Wizz Air's CEO Jozsef Varadi may potentially miss out on a £100m bonus payout, given the recent downturn in the company's share price performance.
This significant incentive was approved by shareholders back in 2021, setting the benchmark for the biggest bonus award in the history of the London Stock Exchange, as reported by .
As per the terms, Varadi stands to gain £100m worth of shares if Wizz Air's stock price reaches 120,000p before 2028. However, over the past 12 months, Wizz Air's share value has seen a decline of nearly one-third, which comes despite the budget airline having carried a record 62.8m passengers across more than 300,000 flights in 2024, an increase from 60.3m in 2023.
Wizz Air’s growth hits turbulence
The surge in travel following the pandemic continues to sustain, maintaining massive traffic growth that has led other leading carriers to record profits. Last year saw Wizz Air expanding its fleet by an impressive 15 percent with the addition of 34 new aircraft.
Yet, the carrier's progress has been marred by several issues contributing to a 29 percent slip in their share price over this period.
Flight capacity faced cuts due to ongoing difficulties with the engines supplied by Pratt and Whitney, provoking Varadi to label the supply chain troubles within the industry as "horrific" during a weekend address. Adding to these challenges, Wizz Air is also grappling with geopolitical tensions impacting the Middle East and Ukraine—regions crucial for the airline's routing and airspace management.
Earlier in January, Panmure Liberum issued a 'sell' rating for Wizz Air, expressing concerns about the airline's "high leverage and low earnings quality."
Like Ryanair, others in the industry have faced challenges capitalising on the persistent high demand for travel, compounded by supply chain disruptions and problems at leading aircraft makers Airbus and Boeing.
