Wizz Air Holdings PLC (AIM:WIZZ) shares rose 7.8% to 1,394.48p after the airline reported a narrowing quarterly net loss and steady passenger growth despite higher costs and ongoing engine disruption.
For the three months to 31 December 2025, net losses fell to €139 million from €241 million a year earlier. It was in line with the consensus forecast.
Revenue rose 10% to €1.3 billion as passenger numbers grew 12.5% to 17.5 million and unit revenues were down 0.8%. The load factor dipped slightly to 89.8%.
Operating losses widened to €124 million, driven by higher depreciation and rising fuel and maintenance costs. Total unit costs rose 2.3%, while revenue per seat kilometre (RASK) slipped 0.8%.
Despite the challenges, including 33 grounded aircraft due to Pratt & Whitney engine inspections, Wizz increased its fleet to 257 planes and maintained its leading 26% market share in Central and Eastern Europe.
Investors were likely to be encouraged by a strong balance sheet, where cash swelled to nearly €2 billion, and guidance for 10% full-year capacity growth, which was consistent with current consensus estimates.
CEO József Váradi said average seat/kilometre (ASK) capacity for the full year 2026 is expected to grow around 10% over the previous year.
"Based on a forward booking curve the bookings are currently ahead of last year," he said, expecting the load factor to finish north of 91%, similar to last year.
"We see similar unit revenue trends we have seen at the start of last quarter (Q3) and we are forecasting flat YoY unit revenue for F26.
"Total unit costs for full F26 may see modest inflation vs last year as we forecast increased navigation costs from higher Eurocontrol rates, maintenance costs due to inflationary pressures, partly reflecting the uncertainty around Pratt & Whitney's engine redeliveries from shop visits and higher depreciation costs related to the retirement schedule of the A320ceo family."
Analysts at Panmure Liberum said the Q3 loss was in line with consensus and "ahead of our pessimistic forecast", as unit revenues were "only marginally weaker".
While unit revenue trends are seen as similar in Q4, the analysts said "this is balanced by overall unit costs seen modestly higher YoY for the FY, which we believe is slightly worse than previous comments".