Wizz Air profit tumbles as engine issues ground fleets

Wizz Air’s half-year profit tumbled by over a fifth as long-running problems with some of its engines forced the carrier to ground aircraft.

The Hungarian budget airline reported a 21.3 per cent dip in net profit to €315.2m (£262.7m) over the six months to 30 September.

Earnings before interest, taxation, depreciation and amortization (EBITDA) also declined by 5.9 per cent to €826m.

Passenger numbers stayed broadly level with what amounted to a booming year of travel in 2023, at 33.3m, leading to a 0.5 per cent increase in revenue to €3.1bn.

“Wizz Air has delivered a resilient performance in the first half, driven by solid air travel demand and strong focus on operational efficiency,” chief executive Jozsef Varadi said in a statement today.

It comes after a challenging year for the low-cost carrier, which has struggled to capitalise on strong demand for travel amid ongoing supply chain issues and conflict in the Middle East and Ukraine.

Some 41 of Wizz Air’s aircraft were on the ground heading into October as inspections of the airline’s Pratt & Whitney-manufactured engines continue.

The London-listed firm has been forced to slash capacity throughout the last two years due to problems tied to some of the geared turbofan (GTF) engines supplied by the US aerospace group.

It said on Thursday that average groundings would fall in the range of 40 to 45 aircraft over the next 18 months, against a previous assumption of 50. Negotiations surrounding compensation are currently underway.

“Cost control remained a key focus area during the first half,” Varadi said.