The Wizz Air Group is severely affected by the problems surrounding the Pratt & Whitney engines used in the Airbus A320neo and A321neo aircraft. The fact that some machines cannot be used due to necessary inspections also has financial implications. 

The group had to significantly lower its profit forecast. While it was initially assumed that there would be a surplus of between 350 and 450 million euros in the current financial year, we are now talking about 350 to 400 million euros. At the same time, there is hope for compensation figures from Pratt & Whitney parent company RTX. 

The Wizz Air financial year ends on March 31, 2024. The problems surrounding the engines are not the only factor that worries CEO Jozsef Varadi. For example, operating conditions in the areas of security and infrastructure would be difficult at the moment. In general, the “macroeconomic environment” would be complicated at the moment. Before the attack by the army of the Russian Federation, Wizz Air Group had a large presence in Ukraine. At times there was even an offshoot with its own AOC. All routes cannot be operated for safety reasons.  

In addition, connections to Eilat and Tel Aviv have been suspended until further notice. It is likely that after the end of the war it will take some time for demand to return to the level that existed before the Hamas attack. What is also complicated is that there is hardly any demand for lucrative flights to neighboring countries of Israel. These were also considered quite interesting for low-cost airlines due to the subsidies that were sometimes granted. 

Things actually went quite well for Wizz Air in the first six months of the current financial year. Up to and including September 30, 2023, an operating profit of 522,9 million euros was achieved. This compares to a deficit of 63,8 million euros that was incurred in the previous year due to a lack of fuel hedging.  

Varadi believes that the group he leads is well positioned. The sales and profit figures would confirm the efforts and investments of the last few years. The booking numbers for winter 2023/24 would be “good”. The main problem at the moment would be the unscheduled inspections of the engines in use on the A320neo/A321neo. The Wizz Air boss assumes that up to 2024 machines will no longer be in production by the beginning of 45. 

Varadi is confident that the group will be able to take delivery of around 2024 Airbus A21neo ex works by the end of March 321. This would at least alleviate the current outages. Negotiations regarding financial compensation are also underway with Pratt & Whitney and its parent company RTX. However, no concrete figures have been given yet.