Wizz Air: London share listing planned after three-fold profit increase for the ultra-LCC

The Wizz Air Group has announced its intention to float on the London Stock Exchange. CAPA suggested this was under consideration in a report in Apr-2013 and the company has been mulling it over for years. The decision had no 'whiz' about it, but now may well be a suitable point in its history for a public listing.

The IPO prospectus is not yet available, but we have updated our analysis of the available data. This shows that Wizz Air has now established a firmer platform of profitability from which to attract investors and has consolidated its position as Europe's second lowest cost carrier.

One of its biggest challenges is that Europe's lowest cost airline, Ryanair, is also Wizz Air's closest competitor. Wizz Air's recent growth and profitability suggest that this has not deterred it and it has continued to focus on its niche in Central/Eastern Europe. An IPO will strengthen Wizz Air's under-capitalised balance sheet and expand its aircraft funding options. It will also further raise its profile and should add to its already strong focus on cost efficiency.