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EPIC
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Posts: 264
Opinion: Buy
Posted: September 22, 2025
The share price drop for Wizz Air following the cyberattack on Collins Aerospace is likely to be short-lived, as the airline has demonstrated resilience and has a history of successful recovery.
Here's an analysis of the situation:
Rapid recovery: The software provider, Collins Aerospace, is in the "final stages" of rolling out the necessary software updates to restore full functionality. This suggests that the issue is being addressed with urgency, and a quick resolution is expected.
Prior incidents and recovery: Historical data from previous IT outages in the airline industry, like the CrowdStrike incident in July 2024, shows that while airline stocks respond negatively to technology disruptions, they often recover relatively quickly, usually within a week.
Wizz Air's historical response: Wizz Air has a track record of adapting quickly to challenges. In response to the COVID-19 pandemic, Wizz Air demonstrated agility by adapting its processes, operations, and services to comply with regulations, optimizing routes, diversifying its network, and expanding into new markets.
Continued strong demand: Wizz Air's strategic focus on the Central and Eastern European market, combined with strong overall demand for air travel, positions it well for a rebound as the IT issues are resolved.
Key factors supporting a quick recovery:
Strong earnings growth forecasts: Analyst forecasts, as reported by the Fool UK on September 18, 2025, predict robust annual earnings growth for Wizz Air, with projections of 17.3% annually to end-fiscal year 2027/28.
Low-cost model resilience: Wizz Air's ultra-low-cost model is expected to thrive as consumers prioritize value.
Demand recovery: Passenger numbers have already rebounded significantly post-pandemic, and Wizz Air anticipates surpassing pre-pandemic capacity levels.
Positive analyst outlook: Barclays upgraded Wizz Air to Overweight on August 4, 2025, indicating a positive outlook for the airline.
Additional factors for investors to consider:
Ongoing investigations: Investigations are underway to determine the source of the cyberattack on Collins Aerospace. The findings and resulting changes in cybersecurity policies may impact future operations and investor sentiment.
Supply chain vulnerabilities: The incident highlights the vulnerability of centralized, third-party technology platforms in the aviation industry. Future developments may include increased scrutiny and potential new requirements for these providers.
GTF engine issues: Wizz Air has faced challenges related to GTF engine issues, impacting fleet availability. However, a new commercial support agreement with Pratt & Whitney, as reported on May 9, 2025, addresses these issues