"There's a lot of uncertainty about Wizz's ability to meet full-year guidance," said Sathish Sivakumar, an analyst at Citigroup Inc. He's one of five analysts tracked by Bloomberg who has a sell rating on the stock, a stance he has held since October of last year. "The stock, which trades in London, has already fallen 41% this year to 1,311 pence, weighed down by a profit warning in August, and some analysts say it very well could stumble again, given the fare competition among carriers."
"One of the big differentiating factors between Wizz Air on the one hand, and Ryanair and EasyJet on the other, is leverage," Khoo said in e-mailed comments. With Wizz Air loaded with more debt than its competitors and suffering from significant operational issues, this financial strain could exacerbate its losses in a challenging market.
Wizz Air has been among the hardest hit by engine problems that required its Airbus A321 aircraft to be pulled in early for maintenance. With uncertainty about aircraft availability, the airline has had to lease flight-ready planes to maintain its schedule, which is cutting into profit.
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