European low-cost airline Wizz Air has today cut its annual net income forecast for the second time in six months, as it grapples with rising costs related to the grounding of planes due to engine issues and economic uncertainties.
Wizz faces several challenges from costs and disruptions due to groundings related to issues with Pratt & Whitney engines, with CEO Jozsef Varadi saying earlier this month that he expects the troubles could last four or five years.
"Wizz Air has continued to navigate the complexity imposed on its operations from the ongoing grounding of some 20% of its fleet, due to the well-documented GTF engine issue. This is reflected in our unit cost performance," Varadi said in a statement.
European airlines are hoping for a better 2025 as 2024 was mired by spiralling costs, geopolitical instability and capacity constraints forcing some carriers to spend more on leasing planes to ensure they could maintain key routes.
Wizz reported a third-quarter operating loss of €75.9m, compared with a loss of €180.4m a year ago.
However, analysts had estimated an operating profit of about €10.6m, according to data compiled by LSEG.
The London-listed carrier now expects net income in the range of €250-300m for the year ending March, compared to its earlier forecast of between €350-450m.
Varadi has long told investors that growth and stability will return after the airline's difficult few years recently.
"As we look ahead to FY26, we believe that we are at an important inflection point for the business as we transition to a sustained period of growth for the rest of the decade," Varadi said in a statement.
"This is a return to Wizz's DNA and the basis for long-term value creation for shareholders," he added.
Wizz Air's share performance is among the worst of the European airlines as it has struggled to convince investors of its financial stability.
Wizz has paid large amounts of money for wet leases in order to maintain some of its key routes.
A wet lease is a leasing arrangement in aviation where one airline provides a plane, crew, maintenance and insurance to another airline.
