Wizz Air expects capacity to remain flat amid jet groundings

Wizz Air Holdings Plc expects capacity to remain subdued as the discount carrier faces disruptions from grounded aircraft and a tougher economic climate.

The Hungarian-based airline doesn’t expect capacity to grow year-on-year in the first half of fiscal 2025, it said in an earnings release Thursday. The company reported €105.4 million ($115 million) in net loss for the third quarter, compared with €33.5 million in profit in the same period last year, and revenue missed analysts’ expectations.

The shares of the discount carrier dropped as much as 8%, the most since November. The subdued outlook contrasts with EasyJet Plc’s upbeat predictions for summer travel.

Wizz has been forced to ground a significant number of its Airbus narrowbody aircraft through the fiscal year ending in March due to mandatory inspections of Pratt & Whitney’s geared turbofan engines that the enginemaker said were at risk of premature failure due to contaminated metal powder.

Engine issues, economic uncertainty and ongoing geopolitical tensions pushed Wizz in November to lower its profit outlook for the fiscal year ending March.

The airline said it will resume some flights to Tel Aviv from March after pausing operations to Israel following the start of the war in October. The carrier said its financial performance in the third quarter was “materially affected by the suspension and reallocation of Israel capacity.”

Wizz’s results come after low-cost rival EasyJet reported a trading update on Wednesday in which it said summer bookings were building well as passenger revenue beats last year’s levels. Ryanair Holdings Plc is set to report earnings on Monday.