Eastern European low fares carrier Wizz Air today abandoned plans for an initial public offering.
Wizz Air cited ‘market volatility in the airline sector” for the decision
The Budapest-based airline had planned to raise €200 million on the London Stock Exchange this month.
But Wizz Air said this morning: “Despite the positive response to our business story and the company’s growth opportunities and prospects within the institutional investment community, Wizz Air today announces that the company has decided not to proceed with an IPO at this stage, due to the current market volatility in the airline sector.”
The airline added: “The outlook for Wizz Air’s business remains extremely positive and unaffected by the decision not to proceed with an IPO; the board will continue to focus on executing its strategy of driving growth and value.”
Wizz Air reported revenue of €1billion in the year to March 31, up 19% on 2012-13, and net profit of €89 million, up 193%.
It flew 13.9 million passengers in 2013-14, and plans to increase its fleet of Airbus narrow-body aircraft from 50 to 82 by 2017.