Jan 29 (Reuters) - Wizz Air on Thursday reported a wider third quarter operating loss despite recently raising its growth projection for the fiscal year on the back of more Airbus deliveries and
Wizz Air Faces Quarterly Loss but Shares Rise on Recovery Prospects
Wizz Air's Financial Performance and Recovery Plans
By Joanna Plucinska
Operating Loss Details
Jan 29 (Reuters) - Wizz Air on Thursday reported a third-quarter operating loss in line with expectations, after raising its capacity growth forecast earlier this month on the back of extra Airbus deliveries and the return of previously grounded aircraft.
Impact of Engine Issues
The airline's shares and profits have been under pressure from RTX-owned Pratt & Whitney engine problems, as well as conflicts in the Middle East and Eastern Europe.
Future Capacity and Growth Plans
"We are steadily recovering from the engine-related aircraft grounding and in the next fiscal year, we are targeting to have an average of 20-25 aircraft on the ground due to powdered metal issues," Chief Executive Jozsef Varadi said in a statement.
Wizz Air shares were up over 10% at 0848 GMT, with Varadi telling Reuters he was pleased to report "no surprise, fairly benign" results.
Wizz Air's operating loss widened to 123.9 million euros ($148.5 million) in the quarter, from 75.9 million euros a year earlier. Analysts polled by LSEG had expected a 137.95-million-euro loss.
The airline's financial year ends on March 31.
Wizz Air said the deeper loss reflected a "previously guided higher depreciation charge" on older aircraft.
Varadi said total unit costs would rise over the previous financial year as the company faces higher maintenance costs linked to inflation and uncertainty over Pratt & Whitney engine redeliveries, as well as higher depreciation costs tied to the retirement schedule of the A320ceo fleet.
Groundings linked to engine repairs fell to 33 aircraft as of December 31, down from 40 a year earlier. Varadi told Reuters the number should fall to 25 by the end of summer 2026, with all aircraft back in service by the end of calendar 2027.
"We have a somewhat complicated relationship" with Pratt & Whitney, Varadi said, adding he was confident in the established repair timeline and "well-executed recovery plan".
After exiting the Middle East last year, Wizz Air recently sought U.S. approval to operate flights between Britain and the U.S.
($1 = 0.8344 euros)
(Reporting by Joanna Plucinska in London and Raechel Thankam Job in Bengaluru. Editing by Thomas Derpinghaus and Mark Potter)
