Wizz Air Holdings PLC shares plummeted over 12% after the airline slashed profit guidance for the year due to growing costs.
Income for the year to end-March 2025 is now expected between €250 million and €300 million (£209-£250 million), against the €350 million to €450 million previously expected, the FTSE 250-listed airline said on Thursday.
Despite stronger demand over the third quarter, the airline flagged cost pressures around groundings related to suspected Pratt & Whitney engine issues on its Airbus A321neo fleet.
Revenue increased by 10.5% to €1.18 billion, aiding a 57.9% reduction in operating losses to €75.9 million.
However, cost per available seat kilometre ticked up 16.8% to €2.88 as groundings led to inefficiencies, while a €160 million negative foreign exchange charge was recognised.
A €241 million net loss for the period was reported, more than double that from a year ago.
“Disappointingly, the benefits of the stronger demand environment did not flow through to our reported profit level due to these cost headwinds,” chief executive József Váradi said.
Shares fell 12.1% to 1,205.60p.