Wizz Air shares plummeted in early trading on June 5, after the low-cost carrier posted a sharp drop in earnings and declined to provide financial guidance for the coming quarters.

The Hungarian-owned no-frills airline reported a 41.5% year-on-year drop in net profit to €213.9mn for the financial year ending March 2025, with operating profit plummeting 62% to €167.5mn. EBITDA fell 4.9% to €1.1bn, despite a 3.8% rise in annual revenues to €5.3bn.

Unit costs rose steeply, with the non-fuel cost per available seat kilometre (CASK) jumping nearly 20% y/y, while the fuel CASK decreased slightly. This pressure on margins came even as revenue per seat kilometre (RASK) increased 3.9%.

The airline ended the year with €1.7bn in cash, up 9.3%, but net debt also increased to €4.6bn.

Despite a 5% y/y increase in quarterly passengers (14.6mn) and a 7.2% rise in Q4 revenue (€1bn), quarterly EBITDA halved to €151.2mn, and operating losses hit €167.5mn. Quarterly net profit soared to €139.8mn, a 98% increase, reflecting accounting or tax effects rather than operational strength.

The key concern for investors was aircraft availability. By the end of March, 42 planes were grounded due to ongoing inspections of Pratt & Whitney engines, with 37 still out of service as of early May. CEO Jozsef Varadi acknowledged the disruption but emphasised that Wizz Air had managed to stay profitable in spite of these "extraordinary challenges".

Wizz Air chose not to publish any forward guidance for the current quarter or full year, raising concerns over the visibility of its recovery trajectory, financial website Portfolio.hu notes. Varadi characterised FY2025 as a year of  "resilience and transformation", claiming the airline had improved structurally and would benefit from new aircraft deliveries and improving punctuality.

Wizz Air’s Hungarian chief noted that the airline managed to operate profitably for the second year running despite engine issues. Revenue per passenger-kilometre also improved despite the special circumstances, partly thanks to higher fares and better load factors.

Varadi argued that strategic focus at present is creasing market share, gaining leading positions, adding that Wizz Air has reached a turning point.

His comments failed to reassure investors, the stock was trading 27% lower on the LSE.

Wizz Air took delivery of its first long-range Airbus A321XLR jet last month. It has ordered 47 of the A321XLR jets with a range of 8,700 km and aims to expand its capacity for connections between Europe and the Middle East. Wizz Air has a fleet of more than 230 Airbus aircraft and has a contract for delivery of a further 295 from the manufacturer.