logo
#

Latest news with #GTF

Wizz Air misses profit estimates, delays return of grounded jets
Wizz Air misses profit estimates, delays return of grounded jets

Yahoo

time6 days ago

  • Business
  • Yahoo

Wizz Air misses profit estimates, delays return of grounded jets

By Joanna Plucinska and Shashwat Awasthi (Reuters) -Wizz Air missed first-quarter profit estimates on Thursday as the budget airline struggles with plane groundings and warned that grounded jets would return to service a year later than expected. The company's shares were down 3.5% by 0734 GMT. It said existing problems with RTX-owned Pratt & Whitney engines, which caused the grounding of some planes, had been compounded by the "poorer than specified" performance of the GTF engines, leading to significantly less time in service before needing inspections. No-one at P&W could immediately be reached for comment. Wizz has struggled in recent years to compete financially with other European carriers as it grapples with the engine challenges. The groundings have limited its ability to increase capacity to meet demand and it has issued two profit warnings in the past year. Wizz said it had 41 aircraft grounded due to GTF engine-related inspections as of June 30, and now expects the affected planes to return to the air in the financial year ending March 2027, a year later than previously predicted. "Our management team has demonstrated a high degree of adaptability in recent years when faced by severe challenges, and this year will likely continue to call on that strength as we refocus our business," CEO Jozsef Varadi said in a statement. Wizz reported an operating profit of 27 million euros ($31.8 million) for the three months to June 30, compared with 87 million projected by analysts polled by LSEG and down 38.3% from a year ago. NEXT GENERATION Varadi told Reuters he was hopeful the next generation of GTF engines would not suffer some of the ongoing issues. "Towards the end of this year, Pratt & Whitney is bringing in the second version of the engine and much improved technology," he said. There was no explicit outlook offered for the year, but some analysts pointed to positive signs, given attempts to cut costs and build a better maintenance partnership with P&W. Still, mid-term growth goals are set to be revised down. "Despite the near-term cuts, we do see some early 'green shoots' in the results around strategy and upcoming structural action being taken," JP Morgan analysts said in a note. Wizz, founded in Hungary, expanded first into western Europe, before opening a base in Abu Dhabi six years ago, and is pinning its hopes for future growth on a major expansion into the Middle East. But it announced its exit from Abu Dhabi last week, blaming recent geopolitical instability for frequent airspace closures and disruptions, which have hit travel demand and meant there was no hope for recovery at the loss-making unit. "No customer likes flying over rockets," Varadi said, adding that demand was impacted by political events in the region, challenges to engines in the hot environment and a lack of access to lucrative India and Pakistan routes. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Wizz Air misses profit estimates, delays return of grounded jets
Wizz Air misses profit estimates, delays return of grounded jets

RTÉ News​

time6 days ago

  • Business
  • RTÉ News​

Wizz Air misses profit estimates, delays return of grounded jets

Wizz Air today missed first-quarter profit estimates as the budget airline struggles with plane groundings due to problems with Pratt and Whitney engines and warned grounded jets would return to service a year later than expected. It said existing problems had been compounded by "poorer than specified" performance of the GTF engines, leading to significantly lower time in service before needing an inspection. Wizz has struggled in recent years to compete financially with other European carriers as it grapples with the engine challenges, with the groundings limiting its ability to increase capacity to meet demand. It has issued two profit warnings in the past year. Wizz said it had 41 aircraft grounded due to GTF engine-related inspections as of June 30, and now expects the affected planes to return to the air in the financial year ending March 2027, a year later than previously predicted. "Our management team has demonstrated a high degree of adaptability in recent years when faced by severe challenges, and this year will likely continue to call on that strength as we refocus our business," CEO Jozsef Varadi said in a statement. Wizz reported an operating profit of €27m for the three months to June 30, much lower than the €87m projected by analysts polled by LSEG, and down 38.3% from a year ago. There was no explicit outlook offered for the year, but some analysts pointed to positive signs, given attempts to cut costs and build a better maintenance partnership with Pratt and Whitney. "Despite the near-term cuts, we do see some early 'green shoots' in the results around strategy and upcoming structural action being taken," JP Morgan analysts said in a note. Wizz, founded in Hungary for eastern European travellers, expanded first into western Europe, before opening a base in Abu Dhabi six years ago, and pinning its hopes for future growth on a major expansion into the Middle East. But it announced its exit from Abu Dhabi last week, blaming recent geopolitical instability for frequent airspace closures and disruptions, which have hit travel demand and meant there was no hope for recovery at the loss-making unit. Investors took the move positively, with shares up soon after the announcement, but cautioned of tough competition in Eastern Europe. "The change should improve operational performance (by moving activity out of the harsh environments). However, it means they will have to compete far more directly with Ryanair in Eastern Europe," one budget airline investor told Reuters.

