Wizz Air plunges as engine trouble grounds a fifth of the budget airline's planes
Shares in Wizz Air tumbled after the budget airline revealed engine problems had grounded a fifth of its planes.
The low-cost carrier said profits tanked 62 per cent from £369million to £141million in the year to March 31 as more than 40 aircraft were out of action. And it continued to be affected by conflict in Ukraine and Israel – two key markets.
Wizz was upbeat as passenger numbers hit a record 63.4m but the shares plunged 27.9 per cent, or 467p, to 1207p, having peaked at 5500p in 2021.
Chief executive Jozsef Varadi said: 'Wizz Air is a more resilient business today.
'Despite the unproductivity of a grounded fleet, we successfully delivered a second year of profitability.
'We have the benefit of more than a year of experience operating under unique circumstances – conditions airlines would never experience when demand exceeds supply.'
Nosedive: Wizz Air said profits tanked 62% from £369m to £141m in the year to March 31 as more than 40 aircraft were out of action
He said it had reached a 'transformation point' in relation to its grounded planes.
The Airbus planes have been affected by problems at Pratt & Whitney, the engine maker owned by aerospace and defence giant RTX, formerly known as Raytheon.
The US manufacturer began recalling some engine models for inspection in 2023, prompted by concerns that there were contaminants in the powdered metal that was used in manufacturing.
Wizz has been the worst-hit European airline, issuing two profit warnings in the last year.
As many as 44 planes were grounded, it said. By early May, 37 were out of action – a figure expected to shrink to 34 by the end of September.
It takes around 300 days for engines to be checked and returned to service. But the problems are expected to drag on until at least 2027.
Wizz secured a two-year compensation package with Pratt & Whitney last year and said the support would mitigate 'some, but not all, of the operational and financial impacts on the business'.
Russ Mould, investment director at AJ Bell, said: 'The airline described its past year as 'resilience and transformation', whereas the market reaction suggests 'awful' might be a better word.
'Wizz used to be the aggressive growth player, with talk that it tried to buy Easyjet in 2021. The tables have turned and it is being left behind.
'With shares at a fraction of their peak, failure to resolve its problems could see Wizz turn from predator to prey.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
11 minutes ago
- The Sun
Exact dates millions of energy customers must make essential bill check ahead of price cap change
ENERGY bills are set to fall by 7% in July, bringing much-needed relief to millions of households. The average annual gas and electricity bill will drop from £1,849 to £1,720, saving a typical household about £129 a year. 1 The savings will provide relief to millions, as over 22million households on standard variable tariffs are directly affected by the price cap, which is updated every three months. From July 1, electricity will cost around 25.73p per kWh with a daily standing charge of 51.37p. Gas will cost around 6.33p per kWh with a 29.82p standing charge. However, many might still pay more than Ofgem 's headline figure because the cap limits the prices you pay not your total bill. Ofgem's estimate assumes typical usage of 2,700 kWh of electricity and 11,500 kWh of gas per year. Using more means a higher bill. Households on standard variable tariffs without a smart meter should make it a priority to submit their electricity and gas meter readings to their supplier as close to July 1 as possible. This ensures they are billed accurately at the new, lower rates. Failing to submit readings could mean some of your usage after this date is charged at the previous, higher rates. Suppliers who have not received meter readings rely on estimated usage, which could lead to households being overcharged. How to take a meter reading However, even if you take your meter readings near July 1, you don't need to submit them immediately. Many suppliers allow extra time for customers to provide their readings. Some offer a few days after the price cap changes to submit backdated readings, while others may allow up to a week or more. We've explained the deadlines for submitting your reading to your supplier and provided guidance on how to read your meter. When to submit a meter reading You should try and take a meter reading as close to today as possible to show how much energy you used up until this date. Once you have taken the reading you have a certain amount of time in which to send it to your supplier. The amount of time you have to submit it depends on who your energy supplier is. For example, British Gas customers have until July 14 to send in a reading. They can do this online, via its app, telephone or web form. At Ovo Energy you can send in your reading in your online account, via its app or by telephone and you need to do so by July 11. Next customers need to submit a meter reading before July 6 through their online account, via the app, telephone or email. Households who are supplied by Octopus Energy have until July 8 to submit their reading online, through a web form, via the app or by email. EDF customers need to send in a reading before July 10. They can do so online, via its app, online form, email Whatsapp, text or over the phone. At Utility Warehouse, customers can give a reading in the five days leading up to July 1 and submit it in their online