Wizz Air, the popular low-cost airline, has shared its Q3 FY25 financial results, covering the period ending December 31, 2024. The airline announced changes in its fleet delivery plan due to adjustments made by Airbus, impacting its future growth strategy and operations. Here’s a detailed look at the key updates and their impact on the airline’s future.
Airbus Delivery Adjustments Impact Fleet Forecast
On January 30, Wizz Air disclosed that Airbus revised its delivery schedule, which affects the number of aircraft it will receive over the next few years. The airline will now take delivery of 137 Airbus A321neo aircraft within the next three years. Due to this, Wizz Air’s fleet is forecasted to grow from 230 aircraft at the end of March 2024 to 305 by March 2028, compared to an earlier forecast of 380 aircraft by the same date.
Fleet Changes and Aircraft Retirements
Wizz Air ended Q3 FY25 with 226 aircraft, following the delivery of four A321neos and the retirement of two older A320ceo aircraft. The retired planes were returned to their lessors. Additionally, the airline terminated wet lease agreements, which it had used to cover temporary aircraft shortages caused by ongoing maintenance issues with the Pratt & Whitney PW1100G engines.
Upcoming Deliveries
For the remainder of FY25, Wizz Air plans to add eight new A321neo aircraft, including its first A321XLR, a longer-range variant. Meanwhile, four older A320ceo aircraft will exit the fleet. This modernization plan aims to improve operational efficiency and overall performance.
Increased Seat Capacity and Modern Fleet Expansion
By the end of Q3 FY25, the average number of seats per aircraft increased to 226, reflecting improvements in fleet capacity. About 64% of the airline’s fleet and 68% of its overall seat capacity now consist of next-generation A320neo family aircraft, which offer better fuel efficiency and lower operating costs.
Engine Selection and Future Negotiations
Wizz Air is currently negotiating engine contracts for 177 A321neo aircraft in its order backlog. The airline must decide between continuing with Pratt & Whitney’s PW1100G or opting for CFM International’s LEAP-1A engines. Management expects to finalize these negotiations by the end of the current quarter.
The airline’s total backlog stands at 307 aircraft, comprising 260 A321neo and 47 A321XLR models. Although Wizz Air’s existing fleet uses the PW1100G engines, the company finalized a new commercial agreement with Pratt & Whitney to cover maintenance costs for around 40 grounded aircraft throughout 2025 and 2026.
Managing Costs and Operational Challenges
CEO József Váradi acknowledged that Wizz Air faced a challenging Q3 FY25 due to grounded A320neo and A321neo aircraft. The inefficiencies resulting from these groundings increased unit costs, with the cost per available seat mile (CASK) excluding fuel rising 17% year-over-year. However, the airline is optimistic about overcoming these issues with better engine maintenance plans and improved fleet reliability.
Positive Demand Outlook and Future Growth
Despite operational challenges, Wizz Air sees strong demand for its services. Bookings in January and February 2025 were up 3% year-over-year, with revenue per available seat kilometer (RASK) growing in the low double digits. Although Easter 2025 falls in the next fiscal quarter, which could slightly dilute Q4 FY25 performance, the airline remains confident in its long-term growth prospects.
The CEO highlighted that Wizz Air is entering a period of sustained growth, supported by confirmed aircraft orders and an adjusted delivery schedule. The airline expects to achieve annual capacity growth of 15% to 20% over the next five years. This growth will help Wizz Air expand its network, maintain leadership in core markets, and return to historically strong net profit margins.
Financial Performance for Q3 FY25
Wizz Air reported revenues of €1.1 billion ($1.1 billion) for Q3 FY25. However, it recorded an operating loss of €75.9 million ($78.9 million) and a net loss of €241.1 million ($250.8 million). The losses reflect the impact of grounded aircraft and rising costs, but the airline remains optimistic about its recovery and future profitability.
Wizz Air’s Q3 FY25 results reflect the airline’s challenges with fleet management and rising costs. However, the adjusted Airbus delivery schedule and engine contract negotiations signal a path toward recovery and long-term growth. The airline’s modernization plan, combined with strong demand and expanding capacity, should support sustained expansion through the 2030s, allowing Wizz Air to maintain its competitive edge in the aviation industry.