Wizz Air's chief executive said the airline is operating in a "volatile environment" as Pratt & Whitney engine problems have grounded 21 per cent of its fleet, constraining capacity in markets where it could have expanded its footprint.
These jet engine issues could persist for two to three years before they are fully resolved, Jozsef Varadi told The National on Thursday after the airline announced its first-quarter earnings.
"We are subject to a very volatile environment as we speak, lots of supply chain issues with very significant impact," he said. "When you have the best part of your fleet on the ground, that is frustrating. It creates a lot of complexities in the system.
"But once you're out of that cycle and you dig yourself out of the ditch, then you're going to see a structurally improved platform and performance, subject to business."
The European budget airline, which operates an all-Airbus fleet of 218 planes, is facing challenges related to Pratt & Whitney engines, with 46 of its aircraft grounded at the end of June for inspections during the busy summer travel season. The next peak aircraft groundings are now expected to be 47 planes in September 2025, compared to a previous forecast of 50, the company said in a statement.
Wizz Air's share price fell 17.5 per cent on Thursday after the airline slashed its annual profit forecast and posted a 91 per cent drop in net profit.
The airline projected net income in a range of €350 million ($378 million) to €450 million for fiscal 2025, down from a previous estimate of €500-€600 million, it said.
Net profit attributable to owners of the company fell to €5.8 million in the three months ending June, from €62.8 million in the same quarter last year. The airline's fiscal year ends on March 31.
Operating profit fell 44 per cent year-on-year to €44.6 million, after the airline secured eight wet-leased aircraft for periods of six to 12 months, to maintain its network footprint while its own aircraft are grounded due to engine inspections, it said. Under a wet-lease arrangement, the lessor maintains operational control of flights while providing aircraft and crew to the airline.
Compensation is not enough
The airline is also monitoring the wider supply chain amid delays by plane makers for new aircraft deliveries.
"This is clearly a very volatile environment that goes beyond one or two issues here or there. It seems to be more structural. The [aviation] regulators are taking a bigger stake in the whole issue, more regulatory scrutiny is applied on the industry which have the potential of slowing down innovation and technological developments for the future," Mr Varadi said.
Supply chain delays are also making it difficult for airlines to plan ahead.
"Predictability is challenged with the current set of challenges but this is not only down to us ... I don't know that [OEMs] are really fully in control of their own destiny at the moment because they are also part of a supply chain so they are subject to other stakeholders delivering parts or services and those suppliers might be tumbling as well," he said.
"It is a very difficult ecosystem at this time. Of course, we have daily conversations with all these key suppliers to our business but that does not necessarily make planning easier or more predictable because they are also in a volatile environment."
Jet delivery delays by Airbus could impact Wizz Air's scheduled fleet programme in the coming years, the airline said in the statement. It is expecting 30 to 35 aircraft to be delayed from fiscal 2026.
"It is what it is and we need to manage ... we try to be as proactive and forward looking as possible but this is not a benign environment," Mr Varadi said.
While the airline is receiving compensation from Pratt & Whitney related to its engine issues, the payment does not make up for potential market share that could have been grown.
"We are not in the business of collecting financial compensation, we are in the business of flying aircraft from A to B. Yes, it eases the pain, but also it undermines possibly our positions in certain markets that we should be developing and investing more capacity but we cannot because we have over 20 per cent of our fleet on the ground," Mr Varadi said.
Abu Dhabi market
Among these markets it could have developed further by adding more capacity in Abu Dhabi, where Wizz Air has a base, but was constrained by the shortage of aircraft, Mr Varadi said.
Wizz Air Abu Dhabi, a joint venture between Hungary's Wizz Air Holding and Abu Dhabi state holding company ADQ, has an air operator certificate in the UAE and launched operations in 2021 amid the pandemic.
"We have a few developing markets that we just got into and we needed to invest further ... Abu Dhabi is one of them," he said.
"We need to make sure that we continue to develop our profile and our portfolio of routes in the Abu Dhabi market but we clearly we are constrained. We might have done a lot more under normal circumstances than what we are able to do right now because of the capacity constraints."
However, next year will have a brighter outlook as the airline takes delivery of new aircraft, grows its fleet and has some capacity to add into specific markets, he said.
"2024 is more a year of survival ... next year is going to be more strategic with more opportunities to grow," Mr Varadi said.
Wizz Air grew its capacity in Abu Dhabi 30 per cent year-on-year in 2024 and is exploring opportunities to expand the market further, he said, declining to reveal specific plans.
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Carzaty%2C%20now%20Kavak%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%20%3C%2Fstrong%3ECarzaty%20launched%20in%202018%2C%20Kavak%20in%20the%20GCC%20launched%20in%202022%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20140%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Automotive%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3ECarzaty%20raised%20%246m%20in%20equity%20and%20%244m%20in%20debt%3B%20Kavak%20plans%20%24130m%20investment%20in%20the%20GCC%3C%2Fp%3E%0A
Results
5pm: Maiden (PA) Dh80,000 (Turf) 1,200m. Winner: Majd Al Megirat, Sam Hitchcott (jockey), Ahmed Al Shehhi (trainer)
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m. Winner: Dassan Da, Patrick Cosgrave, Helal Al Alawi
6pm: Abu Dhabi Fillies Classic Prestige (PA) Dh110,000 (T) 1,400m. Winner: Heba Al Wathba, Richard Mullen, Jean de Roualle
6.30pm: Abu Dhabi Colts Classic Prestige (PA) Dh110,000 (T) 1,400m. Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m. Winner: Jawal Al Reef, Richard Mullen, Ahmed Al Mehairbi
Handicap (TB) Dh100,000 (T) 2,200m. Winner: Harbour Spirit, Adrie de Vries, Jaber Ramadhan.
FIXTURES
All times UAE ( 4 GMT)
Friday
Saint-Etienne v Montpellier (10.45pm)
Saturday
Monaco v Caen (7pm)
Amiens v Bordeaux (10pm)
Angers v Toulouse (10pm)
Metz v Dijon (10pm)
Nantes v Guingamp (10pm)
Rennes v Lille (10pm)
Sunday
Nice v Strasbourg (5pm)
Troyes v Lyon (7pm)
Marseille v Paris Saint-Germain (11pm)
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
COMPANY%20PROFILE
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Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
UAE currency: the story behind the money in your pockets
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
UAE%20SQUAD
%3Cp%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Aryan%20Lakra%2C%20Ashwanth%20Valthapa%2C%20Asif%20Khan%2C%20Aryansh%20Sharma%2C%20CP%20Rizwaan%2C%20Hazrat%20Billal%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Rohan%20Mustafa%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%20and%20Zawar%20Farid.%3C%2Fp%3E%0A
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
UAE currency: the story behind the money in your pockets
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
The%20specs%3A%202024%20Mercedes%20E200
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KILLING OF QASSEM SULEIMANI
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
