Wizz Air narrows full-year profit target amid engine issues

Wizz Air Holdings Plc narrowed its net income guidance for the full year as the budget airline faces aircraft groundings because of engine issues on some of its Airbus SE jets.

Net income this year will be between €350 million ($375 million) to €370 million, down from a previous range of €350 million to €400 million, the Hungarian budget carrier said on Thursday in a trading statement. 

Wizz is among the airlines impacted by issues with Pratt & Whitney’s geared turbofan engines on some A320-family aircraft. Chief Executive Officer Jozsef Varadi told Bloomberg in March that about 20% of Wizz’s fleet was parked for turbine inspections and he predicted to see engine groundings to reach their peak in six to 12 months.

Despite the engine woes, Wizz said it returned to profitability in its fiscal year and that it’s trading positively into the busy summer travel season. Total revenue is expected to be between €5 billion to €5.1 billion, which the company said reflects higher pricing, the airline said. Wizz said it will reduce net debt, boost operational cash and expand operating margins in fiscal 2025.

The airline maintained a flat year-on-year capacity growth target for the full 2025 financial year. The engine issue was one of the main challenges that Wizz faced, alongside the conflict in the Middle East and air traffic control disruptions.

Shares rose 4.1% at 8:12 am on Thursday in London following the trading update. The stock is little changed so far this year.

Geopolitical tensions including the Israel-Hamas conflict and the Ukraine war have impacted Wizz, forcing it to remove 7% and 13% of capacity respectively. Wizz said it still flies to Israel, though it is “following the security situation there closely.”