Wizz Air Shares Jump: Q3 Revenue Rises, Full-Year Guidance Steady

Wizz Air (LON: WIZZ) shares rallied over 8% at the open on Thursday after the company reported a robust third quarter for fiscal year 2026, exceeding revenue expectations despite ongoing challenges in the aviation sector.

The low-cost carrier's focused capacity deployment and Central and Eastern European (CEE) network expansion fueled the positive results.

Total revenue for the quarter reached €1,296.4 million, a 10.2% increase compared to €1,176.8 million in the same period last year. This growth was driven by a 12.5% increase in passengers carried, reaching 17.5 million. While the load factor saw a slight dip to 89.8%, the airline effectively managed to increase revenue.

EBITDA also saw a healthy rise, climbing 12.2% to €176.2 million, translating to a margin of 13.6%. However, the operating loss widened to €(123.9) million, impacted by higher depreciation charges related to aircraft maintenance. The net loss decreased significantly by 42.2% to €(139.3) million.

Wizz Air's cash position remains strong, increasing by 14.3% to €1,984.8 million. Net debt also increased slightly to €5,196.0 million, but the company's leverage ratio has improved. The company repaid its maturing €500 million bond in January 2026, while renewing its EMTN programme for another three years, demonstrating financial stability.

The airline maintained its position as the largest operator in the CEE region, with a market share of 26%. This strategic focus, combined with growth in key bases such as London, Rome, and Milan, underpins the company's performance. Ancillary revenue streams, like the “All You Can Fly” program, continue to contribute positively.

CEO József Váradi commented, “We continue to execute the commercial strategy we outlined earlier this fiscal year, focusing on fortifying our key bases and concentrating our efforts on network design across Central & Eastern Europe, Italy and London.”

Looking ahead, Wizz Air anticipates full-year fiscal 2026 capacity (ASKs) to grow by approximately 10% year-over-year. While the airline expects flat year-over-year unit revenue, total unit costs may see modest inflation. Net income for the full year is projected to be in the range of +€25 to -€25 million.