Wizz Air Holdings PLC (AIM:WIZZ) is finally on course to overcome a “turbulent” few years following the pandemic, brokers hailed following the company’s full-year results release.
Wizz Air forecast a net profit of between €350mln and €450mln in 2024, having delivered an expected reported loss of €535.1mln in the 12 months to March.
Analysts were widely convinced by Wizz’s optimism too, largely agreeing that the FTSE 250-listed airline's risky move of bolstering the size of its fleet looked set to pay off.
“Wizz Air is one of the most ambitious airlines operating today,” AJ Bell analyst Russ Mould said.
“There is a lingering feeling that Wizz Air is still aiming for the stars […] that means acquisitions could be on the agenda”.
Though Airbus Group (EPA:AIR)’s ability to deliver Wizz’s 42 new A321neo jets will have an effect, stronger passenger figures amid recovering post-pandemic demand mean the airline is “well on the way” to profitability, Third Bridge analyst Olly Anibaba noted.
Ongoing cost pressures and whether Wizz manages to cope with the ramped-up capacity being offered are other issues the budget airline could face, according to analysts.
“It [is] vital that Wizz Air gets bums on seats to ensure its load factor doesn’t suffer,” City Index’s Joshua Warner commented.
Wizz’s growth plan of “aggressively” expanding while rivals including easyJet PLC and Ryanair Holdings PLC (LSE:RYA) focus on recovering from the effects of the pandemic as quickly as possible will likely convince investors, Mould added.
“So, it might have enough support to raise a significant amount of money to turbocharge that growth through a corporate deal,” he continued, hinting to future acquisitions.
Wizz Air shares were trading 0.7% higher on Thursday at 2,797p.