Tag Archives: Swiss International Air Lines

Swiss flight LX80 takes off for Toronto

Swiss International Air Lines today takes off for Toronto.

Swiss launches flights today to Seoul

Swiss International Air Lines commenced its new nonstop service between Zurich and Seoul today.

Flight LX 122, operated with an Airbus A340-300 aircraft, took off from Zurich at 14:04 CET.

In the current summer timetable, Swiss will connect the South Korean capital with Zurich three times a week.

Photos: Swiss.

Swiss reports CHF 30.7 million operating result for the first-quarter period

Swiss International Air Lines (SWISS) has reported an operating result (Adjusted EBIT) of CHF 30.7 million for the seasonally weak first quarter of 2024. The result is some CHF 48 million below the prior-year period (Q1 2023: CHF 78.4 million). Total first-quarter revenues for 2024 amounted to CHF 1.2 billion, up 8.1 per cent on their prior-year level.

“As anticipated, the exceptional market conditions that our industry experienced immediately after the pandemic have continued to fade,” explains SWISS Chief Financial Officer Markus Binkert. “Demand for travel remains high. But many airlines have further increased their capacities. This is tending to bring yields down from their prior-year levels – at our company, too. We have also seen a sizeable weakening in our air cargo business, which benefited from particularly strong tailwinds during COVID times.”

SWISS’s first-quarter earnings were also reduced by rising costs. In addition to the adverse effects of inflation and higher fuel prices, a rise in personnel costs was particularly felt as the terms of the new collective labour agreements for cockpit and cabin personnel were reflected in staff expense.

“Given that the first quarter of the year tends to be one of the weaker ones for seasonal reasons, we are satisfied with this earnings result,” CFO Binkert continues. “Our business has returned to normality at a high level. For our full-year results, though, the next two seasonally strong quarters will be key.”

Focus on stability and punctuality in the peak travel season

Having delivered a solid business and operating performance over the Easter period, SWISS is now preparing for the busy summer travel months. In doing so, the company is putting customer satisfaction firmly centrestage.

“Last year we were Europe’s stablest airline,” CEO Dieter Vranckx explains. “We want to be so this summer, too, and offer our customers the kind of reliability that they should be able to expect from us. For a premium airline like ours, though, stability alone is not enough. So this year we aim to substantially improve our flights’ punctuality as well, in collaboration with our partners. To this end we have launched a companywide programme that is firmly focused on the satisfaction of our customers. We’re already working intensively on this, and are developing a wide range of actions to help us achieve these objectives.”

Passenger volume growth

SWISS transported some 3.7 million passengers in the first three months of 2024 – just under 17 per cent more than in the same period last year. Almost 31,000 flights were operated in the period, a 14.5-per-cent increase on the first quarter of 2023. Systemwide, first-quarter production was raised 11.6 per cent in available-seat-kilometre terms. Total first-quarter traffic volume, measured in revenue passenger-kilometres, was up 11.3 per cent. Systemwide seat load factor for the first-quarter period stood at 80.7 per cent, down 0.2 percentage points from its prior-year level.

Swiss aircraft photo gallery:

Strikes weigh on Lufthansa Group’s earnings in the first quarter – outlook for summer remains positive

Group revenue increases by 5 percent to 7.4 billion euros in the first quarter
Number of passengers rises to 24 million in the first quarter
Adjusted EBIT in the first quarter at -849 million euros
Strikes impact earnings by around 350 million euros in the first quarter
Unit costs excluding strike impact below previous year
Summer with record number of holiday destinations and 16 percent more bookings than last year
Adjusted EBIT of around 2.2 billion euros expected for the full year of 2024

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG:

“We are now leaving the first quarter behind us, which was mainly impacted by strikes, and are at a turning point. We have reached long-term wage agreements for the majority of our employees. This means planning certainty and clarity for the coming years. We are still seeing strong demand, which is even significantly higher than last year for the summer. We are therefore continuing to expand our offering and are growing on long-haul routes in particular. Our planes remain well filled throughout. One thing is already clear: it will be another very strong summer. I am particularly pleased that we are continuing to see a positive trend not only among leisure but also business travelers. We are now devoting all our energy to further expanding our premium customer offers and ensuring punctual and reliable flight operations.”

