Wizz Air curtails growth and slows delivery schedules in the face of losses

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Jozsef Varadi CEO of Wizz Air
Jozsef Varadi CEO of Wizz Air

Wizz Air, the Hungarian ultra-low-cost carrier, has confirmed it will postpone aircraft deliveries and scale back its ambitious growth plans, citing persistent supply chain disruptions and engine-related challenges. The airline, known for its rapid expansion across Europe and beyond, is grappling with significant operational hurdles, primarily driven by issues with Pratt & Whitney geared turbofan (GTF) engines, which have grounded an average of 35 aircraft in the 2026 fiscal year. 

Chief Executive Jozsef Varadi, speaking at a Warsaw news conference, revealed that the airline has renegotiated its delivery schedule with Airbus, delaying up to 35 aircraft, including A321neos and A321XLRs, through 2031, with potential extensions into 2032. This adjustment reduces Wizz Air’s projected fleet size to 305 by fiscal year 2028, down from an earlier target of 380, and to 424 by 2030, compared to a previously planned 451. 

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The decision reflects a cautious approach to align growth with operational realities, aiming for a smoother compound annual growth rate of 15-20pc over the next few years, a significant reduction from the airline’s earlier 20pc seat capacity growth target.

The move follows a challenging period for Wizz Air, marked by a 38pc drop in first-quarter operating profit for fiscal year 2026, attributed to higher airport fees, increased depreciation costs, and engine-related groundings. As of 30 June 2025, 41 aircraft were grounded due to mandatory GTF engine inspections, a figure expected to improve slightly but remain a drag on capacity. The airline has also scaled back its A321XLR order by over 70pc, reflecting a strategic pivot away from long-range routes, particularly in the Middle East, where it ceased operations in Abu Dhabi due to geopolitical instability, faster engine wear, and limited market access. 

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Varadi emphasised a refocus on core Central and Eastern European markets, alongside select Western European hubs, to stabilise operations. Despite these setbacks, Wizz Air remains committed to fleet modernisation, taking delivery of ten A321neo aircraft and one A321XLR in the first quarter, while phasing out older A320ceo models, with plans to operate an all-A321neo/XLR fleet within five to six years.

The broader aviation industry context, including supply chain constraints and Airbus delivery delays, has compounded Wizz Air’s challenges. The airline confirmed its delivery schedule with Airbus until the end of 2025, but uncertainties persist for 2026 and beyond, particularly regarding engine supplies from Pratt & Whitney. 

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Varadi noted that while inflationary pressures are easing, with lower fuel costs and interest rates, the engine issues are expected to persist for another two to three years, impacting profitability. Wizz Air’s decision to curb growth has drawn attention from analysts, with shares falling 13pc after a second profit warning in six months, reflecting investor concerns over compressed margins despite record load factors. 

The airline’s focus on operational efficiency, including AI integration and optimised scheduling, aims to mitigate these pressures, but the road ahead remains turbulent as Wizz Air navigates a complex landscape of supply chain woes and geopolitical uncertainties.

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