account, through its app or by phone. How to take a meter reading The easiest way to take a meter reading is to take a photo of your gas and electricity meters. This means you have evidence in case you need to dispute a bill. You can send in your meter reading online via your energy account. Some providers will also let you send in the numbers by text or through their app. Check which options your supplier offers on their website. Electricity meters If you have a digital electricity meter then you will see a row of six numbers. Five of them will be in black and one will be in red. Write down the five numbers in black, which are shown from left to right. If you are on an economy 7 or 10 tariff, which gives you cheaper electricity at night, then you will have two rows of numbers. You need both to take a reading. If you have a traditional dial meter then you need to read the first five dials from left to right. Ignore any red dials. If the pointer is between two numbers then write down the lowest figure. If it is between nine and zero then write down the number nine. Gas meters If you have a digital metric gas meter showing five numbers followed by a decimal point then you need to write down the first five numbers. If you have a digital imperial meter then you will see four black numbers and two red numbers. Write down the four black numbers only. If you have a digital gas meter, follow the same steps as the digital electricity meter. Smart meters If you have a smart meter then you do not need to send your supplier a meter reading as it will be sent automatically. Check that your smart meter is in "smart mode" and is working properly to make sure you are accurately charged. What energy bill help is available? There's a number of different ways to get help paying your energy bills if you're struggling to get by. If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter. This involves paying off what you owe in instalments over a set period. If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a better deal. Several energy firms have schemes available to customers struggling to cover their bills. But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances. For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000. British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund. You don't need to be a British Gas customer to apply for the second fund. EDF, Octopus Energy and Scottish Power all offer grants to struggling customers too. Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR). The service helps support vulnerable households, such as those who are elderly or ill. Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you're struggling. Get in touch with your energy firm to see if you can apply.
The Sun
26 minutes ago
- The Sun
Our posh village is now ghost town strewn with empty homes – we've slashed asking prices by £100k but no-one wants them
STUNNING homes in a charming riverside village are now unsellable, with demand "falling off a cliff" after a tax blitz on second homes. One homeowner was forced to slash £100,000 off the value of her waterside cottage in Cornwall - and still can't sell it. 6 6 6 Debbie Pugh-Jones lowered her asking price three times in 10 months and says the picturesque two-bed home is now priced the same as a small flat in a run-down area of some cities. She lives in the quaint Cornish village of Goland, near the millionaire's playground of Fowey - where Dawn French and Gordon Ramsay have previously owned homes. The 69-year-old listed the home for sale for £400,000 last August believing it would sell quickly as similar homes nearby sold for £425,000 during Covid. She says increased stamp duty brought in nationwide combined with Cornwall Council's decision to double council tax rates on second homes has scared off potential buyers. Tourist hotspots like Cornwall and Wales, a favourite for charming seaside getaways, have been embroiled in a "tax war" in recent years. Residents say they can't afford to buy houses where they grew up as city dwellers snap them all up, only to stay there a fraction of the time when they fancy a get-away. But local businesses say they can't survive without the revenue second home owners and holidaymakers bring in. Debbie warned that the area is in danger of becoming a 'ghost town' due to unsold properties that are now lying vacant. She told The Sun: 'When you come down that much in price you would expect to get a viewing but I've had three in nearly a year. "Nobody at all looked around between November and April. The seaside town of Newlyn in Cornwall has been dubbed as one of the 'coolest' places to relocate 'Double council tax won't affect the very wealthy but it will affect the middle class people wanting to buy a second home.' She added: 'The community is at risk of changing because some of the second home buyers in this village aren't happy to be paying double council tax. 'Around half of the houses in this village are second homes and the rest are retired people, there are very few people working in this village. 'It's making them struggle but even if they wanted to sell they wouldn't be able to. 'People living here used to work in farms and on the boats but all those industries are gone and the village doesn't have a school, it's not near a bus route and it doesn't have any amenities. 