbed 16% to €1.32 billion with the group’s leverage, or net debt-to-adjusted profit ratio falling to 3.7 times from 4.4 times the year before. Planes grounded due to ongoing Pratt & Whitney engine inspections totalled 30, down from 42 in late March 2025.
Shares in the FTSE 250 company rose as much as 11% in UK trading having come into these latest numbers news down by close to a quarter so far in 2026. The FTSE 250 index is up 4% year-to-date, while easyJet (LSE:EZJ) has fallen by just under a tenth.
As of early June, Wizz operates a fleet of 267 Airbus A320 and A321 aircraft. Following the war in Iran in late February the group suspended all Middle East flights, accounting for around 5% of total seating, although flights to Tel Aviv resumed in late May.
Planes grounded because of Pratt & Whitney engine inspections are expected to total between 15 and 20 come March 2027, falling to zero by the end of next year.
Wizz Air’s net debt fell 0.3% year-over-year to €4.94 billion. Operating profit fell 17% to €139.7 million, mainly due to higher maintenance and depreciation costs as older aircraft exit the fleet.
Broker UBS reiterated its ‘buy’ rating on the shares post the results, highlighting a fair value of £14.30 per share. First quarter results are scheduled for 6 August.
ii view:
Following the airline’s first flight in 2004, Wizz today employs around 9,000 people. The carrier continues to target an expansion of its aircraft fleet to 383 planes come its financial year 2033. Earlier this financial year Wizz made a significant adjustment to its delivery schedule, with 88 A321neos being deferred out of this decade and extended to the 2033.
For investors, uncertainties regarding conflict in the Middle East continue to cloud the outlook. Group net debt of €4.94 billion compares to a stock market value of £1.17 billion. Challenges for industry suppliers such as Pratt & Whitney and Boeing are hindering efficient airline operations, while the many factors outside of management’s control such as the weather and air traffic control strikes cannot be forgotten.
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More favourably, a one-tenth increase in annual passenger numbers suggests robust consumer demand. Grounded aircraft from challenges at Pratt & Whitney continue to decline. Fleet expansion and therefore potential profits are being driven, while actions to hedge against volatile fuel and currencies remain part of its overall strategy.
On balance, an expanding fleet of more environmentally friendly planes potentially fuels growing profits, and shares have rise to a three-month high. However, more cautious investors may demand further declines in group debt and better news on the Middle East conflict before climbing aboard.
Positives:
- Fuel and currency hedging initiatives
- Positive environmental credentials
Negatives:
- No dividend payment
- Many factors outside of management’s control
The average rating of stock market analysts:
Hold
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