Wizz Air holds out hope for reduction in aircraft groundings  

Wizz Air achieved a second year of profitability despite continuing to have dozens of aircraft grounded due to engine issues.

 

The eastern and central European budget carrier had 42 of its Airbus fleet out of operation at the end of the 2024-25 financial year. 

 

The number had gone down to 37 by May 9 and is expected to  to reduce to 34 by the end of the current quarter. A compensation deal with the engine maker was agreed at the end of 2024 covering the direct costs involved with aircraft groundings.

 

The airline has suffered from issues involving Pratt & Whitney GTF engines but managed to increase passenger carryings to 63.4 million from 62 million in the previous 12 months. 

 

Earnings [ebitda] fell by 4.9% year-on-year to €1.13 billion with the net profit down by more than 41% to €213.9 million.

 

Wizz Air received 26 new Airbus A321neos and 14 GTF spare engines in the period to mitigate some of the impact of the groundings. It ended the financial year with a fleet of 231 aircraft and expects to add a further 50, while 18 will be returned to leasing companies in the current 12 months. 

 

Fares for the summer have been cut by “low single digits” to drive traffic and leverage higher summer close-in booking yields, the airline noted.

 

Meanwhile, a “comprehensive plan” has been developed on how to reintroduce service in Ukraine in around six weeks should a ceasefire to the war with Russia be declared.

 

“This is seen as a five million passenger opportunity by the end of year one and 15 million by year three,” the airline disclosed. 

 

“While our operations continued to be negatively impacted by the ongoing conflicts in Ukraine and Israel, sentiment did improve in terms of the former given multi-lateral discussions over the possibility of a ceasefire in Ukraine and a way forward to bringing the war to an end.

 

“With regards to Israel, we operated an intermittent service through F25 based on security considerations, however, we remain committed to providing a full service to this market once it is deemed safe to do so.”   

 

Chief executive Jozsef Varadi said: “I describe our fiscal year F25 with two words: resilience and transformation. In an environment where rare challenges have become recurrent, Wizz Air has evolved structurally, embedding increased flexibility into our standard operating model. 

 

“While often dismissed as ’easier said than done,’ the past year’s events tested both our company and management. We emerged stronger, wiser, and better prepared.”

  

Varadi added: “Wizz Air is a more resilient business today. Despite the unproductivity of a grounded fleet, we successfully delivered a second consecutive year of profitability. 

 

“We have the benefit of more than a year of experience operating under these unique circumstances – conditions airlines would never experience when demand exceeds supply. 

 

“Our unit revenue is 4% higher than last year, supported by the combination of our ability to generate higher fares and drive a higher load factor. Our on time performance and completion rates are steadily improving and our employee satisfaction consistently improves.

 

“The number of grounded aircraft will start reducing in both absolute and relative terms and this is why we have reached an transformation point. Capacity is back to growing due to this and due to the increase in the delivery volume of new aircraft from Airbus. 

 

"The percentage of grounded aircraft relative to total fleet continues to improve, allowing us to focus on the key elements of our strategy, winning market share, driving leadership positions and deploying our expertise to mitigate challenges in our sector. 

 

"We will not relent on defending the ultra-low cost business model, delivering profitable growth and ultimately stakeholder value.”