UPDATE – Eleven months since first announcing its intention to exercise options, Wizz Air shareholders have finally approved an order for 75 Airbus A321neo’s. During the airline’s annual general meeting in Geneva, the proposed purchase got the support of 18.229.812 voting rights for and 85 against.
Wizz Air’s Board exercised the options one day after the previous AGM on September 13, 2022, so confirmation had to wait until the next shareholder meeting which was scheduled today.
The 75 aircraft are part of previous purchase rights that were included in an order that was announced by parent company Indigo Partners at the 2021 Dubai Airshow. The aircraft will likely be delivered in 2028-2029, although the carrier nor Airbus have confirmed this in today’s releases. The latest order brings Wizz Air’s orders for the A321neo to 434.
“With today’s announcement, Wizz Air further reinforces its position as the largest A321neo family operator in Europe and the Middle East. More than half our fleet has already been converted to cutting-edge neo technology,” CEO Jozsef Varadi says in a statement.
“The A321neo’s unparalleled economic efficiency and remarkably low carbon footprint underpin our commitment to provide affordable and sustainable travel options for our customers. We have enjoyed a longstanding strategic partnership with Airbus and are steadfast in our commitment to this exceptional technology with one of the largest outstanding order books in the world of more than 350 neo aircraft.”
During Thursday’s Q1 FY24 earnings call, Varadi confirmed that the latest order has been part of the 2021 Dubai order. “The Dubai order was placed under the Indigo umbrella under circumstances that the manufacturer was desperate for aircraft orders. You can imagine the corresponding economics of a manufacturer being desperate and signing a large order at that time. Today, aircraft pricing has gone up, so we are hugely benefitting from the conversion of the options into firm orders.”
Another benefit for Wizz is that with 350 A320neo aircraft still on order, the airline will have the capacity to grow in the coming years as planned without the need to source aircraft at high lease rates from lessors. This FY24, the fleet will grow to 202 aircraft and reach 449 aircraft in FY30. The last A320ceo family aircraft will be phased out in FY28.
