Wizz Air counts the cost of engine issues with huge dip in profits
Gary NoakesWizz Air’s first-quarter profits have collapsed after grounding 46 aircraft due to engine issues.
The budget airline saw net profits in April, May and June plummet 98% year-on-year to just €1.2 million.
Wizz Air has been hardest hit by issues with Pratt & Witney GTF engines that power many of its fleet and mean each aircraft must be taken out of service for around 300 days.
The grounding pushed up costs by more than 8%, with leased aircraft brought in for the summer peak costing €39 million. Wizz Air said foreign exchange “headwind” had also impacted its performance.
Despite these setbacks, passenger numbers, at 15.35 million and an average load factor of 91% were on par with last year. Revenue rose 1.8% to €1.26 billion. Profit margins rose nearly three points to 21.8%.
Wizz Air was sanctioned by the CAA for its delays and cancellations last summer, but Wizz chief executive Jozsef Varadi said the carrier had made “significant operational strides this quarter”, with a 67.6% on time performance, compared to 60.5% last year.
Varadi added the carrier was “optimistic” about demand, with load factors expected to exceed 90%.
Wizz Air expects to make a net profit of €350-400 million in the current financial year, down from an earlier forecast of €500-600 million. It made €396 million in 2023/24 after three years of losses.
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