SWISS: Lufthansa Group's most profitable airline must cut costs by labour productivity improvement

SWISS is set for an eventful 2016, taking on a new CEO and two aircraft types new to its fleet. Thomas Klühr will move from his current position, as head of hub Munich for SWISS parent airline Lufthansa, to succeed Harry Hohmeister, who takes on responsibility for all Lufthansa Group's premium airlines in Feb-2016. That month SWISS will also deploy its first Boeing 777-300ER on the Zurich-New York route. The airline is the launch customer for the Bombardier CSeries, the first of which it expects to have in the middle of the year.

In this report we review SWISS' financial performance, which receives little attention separate from analysis of its parent group. For some years the most profitable airline in the Lufthansa Group, SWISS has consistently managed to lower its unit cost more rapidly than the fall in unit revenue. However, as LCC competition intensifies and Gulf airlines make further inroads into its market, SWISS cannot afford to rest on its laurels. It is among Europe's high unit cost airlines and our analysis indicates that labour productivity measures have declined. This should be an area of focus for Mr Klühr.

This CAPA Premium Analysis article is 2,332 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com