Wizz Air Stock- Wizz Air Faces 2-Year Struggle Due to Engine Failures

Wizz Air Stock- Wizz Air Grounds 37 Planes, Profits Drop Over 60%

Wizz Air Stock– Wizz Air’s latest financial results revealed the heavy toll of ongoing engine repair delays, sending the budget carrier’s shares down by as much as 23% in a single day. As of May 9, the airline had 37 aircraft grounded—a direct consequence of issues with Pratt & Whitney engines, manufactured by RTX Corp.

The company anticipates that 34 aircraft will remain grounded well into the first half of its 2026 financial year, with average engine repair turnaround times now stretching to nearly 300 days.

You look at the performance of the supply chain, of the industry, and there are cracks all over the place.

Engine Trouble Expected to Linger for Years

The operational limitations caused by engine issues are not expected to resolve quickly. Varadi emphasized that Wizz Air could face disruption for another two to three years due to the ongoing shortages in repair capacity and parts.

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.

Financial Impact: Profit Misses Expectations

For the financial year ending March 31, Wizz Air’s operating profit plunged by 61.7% to €167.5 million, well below the €246 million forecasted by analysts polled by LSEG.

This underperformance contributed to a 26% drop in share value, with the stock trading at 1,227p at 09:10 GMT. On a year-over-year basis, Wizz Air shares are now down 48%, cementing its position as the worst-performing airline stock in Europe over the past 12 months.

Industry-Wide Concerns Ripple Through Markets

The market reaction wasn’t limited to Wizz Air. Other major European carriers also saw declines, including:

• Lufthansa: Down 1.5%
• easyJet: Down 2.1%
• IAG (British Airways parent): Down 2.7%

The broader sector continues to struggle with aircraft delivery delays, rising operational uncertainty, and an inability to fully capitalize on post-COVID travel demand due to supply chain disruptions and macroeconomic concerns.

Wizz Air’s Global Footprint Under Pressure

Wizz Air operates subsidiaries in Hungary, the UK, Abu Dhabi, and Malta, and has been aggressively expanding its low-cost network across Europe and the Middle East. However, the grounding of a significant portion of its fleet is preventing the airline from scaling up capacity during peak travel demand.

While Wizz has benefited from lower fuel prices, average ticket prices have declined slightly compared to last year, adding further strain on revenue margins.

Rising Costs and Aging Fleet Create New Challenges

Analysts are also pointing to other cost pressures on the horizon, particularly related to fleet renewal. Wizz is expected to retire its A320ceo aircraft next year, which could bring additional capital expenditures and logistical hurdles.

The combination of grounded aircraft, aging fleet transitions, and macroeconomic headwinds is testing Wizz Air’s ability to maintain its competitive edge.

Can Wizz Air Weather the Storm?

Wizz Air faces a prolonged and uncertain recovery journey. Despite robust and sustained demand for air travel across Europe and several key international markets, the airline’s ability to respond to that demand—and capitalize on growth opportunities—is significantly hampered by a series of challenges largely beyond its control. Chief among these are persistent engine supply chain disruptions and extended maintenance turnaround times, particularly involving Pratt & Whitney engines, which have already led to dozens of aircraft being grounded.

Currently, Wizz Air is dealing with the operational and financial strain of having nearly 40 planes out of service, with some expected to remain grounded well into the first half of its 2026 financial year. The engine repair process alone is averaging close to 300 days per aircraft, severely limiting the carrier’s capacity to restore full-scale operations or expand route offerings during a time of historically strong passenger demand.

Over the past year, the airline has issued two separate profit warnings, signaling a recurring impact on its earnings and investor confidence. These challenges not only threaten its short-term profitability but also raise questions about the sustainability of its ultra-low-cost business model under such prolonged pressure. Unless the pace of engine repairs accelerates or supply constraints ease significantly, Wizz Air could face a protracted period of reduced competitiveness compared to peers with fewer technical or logistical obstacles.

In this context, while the long-term fundamentals of the aviation market may remain favorable, Wizz Air’s immediate future is clouded by uncertainty, and its road to recovery appears neither fast nor straightforward.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.