The Wizz Air Holdings PLC (LON: WIZZ) share price dropped 4.68% despite the budget airline releasing upbeat passenger data for March. The airline carried 4,267,274 passengers, marking a 72.3% expansion compared to March 2022, at a load factor of 92.2%.
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The budget airline continued growing its network and improving its services by adding one more aircraft to its Budapest base to bring its total fleet on the Hungray route to 14 aircraft, which will serve the increased frequency of flights from Hungary.
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The expanded fleet will also support the two new routes from Budapest to Copenhagen, Denmark and Sharm el-Sheikh in Egypt. Wizz Air also celebrated the launch of new routes from London Luton Airport and Gatwick Airport to Istanbul, Turkey. Flights from both airports will operate daily.
Wizz Air unveiled a new route from Milan Malpensa to Sphinx International Airport in Cairo. This is the airline’s first connection to Egypt’s capital city. Wizz Air was named Airline of the Year at the Air Transport Awards. The annual awards are given to organisations for their excellence and achievements within the aviation sector.
Therefore, there was no reason for Wizz Air shares to fall, given the positive nature of today’s March operations update. Still, airlines are extremely sensitive to changes in crude oil prices, which drove Wizz Air and other airline stocks lower today.
Investors woke up to the news that OPEC+ had agreed to cut their daily production by up to 1.16 million barrels daily, surprising most analysts and oil industry experts since it was highly unexpected. The OPEC+ members led by Saudi Arabia, Iraq and several Gulf states agreed to cut their output and boost oil prices.
While many hope that oil prices will stabilise after the initial spike, most analysts and experts are worried that the higher oil prices will make it difficult for central banks to combat inflation, given the crucial global role that oil plays.
High oil prices usually negatively affect airlines such as Wizz Air, given that energy costs contribute significantly to their overall operating costs.
*This is not investment advice.
Wizz Air share price.
The Wizz Air share price dropped 4.68% to trade at 2851.5p, from Friday’s closing price of 2991.5p.
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