Join our community of smart investors

A debt-laden airline that won't meet its sky-high ambitions

The low-cost airline’s push for growth brings a risk to its profit margin targets
June 15, 2023

“Move fast and break things” was a questionable enough motto even for an up-and-coming social media company such as Facebook. But it would be a particularly bad example for an airline to set. 

Tip style
Sell
Risk rating
High
Timescale
Medium Term
Bull points
  • Operational headwinds easing
  • Possible takeover target
Bear points
  • Danger in expansion plans
  • Competition in Middle East
  • Heavily indebted

And while it was obviously not management’s intention for Wizz Air (WIZZ) to deliver a sub-par performance as it attempted to race out of a period of pandemic-linked disruption, to many of its UK customers things must have seemed pretty broken last summer. 

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in