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Wizz Air Navigates Geopolitical Headwinds, Shares Edge Higher

Sam Boughedda trader
Updated 4 Aug 2025

Wizz Air Holdings (LON: WIZZ) reported passenger statistics for July 2025 on Monday, showcasing growth tempered by external challenges.

The airline revealed that during the month, it carried 6.35 million passengers, a 6.8% year-on-year increase.

Shares in Wizz Air closed at 1,253.00p on August 1, 2025, after trading in a daily range of 1,225.00p to 1,266.00p. The stock has displayed volatility recently, characterized by a sharp intraday drop following Q1 results, followed by a strong rebound the day after.

On Monday, Wizz Air shares are up more than 1% at 1,268p.

July's passenger numbers reflect a 7.9% increase in seat capacity, resulting in a load factor of 92.8%. The figure is down 1.0 percentage point from the 93.8% recorded in July of the previous year.

The company attributed the dip to the ongoing geopolitical crisis in the Middle East and logistical difficulties arising from cancellations related to Tel Aviv flights.

Meanwhile, the company reported a further decline in CO2 emissions per revenue passenger kilometre (RPK), down 1.8% year-on-year to 50.9 grams per RPK. 

Despite operational successes, Wizz Air faces headwinds. The airline recently shelved its Abu Dhabi hub plans.

The firm cited geopolitical instability leading to airspace closures, extreme heat impacting engine efficiency, and regulatory hurdles limiting route permissions. 

Furthermore, challenges related to Pratt & Whitney's geared turbofan engines have weighed on the stock.

First-quarter 2026 financials showed revenue up 13.4% year-on-year to €1.428 billion and EBITDA increasing 9.3% to €300.2 million. However, operating profit declined by 38.3% to €27.5 million, primarily due to high depreciation costs associated with the grounded aircraft

Analyst Summary: Bull and Bear Cases

Bull Case:

  • Strong passenger growth indicates continued demand for Wizz Air's low-cost services.
  • Industry-leading CO2 emissions performance appeals to environmentally conscious investors.
  • Recent rebound in share price suggests positive momentum.

Bear Case:

  • Geopolitical instability and operational challenges impact load factors and profitability.
  • Grounded aircraft due to engine issues.
  • Short-term technical indicators suggest potential downside risk.

 

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples. 
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