nasair CEO Francois Bouteiller said the carrier is profitable “from an operational perspective” and the airline “enjoyed” a good 1Q2012, as reported by Gulf News. Mr Bouteiller said the carrier had expected to be profitable in 2011 but ended the year with a loss. The airline has faced a “challenging couple of years” due to oil prices and regional uncertainty.
nasair reports better financial performance in 1Q2012
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nasair plans ambitious expansion in 2013 ahead of further liberalisation in Saudi Arabian market
nasair has long been the junior partner in the Saudi Arabian aviation market, but five years into operations its fortunes have begun to change. In 3Q2012, the airline reported its first-ever quarterly profit. It also managed to breakeven in the final quarter of the year, ending 2012 with a small loss. Load factors have hit a record 75% and nasair has turned its operational performance around to generate more revenue.
With the improving financial momentum and promising passenger traffic, the carrier is optimistic about its prospects for 2013. Sulaiman Al-Hamdan, Group CEO of NAS Holding – the parent of nasair – has announced the carrier is targeting a 50% increase in passenger traffic for 2013. As if that wasn’t ambitious enough, the carrier is also targeting a 100% increase in revenue and its first ever full-year profit.
EgyptAir looks to expand its way out of intensive care in 2013
EgyptAir continues to make massive losses as the carrier and Egypt struggle to recover from the Jan-2011 revolution which resulted in the airline moving into crisis mode for two months when it was forced to temporarily ground up to 40% of its fleet and as 80% of revenue evaporated.
Egypt’s Minister of Civil Aviation Wael al-Maddawy reportedly told the Shura Council Transportation Committee in Mar-2013 that losses at the national carrier had reached more than EGP6 billion (USD885 million) since the revolution. EgyptAir is yet to publicly release its annual report for FY2012 which ended 30-Jun-2012, but Mr Maddawy said EGP650 million (USD95.7 million) of the losses were due to the weakening of the EGP to the USD.
“EgyptAir’s losses are huge, but not catastrophic, [as they won’t] lead to the closure or selling of the company,” Mr Maddawy said. The carrier is burdened with 32,000 employees, when it needs just 12,000 to operate the carrier. Some 20,000 more employees than it needs. However, the carrier is prevented from reducing its headcount due to the prevailing social circumstances, according to Mr Maddawy.