Wizz Air, the Hungarian ultra-low-cost airline, is grappling with serious operational challenges as a significant portion of its fleet remains grounded due to persistent engine issues. This ongoing problem, primarily linked to Pratt & Whitney GTF engines owned by RTX, has not only disrupted its capacity but also severely dented its financial performance, shaking investor confidence and dragging down its stock price on the London Stock Exchange.
As of the end of its fiscal year 2025 (which concluded on March 31, 2025), Wizz Air reported that 42 of its aircraft were grounded. This number slightly improved to 37 by May 9, 2025, but the airline expects around 34 planes to remain out of service by the midpoint of the 2026 financial year. The root cause of this prolonged grounding is the extensive repair time required for the engines, with a typical shop visit expected to take about 300 days. CEO Jozsef Varadi candidly acknowledged the severity of the issue, telling Reuters that the airline would likely be impacted by these engine repairs for another two to three years.
"You look at the performance of the supply chain, of the industry, and there are cracks all over the place," Varadi remarked, highlighting the broader challenges the airline sector faces amid these unprecedented disruptions. Despite these setbacks, Wizz Air is cautiously optimistic. Varadi pointed out that the number of grounded aircraft is beginning to decline both in absolute terms and as a percentage of the total fleet. This improvement coincides with an increase in delivery volumes of new aircraft from Airbus, signaling a potential turning point for the carrier.
Wizz Air’s fleet grew to 231 aircraft by the end of fiscal year 2025, boosted by the addition of 26 new Airbus A321neo jets and the return of three older planes. For the summer of 2024, the airline also leased eight aircraft on a short-term wet lease basis to shore up capacity. Looking ahead, the airline plans to add 42 new A321neo and eight A321XLR aircraft in the current fiscal year (F26) while phasing out 18 older planes. The airline boasts a young fleet, averaging just 4.7 years old, with 66% of its aircraft being the more fuel-efficient “neo” models. Moreover, Wizz Air has a substantial order book for 300 new planes, underscoring its long-term growth aspirations.
However, the delivery schedule for new aircraft has been pushed back, forcing Wizz Air to revise its fleet growth target to 305 aircraft by March 2028, down from the previously forecasted 380. This delay, alongside the engine woes, has constrained the airline’s capacity growth and profitability.
The financial impact has been stark. Operating profit for the year ended March 31, 2025, plummeted by 61.7% to 167.5 million euros ($191 million), falling well short of analysts’ expectations of 246 million euros. Despite this, total revenue increased to €5,267.6 million, helped by a slight decrease in fuel expenses and improved unit revenue, which rose by 4% compared to the prior year. Wizz Air Abu Dhabi, a subsidiary, contributed positively by carrying 3.5 million passengers in 2024, marking a robust year-on-year growth of over 20%.
Varadi remains steadfast in his commitment to the airline’s ultra-low-cost business model. He emphasized, "We will not relent on defending the ultra-low-cost business model, delivering profitable growth and ultimately stakeholder value." He also noted that the company emerged stronger and better prepared after weathering the challenges of the past year, with improvements in on-time performance, completion rates, and employee satisfaction.
Meanwhile, Wizz Air’s stock price has reflected the turbulence facing the company. On June 9, 2025, shares closed at 1,158 pence (GBX) on the London Stock Exchange, down by 1.36% from the previous day. The stock has experienced a brutal decline over the past year, losing more than half its value (-53.02%) and falling nearly 29% over the last month alone. The five-year performance paints an even grimmer picture, with a 67.72% drop, indicating long-term struggles to create shareholder value.
Market analysts attribute this steep sell-off to several intertwined factors. Persistent engine problems have grounded a significant share of the fleet, directly curbing capacity and revenue. At the same time, volatile jet fuel prices continue to pressure margins, while fierce competition in the European low-cost market squeezes ticket prices. Geopolitical instability in Central and Eastern Europe, a core region for Wizz Air, adds another layer of uncertainty, potentially affecting consumer demand and route viability.
Despite these headwinds, some analysts remain cautiously optimistic. The Royal Bank of Canada, for instance, upgraded its target price for Wizz Air shares from 2,300 GBX ($31.13) to 2,400 GBX ($32.49) in March 2025, assigning the stock an “outperform” rating. Insider buying activity has also been notable; Andrew S. Broderick purchased 595 shares at an average price of 1,414 GBX ($19.14) in April 2025, reflecting a degree of confidence in the company’s future prospects. Currently, insiders own approximately 25.73% of the stock.
Wizz Air operates a modern fleet of over 220 Airbus A320 and A321 aircraft and served 62 million passengers in the financial year ending March 31, 2024. The airline’s focus on sustainability and low fares has made it a preferred choice for many travelers in Europe. However, the current operational and financial challenges have cast a shadow over its growth trajectory and investor sentiment.
Looking forward, Wizz Air is actively managing its financial position by hedging fuel and currency risks and securing new financing arrangements for aircraft purchases. The airline also plans to resume services to Ukraine once the security situation improves, underscoring its commitment to regional connectivity.
As Varadi summarized, "Wizz Air is a more resilient business today. Despite the unproductivity of a grounded fleet, we successfully delivered a second consecutive year of profitability. Our unit revenue is 4 per cent higher than last year, supported by our ability to generate higher fares and drive a higher load factor. Our on-time performance and completion rates steadily improve, and our employee satisfaction consistently improves." These remarks hint at a cautious optimism amid a challenging environment, as the airline strives to regain its footing and restore investor confidence.
