Wizz Air (LON: WIZZ) share price continued its remarkable sell-off this week as concerns about the airline industry rose. The stock tumbled to a low of 1,693p on Friday, the lowest level since November 2022. It has erased all the gains made earlier this year, crashing by over 47% from the YTD high.

Wizz Air has been the worst-performing airline stock in London this year. This sell-off gained steam this week after Delta Air Lines and EasyJet published their quarterly results.

As we wrote here and here, the two companies published strong financial results as demand jumped. They also reported strong profitable growth, helped by both passenger and ancillary services. EasyJet even restarted its dividends as profits rose.

At the same time, Delta and EasyJet warned about the rising cost of doing business as jet fuel price jumped. Data by IATA shows that the average jet engine fuel stood at $960 this week. 

As shown below, prices have retreated slightly in the past few days. They are also lower than in the same period in 2022. However, the price is much higher than the year-to-date low and analysts expect it to continue rising.

Jet oil price chart

The most recent results showed that Wizz Air’s business did well in the first quarter of the 2024 financial year. Its total passengers rose by 25.3% to 15.2 million while revenue jumped by 52.9% to over 1.2 billion euros. 

Its load factor jumped to 91.2% while its operating profit jumped to over 61.1 million euros. It ended the quarter with 1.8 billion in cash. Also, the company has expanded its routes to countries like Poland, Italy, and Georgia.

Most importantly, Wizz Air expects its profit for the year to be between 350 million and 450 million euros. All these fundamentals show that the company is doing quite well even as challenges remain.

The daily chart shows that the Wizz Air stock price has been in a strong downward trend in the past few months. The shares dropped below the crucial support at 1,864.5p, the lowest level on January 3rd.

It has remained below the 50-day moving average while the Relative Strength Index (RSI) has dropped below the oversold level of 30. Therefore, the stock will likely continue falling as sellers target the key support at 1,328p, the lowest level in October last year.

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