Make a ‘Connection' with George Town Festival
Make a ‘Connection' with George Town Festival

The Star

time18-07-2025

  • Entertainment
  • The Star

Make a ‘Connection' with George Town Festival

Stamp rally: Fun showing the six different stamps, each featuring unique designs, which visitors to selected events can collect for a chance to win a prize. — KT GOH/The Star GEORGE TOWN: The city will be transformed into a vibrant stage when the George Town Festival (GTF) returns for its 16th edition. So do plan your holiday to Penang for next month as from Aug 2 to 10, GTF 2025 – with the theme 'Connection' – will feature 50 programmes exploring the powerful relationships between the arts, the city and the human experience. These range from music to dance, theatre, photography, visual arts and more. About 80% of the programmes will be offered for free in line with the festival's aim of making the arts accessible to all. GTF director Jack Wong said 32 programmes were homegrown and reflected Malaysia's rich artistic diversity. Of this, 22 are Penang-based. The other 18 are international presentations and include bold new works. He said only seven events would be ticketed, priced between RM40 and RM100. 'GTF 2025 will also have a series of workshops and talks which offer deeper insights into the creative process and give visitors opportunities to engage with the artistes and their works. 'Whether you're a newcomer or long-time follower, you will have a week of unforgettable experiences.' Festivities kick-off with the 'After Dusk' opening weekend on Aug 2 and 3 at the Esplanade, which is expected to draw over 100,000 visitors. The iconic Town Hall will come alive with colours and patterns in a projection mapping showcase while live performances by various local and international acts will start from 5pm. Other highlights include a contemporary performance inspired by the state's natural landscapes called 'Waris', and a tribute exhibition to late cartoonist Azmi Hussin titled 'Living the Tanjong Life'. There will be a 'Symbiosis: Crab Chronicle' which offers a crab's view of Penang's shifting coastlines through augmented reality/virtual reality experiences, as well as 'Between Departures' which turns an actual city bus into an intimate musical stage journeying through George Town. Further cultural exchange is promoted through the 'A Night in Spain' classical music concert in partnership with the Spanish Embassy in Malaysia, as well as the 'Totsu-totsu dance – Like Art, Like Care' dance workshop and performance with Japan's Cultural Affairs Agency. Visitors to six selected events can collect six stamps under the 'Stamp Rally' by local artist Elsie Fun and stand a chance of winning a prize. State tourism and creative economy committee chairman Wong Hon Wai said GTF had grown into one of the region's most vibrant platforms for artistic expression since its inception in 2010. 'What began as a local initiative has expanded into a leading space for creativity and ideas in South-East Asia. 'This year's theme reflects our hope to further build bridges between peoples, ideas and stories through diverse artistic experiences.' For tickets/details, visit or follow @georgetownfestival on social media.

Wizz Air exits Abu Dhabi amid instability and lack of market access
Wizz Air exits Abu Dhabi amid instability and lack of market access

Business Standard

time14-07-2025

  • Business
  • Business Standard

Wizz Air exits Abu Dhabi amid instability and lack of market access

Wizz Air said it was exiting its Abu Dhabi operation to focus on its main eastern European market, after almost two years of turmoil in the Middle East wiped out any chance of making a profit there. Wizz, a low-cost carrier founded in Hungary for eastern European travellers, expanded first into western Europe, before opening a base in Abu Dhabi six years ago, and pinning its hopes for future growth on a major expansion into the Middle East. But it abandoned those plans on Monday, blaming recent geopolitical instability for frequent airspace closures and disruptions, which have hit travel demand, and meaning there was no hope for recovery at the loss-making unit. Wizz CEO József Váradi said returning to Wizz's "bread and butter" of central and eastern Europe, where it competes with Europe's biggest airline Ryanair, would boost profits. "We have been underinvesting in this market over the last few years. Now we can go back to the full spirit of continuously exploiting the market," he told Reuters. "These are the markets that we know work." Shares in the London-listed airline rose 2.6 per cent in mid-morning trade. The stock is down about 62 per cent over the last two years, hit by issues with Pratt & Whitney GTF engines which led to the grounding of some aircraft. Wizz has 280 aircraft on order from Airbus over the next five years, and Váradi said most of these would be deployed in central and eastern Europe, which accounts for about two-thirds of the airline's business, while Britain, Italy and Austria are just under 30 per cent, and Abu Dhabi had been about 5 per cent. He said there would be sufficient travel demand to sustain that size of fleet, whether Ukraine fully opens as a market once more, or not. "I think it would be great to have Ukraine," he said. Even before the heightened tensions in the region, Váradi said Wizz's low-cost model was struggling to work in Abu Dhabi because engines degrade faster in the hot, harsh environment, making its operations there less efficient. Secondly, Wizz had not been granted the market access it had been promised to India and Pakistan when it first decided to open Abu Dhabi, limiting the growth potential. Wizz, which had operated a joint venture with Abu Dhabi Developmental Holding company (ADQ), said it will stop local flights from there in September.

