Strong Demand Amid Operational Turbulence

Wizz Air, the Hungarian low-cost airline and one of Europe’s fastest-growing carriers, reported a 10.1% year-over-year increase in passenger numbers for May 2025. The airline flew 5.56 million passengers compared to 5.05 million in May 2024, continuing a trend of steady post-pandemic recovery.

The load factor—a key performance metric reflecting seat occupancy—climbed to 91.2%, up from 90.2% last year. On a trailing 12-month basis (June 2024 to May 2025), Wizz Air carried 64.3 million passengers, marking a 21.4% annual increase, with an average load factor of 89.6%. These numbers signal sustained demand for affordable air travel across Europe and strong brand traction.

However, strong demand alone isn’t enough to shield Wizz Air from growing operational and financial pressures tied to a widespread technical issue that has grounded nearly a quarter of its fleet.

Engine Groundings Create Industry-Wide Disruption

Wizz Air is currently grappling with a major technical crisis related to its fleet of Airbus A320neo and A321neo aircraft, powered by Pratt & Whitney GTF engines. Due to durability concerns and required inspections, 47 aircraft out of approximately 180 have been grounded as of May 2025—around 26% of Wizz Air’s total fleet.

This forced reduction in capacity is straining the airline’s ability to meet surging travel demand. Flights are being rescheduled, routes are being consolidated, and in some cases, aircraft are being leased from other operators under wet lease agreements—an expensive short-term solution that weighs heavily on margins.

The operational fallout is affecting customer satisfaction, brand trust, and on-time performance. For a carrier that built its reputation on efficiency and reliability at low cost, the reputational risk is significant.

Earnings Drop and Guidance Suspended

On the financial front, the impact has been severe. In its most recent quarterly report, Wizz Air posted a net profit of €12 million for Q1 2025, down 41% from €20.3 million in Q1 2024. Operating cash flow also dropped sharply to just €37 million, reflecting the rising costs of leasing replacement aircraft and managing disrupted schedules.

In response to the ongoing uncertainty, Wizz Air made the rare move of withholding financial guidance for the current fiscal year, citing insufficient clarity around the timing of full fleet recovery. This lack of visibility has rattled investors. The company’s share price fell 7% the day following the announcement and is down approximately 18% year-to-date.

Management Response and Recovery Strategy

Wizz Air CEO József Váradi stated that the company is working closely with Pratt & Whitney to accelerate engine repairs and seek compensation for the disruptions. The engine manufacturer has acknowledged widespread issues across the airline industry and is expected to face mounting claims from multiple carriers.

Meanwhile, Wizz Air is pursuing several mitigation strategies:

Leasing four temporary aircraft to cover capacity shortfalls

Adjusting the summer schedule to focus on profitable, high-demand routes

Suspending or reducing frequencies on underperforming routes

Engaging in cost-control measures and preserving liquidity

As of the end of March 2025—the most recent financial reporting period—the airline held €1.3 billion in cash and equivalents, alongside an undrawn €500 million credit facility. This gives Wizz Air moderate flexibility, but prolonged disruptions could test its financial resilience.

Long-Term Outlook: Challenge or Opportunity?

Despite the near-term headwinds, some analysts view Wizz Air’s situation as a test of endurance rather than a strategic failure. The airline continues to enjoy robust demand across its key markets in Central and Eastern Europe, as well as from Western European leisure travelers.

Wizz Air also maintains a strong order book with Airbus, with over 300 aircraft scheduled for delivery through 2030. This signals long-term confidence in its ultra-low-cost model and growth ambitions. If the engine crisis can be resolved within 2025, Wizz Air could emerge with even greater market share, particularly if competitors struggle to scale as efficiently.

However, execution is key. Delays, customer dissatisfaction, or further operational challenges could erode the very cost advantages that Wizz Air has worked years to build.

Conclusion: A Critical Test for the ULCC Model

Wizz Air’s current crisis highlights the fragility of the ultra-low-cost carrier (ULCC) model, which relies heavily on tight operations, fleet commonality, and consistent aircraft availability. A single point of failure—such as an engine supply issue—can cascade into major financial and reputational damage.

The next few quarters will determine whether Wizz Air can navigate this challenge effectively. Its ability to maintain liquidity, streamline operations, and rebuild customer trust will be critical in determining whether the airline continues its growth trajectory—or faces a prolonged period of turbulence.