Latest news with #JozsefVaradi
Yahoo
4 days ago
- Business
- Yahoo
Wizz Air near deal to order Pratt & Whitney engines for new jets, sources say
LONDON (Reuters) -Wizz Air is edging towards a deal with RTX-owned Pratt & Whitney to purchase engines for 177 of its Airbus jets already on order, according to two industry sources. An announcement could come as early as this week's Paris Airshow, they said, adding it would form part of a settlement with the engine maker over groundings caused by repair times. Wizz Air and Pratt & Whitney parent RTX declined comment. The airline, which operates an all-Airbus fleet, last year said it had two options - its current supplier Pratt & Whitney, whose engines are facing issues worldwide, forcing airlines to ground planes, and competitor CFM, a joint venture between GE Aerospace and France's Safran. Choosing the next engine provider would depend on the acquisition cost, durability of the engine, operating cost and cost guarantees for aftermarket activities, Wizz Air Chief Executive Jozsef Varadi told Reuters. Wizz Air is among airlines that have been forced to ground a large number of planes due to a powder metal issue with the Pratt & Whitney's geared turbofan (GTF) engine. Its profit for its 2025 financial year, which ends on March 31, slumped over 60% due to the knock-on effects of the groundings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Wizz Air near deal to order Pratt & Whitney engines for new jets, sources say
LONDON, June 16 (Reuters) - Wizz Air (WIZZ.L), opens new tab is edging towards a deal with RTX (RTX.N), opens new tab-owned Pratt & Whitney to purchase engines for 177 of its Airbus ( opens new tab jets already on order, according to two industry sources. An announcement could come as early as this week's Paris Airshow, they said, adding it would form part of a settlement with the engine maker over groundings caused by repair times. Wizz Air and Pratt & Whitney parent RTX declined comment. The airline, which operates an all-Airbus fleet, last year said it had two options - its current supplier Pratt & Whitney, whose engines are facing issues worldwide, forcing airlines to ground planes, and competitor CFM, a joint venture between GE Aerospace (GE.N), opens new tab and France's Safran ( opens new tab. Choosing the next engine provider would depend on the acquisition cost, durability of the engine, operating cost and cost guarantees for aftermarket activities, Wizz Air Chief Executive Jozsef Varadi told Reuters. Wizz Air is among airlines that have been forced to ground a large number of planes due to a powder metal issue with the Pratt & Whitney's geared turbofan (GTF) engine. Its profit for its 2025 financial year, which ends on March 31, slumped over 60% due to the knock-on effects of the groundings.
Daily Record
06-06-2025
- Business
- Daily Record
Popular budget airline sees stocks tumble after admitting one in five planes grounded
Wizz Air is one of the most popular budget airlines for Brits jetting off on holiday, but the Hungarian firm has seen a 62 per cent drop in profits while 20 per cent of its planes are grounded A popular budget airline, often chosen by British holidaymakers looking for cheap flights, has seen its shares slump after disclosing that 20 per cent of its fleet is grounded due to engine issues. Wizz Air operated over 63 million flights to and from the UK last year, offering connections to favourite getaway locations such as Spain, Greece, and Italy. Nonetheless, the airliner's profits took a nosedive by 62 per cent to £141 million, largely due to ongoing strife in two key markets – Israel and Ukraine. Adding to their woes, about 40 of their jets are currently idle because of global complications with some Airbus engines, putting a significant chunk of Wizz's profit generators out of action. As a repercussion, share prices plunged to 1207p, a steep fall from their high of 5500p in 2021. Despite these challenges, Wizz Air has experienced an uptick in British customers, with over 12 million Brits opting for the budget carrier for trips abroad. Battling substantial adversities, however, the airline had to signal two profit warnings within a year. The Chief Executive, Jozsef Varadi, conveyed to the Mail: "Wizz Air is a more resilient business today. Despite the unproductivity of a grounded fleet, we successfully delivered a second year of profitability.", reports the Express. He also noted: "We have the benefit of more than a year of experience operating under unique circumstances - conditions airlines would never experience when demand exceeds supply." The budget operator's plummeting share value and profits have raised red flags for airports throughout the UK. With operations from key international hubs such as Luton as well as regional airports including Liverpool, Birmingham, Doncaster, Aberdeen, and Edinburgh, Wizz Air's financial performance is significant. Recovery does not seem on the horizon for Wizz Air, with engine checks and services on its Airbus fleet experiencing extensive delays, now reaching 300 days and potentially stretching into 2027. The troubles started back in 2023 after the manufacturer issued a recall of certain engine models due to fears of powdered metal tainting the manufacturing process. However, the airline's CEO has declared that they are at a "transformation point" concerning these issues. Despite having 44 aircraft out of a fleet of 200 impacted, the company anticipates reducing this figure to 37 by September, thereby missing the peak summer period. As one of the most severely impacted airlines in Europe, Wizz Air has managed to negotiate a compensation arrangement with Pratt & Whitney, the company responsible for manufacturing the engines for Airbus. CEO Varadi said this agreement helps alleviate "some, but not all, of the operational and financial impacts on the business." AJ Bell's Investment Director Russ Mould remarked: 'The aviation firm labelled its previous year as "resilience and transformation", yet market reactions imply "awful" would be more apt. "Formerly seen as the ambitious growth contender, even considering acquiring Easyjet back in 2021, Wizz Air now appears to be falling behind in the race. 'With shares at a fraction of their peak, failure to resolve its problems could see Wizz turn from predator to prey. '.
Daily Mail
05-06-2025
- Business
- Daily Mail
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.'
RTÉ News
05-06-2025
- Business
- RTÉ News
Wizz Air profit slumps on grounded planes, shares tumble
Budget carrier Wizz Air's grounded planes that are awaiting engine repairs took their toll on annual profits today, sending the shares down 23%. Wizz Air had 37 aircraft grounded as of May 9. By the end of the first half of its 2026 financial year, it expects 34 aircraft to remain grounded, with a repair shop visit expected at around 300 days. The planes have been affected by problems with RTX-owned Pratt and Whitney engines, limiting the airline's ability to increase capacity. It has issued two profit warnings in the past year. "You look at the performance of the supply chain, of the industry, and there are cracks all over the place," Chief Executive Jozsef Varadi told Reuters in an interview. Varadi previously said he expected the airline to be impacted by the engine repair issues for another two to three years. "We have the benefit of more than a year of experience operating under these unique circumstances – conditions airlines would never experience when demand exceeds supply," he said in the statement today. Operating profit for the financial year ended March 31 fell 61.7% from a year ago to 167.5 million euros missing the 246 million euros projected by analysts polled by LSEG. The London-listed shares fell 26% to 1,227p at 9.10am (GMT), having dropped 48% year-on-year to continue the carrier's streak as the worst stock performer among European airlines. Wizz Air has subsidiaries in Hungary, Britain, Abu Dhabi and Malta. That appeared to weigh on other airlines, with Lufthansa, easyjet and British Airways-owner IAG down 1.5% to 2.7%. European airlines have warned of longstanding delivery delays and uncertainty around maintaining a boom in post-COVID demand amid economic turmoil tied to US President Donald Trump's tariff threats. The sector has, however, benefited from lower fuel prices. Wizz said ticket prices were slightly lower than last year. Analysts have pointed to other potential rising costs. In particular, costs due to the retiring of Wizz's A320ceo fleet projected for next year. The company said it would not provide guidance for 2026 at this stage of the year, citing limited visibility.
