Central European budget carrier Wizz Air expects to return to growth next year, given its Airbus delivery schedule and better visibility on Pratt & Whitney engine issues.
Wizz expects the average number of grounded aircraft over the next 18 month to be around 40-45, an improvement on the previous assumption of 50.
At the end of the first half of the current financial year, on 30 September, the airline had 41 aircraft on the ground for engine inspections.
Compensation has been received for the first half, it adds, and a new compensation scheme is being negotiated with the powerplant manufacturer to provide “stability” for the rest of the year.
Wizz ended all one-off wet-leases at the end of October.
Chief executive Jozsef Varadi says the engine issues will “continue to inflate costs” over the second half, and that the carrier will try to keep these “counterbalanced” with improved fuel efficiency and network optimisation.
But he states that the company has “better visibility to manage the [engine] issues” to their “expected conclusion” in fiscal 2026-27.
“Our timetable of deliveries from Airbus means we will gradually return to growth from next year,” he adds.
Wizz is aiming to build a fleet of 500 aircraft by 2032, and it expects to expand the fleet by 15-20% annually from next year.
“The age and gauge of our Airbus A321neo fleet, underpinned by our orderbook and fleet renewal programme, will give us unparalleled advantages in the long term,” says Varadi.
Over the first half the carrier, despite the groundings, has been able to keep passenger numbers – as well as revenues and capacity – essentially flat, and achieve an average load factor of 92.4%.
While the airline has focused on cost control, Wizz’s net profit nevertheless fell by 21% to €315 million ($339 million) for the six-month period.
But bookings since the end of September show “no softening of demand”, says Varadi, and the airline is expecting “positive momentum” for bookings and yield into the second half.
