Wizz Air in Negotiations with Pratt & Whitney to Resolve Engine Service Delays, According to CEO

Wizz Air's Engine Servicing Challenges

• Deal with Pratt & Whitney: Wizz Air is negotiating with Pratt & Whitney, a subsidiary of RTX, to expedite the servicing of its jet engines, which have been affected by a defect in the powder metal used in high-pressure turbines and compressor discs. This issue has led to significant portions of Wizz Air's fleet being grounded.

• Impact on Operations: The defect has disrupted airlines globally, particularly those operating Airbus A320neo-family jets, which includes Wizz Air's entire fleet. The delays in engine servicing have contributed to Wizz Air's poor performance in the European airline market over the past year.

Financial Implications and Future Outlook

• Investor Confidence: Successfully finalizing the deal with Pratt & Whitney could restore investor confidence and improve Wizz Air's struggling share price. The airline's recent exit from the Abu Dhabi market has provided some support to its operations.

• Upcoming Financial Reporting: Wizz Air aims to conclude the negotiations before its first half-year results are announced on November 13. CEO Jozsef Varadi indicated that the discussions are also linked to a previously announced purchase deal for additional engines.

• Long-term Recovery Goals: Varadi has expressed a goal to turn around Wizz Air's fortunes by mid-2027, although he did not specifically mention the Pratt & Whitney negotiations in this context. He noted that the industry is facing a surge in engines requiring maintenance, but improvements in recovery times are expected.