Morgan Stanley FY265 Nov 2025 10:36
Morgan Stanley expects Wizz Air’s FY26 net income guidance to be downgraded to between negative €100 million and €0, down from the previous guidance of €0 to €100 million, citing weaker demand, limited fuel cost benefits, and high depreciation and amortization expenses of approximately €1.2 billion.
The firm forecasts FY26 net income at negative €69 million, compared to the consensus estimate of positive €53 million, though it believes this aligns with buy-side expectations.
Morgan Stanley also points to balance sheet limitations that prevent dividends or share buybacks in the near term, suggesting shares may trade sideways until there is greater clarity on sustainable margins, debt reduction, and the airline’s reinvestment strategy.