Wizz Air FY 2025 earnings preview: navigating engine challenges and strategic growth
Europe's third-largest budget airline is set to report Q4 and full-year results on 5 June, with investors watching how engine groundings affect profitability amid ambitious expansion plans.
Wizz Air's operational performance amid engine challenges
As Wizz Air approaches the release of its fourth quarter (Q4) and full-year 2025 earnings on 5 June, 2025, investors are keenly observing how the airline is managing ongoing operational challenges while pursuing strategic expansion.
In the first quarter (Q1) of 2025, Wizz Air expanded its fleet to 218 aircraft, including 130 Airbus A321neo jets. The airline took delivery of nine new A321neo aircraft, dry-leased three A320ceos, and redelivered two A320ceos.
However, the airline faced challenges with Pratt & Whitney's GTF engines, leading to 46 aircraft being grounded as of 30 June, 2024. Peak groundings are anticipated to reach 47 aircraft by September 2025, slightly better than the previously expected 50.
These engine issues represent a significant operational headwind for Wizz Air, affecting both capacity deployment and operational costs. The Pratt & Whitney engine problems have impacted multiple airlines globally, but the concentration of A321neo aircraft in Wizz Air's fleet makes it particularly exposed to these disruptions.
Financial results show resilience despite headwinds
According to LSEG Data & Analytics, Wizz Air is expected to report Q4 2025 revenue of €1.048 billion, up 9.64% year-on-year (YoY), comprising around €538 million from ticket sales and €518 million from ancillary services. Full-year revenue is expected to grow by 4.29% to €5,291 billion.
The airline is expected to achieve a net profit of €94.21 million for the year, down 72.38% compared to FY 2024.
The narrow profit margin reflects the challenging operating environment, with the airline managing multiple cost pressures while maintaining competitive pricing. The substantial contribution from ancillary services, expected to represent 44% of total revenue, demonstrates Wizz Air's success in monetising additional services beyond basic airfares.
Excluding fuel, the cost per available seat kilometre (CASK) rose to €2.72, an 8% YoY increase. Adjusted for specific factors, the CASK was €2.59, up 3% from the previous year.
This cost inflation presents challenges for a business model predicated on ultra-low operational expenses. The €40 million in wet lease costs directly relates to the engine grounding issues, as Wizz Air has been forced to lease aircraft and crew from other operators to maintain its schedule.
Operational metrics show mixed performance
Investors will keenly follow whether WIZZ Air will report further enhancements in on-time performance and flight completion rates, reinforcing its commitment to operational efficiency.
Past improvement in aircraft utilisation is particularly noteworthy given the engine grounding challenges. This suggests that Wizz Air has been able to maximise productivity from its available fleet, partially offsetting the capacity constraints from grounded aircraft.
Enhanced on-time performance represents a competitive differentiator in the budget airline sector, where operational reliability can be a key factor in customer choice. Improvements in this area could help Wizz Air maintain pricing power despite intense competition.
The operational metrics will be closely scrutinised in the upcoming results, as they provide insights into how effectively the airline is managing the dual challenges of growth and engine-related disruptions. Any deterioration in key performance indicators could signal broader operational stress.
Strategic expansion plans remain ambitious
Wizz Air plans to expand its fleet to between 260 and 270 aircraft by financial year 2026, supported by a firm order backlog that includes 13 A320neos, 257 A321neos, and 47 A321XLRs. Despite current challenges, the airline maintains its net profit guidance for FY 2025 between €350 million and €450 million.
This aggressive expansion strategy demonstrates management's confidence in the long-term growth prospects for European budget travel. The order backlog provides visibility on fleet growth through the decade, though delivery schedules may be affected by ongoing industry supply chain challenges.
The A321XLR aircraft represent a particularly important strategic asset, offering Wizz Air the ability to operate longer routes with improved fuel efficiency. These aircraft could enable new market opportunities and route development that differentiate Wizz Air from purely short-haul competitors.
Maintaining profit guidance despite current operational challenges suggests either strong underlying demand trends or effective cost management initiatives. Investors will be keen to understand which factors are supporting this confidence and whether the guidance remains realistic given ongoing headwinds.
Risk management and competitive positioning
To mitigate market volatility, Wizz Air is 65% hedged on both fuel and foreign exchange for fiscal 2026. Wizz Air continues to navigate a competitive environment, particularly with pricing pressures from rivals like Ryanair. The airline's diversified market approach and unique strategies aim to mitigate some of these impacts.
