Wizz Air Shares Make New Low Before Support Steps In – Abu Dhabi Venture To Shutter

Wizz Air shares (LON:WIZZ) have been navigating a challenging flight path in recent months, with its share price hitting a new low of 1,011p this morning, before staging a rebound.

With Wizz Air's share price having moved 4.5% off the lows, for a 2.7% gain on the day so far, the price action raises questions about whether the psychologically significant 1,000p level will provide sufficient support, or if further downside may await over the horizon.

The carrier today confirmed it is to cut their Abu Dhabi venture, reducing costs, and improving sentiment.

Down 26% since the start of the year, and 52% over the past 12 months, the decline has been worrying for holders who have seen Wizz shed almost 80% of it's market cap in 4 years.

The airline's recent struggles can be attributed to significant operational challenges. Last month, Wizz Air reported a 61.7% drop in annual operating profit, amounting to €167.5 million for the financial year ending March 31. This fell short of analyst projections of €246 million. The primary culprit behind this decline is the grounding of over 40 aircraft due to ongoing Pratt & Whitney engine repair issues. By Mar 9th, 37 planes were grounded, with 34 expected to remain out of operation into the first half of FY2026. CEO Jozsef Varadi has highlighted the prolonged engine repair times of ~300 days as a significant operational challenge.

The financial impact of these groundings is substantial. Maintenance, material, and repair costs have risen by nearly 16%, and the need to lease replacement aircraft has further eroded earnings, despite strong passenger growth of 63.4 million and reduced fuel expenses. The crisis stems from Pratt & Whitney engine recalls linked to manufacturing issues, severely disrupting Wizz Air more than any other European airline and leading to two profit warnings in the past year. Although full-year revenues grew slightly by 3.8% to €5.3 billion, the outlook remains uncertain.

Adding to the uncertainty, Wizz Air has withheld forward guidance due to ongoing engine issues and geopolitical risks. The airline expects around 34 grounded planes through mid-2026 and predicts continued disruption until 2027, which is anticipated to be a recovery year.

From a technical perspective, the area around 1,000p is likely to provide some friction, and act as a psychological support level. If this level holds, a technical rebound remains possible. However, if broken, further downside could be on the cards based on the current trend.