Wizz Air cancels London IPO

LONDON, June 16 (AFP): Hungarian budget airline Wizz Air on Monday cancelled its proposed 200-million-euro ($270-million) listing on the London stock market, blaming tough economic conditions for the industry.
Wizz Air had unveiled plans last month for the initial public offering (IPO) to raise cash to fund expansion and strengthen its balance sheet.
"Wizz Air today announces that the company has decided not to proceed with an IPO at this stage, due to the current market volatility in the airline sector," it said on Monday.
"The outlook for Wizz Air's business remains extremely positive and unaffected by the decision not to proceed with an IPO," the company insisted.
Airline profits have been hit by rising fuel bills, as oil prices spike on the back of supply tensions in the crude-rich Middle East, analysts say. Jet fuel, or kerosene, is refined from crude oil.
The sector also faces demand worries arising from broader concerns over the slowing global economy.
Last week Lufthansa cut its earnings targets for 2014 and 2015 in the face of disappointing developments in passenger and freight business, in addition to the financial fallout from strikes.