Wizz Air in Talks with Airbus to Delay Delivery of 100 Aircraft
Wizz Air Holdings Plc is in discussions with Airbus to postpone the delivery of approximately 100 aircraft until the next decade, according to Bloomberg sources familiar with the negotiations. This decision is part of a containment strategy following a period of rapid growth that increased costs and sparked concern among investors.
The aircraft were scheduled for delivery between now and 2030, but the low-cost carrier is seeking to reschedule deliveries beyond that year. According to one source, Chief Financial Officer Ian Malin mentioned during a roadshow in September that the agreement with Airbus was just weeks away from being finalized.
Strategic Adjustment Following Accelerated Growth
The negotiations come as Wizz Air scales back its expansion in the Middle East and South Asia and attempts to control operational expenses. The Hungary-based company has also had to ground part of its Airbus A320 family fleet due to maintenance issues with engines manufactured by Pratt & Whitney.
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These difficulties, coupled with geopolitical tensions in the region, led the airline to close its Abu Dhabi subsidiary in September. The capital of the United Arab Emirates did not permit Wizz to operate routes to India and Pakistan, which directly impacted the profitability of that unit. Additionally, the company plans to close its Vienna base before March.
Impact on Fleet Plan and Forecasts
If the agreement with Airbus is finalized, the delays would represent more than a third of the projected deliveries for the coming years. According to the manufacturer’s orders and deliveries data, Wizz Air had 281 A321neo aircraft on order as of September 30.
In an investor presentation in October, the airline projected reaching a fleet of 500 aircraft by the 2032 fiscal year, two years later than initially planned. It also indicated it could defer up to 50 aircraft in 2027 and maintain annual growth of 15% until 2030.
Prospects for More Moderate Growth
A delay of 90 to 100 aircraft could reduce Wizz Air’s capacity growth to 10%, down from the originally planned 14%, according to a recent analysis by Alexander Paterson of Peel Hunt.
Year-to-date, the company’s shares have fallen around 21%, reflecting market concern over the adjustment of its expansion strategy.
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