Wizz Air Needs a 500-Aircraft Fleet to Stay ‘Relevant,’ CEO Says

Wizz Air CEO József Váradi says the airline must grow to a fleet of 500 aircraft in the coming decade to remain competitive in Europe’s increasingly scale-driven aviation market. The comments came as the Hungarian ultra-low-cost carrier (ULCC) celebrated delivery of its 250th aircraft—an Airbus A321neo—on Nov. 28 in Budapest.

Speaking with Aviation Week, Váradi said the A321neo remains central to the carrier’s long-term strategy. “This aircraft is very important. It is a strategic anchor to the business model we are implementing,” he said. “The A321neo delivers the lowest economics as well as the most enhanced environment. We see that being low-cost and environmentally responsible are a strategic matter for the future.”

Wizz Air, already the world’s largest A321neo operator, intends to double its fleet size within the next 10 years. “We have another 300 aircraft to be taken delivery,” Váradi said. “Looking ahead for the next 10 years or so, we need to be a 500-aircraft airline to stay relevant to the market, to stay relevant to the business.”

Fleet Ownership Strategy

Currently, 20% of Wizz Air’s fleet is owned and 80% is on operating lease. Váradi expects this balance to shift. “I think we are going to be moving toward more owned aircraft. When you own an aircraft, you can get better economics in terms of profit,” he said. However, he added that operating leases remain “very efficient,” noting that Wizz Air frequently uses sale-and-leaseback transactions to optimize financing.

Changes to A321XLR Orders

In November, Wizz Air announced significant adjustments to its Airbus order book: deferring 88 A321neo deliveries into the early 2030s and converting 36 A321XLRs into A321neos. This leaves the airline with just 11 A321XLRs in total, five of which have already been delivered.

Asked whether Wizz Air plans to retain the remaining A321XLRs, Váradi said the aircraft still has a place in its network, though demand has shifted. “We have a number of routes where we see significant commercial and financial opportunities,” he said. “[That] priority is not as big of an opportunity as we saw it before.”

The Pratt & Whitney GTF Challenge

Wizz Air has been heavily affected by the durability issues surrounding Pratt & Whitney’s PW1100G-JM geared turbofan (GTF) engines, which have grounded aircraft across multiple operators. Váradi said he is unsure how long the issue will continue: “There is a new technology coming over—the GTF Advantage engine. This is trying to fix all the childhood diseases, and we are very hopeful. The early indications we are getting is it is going to do the job.”

He stressed that the problem is industry-wide. “Engine challenges are widespread, not only from Pratt. CFM operators are grounding aircraft due to unintended engine removals. It is the whole industry; it is the whole supply chain.”

A Pratt & Whitney spokesperson noted that Wizz Air is the largest neo operator in Europe and exclusively powered by Pratt engines. “We continue to work closely with our customers to support their fleets,” the spokesperson said. Durability upgrades are underway for the PW1100G-JM, and the new GTF Advantage engine entering service next year is expected to deliver up to twice the time on wing. Pratt also expects its MRO output to increase by 30% this year, which is critical to reducing AOG levels.

Looking Ahead

Váradi believes Wizz Air is nearing a turning point. “Now we are starting to see the light at the end of the tunnel, and I believe in the next two years it can be fully lifted, fully recovered,” he said. “When all of our aircraft are flying, that is when you’ll see the full potential of Wizz Air.”

Sources: AirGuide Business airguide.info, bing.com, aviationweek.com