'I'm not depriving a first time buyer of a place to live because it's not the sort of house that would suit them.' Travel writer Debbie said she fell in love with the house in the village of Golant at first viewing in 2013 and bought it for £240,000. She used it as her main home and spent £30,000 on renovations. Our beauty spot paradise is being clobbered by '£35 tourist tax' – it's utter insanity & will kill all trade By Maleeha Katib LOCALS in a beloved UK beauty spot have voiced their fears over plans to introduce a nightly tourist tax. The picturesque mountains, limestone caves, and cascading waterfalls of Brecon Beacons have long been a magnet for visitors from around the globe. The Welsh government is planning to roll out a new 'tourist tax' across the nation, which has sparked fears over driving away visitors and the knock-on impact on local trade. The charge, which would be £1.25 per person per night for hotels, B&Bs, and self-catering accommodation, and 75p for campsites, could add £35 for a family of four staying a week in Wales. Critics say this will drive visitors away, crippling the rural economy. Ashford Price from National Showcaves Centre told Sky News: 'In an area like this, all we've got is tourism and farming – there is nothing else. It will be an absolute catastrophe.' But following the death of her mother last year, she decided to move closer to her son and two-year-old grandaughter in Bath, Somerset. She said: 'It had always been my dream to retire to the coast. 'It was the view that attracted me, the river view is nicer than the sea view because it is always changing. 'I paid a premium for it because I paid for the views but straight away I fell in love with it.' At the village pub - The Fisherman's Arms - landlord Nick Budd said second homes were just a fact of life in the village. The 32-year-old said: 'It's a hard one because not all second home owners are the same. "You have the holiday lets which are great for us, because when people come on holiday they want to eat out and drink in the pub. "Then you have the lock up and leave its and they are the ones that kill us. 'The overwhelming outcome of property price rises is young people cannot afford to buy a house in the village and that situation needs addressing. 'But I don't know whether double council tax is the way to do that.' Cornwall Council said it expected double council tax on second homes would raise £24million this financial year. Another UK holiday hotspot warns of tourist tax on all visitors – and urges its neighbour to do the same By Summer Raemason HOLIDAYMAKERS travelling to a major UK destination have been warned they may have to pay a 'visitor tax'. A debate has been sparked over whether or not to introduce a 'Tourist tax' in Cornwall and Devon - but officials say they can "certainly envision" it implemented. It comes as protests were held in Venice after the country imposed a similar fee on short stay visitors. Day-trippers will be charged €5 (£4.30) if visiting the historical Italian centre, the first to bill holidaymakers an entry fee, from today until May 5. Similar talks have also been held in Cambridge, Edinburgh, Bournemouth, Christchurch and Poole as tourists continue to flood the popular hotspots. Now Malcolm Bell, who heads up the tourism board in Devon, said there is a serious conversation to be had over introducing the same policy. As reported by Devon Live, he said: "It is a time to have the debate, not rush into action, engage with people and look at the art of the possible." He added: "We must make sure it is not burdened with administrative costs and helps to manage the situation we are facing and improve it." The same talks are already underway among various organisations in Cornwall from south west coastal paths to National landscapes. It agreed to charge an additional 100 per cent Council Tax premium on second homes from April 1 2025. Neighbours have even been encouraged to dob in those they suspect are second homeowners trying to dodge the extra tax. Cornwall - famous for its stunning coastlines, tranquil views and quaint villages - is the second home capital of England. Last year, it was reported that it has 9,425 properties used as second homes. But soon after the tourist tax introduction on April 1, Cornwall estate agents warned demand for second homes had 'fallen off a cliff' with more people looking to sell than buy. Bradley Start, from Start & Co estate agents in Newquay, said: "They've received these demands for twice as much council tax and that's prompted a lot of people to think about selling.' But Mr Start told the BBC he feared former holiday homes would not be attractive to people trying to get on to the housing ladder. He added: "A two bedroom apartment on a cliffside with a sea view but no amenities is not going to suit a first time buyer for price or what it can offer.' Last year, it was reported that people staying overnight in Liverpool will have to pay the "tourist tax" - which could raise millions each year. Another unlikely city considering a tax on visitors is Nottingham, where the council reckon bringing in a tourist charge could raise £1.7m a year. It says this could be invested in attractions to make Nottingham less about the night-time economy and more of a tourist destination during daylight. The City of Edinburgh Council is also introducing a five per cent visitor levy for overnight guests in paid accommodation from July next year. Meanwhile Manchester adds £1 per room per night for stays within the Accommodation Business Improvement District (ABID) zone. The Sun has approached Cornwall Council for comment. 6 6 6
The Sun
27 minutes ago
- The Sun
I'm a Vinted expert, my four easy tips will instantly boost your sales and why pricing lower will mean you earn more
