Wizz Air suffered a doubling of net losses to €241 million in the final quarter of 2024 as 20% of its fleet remained grounded due to ongoing engine problems.
The eastern and central European budget carrier warned that there was no change to Pratt & Whitney GTF engine removal projections with around 40 aircraft forecast to be grounded on average over the 2025-26 financial year.
“However, this may change depending on the current negotiations to select the engine for 177 [Airbus] A321neos,” the airline said.
The increased losses from €105.4 million in the same three months the previous year came despite record carryings of 15.5 million passengers and an 10.5% rise in revenues to €1.1 billion.
Chief executive Jozsef Varadi said: “Wizz Air has continued to navigate the complexity imposed on its operations from the ongoing grounding of some 20% of its fleet, due to the well-documented GTF engine issue.
“This is reflected in our unit cost performance, with Q3 ex-fuel CASK [cost of available seat kilometre] up 17% year-on-year, given the multiple inefficiencies these groundings generate across a number of our cost lines.”
He added: “Disappointingly the benefits of the stronger demand environment did not flow through to our reported profit level due to these cost headwinds and a significant €160 million negative FX [foreign exchange] charge recognised in Q3.
“Given the current volatility in FX, the board has approved a hedging programme to help mitigate this in the future, the timing of which is yet to be determined given current ruling exchange rates.”
Varadi described underlying demand as remaining positive at the start of the current quarter, with 62% of capacity booked.
“Trading through the remainder of the current fiscal year remains a focus for Wizz’s management team, from maximising daily revenues to seeking further short and longer-term cost savings,” he said.
“As we look ahead to [full year] ’26, we believe that we are at an important inflection point for the business as we transition to a sustained period of growth for the rest of the decade.
“This is a return to Wizz’s DNA and the basis for long-term value creation for shareholders.
“Our confirmed aircraft orders provide a clear pathway for sustained growth, giving us a competitive advantage in the medium-term. Our recently adjusted Airbus delivery schedule underpins this ambition, especially when factoring in the return our grounded fleet to the air over the next two years.
“Annual capacity growth of 15%-20% over the next five years will facilitate the densification of Wizz’s network, and allow it to protect and expand leading postilions in its fast growing core markets and, in so doing, deliver cost wins and a return to historic net margins and an investment grade balance sheet.”