Nov 9 Reuters European budget carrier Wizz Air on Thursday narrowed its annual profit forecast below analyst expectations, citing continuing macroeconomic uncertainty and difficult operating conditions, sending its share price down 6.3.

European airlines have reported strong results this quarter but have warned of a murky outlook as jet fuel prices, supply chain issues and a lack of economic clarity weigh.

Wizz Air was also one of the main airlines hit by issues with RTX engines this year and had said it would face a capacity reduction as a result.

That knocked its net income guidance for the financial year to between 350 million euros and 400 million euros 374.7 million to 428.2 million, down from 350 million to 450 million euros.

The guidance reflects expectations for the second half of its financial year to March 31 in the face of macroeconomic uncertainty and difficult operating conditions from an infrastructure and security perspective, Chief Executive Jozsef Varadi said in a statement.

While the proportion of the European shorthaul fleet that is grounded is small, this should have a noticeable impact on competition and therefore pricing in summer of 2024, said Jamie Lindsay, an investor at Artemis Investment Management.

It looks likely that the impact will continue well into next summer.

BOUNCING BACK

The budget carrier posted operating profit of 522.9 million euros 559.8 million for the six months to Sept. 30, compared with a loss of 63.8 million euros a…