Wizz Air: under pressure after the results

Photo credit © wizz air

(Boursier.com) — Wizz Air loses 4.5% in London after reporting disappointing results while the low-cost carrier is penalized by the conflict in the Middle East and engine problems affecting some of its Airbuses. The Hungary-based company suffered a net loss of 105.4 million euros in its third fiscal quarter, compared to 33.5 million euros in profit for the same period last year, for a turnover of 1.06 MdE (+16.8%), lower than analysts’ expectations. EBITDA stood at 18.7 ME compared to -2.8 ME a year earlier while traffic jumped 22.1% to 15.1 million passengers. Wizz Air anticipates stable capacities during the first half of its 2025 financial year after it was forced to ground a significant number of its Airbuses during the financial year ending in March due to mandatory inspections on Pratt & Whitney engines.

The airline announced it would resume some flights to Tel Aviv starting in March after suspending operations to Israel following the start of the war in October. The carrier said its financial performance in the third quarter was “significantly affected by the suspension and reallocation of Israeli capacity.” He nevertheless reiterated his expectations for 2024 net profit (350 to 400 ME), which are supported by positive activity at the start of the fourth quarter, reduced capacity during the same period and compensation from OEMs for grounded aircraft. ground. “Based on our assessment of the overall impact of mandatory engine inspections, we are confident that our long-term growth plans to operate a fleet of 500 aircraft by the end of the decade will not be affected” , underlined József Váradi, CEO.

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