Results for the first quarter of 2024

The Group increased its revenue by five percent year-on-year to 7.4 billion euros in the first quarter of 2024 (previous year: 7.0 billion euros). The Lufthansa Group recorded an operating loss (Adjusted EBIT) of 849 million euros (previous year: -273 million euros). Strikes, both by various employee groups within the Group and by employees of our system partners, had a negative impact of around 350 million euros on earnings. In addition, Lufthansa Cargo’s result declined now that the logistics industry has returned to normal after the pandemic-related exceptional economic situation. The Adjusted EBIT margin fell to -11.5 percent (previous year: -3.9 percent). The Group result fell to -734 million euros (previous year: -467 million euros).

Passenger numbers and traffic development

Demand for air travel continued to rise in the first quarter of the current year. A total of 24 million passengers flew with the airlines of the Lufthansa Group, an increase of 12 percent compared to the previous year (Q1 2023: 22 million). The Group airlines expanded their seat capacity by 12 percent year-on-year despite the strike-related flight cancellations. Compared to the pre-Crisis year 2019, this was 84 percent, around 5 percentage points lower than originally planned. Despite the significant increase in capacity, the load factor remained consistently high due to high demand. The passenger load factor amounted to 79.7 percent and was thus at the previous year’s level.

Strikes have a significant negative impact on Passenger Airlines’ earnings

The Lufthansa Group Passenger Airlines’ revenue rose by seven percent to
5.6 billion euros in the first quarter (previous year: 5.2 billion euros). They recorded an Adjusted EBIT of -918 million euros (previous year: -512 million euros). Strikes had an impact of around 300 million euros on earnings in this segment.

Yields fell by 2.5 percent compared to the previous year, partly due to the strike-related uncertainty on the customer side and the corresponding lack of high-priced last-minute bookings. Unit revenues (RASK) were 6.3 percent down on the previous year, also influenced by lower cargo revenues and significantly higher compensation payments to passengers due to the strike.

Unit costs (CASK) rose by 2.9 percent compared to the same quarter of the previous year due to the strike. Adjusted for the strike effects, however, they were 1.8 percent below the previous year despite higher expenses for fees, MRO and personnel.

Due to the high losses in the core brand Lufthansa in the first quarter (Adjusted EBIT -640 million euros), Lufthansa Airlines has initiated measures to strengthen the result this year in the short term. Among other steps, it is planned to reduce operating costs, stop new projects and assess the need for additional staff in administrative areas.

Lufthansa Technik benefits from more air traffic

Demand for maintenance, repair and overhaul services as well as other Lufthansa Technik products increased in the first quarter of 2024 due to the positive trend in air travel. Revenue increased accordingly by 15 percent year-on-year to 1.8 billion euros (previous year: 1.5 billion euros). Adjusted EBIT fell by 14 percent to 116 million euros (previous year: 135 million euros), impacted by strike-related work stoppages. Excluding this effect, which had a negative impact on earnings of around 25 million euros, earnings were up on the previous year.

In the logistics business, capacity rose by seven percent due to the expansion of air traffic and revenue tonne-kilometres also increased by ten percent. Yields were around 25 percent lower than in the same quarter of the previous year, in which the result was significantly boosted by high demand due to supply chain disruptions and the shortage of capacity as a result of the pandemic. Lufthansa Cargo thus achieved an Adjusted EBIT of -22 million euros (previous year: 151 million euros). Excluding the strike effects of 25 million euros, the quarterly result was slightly positive.

Positive Adjusted free cash flow further reduces net debt

Due to the continued high level of incoming bookings, operating cash flow amounted to around 1.3 billion euros despite the negative operating result. At 940 million euros, net investments were around ten percent below the previous year, meaning that Adjusted free cash flow amounted to 305 million euros (previous year: 482 million euros).

