- Support deal signed with Pratt & Whitney
- 40 A320NEO to stay grounded into 2026
- Shares down 34% year-to-date
Shares in Wizz Air (WIZZ) gained around 2% to £14.44 in morning trading as investors welcomed the European budget carrier’s support agreement with engine maker Pratt & Whitney in relation to its grounded aircraft.
As well as giving operational support, Pratt & Whitney - which is part of US defence group RTX Corp (RTX:NYSE) - will pay Wizz compensation ‘covering the company’s direct costs associated with the aircraft that have been grounded or are expected to be grounded’ and neither side disclosed the amounts involved.
ENGINE WOES GROW
Originally, Wizz grounded 13 aircraft due to powder metal issues in the PW1100G-JM GTF (geared turbofan engines) but this number had risen to 33 by the end of January 2024.
The company now expects to ground as many as 40 Airbus A320NEO family aircraft out of its fleet of more than 220 planes through full year 2026 due to inspections required on its GTF fleet.
Wizz said it was taking ‘proactive action to mitigate the financial and operational impact of the grounded aircraft’ and would continue to work with Pratt & Whitney to ensure the aircraft return to operation as soon as possible.
INCREASED INVESTMENT
The company also said it expected to take delivery of 50 new Airbus A321NEO aircraft in 2026 in order to grow its seat capacity by 20% to make up for the lost capacity.
Back in August, the European budget carrier reported record passenger numbers despite operated seat capacity being down 0.4% year-on-year due to Pratt & Whitney GTF engine-related groundings.
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