Short sellers are increasingly betting against Wizz Air as the budget airline’s shares continue to perform poorly this year.
The latest data from S & P Global Market Intelligence shows shares out on loan, a sign of short interest, represent 13 per cent of Wizz Air’s stock available for trading.
The findings will spark concern given low-cost rivals Ryanair and Easyjet have not attracted the same interest, with shares out on loan representing only one per cent of their available stock.
Shares in Wizz Air are down over 40 per cent this year to date after the airline was forced to constrain capacity due to supply chain issues with its Pratt & Whitney-manufactured engines.
It has also fared worse than competitors from the ongoing conflicts in Ukraine and the Middle East, given it operates a large number of routes to areas impacted.
By contrast, Easyjet shares have risen 1.72 per cent since January, with the orange-liveried airline weathering weaker summer fares through its lucrative holidays business, Easyjet Holidays.
Ryanair is down 0.54 per cent, having sparked a sell-off in airline stocks in July when it warned of “materially lower” airfares through the peak months of the year.
Wizz Air profits fell sharply in the carrier’s most recent quarterly results, dropping from €80m (£66.9m) to €45m (£37.6m). The figures missed expectations by a wide margin, forcing Wizz to lower its net profit guidance for the full financial year.
The S & P’s data was first reported by Bloomberg.
Wizz Air has been approached for comment