February 16, 2025
Wizz Air Posts Net Loss in Q3 FY25 Amid Revenue Growth

Wizz Air Posts Net Loss in Q3 FY25 Amid Revenue Growth

Wizz Air has posted a net loss of €241.1 million for Q3 FY25 with 10.5% revenue growth, amid continued fleet groundings and engine issues.
Photo Credit: Wizz Air

Wizz Air has released its unaudited results for the third quarter of fiscal year 2025 (Q3 FY25), covering the three months ending December 31, 2024.

The report reveals a mixed bag of results.  The carrier reported a net loss of €241.1 million with a year-on-year increase in revenue of 11.0 percent to €1.2 billion.

Despite challenges, the future outlook is optimistic, bolstered by a strategic vision for future expansion.

KPI’s: A Mixed Picture


While Wizz Air experienced a slight decrease in available seat kilometers (ASK) capacity (1.7% lower year-on-year), the airline achieved record passenger traffic, carrying 15.5 million passengers in Q3 (compared to 15.1 million last year) and a remarkable 62.7 million passengers throughout calendar year 2024.

This surge in passenger numbers contributed to a significant improvement in load factor, rising 2.7 percentage points to 90.3% (from 87.6% last year).

The airline also benefited from a stronger revenue environment, with unit revenue (RASK) increasing by 12.4% year-on-year.

This improvement is attributed to robust demand and pricing, as well as a favorable comparison to the previous year, which was impacted by last-minute capacity adjustments due to the situation in Israel. T

otal unit cost (CASK) saw a modest increase of 3.6% year-on-year, aided by an 18% decline in fuel unit costs. Wizz Air maintains a healthy cash balance of €1.6 billion.

A Wizz Air A321 in new livery.
Photo Credits: Wizz Air

Operational Challenges and Adaptations


Despite the positive traffic and revenue figures, Wizz Air faced continued operational headwinds. This was primarily due to the ongoing grounding of approximately 20% of its fleet. The problems arise due to ongoing issues with the Pratt & Whitney GTF engines.

This challenge is reflected in the Q3 ex-fuel CASK. which increased by 17% year-on-year, highlighting the significant inefficiencies caused by the groundings.

The GTF engine issue continues to be a significant factor impacting the airline. Current projections estimate an average of 40 aircraft grounded throughout FY26. However, this number remains subject to change, depending on ongoing negotiations for engine selection for 177 A321neo aircraft.

Furthermore, Airbus delivery schedules have been adjusted, with 137 A321s now expected over the next three years ending FY28. This adjustment has led to a revised fleet growth forecast. This moves from 230 aircraft at the end of March 2025 to 305 aircraft by the end of March 2028. This is down from the previous estimate of 380.

MarcelX42, CC BY-SA 4.0, via Wikimedia Commons

Looking Ahead: Growth and Expansion


Despite the current challenges, Wizz Air remains optimistic about its future prospects. CEO József Váradi gave his perspective on the unaudited figures. He emphasized the strong underlying demand at the start of Q4. Notably, January and February RASK were tracking in the low double-digit range.

Bookings are also showing positive momentum, exceeding the same period last year.

The timing of Easter in 2025 is expected to influence Q4 performance. Wizz Air’s management team remains focused on maximizing revenue and identifying cost-saving opportunities.

The airline anticipates a return to sustained growth in FY26 and beyond, with a projected annual capacity increase of 15-20% over the next five years.

This expansion will enable Wizz Air to densify its network, strengthen its position in core markets, and ultimately drive cost efficiencies and a return to historical net margins and an investment-grade balance sheet.

The adjusted Airbus delivery schedule, coupled with the return of grounded aircraft, provides a solid foundation for this ambitious growth trajectory.

Wizz Air is positioning itself for long-term value creation, leveraging its competitive advantages to capitalize on the growing demand for air travel.

Click the banner to subscribe to our weekly newsleter.

Click the photo to join our WhatsApp channel so then you can stay up to date with everything going on in the aviation industry!

Facebook
Twitter (X)
LinkedIn
Pinterest
Reddit
WhatsApp
Email
Threads

Leave a Reply

Your email address will not be published. Required fields are marked *