European Aviation Daily: Icarus – 12 June 2026

Research evidence excerpt

European Aviation Daily: Icarus – 12 June 2026

pricing. Speaking at the

Berlin ILA air show, Emirates CEO Tim Clarke said that Emirates will return to full operations

'hard and fast' (see Bloomberg 9 June ). Emirates is also offering free insurance to consumers in

case they need to cancel a trip, in order to increase their confidence in booking on Emirates.

https://live.barcap.com/go/publications/link?contentPubID=FC6a2af421de23ad137941f895

Wizz Air (OW, PT £11.50): A daunting year in store, but existential doubts

fade

Maintain OW - Wizz faces a most challenging year, with extremely high growth. Losses to be

significant. Yet we see existential doubts fading. A future with slower growth, ungrounded GTF

aircraft and less volatile geopolitics paints a plausible path to profitability.

Existential doubt eases: FY26 results saw Wizz report net debt and liquidity some €500m

stronger than both consensus and we anticipated. We have previously been very negative about

Wizz's practice of undertaking SLBs on its aircraft deliveries, pulling forward the value of well-

priced aircraft to the year of acquisition and locking in high ongoing lease rates. We remain very

sceptical of the practice. However it does generate cash and in an extremely challenging year

like the one we see ahead, it should enable Wizz to navigate the airline industry's autumnal

moment of liquidity tension when operating profits and working capital both seasonally

weaken. At FY26 results the company said it anticipated holding liquidity stable through FY27.

This does not seem unreasonable to us. Ironically, it is the two aspects of its business plan that

we find most unattractive - very high growth and short-term sale and lease backs - that both

support cash inflows.

A very challenging year ahead . . .