Tag Archives: Swiss

Swiss’ first half operating profit improves by 18% to $77 million

Swiss International Air Lines (Zurich) reported an operating profit of $77 million for the first half of 2013 and issued the following statement:

SWISS achieved an operating profit of CHF 72 million ($77.7 million) for the first six months of 2013, an 18% improvement on the same period last year. Total income from operating activities was raised 3% for the period to CHF 2,515 million. These encouraging first-half results are attributable to a stabilization of the SWISS market environment and a strong business performance in the second-quarter period.        

Swiss International Air Lines (Group) effected a further increase in its total first-half income from operating activities this year: the CHF 2,515 million generated was a 3% improvement on the CHF 2,452 million of January-June 2012. Operating profit for the period was also improved from CHF 61 million to CHF 72 million, an increase of 18%. The first half of 2012 had, however, seen a pronouncedly negative earnings trend.

SWISS delivered a particularly strong business performance this year in the second-quarter period. The quarterly operating profit of CHF 96 million was a full 48% above its prior-year equivalent (CHF 65 million); and total operating income for the quarter also increased 3.1%, from the CHF 1,284 million of April-June 2012 to CHF 1,325 million.

The reasons for these positive developments can be found in the slight stabilization of market conditions in the second-quarter period and in the impact of numerous actions taken under the Lufthansa Group’s SCORE programme to enhance earnings performance and results. “We have detected a change in market trends,” confirms SWISS CEO Harry Hohmeister. “But with the still-high fuel prices in particular, the situation remains far from easy, and we haven’t achieved our results turnaround yet. We’re currently in the midst of some major structural adjustments to our European operations, like our new organization and fare model for Geneva,” Hohmeister continues. “And we must continue to consistently develop and embark on such bold new paths.”

Initiatives in Europe and on the fuel management front

SWISS unveiled a new fare concept for customers departing from Geneva in the course of the second-quarter period. The new concept, which also offers one-way fares, will come into effect this autumn, replacing the present pricing model. “Our new Geneva fare concept offers an innovative new pricing approach while still providing all our traditional SWISS quality,” Harry Hohmeister explains. The developments in Geneva have extended to the appointment of a new local management team for the regional market of Western Switzerland and adjacent French border areas, while plans are also well under way to establish a new Geneva crew base. All these endeavours are intended to better meet the region’s specific air travel wishes and needs.

Elsewhere, SWISS has been taking further action on the fuel management front. The additional measures here – which include reducing aircraft weights, revised flight planning, new flight procedures and the adoption of new technologies – should cut SWISS’s annual fuel bill by a double-digit million-franc amount by 2015.

Passenger volumes and load factors up again

SWISS carried a total of 7.77 million passengers in the first six months of 2013, a 0.9% increase on the 7.70 million of the same period last year. Total flights performed in the period declined 3.1%, from 75,269 to 72,899 flights. First-half systemwide seat load factor amounted to 82.6%, a further 1.3-percentage-point improvement on the 81.3% of the prior-year period.

SWISS offered 2.9% more available-seat-kilometre (ASK) capacity systemwide in the first six months of 2013 than it had for the same period last year. Total first-half traffic volume, measured in revenue passenger-kilometres (RPKs), was up 4.5%.

Total cargo sales for the first-half period were a 2.3% improvement in revenue-tonne-kilometre terms. Cargo load factor (by volume) slipped slightly to 78.6%.

Personnel

SWISS remains a key economic driver and creator of jobs, offering young aviation enthusiasts the chance to make their career dreams come true. This year, too, the company will add over 200 new positions to its cockpit and cabin crew corps, and the establishment of the new crew base in Geneva will create some 150 new local jobs by year-end. On 30 June 2013 the SWISS workforce amounted to 6,960 full-time equivalents (compared to 6,722 FTEs at the end of june 2012). These positions were shared among 8,171 personnel (compared to 7,975 at the end of june 2012).

Fleet, product and network

SWISS continues to invest in refining its product and modernizing its aircraft fleet. Its latest intercontinental destination – Singapore – received new non-stop service from and to Zurich in May. And the current aircraft order books feature 30 Bombardier CS100s, six Boeing 777s, a further Airbus A330-300 and a further Airbus A321.

Outlook

In view of the recent stabilization of the market environment, SWISS’s management is confident of posting an operating profit for 2013 as a whole that will exceed last year’s CHF 212 million in swiss francs. “We will have to further intensify all our efforts, though,” says CEO Harry Hohmeister, “if we are to achieve the kind of sustainable profit base we need to finance our growth and investment policy between now and 2020.”

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A320-214 HB-JLT (msn 5518) with the new Sharklets taxies at the Zurich hub.

