The FTSE 250 is full of exciting companies that provide both growth and income opportunities. Having looked through the index, I’ve found two firms that have been pummelled over the past two years. Could they now be too low for me to miss? Let’s take a closer look.
Clearer skies?
The Wizz Air (LSE:WIZZ) share price is down 56% in the past year. But in the last month, it’s up 20% and the shares are currently trading at 2,226p.
The short-haul airline was battered during the pandemic. This was mainly because travel restrictions led to flights being grounded.
As a result, the business posted consecutive pre-tax losses, for the year ended March, in both 2021 and 2022. These amounted to €566m and €641m, respectively.
However, revenue is starting to show signs of improvement. It rose from €739m to €1.6bn over the same period, suggesting that more passengers are flying as restrictions have been relaxed.
On the other hand, losses widened for the three months to 30 June. This was primarily down to higher jet fuel costs and more flight cancellations due to low staff numbers. But revenue was up 300% year-on-year.
Furthermore, passenger numbers climbed to 12.1m from 2.9m over the same time period. This comes as travel conditions continue to improve as the world emerges from the pandemic.
Calmer waters?
Carnival (LSE:CCL) has seen its share price fall by 56% in the past year and 7% in the last week. At the time of writing, the shares are trading at 630p.
The cruise operator was also greatly impacted by the pandemic. For the year ended November 2020, for instance, it slumped to a $10.2bn pre-tax loss. The following year was not much of an improvement, resulting in a $9.5bn pre-tax loss.
However, for the three months to 31 May, occupancy aboard ships was 69% of pre-pandemic levels, up from 54% in the previous quarter. In addition, booking volumes doubled in that quarter and customer deposits grew from $3.7bn to $5.1bn.
Furthermore, the company stated that it had cash and borrowings at $7.5bn towards the end of May. This could potentially help the firm to navigate its recovery to pre-pandemic levels. On the other hand, its debt pile stands at $36.4bn. This has grown significantly over the past two years, and this is something I would like to see the business pay down in the coming months and years.
Overall, these two travel companies have endured a torrid time over the past couple of years. Having taken a look at the businesses, however, I think they could now be on the road to recovery. As passenger numbers climb and revenue increases, I think they may potentially turn losses into profits in the near future. To that end, I’ll add both firms to my portfolio soon.
