Shares in Wizz Air tumbled after the budget airline revealed engine problems had grounded a fifth of its planes, writes Jessica Clark.

The low-cost carrier said profits tanked 62pc from £369m to £141m in the year to March 31 as more than 40 aircraft were out of action.

And it continued to be affected by conflict in Ukraine and Israel - two key markets.

Wizz was upbeat as passenger numbers hit a record 63.4m but the shares plunged 27.9pc, or 467p, to 1207p, having peaked at 5500p in 2021.

Chief executive Jozsef Varadi said: "Wizz Air is a more resilient business today.

"Despite the unproductivity of a grounded fleet, we successfully delivered a second year of profitability.

"We have the benefit of more than a year of experience operating under unique circumstances - conditions airlines would never experience when demand exceeds supply."

He said it had reached a "transformation point" in relation to its grounded planes.

The Airbus planes have been affected by problems at Pratt & Whitney, the engine maker owned by aerospace and defence giant RTX, formerly known as Raytheon.

The US manufacturer began recalling some engine models for inspection in 2023, prompted by concerns that there were contaminants in the powdered metal that was used in manufacturing.

Wizz has been the worst-hit European airline, issuing two profit warnings in the last year.

As many as 44 planes were grounded, it said. By early May, 37 were out of action - a figure expected to shrink to 34 by the end of September.

It takes around 300 days for engines to be checked and returned to service. But the problems are expected to drag on until at least 2027.

Wizz secured a two-year compensation package with Pratt & Whitney last year and said the support would mitigate "some, but not all, of the operational and financial impacts on the business".

Russ Mould, investment director at AJ Bell, said: "The airline described its past year as 'resilience and transformation', whereas the market reaction suggests 'awful' might be a better word.

"Wizz used to be the aggressive growth player, with talk that it tried to buy Easyjet in 2021. The tables have turned and it is being left behind.

"With shares at a fraction of their peak, failure to resolve its problems could see Wizz turn from predator to prey."