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Wizz Air cuts annual revenue projection on increasing costs

European lowcost airline company Wizz Air cut its annual earnings forecast for the second time in 6 months on Thursday, as it comes to grips with increasing expenses associated to the grounding of airplanes due to engine problems and financial unpredictabilities.

Wizz faces numerous challenges from costs and interruptions due to groundings connected to issues with Pratt & & Whitney engines, with CEO Jozsef Varad stating previously this month that he expects the difficulties might last 4 or five years.

Wizz reported a third-quarter operating loss of 75.9 million euros ($ 79 million), compared with a loss of 180.4 million euros a year earlier.

However, experts had approximated an operating earnings of about 10.6 million euros, according to a data put together by LSEG.

The London-listed provider now anticipates earnings in the series of 250 million and 300 million euros for the year ending March, compared to its earlier projection of between 350 million and 450 million euros.

(source: Reuters)