SWISS posts stable first-half result
Zurich, July 31, 2014 (STAT):-SWISS reported stable first half result with an operating profit of CHF 118 million from a total income of CHF 2,517 million. The marginal profit is attributed to a new method of calculation of depreciation. This stable result is to be viewed against a difficult market environment in the second quarter […]
Zurich, July 31, 2014 (STAT):-SWISS reported stable first half result with an operating profit of CHF 118 million from a total income of CHF 2,517 million. The marginal profit is attributed to a new method of calculation of depreciation. This stable result is to be viewed against a difficult market environment in the second quarter of the current year. The company is feeling increasing competitive pressure, particularly in Europe but also on North Atlantic routes. Yield erosion had a sharp impact on profitability during the period under review.
“In comparison with competitors SWISS is performing relatively well, but we see no sign of market conditions becoming more favourable. Hence, we must continue to work hard for our success,” commented SWISS CEO Harry Hohmeister.
SWISS remains on course with the result improvement programme SCORE. At present, SCORE projects with the potential to improve results by CHF 86 million for 2014 are envisioned, which puts SWISS significantly above the SCORE results for 2012 (CHF 49 million) and slightly below the level for 2013 (CHF 98 million).
The company is feeling increasing competitive pressure, particularly in Europe but also on North Atlantic routes. Yield erosion had a sharp impact on profitability during the period under review. The weakness of foreign currencies against the Swiss franc and relentlessly high fuel prices pose additional strains.
“In comparison with competitors SWISS is performing relatively well, but we see no sign of market conditions becoming more favourable. Hence, we must continue to work hard for our success,” commented SWISS CEO Harry Hohmeister
