leadf
logo-loader
viewWizz Air Holdings
(
AIM:WIZZ
)

Wizz Air is Europe’s greenest airline, says JP Morgan

Analysts at the investment bank said airlines with “young, fuel efficient fleets have a clear advantage” amid a growing need to cut down on carbon emissions, noting that Wizz currently has the youngest fleet among the European airlines in its coverage

Wizz Air Holdings - Wizz Air is Europe’s greenest airline, says JP Morgan

Wizz Air Holdings PLC (LON:WIZZ) is “the greenest airline in Europe” and is expected by analysts at JP Morgan to return to net income margins of between 13-15% despite a growing need for European airlines to cut down on carbon emissions, according to analysts at JP Morgan.

In a note on Wednesday, the investment bank said the need to reduce CO2 emissions is “a financial headwind” for the sector amid the need to invest in new aircraft while also contending with compulsory emissions charges and mandatory carbon offsetting by 2027.

READ: Great British take-off: IAG, WizzAir, SSP and Whitbread tipped to rise as travel ramps up in coming months

However, analysts said airlines with “young, fuel efficient fleets have a clear advantage”, noting that Wizz, which they rate at ‘overweight’ with a target price of 5,350p, has the youngest fleet of aircraft among the carriers in its coverage.

Despite this, JP Morgan predicted that both Wizz and its rival Ryanair Holdings PLC (LON:RYA) will face “rising carbon credit costs” as the European Emissions Trading Systems “penalise fast-growing airlines”.

“However, we still expect WIZZ to return to net income margins of 13-15% in the coming years”, the bank said.

Shares in Wizz were flat at 4,723p in late morning trading.

Quick facts: Wizz Air Holdings

Follow
AIM:WIZZ

Price: 5122 GBX

Market Cap: £6.17 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Proactive Presents a Livestream Event with Nextech AR Solutions

Proactive's Steve Darling presents a Livestream Chat with NextTech AR Solutions Joining the chat Evan Gappelberg - CEO and Founder Paul Duffy - President and Chairman of the Board Mirjana Prpa - AR Product Manager and Head of AI Division Baran Korkmaz - Founder of ARway

1 hour, 55 minutes ago

2 min read