Wizz Air Reports €241 Million Loss in Q4 2024 Due to Engine Issues
The airline plans to expand its fleet from 230 aircraft in March 2025 to 305 by March 2028, including the addition of 137 Airbus A321 aircraft over the next three years.
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Wizz Air Holdings Plc posted a €241.1 million net loss for the third quarter of fiscal year 2025, ending December 31, 2024. The low-cost airline attributes this result to operational challenges, particularly the grounding of approximately 20% of its fleet due to ongoing Pratt & Whitney engine issues.
Despite a 10.5% revenue increase to €1.176.8 million and a 2.6% rise in passenger traffic to 15.5 million, higher maintenance, depreciation, and foreign exchange fluctuations weighed heavily on the airline’s financial performance. While load factor improved to 90.3%—a 2.7 percentage-point increase—it was not enough to offset mounting financial pressures.
Key Challenges Affecting Performance
One of the most critical issues for Wizz Air during this period was the grounding of an average of 40 aircraft, leading to operational inefficiencies and a 16.8% increase in non-fuel unit costs (ex-fuel CASK). The airline continues to face engine maintenance and inspection delays related to Pratt & Whitney GTF engines, driving a 52% surge in maintenance expenses.
Additionally, currency fluctuations had a significant impact, with a €159.5 million loss due to the euro’s depreciation against the U.S. dollar. This external factor added volatility to the airline's quarterly financial results.
Fleet Expansion and Future Outlook
Despite these challenges, Wizz Air remains committed to long-term growth, aiming for a 15-20% annual increase in operational capacity over the next five years. The airline plans to expand its fleet from 230 aircraft in March 2025 to 305 by March 2028, including the addition of 137 Airbus A321 aircraft in the next three years. However, resolving engine-related issues and managing costs effectively will be key to restoring profitability.
Wizz Air CEO József Váradi emphasized that while demand and revenue remain strong, operational disruptions and currency volatility have negatively impacted the quarter's results.
"We are at a crucial turning point for the company, and our decisions regarding fleet strategy and cost management will be critical for sustained growth throughout the decade," Váradi stated.
Sustainability Initiatives and Fuel Costs
On the sustainability front, Wizz Air has made progress in reducing carbon emissions, though temporary fleet adjustments—including leasing older aircraft to offset grounded jets—have affected its environmental performance.
Meanwhile, fuel costs dropped by 16.3%, partially offsetting other cost increases during the quarter.
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