Wizz Air slashes profit guidance as Pratt & Whitney engine issues bite

Wizz Air has cut its targets for annual profit as issues with its GTF engines, supplied by Pratt & Whitney, continue to impact capacity.

The Hungarian budget airline said net income this year would fall in the range of €350m to €370m, down from prior guidance of €350 to €450m.

Total revenue is expected to come in at between €5.05bn to €5.1bn.

Wizz said that while the year to date had been underpinned by “sustained demand for air travel,” it had also been forced to manage “ongoing external issues” related to its engines and conflict in the Middle East.

It was forced to ground 45 neo aircraft as its Pratt and Whitney-manufactured engines were recalled.

Capacity was already slashed by 10 per cent in the second half as the GTF engines were recalled for inspection.

Looking ahead, the airline expects “roughly flat” year-on-year capacity growth. It took delivery of 39 Airbus A321neo aircraft throughout the year, bringing its total fleet to 206.

József Váradi, Wizz Air chief executive, said: “This year we have seen a continuation of the surge in passenger demand for air travel that began immediately after the pandemic.

“While Wizz Air benefitted from this sustained demand and reported record passenger numbers throughout the year, we also mitigated new challenges, including a further wave of geopolitical unrest, the Pratt & Whitney GTF engine recall and air traffic control disruptions.”

There were fears of a downturn in passenger demand following last years’ dramatic rebound from the pandemic.

But Wizz Air has seen passenger numbers soar so far in 2024, reporting record figures throughout the year.

It said current trading into the summer was positive, with selling load factors and pricing trending higher year-on-year. Shares rose over five per cent in early morning trading.

“Traffic increased consistently through the year and Wizz Air returned to profitability in F24. This performance is a testament to our robust and agile operating model that allows us to withstand pressures, while simultaneously controlling costs and maintaining a relentless focus on growth,” he said.