Wizz Air is spending $2.5bn on new engines in deal with Pratt & Whitney

 
Caitlin Morrison
Follow Caitlin
Jozsef Varadi, head of Hungarian low-cos
Wizz Air boss Jozsef Varadi said the new engines were good value (Source: Getty)

Budget airline Wizz Air is has agreed a deal with US manufacturer Pratt & Whitney to install new engines in 110 of its planes.

The deal, worth $2.5bn (£1.9bn), will see Wizz Air's 110 Airbus A321neo aircraft equipped with Pratt & Whitney’s PurePower Geared Turbofan engines, with deliveries to start in 2019.

The agreement also covers an additional 90 A321neo aircraft over which central and eastern Europe-focused Wizz Air has uncommitted purchase rights, as well as a number of spare engines.

The $2.5bn price tag makes the deal worth more than twice Wizz Air's market capitalisation of around £900m.

“Following a detailed review process we concluded that the Geared Turbofan engine delivers the best value proposition as well as maximum fuel and operational efficiency," said Wizz Air boss Jozsef Varadi.

"These metrics will translate directly into reduced operating costs for our business. While we already have a very low cost base, our focus is to be ever more efficient to offer the lowest fares for our customers while driving strong returns for shareholders.”

Wizz Air recently announced a 53 per cent rise in profit in the 2016 financial year, which it attributed to its expansion across Europe.

Related articles