Shares in Wizz Air fell after the budget airline downgraded its fiscal-year net income outlook and said its pretax loss in the third quarter widened on higher costs. Wizz Air shares in early afternoon London trading were down 7.6% at 12.68 pounds, recovering some ground after falling as much as 16% earlier in the session.

Wizz Air (WIZZ.L) posted a net loss for the third quarter of 241.1 million euros, compared to a loss of 105.4 million euros, prior

Wizz Air booked a 160 million-euro charge related to foreign-exchange volatility, and said it has approved a hedging program to help mitigate this in future. Revenue rose to 1.18 billion euros from 1.06 billion euros, with ancillary revenue up 7.8% to 550.7 million euros. Passenger ticket revenue increased 13% to 626.2 million euros.

Low-cost carrier Wizz Air has issued its second profit warning in six months, sending its shares down as much as 16 per cent in early trading, as it grapples with the grounding of its aircraft due to engine problems.