Wizz Air (WIZZ) has reported a 21% increase in passenger numbers, or 5.5 million passengers’ year-on-year compared to September 2022, at a load factor of 92.4%.

The European budget carrier also announced a new route from Bucharest to Thessaloniki, Greece starting at the end of October.

Wizz shares were unaffected by the latest numbers for September trading steady at £19.20. But over the past six months the European budget carrier shares have fallen over 32% making it one of the worst FTSE 350 performers.

The dramatic fall in share price can be attributed to several possible reasons – strike action at air traffic control, the Greek wildfires disaster which not only affected Wizz Air but other low-budget airlines and the GTF (geared turbofan engine) issue.

On 26 July, US aerospace manufacturer Pratt & Whitney  announced that around 1,200 of the company’s 3,000 GTF engines would have to be recalled for further inspections, as a result Wizz Air had to cut its capacity by up to 10% which may last for the rest of 2023 and into 2024.

Analyst Muneeba Kayani at Bank of America Securities said that Wizz Air might be entitled to ‘big compensation from Pratt & Whitney of multiple 100s of million US dollars.’

However, because of the GTF engine issue BofA have lowered their full year 2024 and 2025 net income estimates ‘by 20% to reflect slower capacity growth and a higher fuel price.’

LOWER CO2 EMISSIONS

As well as announcing annual passenger numbers for September, the Central European budget carrier also announced its latest CO2 emissions statistics which were the ‘lowest among competitor airlines’ with 51.6 grams per passenger/KM for the rolling 12 months to 30 September 2023.

For the month of September CO2 emissions were 51.0 grams per passenger/km – 7.1% lower than the same month last year.

József Váradi, Wizz Air CEO is optimistic for 2024, he said previously: ‘The company’s net profit is expected to be in a range of €350 million and €450 million in full year 2024, subject to the absence of adverse exogenous events such as an incremental impact from the war in Ukraine, delivery delays or similar.

‘This guidance is dependent on the revenue performance for the all-important summer period as well as the second half of full year 2024, a period for which the company, like most airlines, currently has limited visibility.’

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