Wizz Air has reported a sharp drop in annual profits after ongoing engine issues forced more than 40 of its aircraft out of service, prompting a 28% fall in share price and renewed questions about the airline’s operational resilience.
The Budapest-based airline, listed in London and popular with UK holidaymakers for its low-cost European routes, said net profit for the year ending March 2024 had fallen by 41.5% to €213.9 million. The drop came despite record passenger numbers of 63.4 million and a modest 3.8% revenue rise to €5.3 billion.
The root of the issue lies in continuing problems with Pratt & Whitney engines. The US engine manufacturer began recalling units last year due to contamination concerns in the powdered metal used to produce key components. The result has been significant delays to inspections and repairs, leaving Wizz Air with dozens of grounded aircraft and a reduced operational fleet.
The airline has now agreed a revised compensation package with Pratt & Whitney covering direct costs for both current and anticipated aircraft outages. While the full financial details remain undisclosed, Wizz confirmed that 42 aircraft were grounded at the end of March, and it expects around 34 to remain inactive through the first half of its 2026 financial year.
Operational costs have also risen sharply. Maintenance, materials and repairs were up nearly 16% year-on-year, exacerbated by the need to lease spare aircraft and extend the life of older planes. Although fuel costs dropped, they were not enough to offset the increased expenses elsewhere.
Wizz CEO József Váradi said the airline had shown resilience under “unique circumstances” and delivered a second year of profitability, but acknowledged the “profound impact” of the engine crisis on cost performance. The airline has now withheld forward-looking guidance for the year ahead, citing the continuing unpredictability of engine recovery timelines and broader geopolitical risks affecting air travel.
Váradi added that he expects a full recovery to take two to three more years, with 2027 anticipated as a “turning point” when most of the grounded fleet should be back in the air. “Despite the turbulence,” he said, “we are still standing.”
For a detailed overview of aircraft engine recall procedures and technical guidance, visit the European Union Aviation Safety Agency for independent documentation.
For the latest developments in the aviation industry, visit EyeOnLondon. We’d love to hear your views in the comments.
Follow us on:
Subscribe to our YouTube channel for the latest videos and updates!
We value your thoughts! Share your feedback and help us make EyeOnLondon even better!
