Wizz Air Holdings PLC (AIM:WIZZ) is set to report a return to profitability in full-year results on Thursday, May 23.
However, aircraft groundings relating to Pratt & Whitney engine issues and geopolitical tensions are among challenges set to have bound the operator over the year.
Wizz said in April net income would sit between €350-€370 million for the year, against a €535.1 loss in 2023, while revenue of as much as €5.1 billion would mark a near one-third increase.
However, Liberum analysts noted costs had been “flattered” by compensation from Pratt & Whitney over the engine recalls.
Unit revenue should be growing faster too, analysts said, given capacity constraints that will result in flat growth this year coupled with booming travel demand.
Though still solid booking trends for the upcoming summer were “reassuring”, Liberum hit the airline with a ‘sell’ rating over concerns high debt had not been recognised in its valuation.
Alongside this, Wizz warned the situation in Israel was being watched closely after flights had been temporarily grounded following an outbreak of conflict in the Middle East in October.