Swiss: AG Slide Show

Swiss to add six new routes from Geneva this fall

Swiss International Air Lines (Zurich) will be adding six further destinations to its Geneva-based network this fall:  Stockholm (served four times weekly), Oslo (three flights weekly), London Gatwick (three flights weekly), Gothenburg (twice weekly), Belgrade (twice weekly) and Marrakesh (twice weekly). Swiss will also be turning its present summer-season services between Geneva and Malaga, Palma de Mallorca and Porto into year-round operations.

Swiss customers travelling from Geneva will also see a new fare concept that replaces the current pricing model. In one major innovation here, both round-trip and one-way fares will be offered.

The new Geneva Economy Flex fare offers European travel from Geneva for as little as CHF 89 one-way. The new fare offers greater flexibility, too, since bookings can be modified at no additional fee; and one piece of registered baggage is included in the fare.

The new Geneva Economy Light fare offers European travel from Geneva for as little as CHF 39 one-way. One piece of carry-on baggage is included in the fare. Bookings here cannot be changed or cancelled once they have been made.

Swiss is further creating a local cabin crew base for 150 new flight attendants.

Copyright Photo: Paul Denton/AirlinersGallery.com. Airbus A320-214 HB-IJW (msn 2134) taxies at Geneva.

Swiss: AG Slide Show

Swiss takes delivery of its first first Airbus A320 with Sharklets

Swiss International Air Lines (Zurich) on March 20 received from Airbus its first new A320 with Sharklets. Sharklets are newly designed wing-tip devices that improve the aircraft’s aerodynamics and significantly cut the airline’s fuel burn and emissions by four percent on longer sectors.

Copyright Photo: Andi Hiltl. Airbus A320-214 HB-JLT (msn 5518) is pictured in action at the Zurich hub today.

Swiss: AG Slide Show

Swiss commits for six new Boeing 777-300 ERs to start replacing its Airbus A340-300s

Swiss International Air Lines (Zurich) has committed for six new Boeing 777-300 ER aircraft. The prospective deal will have to be finalized into a firm order. Boeing (Chicago) issued the following statement this morning:

Boeing, the Lufthansa Group and Swiss International Air Lines announced a commitment today for six 777-300 ER (Extended Range) airplanes. The airplanes, valued at $1.9 billion at list prices, were selected for the airline’s long-haul fleet renewal. Boeing looks forward to working with Swiss to finalize the details, at which time the order will be posted to the Boeing Orders & Deliveries website.

The Boeing 777-300 ER is the largest long-range twin-engine commercial airplane in the world, seating up to 386 passengers in a three-class configuration and has a maximum range of 7,825 nautical miles (14,490 km).

On the financial side, the company issued this statement:

Swiss International Air Lines generated total income from operating activities of CHF 5,033 million in 2012, a 2% increase on the previous year (2011: CHF 4,927 million). But with the market environment still difficult, operating profit for the year fell 31% to CHF 212 million (2011: CHF 306 million). The CHF 27 million operating profit for the fourth quarter of 2012 was, however, an improvement on the CHF 18 million of the prior-year period. Swiss has also announced that its Airbus A340 fleet will be phased out from 2016 onwards. To this end, orders have been placed with Boeing for six Boeing 777-300 ER aircraft.

 
Swiss International Air Lines generated total income from operating activities of CHF 5,033 million for 2012, a 2% increase on the CHF 4,927 million of the previous year. Annual operating profit declined 31%, however, to CHF 212 million. Swiss achieved an operating profit of CHF 27 million for the 2012 fourth-quarter period, a CHF 9 million improvement on the CHF 18 million of October-to-December 2011.

 
Copyright Photo: Mark Durbin. Swiss currently operates a fleet of 15 older and less fuel efficient Airbus A340-300s. The new additions will start to replace the older Airbus long-range fleet. A340-313X HB-JMK (msn 169) lands at San Francisco International Airport in the updated 2012 livery which features larger and bolder titles.

Swiss International Air Lines: AG Slide Show

Swiss to serve Singapore again

Swiss International Air Lines (Zurich) is adding Singapore again to its route network on May 12, 2013 with daily nonstop service from the Zurich hub. The route will be served with 219-seat Airbus A340-300s.

The new flights mark a return to the city-state for Swiss. Swiss served Singapore from its foundation until spring 2009, though this previous service was routed via Bangkok.

Copyright Photo: Andi Hiltl. When Swiss added the new route to San Francisco it created this special “San Francisco” color scheme on Airbus A340-313X HB-JMJ (msn 150). HB-JMJ is pictured departing from the Zurich hub.

Swiss International Air Lines: 

Swiss’ first half operating profit declines by 53% to $64 million

 

Swiss International Air Lines (Zurich) reported its first half operating profit declined by 53 percent to $64 million. The airline blamed the decline on the “still difficult economic and business environment, the continuing pressure on yields (especially in Europe), the strength of the Swiss franc and high fuel prices.”

Read the full report from Swiss: CLICK HERE

Copyright Photo: Rolf Wallner. Airbus A330-343X HB-JHH (msn 1145) is pictured on the runway at the Zurich hub.

Swiss: