Wizz Air Holdings PLC (AIM:WIZZ) numbers for August did little to reassure the sceptics. Panmure Liberum kept its “sell” rating and 1,000p target, pointing to passenger growth of 11.4% year on year, slightly behind the 12.1% increase in capacity.
That meant load factor dipped by 0.6 points to 94.8%.
The broker noted the pattern was much the same as in recent months, with July’s softer growth now looking like a blip.
One change is that Wizz Air Abu Dhabi has shut down, with the impact due to show up from September.
On the flip side, flights to Tel Aviv are ramping back up, with a full schedule promised by mid-month.
Deutsche Bank, meanwhile, has closed its short-term “catalyst” buy idea on the stock.
Its analysts cited two reasons: the first-quarter results, which had been the trigger, are now in the past, and more recent fare data has come in weaker than expected.
Even so, Deutsche keeps its longer-term 'buy' rating, arguing the shares, up 26% since July’s update, still have recovery potential over 12 months.
The message from both sides is clear enough. Wizz may be back on investors’ radar after its strategy rethink, but the journey to sustained profit growth looks anything but smooth.
The shares fell 1.6% to 1,328.11p.