The Group further strengthened its balance sheet in the first quarter of 2024. Net debt decreased to 5.5 billion euros compared to the end of 2023 (December 31, 2023: 5.7 billion euros) due to the positive free cash flow. Net pension obligations fell to 2.4 billion euros due to a higher discount rate (December 31, 2023: 2.7 billion euros). At the end of March 2023, the company had liquidity totaling 10.8 billion euros (December 31, 2023: 10.5 billion euros) at its disposal. Following an upgrade by Moody’s in the first quarter, the Lufthansa Group is now the only European network airline to be consistently rated investment grade again by all four agencies in the market.

Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG:

“We cannot be satisfied with the operating result for the first quarter; at more than 350 million euros, the various strikes had a significant impact on our result. Nevertheless, cash flow was positive due to the continuing high demand for air travel. We were also able to further strengthen our balance sheet. In the coming months, we will work intensively to compensate for the effects of rising costs. We have taken additional measures to this end, particularly at Lufthansa Airlines, which is significantly affected by rising personnel expenses and fees. I therefore remain convinced that we will be able to achieve stable unit cost development for the year as a whole without taking the strikes in the first quarter into account.”

Bookings for summer 16 percent up on previous year

Global demand for air travel remains strong, particularly from private travelers. The company expects another very good summer of travel. Never before have so many holiday destinations been served by Lufthansa Group airlines as this year. The most popular summer destinations in 2024 are once again Spain, Portugal, Italy and Greece and, for long-haul travel, the USA, Japan and Southern Africa. This year, many holidaymakers will once again be able to afford a ticket in one of the premium classes. In addition to the very good demand in the private travel segment, the trend in the business travel segment is also positive. This applies in particular to long-haul flights. The Lufthansa Group is continuously expanding its offering here. In addition to the traditionally strong North American routes, demand from business travelers on the India and Japan routes in particular is growing this year.

Overall, bookings for the summer timetable (April to October) are 16 percent up on the previous year.

Guests can now also enjoy Lufthansa Allegris, the new travel experience on long-haul routes. Allegris will start regular scheduled service on May 1. The first Airbus A350-900 equipped with Allegris will fly from Munich to Vancouver on the Canadian West Coast. The second destination is Toronto, which will be served alternately with Vancouver on selected flights in the first few months. With further A350s delivered, the Allegris cabin will also be used on flights to Chicago and Montreal in the summer.

Financial outlook

The Lufthansa Group plans to increase available capacity in the second quarter to around 92 percent of the pre-crisis level. The increase will therefore be lower than originally planned due to further investments in operational stability and delayed aircraft deliveries. The company expects a year-on-year decline in unit revenues (RASK) in the low single-digit percentage range, partly because customers were reluctant to make short-term bookings for April and, to a lesser extent, May during the wage disputes that have now been resolved. Unit costs (CASK) are expected to increase in the low single-digit percentage range in the second quarter. Adjusted EBIT in the second quarter will therefore still be below that of the previous year. In line with the lower capacity in the first two quarters, the Lufthansa Group now expects to achieve a capacity level of around 92 percent of the pre-crisis figure for 2019 (previously: 94 percent) for the full year 2024.

In the third quarter, capacity is to be increased further to over 95 percent of the pre-crisis level. Based on incoming bookings, the Group airlines expect unit revenues (RASK) in the third quarter to be higher than in the previous year.

In the second half of the year, the Group’s operating result is expected to be higher than in the previous year. As already communicated on April 15, Adjusted EBIT for the full year is now expected to be around 2.2 billion euros (previously: stable earnings development compared to 2.7 billion euros in the previous year). For the Passenger Airlines, a decline in unit revenues (RASK) in the low single-digit percentage range and an increase in unit costs (CASK), also in the low single-digit percentage range, are expected for the full year. Excluding the effects of the strikes in the first quarter, unit costs (CASK) are expected to remain stable. Adjusted free cash flow is expected to be at least 1 billion euros (previously: at least 1.5 billion euros).

Further information

Further information on the results of individual business units will be published in the report on the first quarter of 2024. This will be published at the same time as this press release on April 30, 2024 at 07:00 CEST at www.lufthansagroup.com/investor-relations.

