Wizz Air issues second profit warning in six months as plane grounding costs soar

Low-cost carrier Wizz Air has issued its second profit warning in six months as it grapples with the grounding of its aircraft because of engine problems. The airline said on Thursday that net losses widened to €241mn in the three months to the end of December, from €105mn a year earlier, due to higher costs stemming from a fifth of its fleet being out of action. Airbus engine supplier Pratt & Whitney began recalls for inspections in 2023, amid concerns over contaminants in the powdered metal used to make its turbofan engines. Wizz Air has been the worst-hit airline in Europe. Wizz Air said it now expected net income in its 2025 financial year to fall to between €250mn and €300mn, from €365.9mn a year earlier. It had previously forecast 2025 net income in a range of €350mn-€450mn, having cut its guidance in August last year from a range of €500mn-€600mn. The London-listed carrier’s woes pushed its shares down as much as 16% in early trading, before recovering to trade down 5%. CE József Váradi said the airline’s higher costs had been “entirely” caused by the “unprecedented” groundings of its aircraft. Difficulties with its Pratt & Whitney engines have hampered Wizz Air for more than a year and forced it to lower its growth ambitions as it pays to hire spare planes to fill gaps in its flight schedules. Varadi said he hoped “the peak of the issue is behind us” as more planes were returned to service. He added that aircraft shortages at other airlines meant he hoped Wizz would not be at such a competitive disadvantage over the next 12 to 18 months. Ryanair, its major low-cost rival, this week lowered its forecasts for passenger numbers because of delivery delays from Boeing.<br/>