Wizz Air scraps dozens of routes as hot weather is breaking its planes
Wizz Air scraps dozens of routes as hot weather is breaking its planes

Daily Mirror

time14-07-2025

  • Business
  • Daily Mirror

Wizz Air scraps dozens of routes as hot weather is breaking its planes

Wizz Air has announced that it will suspend operations from its Abu Dhabi hub. The budget airline currently operates more than 30 routes from the Middle Eastern base. Wizz Air has scrapped a number of routes as "hot and harsh" weather is damaging its planes. On Monday, the Hungarian airline announced that it would discontinue its Abu Dhabi operations starting in August. ‌ Ticket sales have been halted from the Middle Eastern capital to Varna from July 14, followed by Belgrade on July 19, Tirana on July 20, Kutaisi on July 29, and Sarajevo on August 31. ‌ Six additional routes will be temporarily suspended, including Krakow (July 29–September 19), Budapest (paused until September 1), Vienna (paused until September 21), Katowice (paused until October 26), and both Astana and Samarkand (paused until November 1). Services to Sofia and Cluj have already been discontinued, Aviation Weekly reports. ‌ The publication also notes that Pratt & Whitney GTF engine issues have led to 20% of Wizz Air's Airbus A320neo-family fleet being grounded over the past financial year. The budget airline currently operates more than 30 routes from its Abu Dhabi base. Last month, Wizz Air CEO József Váradi said the carrier was strategically reducing operations in 'hot and harsh' environments. He explained that capacity would be reallocated to lower-risk areas to help reduce operating costs and prolong engine life. ‌ 'Hot and harsh is a significant issue which we are going to address,' the CEO said. 'That will not only lower operating costs and extend engine lifetime, but it will also increase productivity on sectors.' In a statement issued this morning, the airline said three main "operational challenges over the past year" led to the decision to "suspend all locally based flight operations effective 1 September 2025". They are: • Engine reliability constraints, particularly in hot and harsh environments, which have impacted aircraft availability and operational efficiency. ‌ • Geopolitical volatility, which has led to repeated airspace closures and operational disruptions across the region, as well as weakened consumer demand. • Regulatory barriers, which have limited the company's ability to access and scale in key markets. Mr. Váradi added: "We have had a tremendous journey in the Middle East and are proud of what we have built. I thank our highly dedicated employees for their relentless efforts and commitment to developing the WIZZ brand in new and dynamic markets. However, the operating environment has changed significantly. ‌ "Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions. While this was a difficult decision, it is the right one given the circumstances. We continue to focus on our core markets and on initiatives that enhance Wizz Air's customer proposition and build shareholder value." Passengers with existing bookings beyond 31 August will be contacted directly via email with options for refunds or alternative travel arrangements. Customers who booked through third-party providers are advised to contact their respective agents. The suspensions do not affect other flights of the Wizz Air group. The announcements come as Wizz extends its operations in other markets, including by adding several new routes from its UK base at Luton Airport. ‌ From last month, Wizz Air started whisking passengers away four times weekly from Gatwick to the quaint Polish city of Wroclaw. Come the start of August, Londoners will also have the chance to jet off from the same bustling hub to the Polish capital, Warsaw, and even Medina in Saudi Arabia. Birmingham hasn't been left behind; the heart of the West Midlands gained thrice-weekly connections to Rome as of June, with future plans to link up with Sibiu and Suceava in Romania. Last week Mirror Travel sat down with Yvonne Moynihan, the new managing director of the UK wing of the airline. In a wide-ranging interview, she wanted the bag fees to be set for a hike due to upcoming European Union legislation. Ms Moynihan also admitted that she had recently been stung by the airline's hand-luggage rules, forking out for a £60 fine as a result.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store