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SWISS posts black-ink results despite harsh headwinds
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Source: Swiss International Air Lines
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11/03/2010
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Swiss International Air Lines (Group) achieved an operating profit of CHF 146 million for 2009, despite the still-difficult economic environment that prevailed throughout the year. The result compares to a CHF 472 million operating profit for the previous twelve months.
Total income from operating activities declined 17% year-on-year to CHF 4 363 million. SWISS also posted a black-ink result for the fourth quarter of 2009, reporting an operating profit of CHF 33 million for the period. The airfreight business of the company’s Swiss WorldCargo unit also showed signs of recovery towards year-end. SWISS invested some CHF 500 000 in renewing its aircraft fleet and further refining its service product over the course of the year.
“We should be very satisfied with our results for 2009,” says SWISS Chief Executive Officer Harry Hohmeister. “We achieved a black-ink result in all four quarters; and we were able to do so despite sizeable declines in our revenues and a tangible migration from higher to lower booking classes. With our selective adjustments to our capacity in response to demand, our strong focus on the customer and our rigorous cost management, we have maintained as much control as possible over the present economic crisis and its ramifications.”
The crisis has substantially accelerated the structural changes that the airline industry is currently undergoing. Even if the global economy picks up, the aviation sector is unlikely to see any swift recovery. In response to the changed and changing demand, SWISS realigned its capacity in 2009 particularly to intercontinental destinations, reducing frequencies on certain routes. Total actual production was some 6% below that originally planned (and 4% down on the previous year), with a 3% reduction in Europe and an 8% reduction on the intercontinental network. SWISS has maintained its present range of destinations, but has temporarily withdrawn two aircraft from its fleet. Capacity in Europe has also been reassigned to meet the shifts in demand, a move which also saw Lyon and Oslo added to the SWISS network in the course of the year.
“We’ve set some ambitious objectives for 2010,” Harry Hohmeister continues. “We want to substantially increase the revenues from our passenger and our cargo business, to ensure that we don’t only improve our bottom line through further cost economies. We’re especially pleased to be adding a further attractive destination – San Francisco – to our network,” he continues. “SWISS continues to create new jobs and generally benefit the Swiss economy, too: and we expect to add several hundred more people to our workforce this year.”
“Rigorous cost management has been instrumental in helping us post black-ink results throughout 2009,” adds Chief Financial Officer Marcel Klaus. “Whether the economic recovery comes soon or not, maintaining a competitive cost structure is crucial to our continued success – especially given the present uncertainties over the costs we cannot influence, such as oil prices and the impact of currency movements.”
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» Hamdi Chaouk, Director General of Civil Aviation – Lebanon
