SWISS sees 'unsatisfactory' 1Q2013 results, 'tense' situation forecast for FY2013

Lufthansa Group stated (02-Apr-2013) 1Q2013 was "unsatisfactory" for SWISS, with earnings depressed by high fuel costs, which rose disproportionately and could not be recouped by higher revenue. As of 31-Mar-2013, the SWISS and Edelweiss Air fleet consisted of 92 aircraft and a further six planes on wet leases. In 1Q2013, the order list comprised thirty aircraft from Bombardier C-Series, two A330-300s and two A321s, as well as six Boeing 777-300ER, all approved by the Supervisory Board of Deutsche Lufthansa AG in Mar-2013 and which are to replace part of the A340 fleet from 2016. Over the course of the year, SWISS will reorganise its operations in Geneva in line with the regional market. This includes more flexible production and adjustments to the product concept. The first sales and marketing activities are due to start in 2Q2013. In order to finance the planned capital expenditure itself, SWISS intends to make sustainable, long-term improvements to its operating result. As part of a Group-wide initiative, some accounting functions at the site in Basel have already been transferred to a shared services centre. The simplification of processes in revenue accounting also meant that jobs were scaled back there. Work on the optimisation of fuel management is also continuing. For the full year, SWISS expects the situation on the market to remain tense, but is still forecasting higher passenger numbers and revenue. With the aid of the steps already taken, the management board still anticipates that the operating result will be roughly on par with last year's, the company said. [more - original PR]