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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.
The budget airline said on Thursday that net losses widened to €241mn in the three months to the end of December, from €105mn a year earlier, as it faced higher costs stemming from a fifth of its fleet being out of action.
Airbus engine supplier Pratt & Whitney began recalls for inspections in 2023, amid concerns over contaminants in the powdered metal used to make its turbofan engines. Wizz Air has been the worst-hit airline in Europe.
Wizz Air said it now expected net income in its 2025 financial year to fall to between €250mn and €300mn, from €365.9mn a year earlier. It had previously forecast 2025 net income in a range of €350mn-€450mn, having cut its guidance last August from a range of €500mn-€600mn.
József Váradi, chief executive, said the airline had “continued to navigate the complexity imposed on its operations from the ongoing grounding of some 20 per cent of its fleet, due to the well-documented . . . engine issue”.
Difficulties with its Pratt & Whitney engines have hampered Wizz Air for more than a year and forced it to lower its growth ambitions as it pays to hire spare planes to fill gaps in its flight schedules.
Wizz Air said those issues meant its results would not benefit from a “stronger demand environment”, with passenger numbers hitting a record 15.5mn in its third quarter, at higher average fares.
Average revenue per passenger increased to €75.79, up 7.7 per cent year on year. However, Wizz said its costs had also risen, “given the multiple inefficiencies these groundings generate”.
