Wizz Air Holdings PLC (AIM:WIZZ) has reported a drop in profit over the first half of the year as groundings relating to Pratt & Whitney engine inspections weighed.
Adjusted pre-tax earnings fell 5.9% to €826 million (£687 million) over the six months to September, the airline reported on Thursday, while operating profit tumbled 33.2% to €349.2 million.
This reflected cost inefficiencies as aircraft were grounded due to suspected Pratt & Whitney geared turbofan (GTF) engine issues.
Some 41 Wizz aircraft were said to have been grounded as of September, with an average of 40 to 45 expected to be out of service over the coming 18 months.
Wizz added profitability had also been hit as the leasing of one jet over the summer was not covered by compensation from Pratt & Whitney.
“[A] new compensation scheme is being negotiated with Pratt & Whitney,” the airline said.
Total revenue ticked up 0.5% to €3.07 billion as 33.3 million passengers were carried, against 33.0 million last year.
Load factors slipped two basis points to 92.4%, while Wizz’s fleet size increased from 189 to 224 aircraft.
“Cost control remained a key focus area during the first half, particularly with the management of the Pratt & Whitney related aircraft groundings and air traffic control disruptions,” chief executive József Váradi said.
“In the second half, GTF issues will continue to inflate costs which will be counterbalanced by action taken on improving fuel and operational efficiency.”
“As we look ahead, we now have better visibility to manage the GTF issues to their expected conclusion in 2027 and our timetable of deliveries from Airbus means we will gradually return to growth from next year.”