Wizz Air near deal to order Pratt & Whitney engines for new jets, sources say

Wizz Air is reportedly nearing a deal with RTX's Pratt & Whitney to purchase engines for 177 Airbus jets already on order, potentially announced as early as this week's Paris Airshow. The deal may include a settlement regarding groundings caused by extended repair times affecting Pratt & Whitney's geared turbofan (GTF) engines, which have significantly impacted Wizz Air's profitability, with profits for the 2025 financial year expected to decline by over 60%.

Analysis

Wizz Air (WIZZ.L) is reportedly nearing a significant engine order with RTX-owned (RTX.N) Pratt & Whitney for 177 Airbus (AIR.PA) jets, a deal potentially to be announced at this week's Paris Airshow. This agreement is understood to incorporate a settlement component addressing the extensive aircraft groundings Wizz Air has experienced due to persistent issues with Pratt & Whitney's geared turbofan (GTF) engines, specifically a powder metal defect. The operational disruptions have severely impacted Wizz Air's financial performance, with the airline forecasting a profit slump exceeding 60% for its 2025 fiscal year ending March 31. While Wizz Air had considered CFM, a joint venture between GE Aerospace (GE.N) and Safran (SAF.PA), as an alternative supplier, its decision criteria included acquisition cost, engine durability, operating cost, and aftermarket cost guarantees. For RTX, securing this order, despite the associated settlement costs, is critical for managing the fallout from the GTF engine crisis, which has generated a strong negative sentiment (-0.7 for RTX). For Wizz Air, this potential resolution is vital for fleet stability and future growth, albeit after substantial financial damage, reflected in the overall moderately negative sentiment surrounding the situation.

Key Decisions for Investors

• Investors in Wizz Air (WIZZ.L) should scrutinize the specifics of the settlement with Pratt & Whitney and the projected timeline for mitigating aircraft groundings, as these are key to profit recovery beyond the heavily impacted FY2025.
• RTX (RTX.N) investors should consider this potential deal a mixed event; while securing the order from Wizz Air is a positive, the settlement costs and ongoing global GTF engine issues represent significant headwinds and contribute to the current negative sentiment.
• Airline sector investors should continue to monitor the broader impact of Pratt & Whitney engine issues on fleet availability and maintenance costs across the industry, evaluating engine supplier diversification as a key risk factor for airlines.