Wizz Air Holdings PLC (AIM:WIZZ) has been forecast to undershoot guidance and consensus expectations this year as issues such as pricing softness potentially impact earnings.
CitiGroup analysts said in a note on Monday that the FTSE 250-listed airline had been placed on what it called a negative catalyst watchlist as downside risks to guidance emerged.
Recent traffic, fuel and pricing trends left Wizz on course to generate adjusted net income of €258 million (£216 million) this year, Citi said.
This would see the airline miss its own guidance for the figure to sit between €350 million and €450 and also undershoot consensus expectations for €300 million.
Wizz had reported a drop in load factors for September earlier this month, indicating flights were less full over the month despite an increase in passenger numbers.
Groundings relating to issues with Pratt & Whitney engines have also loomed over the airline this year, leaving it operating older aircraft.
“The changes to our estimates are driven by softer pricing and higher unit costs,” Citi said.
Expectations for capacity growth over the course of next year were also trimmed to around 19%.
Wizz Air's shares ignored the potential turbulence to trade 2.4% higher at 1,246p.