SWISS posts CHF 159 million profit for third-quarter period
Swiss International Air Lines increased its total income from operating activities to CHF 3 707 million (USD4 218 million) for the first nine months of 2011, a 5% improvement on the prior-year period. Thanks to strong demand and high fleet utilisation, SWISS also posted a CHF 159 million (USD 181 million) profit for the third-quarter period. As a result, operating profit for the first nine months of 2011 amounted to CHF 288 million (USD328 million), 24% up on the same period last year. UAE sales experienced 12 per cent passenger growth while revenues rose 10 per cent in the first nine months over the same period last year.
Swiss International Air Lines (Group) achieved total income from operating activities of CHF 3 707 million (USD4 218 million) for the first nine months of 2011, an increase of 5% on the CHF 3 530 million of January-to-September 2010. Operating profit for the period was also improved, from CHF 232 million to CHF 288 million (USD328 million). A profit of CHF 159 million (USD 181 million) was recorded for the third-quarter period. “Given the market circumstances in which they were achieved, these results are in line with our expectations,” says SWISS CEO Harry Hohmeister. “With the strong demand for our services and the high utilisation of our aircraft fleet, we were able to offset multiple negative influences on our business performance.”
Higher nine-month profits despite a strong Swiss franc
SWISS increased its total income from operating activities to CHF 3 707 million for the first nine months of 2011, a 5% improvement on the same period last year. Nine-month operating profit was also increased, from CHF 232 million to CHF 288 million. Total capacity for the period was 9.3% up (10.1% in Europe and 8.8% on the intercontinental network). SWISS operated 112 915 flights in the first nine months of 2011, some 6.8% more than in the comparable period last year. The 11.56 million passengers carried in the first nine months of 2011 were also a 9.5% improvement on the 10.56 million of January-to-September 2010.
The airfreight business of Swiss WorldCargo saw satisfactory developments. With capacity for the period increased by 4.9%, cargo load factor (by volume) amounted to 78.2%, down 2.2 percentage points.
Nine-month seat load factor on European services stood at 74.9%, an increase of 1.2 percentage points. Seat load factor for the intercontinental network slipped 0.9 percentage points to 85.9%. Systemwide seat load factor for the first nine months of 2011 amounted to 82.1%.
The strength of the Swiss franc is making it particularly difficult for SWISS to compete both within Europe and in its home Swiss market. The airline’s competitors who are working from a euro cost base are putting downward pressure on fares in Switzerland. The further increases in fuel prices compared to last year are additionally eroding profit levels.
The UAE also saw positive results posting 10 per cent increase in revenues and 12 per cent growth in passengers during the first nine months of the year compared to the same period in 2010.
“Our positive growth here in the UAE reflects the trust and confidence of our customers who continue to fly with us. In return, we can only offer them products and services that speak of Swiss quality that we are renowned for. Even our recent rebranding stands testament to our quality assurance – our sign is a promise, which we intend to keep,” said Martin Massueger, Director, Head of Sales Middle East, Africa, Pakistan & Iran for SWISS.
Swiss International Airlines
SWISS is The Airline of Switzerland. It serves over 100 destinations all over the world from Zurich, Geneva and Lugano. SWISS is part of the Lufthansa Group and a member of the Star Alliance.