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SkyEurope - Losses deepen in 3Q08; worryingly low cash balance at end of quarter

3-Sep-2008

SkyEurope’s losses deepened in the three months ended 30-Jun-08 (3Q08) to EUR16.8 million, from a net loss of EUR5.1 million in the previous corresponding period. The carrier’s consolidation and operational restructuring plans are showing some, albeit early, signs of progress, but surging fuel costs are hampering the airline’s turnaround. [1421 words]

Unlock the following content in this report:

Subheadings:

  • Running out of cash
  • Fee paradise: Ancillary revenue offsetting scheduled revenue reduction; key to turnaround strategy
  • Unit costs remain at top end of LCC peer group; further opportunities exist to take non-fuel costs
  • Reductions in unit costs excluding fuel fall in 3Q08
  • Current strategy: cutting capacity to eliminate unprofitable routes; raising fares
  • Continues to reduce fleet plans: to operate up to 26 aircraft
  • Outlook: Crunch time ahead

Graphs and data:

  • SkyEurope financial highlights for three months ended 30-Jun-08
  • Sample LCC unit cost (per ASK; USD cents)
  • Sample LCC unit cost (per ASK excluding fuel; USD cents)
  • SkyEurope operating expenses breakdown (EUR): 3Q08
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