Luxair lucks out in 2012 with first net loss in 30 years. Its turnaround plans will be key

When reporting its first net loss in 30 years, Luxair observed that "Many traditional, independent, small size European airlines which do not operate long-haul services are facing financial disaster and are fighting for survival. The only airlines which operate an intra-European network and which are managing to do well are the low-cost airlines."

With this in mind, the Luxembourg-based operator of scheduled and charter passenger operations, cargo handling and aviation services is embarking on a crucial turnaround plan. It targets a breakeven result in 2015 by achieving annual profitability improvements of EUR25 million, or almost 6% of 2012 revenues. This looks an ambitious target given its 2012 operating loss margin of 4% of revenues.