Europe-based affordable airlines Wizz Air Holdings (GB:WIZZ) and Ryanair Holdings (RYAAY) achieved new highs with record passenger numbers in August. The solid numbers indicate that demand for budget summer travel continues to remain strong. Despite the favourable update, Wizz Air shares were down 1.8% as of writing.
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Based in Hungary, Wizz Air is a low-cost airline that provides flights to around 200 destinations in Europe and the Middle East. Meanwhile, Ryanair is an ultra-low-cost airline group based in Ireland.
Wizz Air Reports Strong August Numbers
Wizz Air reported a record 6.2 million passengers in August, marking a growth of 1% from August 2023. This was despite a 0.4% decrease in seat capacity on a year-over-year basis. Additionally, its load factor, or the percentage of seats sold, improved to 95.4%, up from 94.1% the previous year.
Last month, Wizz Air announced a new scheme, “All you can fly,” which received a solid response and was sold out within the first 48 hours after its launch.
Ryanair Hits Record Passenger Numbers
Speaking of Ryanair, the passenger numbers reached 20.5 million in August, up 8% from the same period a year ago. Ryanair’s load factor remained stable at 96%.
Russ Mould, investment director at the UK-based brokerage company AJ Bell, stated that Ryanair demonstrated its strong ability to fill seats. He added that Ryanair’s load factor of 96% is quite impressive and it’s something many airlines aspire to achieve.
Are Wizz Air Shares a Good Buy?
As per the consensus among analysts on TipRanks, WIZZ stock has been assigned a Hold rating based on three Buy, three Hold, and two Sell recommendations. The Wizz Air share price target is 2,846.25p, which implies an upside potential of 122.4% from the current levels.
Year-to-date, WIZZ stock has declined over 40%.