The hedging strategy provides some protection against commodity price volatility, though it also limits the airline's ability to benefit from favourable movements in fuel prices or currency rates. The 65% hedge ratio represents a balanced approach that provides downside protection while maintaining some upside exposure.
Competition with Ryanair remains intense across multiple European markets, with both airlines competing aggressively on price and route development. Wizz Air's focus on Central and Eastern European markets provides some differentiation, though overlap with Ryanair continues to increase.
The airline industry in Europe faces capacity pressures as multiple carriers pursue growth strategies simultaneously. This competitive dynamic could pressure yields and profitability across the sector, making operational efficiency increasingly critical.
Market outlook and investor considerations
European travel demand continues to show resilience despite economic uncertainties, with leisure travel remaining robust and business travel gradually recovering. Wizz Air's exposure to leisure markets and price-sensitive customers positions it well to capture demand in challenging economic conditions.
The engine grounding issue affects multiple airlines but creates particular challenges for growth-oriented carriers like Wizz Air. Resolution of these technical problems is largely outside the airline's control, making it a key risk factor for operational planning and financial performance.
Eastern European markets, where Wizz Air has a strong presence, continue to show economic growth and increasing air travel penetration. This provides a structural growth tailwind, though geopolitical tensions in the region create potential disruption risks.
Environmental regulations and sustainability requirements are increasingly important in European aviation. Wizz Air's modern fleet provides advantages in fuel efficiency and emissions, but ongoing investments in sustainable aviation fuel and carbon offset programmes will likely be necessary.
Wizz Air analyst rating and technical analysis
According to LSEG Data & Analytics, 3 analysts have a ‘strong buy’ recommendation for Wizz Air, 2 a ‘buy’, 12 a ‘hold’, 2 a ‘sell’ and 3 a ‘strong sell’ with a long-term mean price target at 1,699.25, 7% above the current share price (as of 30/05/2025).
Wizz Air LSEG Data & Analytics chart
Wizz Air has a TipRanks Smart Score of ‘7 Neutral’ and is rated as a ‘hold’ with 2 ’buy’, 2 ‘hold’ and 3 ‘sell’ recommendations (as of 30/05/2025).
Wizz Air TipRanks Smart Score chart
The Wizz Air share price has been holding above its 1,135p September 2024 low over the past nine months and is in the process of trying to break through its 2021-to-2025 downtrend line.
For the Wizz Air share price to become longer term bullish again a rise and monthly chart close above the March peak at 1,818p would need to be seen.
Wizz Air monthly candlestick chart
On the daily chart the March-to-May highs at 1,770p-to-1,818p offer strong resistance with the Wizz Air share price so far having been capped by it and currently trading around the breached long-term downtrend line at 1,565p.
While the early March low and the 200-day simple moving average (SMA) at 1,454p-to-1,431p underpins, medium-term upside pressure should be maintained.
A rise above the 1,770p-to-1,818p resistance area may lead to the huge July-to-August 2024 price gap to 1,913p being filled.
Were the 200-day SMA at 1,431p to be fallen through, though, the April low at 1,259p may be revisited. Further down the mid-to-late January lows at 1,173p-to-1,152p may offer support as well.
Wizz Air daily candlestick chart
How to trade Wizz Air shares around earnings
For investors considering positions in Wizz Air ahead of the Q1 earnings announcement, several factors should inform trading decisions.
- Research Wizz Air's operational metrics, competitive positioning, and growth strategy to understand the key performance drivers.
- Consider how engine grounding issues and competitive pressures might impact near-term profitability and growth prospects.
- Open an account with IG by visiting our website and completing the application process.
- Search for 'Wizz Air' or its ticker 'WIZZ' on our trading platform or app.
- Place your trade with appropriate risk management measures, considering the potential volatility around earnings announcements in the airline sector.
Spread betting and CFD trading offer flexible ways to take positions on Wizz Air, allowing you to potentially profit from both rising and falling share prices. These leveraged products can be particularly useful around earnings announcements when airline stocks often experience significant price movements.
For those with a longer-term view on European budget airline growth, share dealing provides a straightforward way to build a position in Wizz Air. However, investors should be aware of the operational challenges and competitive pressures facing the airline sector.
As Wizz Air prepares to release its Q1 FY 2025 earnings, stakeholders will be attentive to how the airline balances operational challenges with its growth ambitions. The results will provide important insights into the company's ability to maintain profitability while managing engine-related disruptions and pursuing aggressive expansion plans in an increasingly competitive European aviation market.
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