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Wizz Air returns to annual profit despite engine recalls and Gaza conflict

Wizz Air returned to profit in the past financial year despite having 45 aircraft grounded at the end of March due to engine issues.

The total involved due to a recall of Pratt & Whitney GTF engines was disclosed in a trading update for the financial year to March 31.

The Hungarian budget carrier said it had 40 spare engines supporting the removals from Airbus aircraft.

“Assumptions relating to GTF engine removals shared previously remain unchanged,” Wizz Air said.

The airline took delivery of 39 new A321neos in the 12 months to give a fleet size of 206 aircraft as of March 31. 

Wizz Air is continuing to operate flights to Israel, but said it was following the security situation in the country closely.

Net income in the range of €350 million-€370 million is expected to be reported for the 2023-24 financial year, in line with guidance.

Total revenue is projected to be in the range of €5,050-€5,100 million “reflecting stronger ticket revenue and pricing, partially offset by softer ancillaries in H2 as a result of the combination of network-related impacts from geopolitical events and resulting short window capacity redeployment”. 

The year was “underpinned by sustained demand for air travel and active management of ongoing external issues, including the GTF engine recall and the Israel-Hamas war”. 

The full year results are due to be issued on May 23.

Total capacity is expected to be “roughly flat” year-on-year for the 2024-25 financial year. 

The carrier “is trading positively into the summer of 2024 with selling load factors and pricing trending higher year-on-year in the first two fiscal quarters.”

Chief executive Jozsef Varadi 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.

“Despite this, 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.”

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