The traffic figures for the first quarter of 2024 will also be published at 07:00 CEST athttps://investor-relations.lufthansagroup.com/en/publications/traffic-figures.html .

		Jan – Mar 2024	Jan – Mar 2023	Change in %
Revenue and result
Total revenue	€m	7,392	7,017	5
of which traffic revenue	€m	5,903	5,708	3
Adjusted EBIT	€m	-849	-273	-211
Adjusted EBIT margin	%	-11.5	-3.9	-7.6 P.
EBIT	€m	-871	-304	-187
Net profit/loss	€m	-734	-467	-57
Earnings per share	€	-0,61	-0,39	-56
Key balance sheet and cash flow statement figures
Total assets	€m	47,358	44,904	5
Cash flow from operating activities	€m	1,311	1,581	-17
Net capital expenditures	€m	940	1,040	-10
Adjusted free cash flow	€m	305	482	-37
Employees
Employees as of 31 March	number	98,739	112,392	-12

Swiss introduces Geneva – Oslo service

Swiss International Air Lines yesterday (April 2) inaugurated service between Geneva and Oslo.

Swiss will also be providing new summer services on its existing Geneva-Copenhagen and Geneva-Stockholm routes.

Swiss travellers will further be offered more frequencies between Geneva and the existing destinations of Athens, Brindisi, Brussels, Catania, Malaga, Palma and Valencia in the 2024 summer schedules.

Swiss aircraft photo gallery:

Swiss recycles some historic Swissair registrations for its new Airbus A350s

Swiss International Air Lines made this announcement:

Back to the future with “HB-IFA”

The preparations for introducing our brand-new Airbus A350 into service are in full swing. There is still some time before we can welcome the first aircraft into our fleet. The future registration numbers are already known.

Excitement is building as we prepare to introduce our brand-new Airbus A350. Behind the scenes, countless dedicated SWISS employees are working tirelessly to prepare for the entry into service of the latest generation of aircraft in our fleet.

The new A350s will take off with the registration numbers HB-IFA, -IFB, -IFC, -IFD, and -IFE. Looking back in history reveals that HB-IFA was already flying with the legendary Swiss cross almost 60 years ago. From 1966 to 1968, a brand-new Douglas DC-9 in the service of Swissair flew with this registration.

On 15 July 1966, the Douglas DC-9-15 joined the Swissair fleet of the time. The aircraft had a range of around 2300 kilometers. This corresponds approximately to the route Zurich – Marrakesh (MAR).

Registration numbers in aviation

In the world of civil aviation, aircraft registrations play an important role in identification. Since 1944, it has been mandatory for every aircraft used in international aviation to carry a registration number. In Switzerland, the Federal Office of Civil Aviation (FOCA) is responsible for coordinating this.

For airplanes, helicopters, balloons and airships, the registration number consists of three letters in addition to the preceding country code (HB for Switzerland). The first letter of the registration number after the country code contains information about the type of aircraft. The letters I and J stand for aircraft weighing over 15 tonnes. The second letter is chosen for an aircraft type (e.g. A350 or A320neo). The third letter is by no means chosen at random. At SWISS, the first aircraft of each new model is given the first letter of the alphabet:

For example:

A221: HB-JBA
A223: HB-JCA
A320neo: HB-JDA
A321neo: HB-JPA
A330: HB-JHA
A340: HB-JMA
B777: HB-JNA
A350: HB-IFA

The “A-Team” of SWISS

HB-JBA (Airbus A221) is the world’s first aircraft of this type and has been operating short-haul flights for SWISS since June 2016. (Image: Markus Guler)

HB-JCA is an Airbus A223 and is the “big brother” of the Airbus A221. In numbers: it is 3.7 meters longer and has 20 more seats. (Image: Markus Guler)

HB-JDA (Airbus A320neo) is the first aircraft in the Airbus NEO series in the SWISS fleet and has been in service on short-haul routes since February 2020. “NEO” stands for “New Engine Option”. (Image: Markus Guler)

HB-JPA (Airbus A321neo) is the extended version of the A320neo and has been flying on short and medium-haul routes for SWISS since September 2020. (Image: Markus Guler)

