Wizz Air Holdings announced that it has achieved a pretax profit for the first half of fiscal 2024. However, the airline expects to ground 45 aircraft by the end of the year due to issues with Pratt & Whitney engines.
Impact on Capacity
Due to the engine issues, Wizz Air anticipates a 20% year-on-year decrease in its available-seat-kilometers capacity. This metric measures an aircraft’s carrying capacity to generate revenue. Despite this setback, the company assures that it has implemented management actions and has secured compensation from the original equipment manufacturer to mitigate the near and longer-term financial impact.
Engine Inspection and Suspension of Israel Capacity
In September, Pratt & Whitney parent company RTX announced an engine recall for inspection. Wizz Air therefore expected a decline in capacity. Furthermore, the airline stated that it would suspend its Israel capacity until the end of November due to the Israel-Hamas conflict.
Positive Financial Performance
Wizz Air recorded a pretax profit of €450.2 million ($482.2 million) for the six months ending September 30. This marks a significant improvement compared to the previous year’s pretax loss of €389.7 million.
Revenue Growth
The company’s revenue for this period increased to €3.05 billion from €2.19 billion in the previous year. Ancillary revenue rose by 28% to €1.29 billion, while passenger ticket revenue saw a notable increase of 49% to reach €1.76 billion.
Increased Passenger Numbers and Load Factor
Wizz Air reported that passenger numbers rose by 25% to a total of 33 million during the first half of fiscal 2024. Additionally, the load factor of the airline improved from 87% to an impressive 93%.
