Swiss International Air Lines (LX) reported its first-half profit
dropped 53% to CHF61 million ($63.8 million) compared to CHF129 million
in the year-ago period.
LX said the second quarter was a tough environment for the industry; yield remains under pressure and fuel costs remain high. Revenue dropped 42% to SFR65 million for the April-June period compared to last year.
CEO Harry Hohmeister said LX has been affected by the crises in the industry, which is not likely to change anytime soon (ATW Daily News, July 6).
Despite the increase in fuel expenses, LX increased its operating profit by 2%, to SFR1.284 million, up from SFR1.257 million.
RPMs increased 6% on a 3.9% increase in capacity, producing a load factor of 81.3%, up 1.7 points on the year-ago period. The increased load factor was not enough to compensate for a weak yield, the company said.
LX said it will evaluate further adjustments to secure profitability, especially for its European network, without mentioning more details.
LX will add 300 additional cabin and cockpit crew members this year. LX added two Airbus A330-300s earlier in the year, with the 13th aircraft to follow in October from a total of 15 ordered aircraft of this type.
“I don’t expect that we can announce the same profit (SFR306 million) as last year.
We will have to rethink our investment and growth policy for the period until 2020,” Hohmeister said.
source: atwonline.com
LX said the second quarter was a tough environment for the industry; yield remains under pressure and fuel costs remain high. Revenue dropped 42% to SFR65 million for the April-June period compared to last year.
CEO Harry Hohmeister said LX has been affected by the crises in the industry, which is not likely to change anytime soon (ATW Daily News, July 6).
Despite the increase in fuel expenses, LX increased its operating profit by 2%, to SFR1.284 million, up from SFR1.257 million.
RPMs increased 6% on a 3.9% increase in capacity, producing a load factor of 81.3%, up 1.7 points on the year-ago period. The increased load factor was not enough to compensate for a weak yield, the company said.
LX said it will evaluate further adjustments to secure profitability, especially for its European network, without mentioning more details.
LX will add 300 additional cabin and cockpit crew members this year. LX added two Airbus A330-300s earlier in the year, with the 13th aircraft to follow in October from a total of 15 ordered aircraft of this type.
“I don’t expect that we can announce the same profit (SFR306 million) as last year.
We will have to rethink our investment and growth policy for the period until 2020,” Hohmeister said.
source: atwonline.com
No comments:
Post a Comment