HB-JHA is an Airbus A330. This aircraft was used for the first time in April 2009 and today mainly serves destinations on the east coast of North America, India and Dubai. (Picture: Markus Guler)

HB-JMA (Airbus A340) is our “oldie” and, despite its advanced age (June 2003), continues to operate with above-average reliability. A tireless workhorse. (Image: Markus Guler)

HB-JNA (Boeing 777) has been operating long-haul flights for SWISS since January 2016. (Image: Markus Guler)

HB-IFA (Airbus A350) is the first of five aircraft of this ultra-modern type that will gradually join us from 2025. (Image: rendering)

First aircraft with new cabin interior

The A350 with the aircraft registration HB-IFA will be the first aircraft with the new cabin concept and will offer our customers a completely new travel experience. According to current planning, the first two aircraft A350 will be delivered in 2025. The remaining three will follow in 2026. As previously announced, the other long-haul fleets are also being modernized. The refurbishment of the first A330 will be completed in the second half of 2026, with the refurbishment of the first B777 to follow at a later date. The reason for this is the ongoing challenging situation at various suppliers.

Selected aircraft registration codes in Switzerland:

HB-A: Twin-engine turboprops from 5.7 to 15 tons, since 2019 also other commercial aircraft (as I and J have been used up)
HB-B: Balloons (hot air and gas)
HB-F: Aircraft of Swiss production
HB-H: Swiss-made single-engine aircraft under 5.7 tons
HB-I: Aircraft over 15 tons
HB-J: Aircraft over 15 tons (when HB-I is used up)
HB-K: Single-engine aircraft under 5.7 tons
HB-L: twin-engine aircraft under 5.7 tons
HB-M: Aerobatic aircraft
HB-O: On application for single-engine Piper
HB-P: Single-engine piper under 5.7 tons
HB-Q: Balloons (when HB-B is used up)
HB-R: Oldtimer
HB-V: Business jets under 15 tons
HB-X: Helicopters
HB-Z: Helicopter (when HB-X is used up)

Swiss aircraft photo gallery:

Swissair aircraft photo gallery:

Swiss posts record CHF 718 million operating result for 2023, adds new routes

Swiss International Air Lines (SWISS) achieved adjusted earnings before interest and taxes of CHF 718.5 million for 2023, an improvement of some 58 per cent on the prior-year result (2022: CHF 456 million) and the highest Adjusted EBIT in the company’s history to date. Total revenues for the year amounted to CHF 5.3 billion, an increase of some 21 per cent on their prior-year level (2022: CHF 4.4 billion). Adjusted EBIT margin for the year amounted to 13.5 per cent.

For the 2023 fourth-quarter period, SWISS achieved an Adjusted EBIT of CHF 102.6 million, a 39.2-per-cent decline on the prior-year period (Q4 2022: CHF 168.6 million). Total fourth-quarter revenues were raised 6.8 per cent, however, to CHF 1.3 billion (Q4 2022: CHF 1.2 billion).

“The challenges of 2023 were substantial,” says SWISS CEO Dieter Vranckx. “But in spite of them, we were not just successful at SWISS in financial terms: we were also Europe’s stablest airline. So I’m very proud of the work of our entire SWISS team, and I’m delighted with this strong earnings result. With 2023 we have left our crisis years firmly behind us. SWISS today is strong, stable and competitive – which are the best credentials we could have for continuing our success. At the same time, we must improve in areas such as our punctuality and our customer satisfaction; and we must continue to help make air travel more sustainable. And to these ends, we’ll be investing up to CHF 5 billion in our aircraft fleet, our customer experience, our employees and our sustainability between now and 2027.”

A favorable market environment and high schedule stability

SWISS’s exceptionally strong 2023 Adjusted EBIT result confirms that the company has definitively mastered the corona crisis and the major challenges it posed. “We are extremely pleased that, having steered our way through the financially highly challenging pandemic years, we have now so significantly exceeded expectations and posted a record operating result,” says SWISS CFO Markus Binkert.

