The mid-point of the week will provide more detail on the impact of the coronavirus on the travel sector with first-quarter figures from Wizz Air as well as interims from airport and train station food outlet firm SPP Group.
On the macro front, investors will be eyeing services PMIs from both the UK and US, as well as the US ADP employment figures which may provide some clarity on the American job market ahead of the non-farm payrolls on Friday.
Wizz Air eyes demand resurgence
The FTSE 250-listed group said on Friday that from July 1 it will open four new bases deploying 11 aircraft and launching over 50 new routes to Italy, Cyprus, Ukraine and Albania.
Chief executive József Váradi said the company sees “the potential to re-stimulate demand for low-cost travel and contribute to the vital recovery of tourism in these markets”.
The airline was one of the first to restart flights after initial coronavirus groundings and said it has new health and safety protocols designed to ensure that its customers and crew can fly safely.
For the first quarter just gone, the consensus forecast is for Wiszz ti report revenues of €2.8bn and the company has given guidance for €340-360mln of net profit before exceptional items.
In a preview, analysts at UBS said the focus will be on cash burn and vouchers, the how markets open outlook, plus any financial guidance on 2021 and capex.
SSP Group to count damage
The operator of food and drink outlets in airports and train stations raised £216mln from an emergency placing in March and accessed government funds in April.
As per the last update, revenues in March alone – when trading was still allowed for a good part of the month – were expected to drop by 40%-45%, hitting operating profit by £50mln-£60mln.
The hospitality group has closed shops, sacked staff, reduced salaries and negotiated rents to save money.
Significant announcements expected for Wednesday:
Economic data: UK services PMI, US services PMI, US non-manufacturing PMI, US ADP unemployment