Wizz Air (WIZZ.L), a European low-cost airline, reduced its annual profit projection on Thursday, citing challenging operational conditions and ongoing financial uncertainties.
This quarter, European airlines had impressive earnings. Still, they also issued a dire warning about the future, citing high jet fuel costs, problems with their supply chains, and an unclear economic picture as significant concerns.
One of the significant airlines affected by RTX (RTX.N) engine problems this year was Wizz Air, which said it would reduce capacity.
In contrast to a deficit of 63.8 million euros a year earlier, the low-cost airline reported an operational profit of 522.9 million euros ($559.8 million) for the six months ended September 30.
Chief Executive Jozsef Varadi stated, “Our revenue and profit results reflect the higher volumes we now operate and the enormous amount of work and investment over the past three years.”
He also stated that the airline had obtained compensation from RTX over the requirement to examine the engines on its aircraft and that it was scheduled to deliver 21 Airbus 321 Neo planes by the end of the 2024 fiscal year.
In September, aerospace supplier RTX said that 600–700 geared turbofan engines (GTF) would need to be removed for quality inspections, which would probably mean that some of its aircraft would have to be grounded.
