Wizz Air aircraft. Photo: WIZZ AIR Hungarian low-cost carrier Wizz Air recently announced, as reported by PassportNews, its intention to introduce a business class on its flights. As a result, the market priced the company's shares, traded on the London Stock Exchange, in a sharp decline of 10.79%.
The drop comes amid continued operational and cash flow pressures at the company and a lack of clarity regarding future earnings forecasts.
About 50% of the company's shares are held by institutional entities, which puts even more pressure on management to address performance questions raised by investors. The company's value is about $1.54 billion, and Wizz Air's shares have fallen roughly 22% since the beginning of the year.
These questions and concerns refer to Wizz's ability to deal with the challenges, especially issues related to aircraft delivery delays, fuel costs, and increased competition. Large institutional clients are likely making adjustments to their investment portfolios, which is putting pressure on the share price.
It will be interesting to see what the company's stock will do in the coming days. Was this a one-time sharp decline, and will the stock continue to trade as usual, or will we see an impact on this in the near future?