Central and Eastern European low-cost carrier Wizz Air is bracing for a maintenance bill of between €800,000 ($857,000) and €30 million ($32.1 million), after four Airbus A320 family aircraft became stranded by the Ukraine war.
“Based on photographic and local employee information, management believes that these aircraft are in good condition and have not been damaged in the conflict,” Wizz Air said at the release of its full-year results on June 8.
Wizz Air is the only EU airline with Ukraine-based aircraft, with three in Kyiv and one aircraft in Lviv, with a combined book value of €25.7 million ($27.5 million).
“Maintenance could also be performed to a limited extent for one aircraft, ensuring that aircraft is better prepared for storage,” Wizz Air said.
Wizz Air has been waiting for a safe evacuation window for the four aircraft and the carrier now hopes they will be returned to the fleet by the end of the summer season.
As a financial precaution, Wizz Air’s management has set aside a maintenance provision for the stranded aircraft, which is estimated at €800,000 ($857,000) at the least and €30 million ($32.1 million) at worst.
“The maximum of the range represents a very remote, worst-case scenario which assumes that no access is granted to the aircraft for six to 12 months, no mitigation action can be taken in the meantime, and major overhaul is required on all components, including engines,” Wizz Air said.
However, Wizz also acknowledged that there could be further delays in getting the aircraft back, with knock-on financial implications.
“If the aircraft do not return into service for a prolonged period of time, then additional consideration will be needed in the upcoming reporting cycles,” Wizz Air said.
As of March 31, Wizz Air had a fleet of 153 aircraft, made up of 59 A320ceos, 41 A321ceos, six A320neos and 47 A321neos.
Wizz Air is a high-growth LCC which is planning to more than double its all-Airbus fleet by 2027.
Over the next five years, the year-end fleet will grow from 177 aircraft in 2022 to 212 in 2023, 234 in 2024, 273 in 2025, 325 in 2026 and 383 in 2027.
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