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 supply engines for 177 Airbus jets already on order, potentially announced at the Paris Airshow. This agreement may resolve issues stemming from grounded aircraft due to Pratt & Whitney engine repair times; Wizz Air CEO Jozsef Varadi previously cited acquisition cost, engine durability, operating cost, and aftermarket cost guarantees as key decision factors. The airline's 2025 financial year profit slumped over 60% due to groundings related to a powder metal issue with Pratt & Whitney's geared turbofan (GTF) engine.

Analysis

Wizz Air is reportedly nearing a significant engine procurement deal with RTX-owned Pratt & Whitney for 177 Airbus aircraft currently on order, with a potential announcement anticipated at the Paris Airshow. This agreement is understood to be integral to a settlement addressing the extensive operational disruptions Wizz Air experienced due to persistent issues with Pratt & Whitney's geared turbofan (GTF) engines, notably a powder metal defect that led to numerous aircraft groundings and contributed to a more than 60% slump in Wizz Air's profit for its 2025 financial year. Despite these challenges and having considered competitor CFM (a GE Aerospace and Safran joint venture), Wizz Air's potential decision to proceed with Pratt & Whitney likely reflects compelling terms related to acquisition cost, engine durability, operating expenses, and aftermarket support guarantees, as outlined by CEO Jozsef Varadi. For RTX, this development signifies a crucial step in managing the financial and reputational fallout from its GTF engine problems by retaining a key airline customer, though the underlying engine reliability issues, reflected in a -0.7 sentiment score for RTX, remain a significant concern for the industry.

Key Decisions for Investors

• Investors in RTX should view this potential Wizz Air deal as a mixed development; while securing the order and settling a dispute is positive, the underlying GTF engine issues continue to pose financial and operational risks that warrant close monitoring of rectification progress and associated costs.
• For those tracking GE Aerospace and Safran (partners in CFM), the loss of this specific order to Pratt & Whitney, despite its engine issues, suggests competitive pressures and potentially aggressive terms from RTX; however, ongoing GTF problems could still redirect future engine orders or MRO business towards CFM.
• The situation underscores the critical impact of engine reliability on airline profitability and operations; investors across the aerospace and airline sectors should scrutinize OEM engine performance, related warranty provisions, and potential shifts in market share between engine manufacturers.