Budapest-based low-cost airline Wizz Air (WIZZ) posted (1 August) a slight increase in revenue to €1.26 billion for the quarter to the end of June, but higher operating and finance costs plus a foreign exchange loss sent it into deficit for the period.

The shares slumped as much as 380p or 20%, the most since the early days of the pandemic, as investors headed for the exits.

The airline cut its full-year net profit outlook from a range of €500 million to €600 million to a range of €350 million to €450 million after aircraft were grounded during the busy summer season due to supply-chain issues, mainly with engines.

Wizz is among the carriers which have been hardest-hit by an engine issue on A321 aircraft manufactured by Toulouse-based Airbus (AIR:EPA).

At the end of June, the airline had 46 aircraft grounded due to engine problems and the company said the situation was unlikely to improve between now and September 2025.

Interviewed by Bloomberg, executive Jozsef Varadi admitted there was ‘no overnight fix, this is going to take years’.

In addition, delays to deliveries of Airbus aircraft could have an impact on Wizz Air’s future plans to expand its fleet, conceded the chief executive.

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