People’s desire to travel remained high throughout 2023. At the same time, industrywide capacity remained reduced for various reasons that included extensive personnel shortages and delays to new aircraft deliveries. “The pandemic may be behind us, but the supply and the demand within the airline sector have yet to regain the balance they had in pre-corona times,” CFO Markus Binkert explains. “Thanks not least to the extremely high reliability of our flight operations, our effective commercial steering and our competitive cost structures, we were able to achieve an outstanding earnings result in this particular market environment.”

Maintaining schedule stability and performing its timetabled flights remained a top SWISS priority throughout 2023. Various actions were taken to these ends. In particular, the company incorporated sufficient ‘cushion’ into its operations for the busiest times of the year around the school holidays, holding more crews in reserve and keeping reserve aircraft available if required. These efforts paid off: average schedule stability for the year – the proportion of flights scheduled in the previous quarter which were actually operated – amounted to 98.4 per cent, making SWISS Europe’s most reliable airline.

“Not least,” CFO Markus Binkert concludes, “our successful restructuring and our strict cost management of the past few years paid off in 2023.”

Working with its system partners to improve punctuality will be one of SWISS’s prime priorities for 2024. The actions to do so will include both short-term measures such as optimizing its reserve planning and longer-term endeavours such as improving the infrastructure of its flight operations.

Cargo business back to pre-corona levels

The demand for SWISS’s air cargo services declined substantially compared to 2022, and has now returned to broadly pre-corona levels – not least because airfreight operators steadily expanded their capacities over the course of last year and the global supply chains have now stabilized again. “Once again, though, our Swiss WorldCargo business made a significant contribution to our overall earnings result,” CFO Binkert confirms.

Just under 30 per cent more passengers

SWISS transported some 16.5 million passengers in 2023, just under 30 per cent more than it had in the previous year. Total flights operated were raised 22.5 per cent to more than 130,000. SWISS offered 28.2 per cent more capacity in 2023 than it had the previous year in available seat-kilometre terms. Total traffic volume for the year, measured in revenue passenger-kilometres, was raised 33.9 per cent. Systemwide seat load factor amounted to 84.5 per cent, a 3.6-percentage-point improvement on 2022. SWISS’s systemwide capacity for 2023 was at around 87 per cent of its pre-corona levels. For 2024, the company aims to further increase its overall capacity to some 95 per cent thereof.

In other news, Swiss will add ten new long- and short-haul services to its Zurich and Geneva networks in 2024, including new flights to Washington D.C., Seoul and Toronto

Swiss aircraft photo gallery:

Swiss to serve Seoul for the first time

Swiss International Air Lines (SWISS) is to further expand its range of air services in its 2024 summer schedules with the addition of Seoul to its long-haul network. So alongside the already-announced new intercontinental destinations of Washington, DC and Toronto in the west, SWISS will also be enlarging its long-haul network in the east.

Seoul: a SWISS network premiere

Seoul, the capital of South Korea, will receive its first-ever SWISS services in summer 2024. The city offers a perfect blend of traditional charm and contemporary flair, and delights its visitors with majestic sights like the Gyeongbokgung Palace and such futuristic landmarks as the N Seoul Tower. The local culinary scene, which ranges from tasty street food to sophisticated gourmet dining, is a further highlight of any Seoul stay. Fashionable districts such as Gangnam and Myeongdong are highly popular, too. With its winning combination of modernity and tradition, Seoul offers a unique travel experience to explorers and culture aficionados alike. And in addition to leisure travellers, SWISS’s new Seoul service is also geared to the business travel community: South Korea is Switzerland’s fourth-biggest Asian trading partner.

SWISS will commence thrice-weekly non-stop service between Zurich and Seoul on May 7, 2024. The flights will be operated with Airbus A340-300 equipment. The eastbound flight LX122 will leave Zurich at 13:40 on Tuesdays, Fridays and Sundays, landing in Seoul at 08:25 the following day after an 11-hour-and-45-minute flight. The westbound LX123 service will depart from Seoul on Mondays, Wednesdays and Saturdays at 09:55, arriving in Zurich at 16:50.

Swiss International Air Lines aircraft photo gallery: