Wizz Air Share Price Recovery Potential Won’t be Achieved in FY26 Says Analyst

RBC Capital downgraded Wizz Air (LON: WIZZ) to Sector Perform from Outperform in a note Thursday, warning that the airline’s recovery potential is unlikely to be realised in fiscal 2026.

The downgrade comes after Wizz Air shares plunged 27.9% on Thursday following a sharp drop in annual profits. For the year ended March 31, operating profit fell 61.7% to €167.5 million, hit by the grounding of aircraft awaiting engine repairs.

RBC Capital analyst cut its price target for Wizz Air from 2,400p to 1,500p and lowered earnings forecasts significantly. 

“We reduce FY26E NPAT by 31% (37% below consensus compiled pre-FY25 results) and reflect FY25 net debt above our forecast,” the bank said.

In addition, the firm noted that while macro tailwinds in fuel and currency could benefit low-cost carriers broadly, it has more confidence in peers. 

The bank believes risk/rewards are now more attractive in other low-cost carriers, where it has increased confidence that fuel and currency tailwinds will translate into earnings upgrades.”

Importantly, the analyst added, “We do not expect Wizz Air's recovery potential to be realised in FY26,” and warned that investors are now likely to view the airline’s outlook as a ‘show me story’.”

In early Friday trading, Wizz Air shares initially climbed. However, they have, at the time of writing, given up those gains and are down 0.25% from Thursday’s close.