Fitch Ratings downgrades Wizz Air’s holding company

Fitch announced that it has revised the long-term issuer rating of Wizz Air Holdings Plc. by one notch from “BB plus” to “BB”.

The outlook for the new rating is stable.

The credit rating agency cites among the main factors for the downgrade, in addition to weaker-than-expected operating performance, persistently high maintenance and depreciation costs, which are related to aircraft shutdowns necessary to repair Pratt & Whitney (P&W) engines.

The net debt-EBITDAR ratio resulting from these costs is consistent with the “BB” rating now assigned, Fitch emphasizes in its analysis. (EBITDAR: net cash flow balance calculated before interest and taxes, depreciation and amortization).

The credit rating agency recalls that Wizz Air’s revenue in the 2025 financial year was 5.3 billion euros, which corresponded to an increase of 4 percent year-on-year, but fell short of forecasts and Fitch’s own forecasts, which predicted a turnover of 5.5 billion euros.

The forced grounding of aircraft affected almost all operating cost categories. This impact overall exceeded the financial compensation provided to the airline by P&W, thus putting pressure on profitability, Fitch said in its assessment.

The credit rating agency also highlights that Wizz Air’s cost per available seat kilometer (ASK) increased by 11 percent year-on-year in the financial year 2025, primarily due to higher maintenance and depreciation costs resulting from aircraft downtime.

Fitch Ratings notes, however, that Wizz Air’s cost position is very strong and comparable to similar indicators at Ryanair and Turkish Pegasus.