Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Panmure Liberum assigns SELL with a target price of AUD 20.58, implying -19.16% downside.

  • Wizz Air posts 11% growth in capacity and a 9.3% rise in EBITDA in Q1 FY26.

  • Operating profit declines amid elevated costs and GTF engine-related aircraft groundings.

Wizz Air Holdings Plc (LSE:WIZZ), one of Europe’s fastest-growing and most sustainable low-cost airlines, is under fresh scrutiny as Panmure Liberum assigns a SELL rating on the stock. The brokerage has set a price target of AUD 20.58, representing a 19.16% downside from the current trading level, raising questions about near-term profitability and operational challenges facing the carrier.

Q1 FY26 Results 

Wizz Air's latest quarterly report, covering the three months ended June 30, 2025, delivered a mixed picture. The airline reported ASK (available seat kilometre) capacity growth of 11% YoY, carrying 17 million passengers, an increase from 15.3 million a year earlier. The load factor remained high at 91.1%.

Total unit revenue (RASK) increased 2.1% YoY to €4.41 cents, supported by modest improvements in both ticket and ancillary revenue streams. EBITDA rose by 9.3% to €300.2 million, with margins expanding to 21.0%. However, operating profit declined to €27.5 million, down from €44.6 million in the same period last year.

The dip in profit was largely attributed to increased airport, handling, and en-route charges, as well as higher depreciation and ongoing challenges related to GTF engine-related aircraft groundings.

Recent Updates

As of June 30, 2025, 41 aircraft remained grounded, with minimal improvement from 46 a year earlier.

The company recently signed a new agreement with Pratt & Whitney for the PW1100G-JM engines and long-term suppor.

On July 14, 2025, Wizz Air announced a strategic realignment with the suspension of its Abu Dhabi operations, citing a sharpened focus on core European markets.