Wizz Air Holdings PLC (AIM:WIZZ) will update investors tomorrow, following easyJet results that boasted "strong bookings" and increased guidance.
Year to date Wizz Air shares have soared nearly 45%, vastly outperforming their more premium competitor, British Airways’ parent company International Consolidated Airlines (IAG), which does not report until 24 February.
Carriers are also benefitting from cheaper fuel costs, with Brent crude falling 22% to US$86 per barrel in the trailing six months.
Along with oil prices, jet fuel prices began falling in June 2022.
Across the whole airline sector, analysts at JPMorgan have raised their EBIT earnings forecasts by 12% for full-year 2022 and by 5% for full-year 2023.
“Despite carriers aiming to grow capacity materially year-on-year, the unavailability of aircraft and continuing pent-up demand could offer a more supportive pricing environment than most would have expected a few months ago," the analysts said.
Wizz Air’s load factor will be an important metric to take note of.
The Hungarian airline recently said it had a load factor of 84.5% in December, representing a 9% increase in the same period in 2021, but analysts at Peel Hunt said that came below their expectations of 90%.
Nonetheless, Peel Hunt has retained its buy rating for the carrier, while estimates compiled by Bloomberg suggest the company will make progress toward cutting its earnings-per-share losses throughout 2023.
Wizz Air may also see a boost due to its launch of 20 routes to Saudi Arabia.
The airline is expected to post net losses as the post-Covid recovery continues to pan out, but their earnings calls should shine a light on where they are headed going forward.