Wizz Air Holdings PLC (AIM:WIZZ) posted a sharp acceleration in December traffic, carrying 5.85 million passengers, up 15.5% year on year, as capacity rose 16.3%.
Load factors edged lower to 85.9%, a 0.6 percentage point decline, highlighting the strain between rapid expansion and yield discipline as the airline pushes deeper into winter.
Panmure Liberum kept its 'sell' rating and 950p target for stock in the budget airline, saying the figures broadly match management’s guidance but do little to ease margin concerns.
Capacity continues to run slightly ahead of demand and, while growth was faster than in recent months, load factors remain under modest pressure.
The broker added that December-quarter traffic and capacity were slightly below its forecasts, though still consistent with plans for more aircraft to return to service before the March year-end.
Peel Hunt struck a more constructive tone, reiterating 'hold' with a 1,150p target after December growth beat expectations.
It highlighted fleet and network expansion across Luton, Rome Fiumicino, Tirana and Warsaw, as well as new bases in Romania and Poland.
Peel also pointed to stronger distribution through corporate travel platforms and a robust showing under the EU’s new NIS2 cybersecurity framework, where Wizz scored 97% in a pre-audit. High leverage and execution risk, however, continue to temper enthusiasm.
The shares were left on the taxiway (flat) at 1,303p.