The Wizz Air Holdings PLC (LON: WIZZ) share price has fallen 25.7% despite reporting impressive passenger numbers over the same period. The company has seen its share price fall despite the record number of passengers it has been carrying.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Investors are worried that the recovery in the airline industry after Russia’s invasion of Ukraine may be unsustainable, which has negatively affected investor sentiment towards the global airline industry. Wizz has also faced challenges in growing its fleet and passenger capacity amid supply delays from aeroplane manufacturers.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The company recently slashed its passenger growth targets for the available seat kilometres to 25% from 30% for the first half of its financial year, covering April-September. The company attributed the lower figures to delayed aeroplane deliveries from its supplier, Airbus. Many plan manufacturers are dealing with delays and supply chain bottlenecks.
Wizz Air recently courted controversy after it announced plans to give its CEO, József Váradi, until 2028 to win a £100 million one-off bonus award if the airline’s stock price hits £120. The company’s share price is £22.17, far from the £120 target.
Proxy advisers Institutional Shareholder Services (PISS) and Pirc have recommended investors vote against a resolution put forward by the low-cost airline to give József Váradi until 2028 to win the one-off award. The bonus scheme also has environmental, social and governance targets, which have not been extended and must still be met by 2026.
Wizz Air was also recently reprimanded by the UK aviation regulator, the Civil Aviation Authority, for handling customer claims regarding cancelled and delayed flights. The company’s handling of the claims was categorised as “unacceptable,” it apologised for the same and promised to revamp its customer support services.
The airline’s ultra-low-cost operating structure has made it the fastest-growing airline in Europe as it continues adding new routes and expanding its fleet to serve more people. Despite the recent decline in the past six months, Wiz Air's shares are still up 18.15% for the year.
The company has released its August passenger numbers, carrying 6.1 million passengers, marking a 23.9% increase compared to August 2022.
Wizz Air share price.
The Wizz Air share price has fallen 25.68% in the past six months despite reporting upbeat passenger numbers.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.