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SkyEurope - Worryingly low cash balance of only EUR1.3 million at Sep-08, as losses deepen in FY08


SkyEurope’s net loss deepened in the 12 months ended 30-Sep-08 (FY08) to EUR59.4 million, from a net loss of EUR24.1 million in the previous corresponding period, resulting in a -22.8% net loss margin. The carrier’s base consolidation and operational restructuring plans are showing some, albeit limited, signs of progress, but surging fuel costs, weakened economic conditions and problems with the carrier’s credit card acquirer, resulting in a concerning low cash balance are hampering the airline’s turnaround and future. SkyEurope is yet to report a profit since it commenced operations in 2002. [2248 words]

Unlock the following content in this report:


  • Unit revenues hit hard, but on the improve
  • Fee paradise: Ancillary revenue key element to turn-around strategy
  • Unit costs remain at high end of LCC peer group
  • Current strategy: Cutting capacity to eliminate unprofitable routes
  • To continually review network and fleet size
  • Discussions with Flyholding regarding potential strategic alliance
  • Further concerning signs in
  • Outlook: Crunch time ahead

Graphs and data:

  • SkyEurope financial highlights for 12 months ended 30-Sep-08
  • SkyEurope EBIT and net loss margins: FY05 to FY08
  • Sample LCC unit cost (per ASK; USD cents)
  • Post balance sheet events
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