Latest news with #PrattWhitney
Telegraph
05-06-2025
- Business
- Telegraph
Wizz Air suffers £500m slump as engine troubles ground planes
Almost half a billion pounds has been wiped off the value of Wizz Air after engine troubles forced it to ground dozens of planes and triggered a slump in earnings. Wizz Air shares fell by more than 25pc on Wednesday after the low-cost airline said operating profit in the 12 months through to March had dropped to barely a third of the previous year's total. The slump saw the company's market capitalisation fall by £480m to £1.25bn. The Hungarian airline's problems stem from issues with the Pratt & Whitney GTF engines that power Wizz's Airbus A320-series jets, problems that have plagued all operators that use these components. Wear and tear to the engines have left a significant chunk of Wizz's fleet idled at any one time as turbines are sent off for repair. The Pratt engine crisis, caused by the use of contaminated powdered metal during manufacturing, which causes components to crack, has affected more than 40 A320 operators. However, Wizz has been the worst hit in Europe. József Váradi, the chief executive of Wizz, said the company was forced to lease a dozen aircraft and 40 spare engines to fulfil its flight schedule and defend key markets. Only a proportion of these costs were covered by a compensation package from US-based Pratt, leading to the sharp drop in earnings. He said: 'We had to protect capacity in the strategic interests of the company. That has cost us a lot of money, but otherwise competitors would have taken those markets that we had invested in previously. 'Even then, we're simply not able to fly the total fleet as much as we would, which also comes with significant costs.' The measures pushed up overall expenses, excluding fuel, by 20pc. Operating profit fell from €438m (£369m) to just €168m, sending Wizz shares tumbling, while net income was lower than expected. Wizz also saw its operations curtailed by the conflict in Ukraine. While listed in London, the company is based in Hungary and is a leading carrier in several East European countries where the war has limited flights. Services to Israel, a major market for the airline, operated only intermittently in response to the fluctuating security situation. While Wizz predicted revenue would increase this year, it declined to provide profit guidance. Management also warned that Wizz was having to cut fares to attract customers. Mr Varadi said the fleet situation should ease in the next year. The number of planes grounded dropped from 42 at the end of March to 37 as of May 9 and should be reduced to 34 by September. Despite the recent setback, Wizz Air still has ambitious expansion plans. It has signed a deal for more than 300 Airbus jets worth more than $45m (£33m), to be delivered by the end of the decade. It has ordered the biggest 230-seat A321s in a bid to undercut larger rivals Ryanair and easyJet. Mr Varadi said Wizz Air could double the size of its British-based fleet from 20 planes to 40 if airport expansion plans go ahead as expected. Government backing for a second runway at Gatwick is expected to be given later this year, while plans for expansion of Luton, Wizz's biggest UK hub, were signed off by Heidi Alexander, the Transport Secretary, in April.
Associated Press
27-05-2025
- Business
- Associated Press
Pratt & Whitney machinists end 3-week strike after approving a new contract
EAST HARTFORD, Conn. (AP) — About 3,000 machinists at jet engine-maker Pratt & Whitney in Connecticut approved a new four-year contract Tuesday, ending a three-week strike over wages, job security and other issues. Union members were expected to return to work Wednesday after 74% of them voted in favor of the new deal, according to locals 1746 and 700 of the International Association of Machinists and Aerospace Workers. Pratt & Whitney, a subsidiary of Arlington, Virginia-based RTX Corp., makes engines for commercial and military jets, including the GTF line for Airbus commercial jets and the F135 for the military's F-35 Lightning II fighter aircraft fleet. The union said the new contract, which runs to May 2029, guarantees continued operations at the company's East Hartford and Middletown plants through 2029. It also includes a 6% wage increase the first year, followed by raises of 3.5% in 2026 and 3% in both 2027 and 2028. Retirement benefits also were improved, the union said. 'This agreement includes real gains for our members and proves what we can accomplish when we stick together,' Wayne McCarthy, president of Local 700, said in a statement. The company said in a statement that the contract 'recognizes the skill and dedication of our workforce by keeping them among the highest compensated in their field, while ensuring the company is well-positioned for the future.' Union members began picketing in East Hartford and Middletown on May 5, after about 77% of union members voted to approve their first strike since 2001.
Reuters
27-05-2025
- Business
- Reuters
Striking workers approve latest contract offer from at RTX's Pratt & Whitney
May 27 (Reuters) - Striking workers at RTX's (RTX.N), opens new tab Pratt & Whitney approved the company's second contract offer on Tuesday by 74%, according to the International Association of Machinists and Aerospace Workers. The strike at two of the engine-maker's plants in Connecticut began May 5 after members of the International Association of Machinists and Aerospace Workers overwhelmingly rejected the first contract offer. Union representatives have previously said the roughly 3,000 striking workers' top priority is getting Pratt to commit to keep work for Lockheed Martin's (LMT.N), opens new tab F-35 fighters in the state. The strike is the first in more than 20 years at the enginemaker's Connecticut sites, where it produces engines for the F-35 and about 70% of the company's geared turbofan engine, which is used in European planemaker Airbus' ( opens new tab strong-selling A320 neo family. The vote results "reaffirms our commitment to the people, programs and communities that have powered our legacy — and will shape our next century of aviation innovation,' a Pratt & Whitney spokesperson said. During the strike, Pratt reassigned some engineers to production lines as part of its contingency plan, which was first reported by Reuters.
Reuters
27-05-2025
- Business
- Reuters
Striking workers approve second contract offer from RTX's Pratt & Whitney
May 27 (Reuters) - Striking workers at RTX's (RTX.N), opens new tab Pratt & Whitney approved the company's second contract offer on Tuesday, ending a three-week-long strike, according to a spokesperson for the International Association of Machinists and Aerospace Workers. Union representatives have previously said the roughly 3,000 striking workers' top priority is getting Pratt to commit to keep work for Lockheed Martin's (LMT.N), opens new tab F-35 fighters in the state. The strike is the first in more than 20 years at the enginemaker's Connecticut sites, where it produces engines for the F-35 and about 70% of the company's geared turbofan engine, which is used in European planemaker Airbus' ( opens new tab strong-selling A320 neo family.
Reuters
23-05-2025
- Business
- Reuters
Striking workers at Pratt & Whitney to vote on revised contract offer
May 23 (Reuters) - About 3,000 striking workers at RTX's (RTX.N), opens new tab Pratt & Whitney are slated to vote on a contract offer from the engine maker next week, the company and the union representing the workers announced on Friday, one day after negotiations resumed. The nearly three-week-long strike has significantly slowed production at two of the company's plants in Connecticut. Union representatives have said the workers' top priority is getting Pratt to commit to keep work for Lockheed Martin's (LMT.N), opens new tab F-35 fighters in the state. Members of the International Association of Machinists and Aerospace Workers overwhelmingly rejected the first contract offer on May 4. "On Tuesday, our members will decide if we achieved our objectives around job security, wage security, and retirement security," IAM leaders said in a message sent Friday to members. "This new proposal has significant changes/improvements in all three of these core areas." A Pratt spokesperson declined to comment on the specifics of the offer. The strike is the first in more than 20 years at the enginemaker's Connecticut sites, where it produces engines for the F-35 and about 70% of the company's geared turbofan engine, which is used in European planemaker Airbus' ( opens new tab strong-selling A320 neo family. Pratt has reassigned some engineers to production lines as part of its contingency plan, which was first reported by Reuters.
