SWISS profits halved
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SWISS has seen its operating profits halve in the first six months of the year to £40 million compared to the same period last year.
The airline reported the decline amidst a “difficult economic and business environment”; high fuel prices and the strength of the Swiss franc. Conditions have not improved for the carrier during the second quarter either, with results “substantially below expectations”.
Its second quarter operating profit was down 42% to £74m while passenger numbers were up 4.5%, although struggles are set to continue throughout the year.
“The crisis in our industry is hitting us, too, and we see no sign of any upturn here any time soon,” said Harry Hohmeister, CEO of SWISS. “We are pleased to report that we did manage to further increase what were already high seat load factors. But this was far from enough to offset the continuing yield declines: air fares are still at very low levels.”
In an aim to boost its future, the carrier has already modified some service patterns and is to look at moving around its aircraft and routes more efficiently. It expects its full year operating profit to be lower than last year, with Hohmeister adding it will now reassess its investment and growth policy up to 2020.