SUMMER can be an expensive time of year whether you have holidays to pay for or are trying to keep the kids entertained while they're off school. Vinted can be a great way to make extra cash but with thousands of listings on the reselling app it can be difficult to get yourself noticed. 1 However, Faye Oakenfull, marketing director at Centra, has revealed how to make your listings stand out. She says focusing on quality listings and smart pricing can transform casual decluttering into a profitable side business. Quality photography matters "Quality photos are the foundation of successful listings," Oakenfull explains. "Natural light works best for capturing true colours and details that buyers want to see." Use a plain background to avoid distractions, and photograph items from multiple angles – front, back, close-ups of details, and any flaws. This not only gives buyers a better view of the product but also helps build trust. When it comes to how you present your items, the expert says the choice between trying them on or laying them flat depends on both the garment and your personal comfort. Modelling the item can help potential buyers visualise fit and drape, especially with structured pieces like coats, dresses, or trousers, but laying items flat – or neatly hanging them – can still be highly effective when done with care and good lighting. A strong middle ground is hanging items on a hanger. This allows for clean, consistent photos without the need to model, while still showing shape and length clearly. "Consistency in your photo style across listings can also help create a cohesive and trustworthy seller profile,' she adds. 'If you can, avoid using flash, and try to take your photos during daylight hours to give your items a natural, true-to-life appearance.' Strategic pricing boosts visibility Vinted's statistics show that competitive pricing strategies are flourishing, as there has been an increase in algorithmic visibility for well-priced items. This may be due to recent high competition and increased platform usage encouraging sellers to ask for reasonable prices. "Before listing an item, search for similar products that have sold recently," Faye advises. "Position yourself just below comparable listings to attract more views." Pricing just a little lower than similar active listings can improve your chances of being featured higher in search results. Consider the condition of your item too – new with tags items can command higher prices, but gently used ones should be priced accordingly. Keep track of how long items stay listed; if something hasn't sold in a few weeks, adjusting your price even slightly could refresh visibility and drive interest. Detailed descriptions drive sales Providing detailed descriptions is an effective way of increasing your chances of conversion. The increase of keyword usage and the inclusion of measurements contribute to this improvement, alongside the reduction in customer questions regarding the listing. "Be thorough about size, condition, and materials in your descriptions. Include measurements rather than just size labels since sizing varies between brands," Faye suggests. Well-crafted descriptions not only help with searchability but also reduce the number of queries from potential buyers, saving you time. Mention the fit (tight, loose, oversized), washing instructions, or any brand-specific quirks. Use clear, searchable terms like 'Zara midi dress' or 'Nike Air Force 1 UK 7' rather than vague titles. The more transparent and accurate your listing, the more confident shoppers feel clicking 'Buy.' You can also add other relevant details to your listings. For instance, if you're selling a fair number of items, you could mention that you're having a clear-out – this can encourage people to browse your wardrobe. Bundle discounts increase total value UK bundle discount sales continue to be on the rise – and it's no surprise. Everyone enjoys a good deal, especially at a time when the cost of living and inflation are steadily increasing. UNDERSTANDING TAX IMPLICATIONS According to HMRC guidance, there is no new tax rule for people selling unwanted items online. But you may need to register for Self Assessment and pay tax if you buy goods for resale with the intention of selling them for profit and generate total income exceeding £1,000 before expenses in any tax year. In other words, anyone buying items specifically to resell them may be subject to tax, while personal decluttering remains tax-free. How you acquire your items matters, because personal possessions and purchased inventory are taxed at different rates. "If you're buying stock to resell, track all your expenses including packaging, postage, and the original cost of items," Oakenfull advises. "These can be deducted from your profits when calculating any potential tax liability." The key is knowing the difference between casual selling and running a small business, and planning accordingly. Shoppers are becoming more conscious of value and even more likely to take advantage of savings where they can. "Offering percentage discounts on multiple purchases is a satisfying way to increase your overall sales value while saving on shipping costs," she notes. Bundling encourages customers to buy more at once, especially when they're already browsing your wardrobe. Set up automated discounts – such as 10% off two or more items – and mention this in your bio or item descriptions to catch attention. It not only increases average order value, but also reduces the time and materials spent on packaging and postage.
