MARKET REPORT: Wizz Air hits rock bottom as airline posts losses

Recently ranked the worst airline for customer service for the third year in a row, budget carrier Wizz Air posted a loss in the first quarter.

Investors are already unhappy with the Budapest-based airline over its executive pay, with top managers expected to receive millions of pounds in free shares just for staying.

And today’s annual meeting is likely to be contentious. Last year, investors rebelled against an extension of a plan to give chief executive Jozsef Varadi a bonus of up to £100m if the share price rose, but the stock has fallen more than 25 per cent so far this year after a 22.6 per cent, or 433p, drop to 1,480p yesterday.

Wizz achieved revenue growth in the first quarter, but a loss reflected an increase in financial expenses, partly due to costs related to its aircraft engines which were affected by unpredictable problems, which will extend into the second quarter.

The FTSE 100 fell 1 percent, or 84.62 points, to 8,283.36, while the FTSE 250 fell 0.7 percent, or 141.48 points, to 21,459.23.

Investors had to digest another plethora of results. Medical equipment maker Smith & Nephew gained 6.8 percent, or 76 pence, to 1,199 pence after interim profits beat expectations, helped by a turnaround plan.

First-half revenue rose 4.3 percent to £2.2 billion, while operating profit rose 19.5 percent to £257 million.

BAE Systems fell 0.9 percent, or 12 pence, to 1,285 pence after the defence firm updated its 2024 forecast to reflect strong military equipment deliveries and the benefits of a US acquisition.

And Sensodyne toothpaste and Panadol painkiller maker Haleon advanced 2.4 per cent, or 8.4 pence, to 358 pence as it predicted high single-digit growth in organic operating profit in 2024, following strong demand for oral care products and vitamins.

London Stock Exchange Group rose 4 percent, or 382 pence, to 9,852 pence after reporting first-half revenue above expectations, helped by progress at its Microsoft business and a rise in the value of subscriptions.

But Schroders fell 9.7 per cent, or 38.2 pence, to 354.6 pence as it posted a fall in first-half net operating income, despite having assets under management at a record £773.7 billion.

Outsourcing company Serco fell 6.3 percent, or 12.1 pence, to 179.4 pence after a fall in first-half profits and revenue, although it reiterated its full-year guidance.

Vesuvius fell 11.8 percent, or 57 pence, to 426.5 pence as the ceramics engineer’s first-half revenue and profit fell and it said end-market recovery would only materialise next year.

And Melrose fell 12.5 per cent, or 73.8 pence, to 515 pence as lower sales forecasts for 2025 appeared to reflect results the aerospace components firm said beat its expectations.

But Vanquis Banking rose 2.4 per cent, or 1.3 pence, to 56.1 pence as the lender, formerly Provident Financial, saw its weak half-year results offset by savings.

And industrial threads company Coats added 12.9 percent, or 11.5 pence, to 101 pence, hailing a recovery in the footwear and apparel sectors.

Gulf Marine Services rose 11.8 percent, or 2 pence, to 19 pence after the provider of self-propelled support vessels for energy projects said it would reinstate its dividend.