Swiss International Air Lines posted an operating profit of $138 million (CHF146 million) in 2009 despite the still-difficult economic environment that prevailed throughout the year. The company had posted $448 million (CHF472 million) operating profit during the previous 12 months.
Swiss reported that each of its four divisions ended the year in profit, although the total income from operating activities declined 17 per cent year-on-year.
“We should be very satisfied with our results for 2009,” said CEO Harry Hohmeister.
“We achieved a black-ink result in all four quarters and we were able to do so despite sizeable declines in our revenues and a tangible migration from higher to lower booking classes.
“With our selective adjustments to our capacity in response to demand, our strong focus on the customer and our rigorous cost management, we have maintained as much control as possible over the present economic crisis and its ramifications.”
Swiss also posted a black-ink result for the fourth quarter of 2009, reporting an operating profit of $31 million (CHF33 million) for the period. The airfreight business of the company’s Swiss WorldCargo unit also showed signs of recovery towards year-end. Swiss invested some $475 million (CHF500 million) in renewing its aircraft fleet and further refining its service product over the course of the year.
The crisis has substantially accelerated the structural changes that the airline industry is currently undergoing. Even if the global economy picks up, the aviation sector is unlikely to see any swift recovery.
In response to the changed and changing demand, Swiss realigned its capacity in 2009 particularly to intercontinental destinations, reducing frequencies on certain routes. Total actual production was some six per cent below that originally planned (and four per cent down on the previous year), with a three per cent reduction in Europe and an eight per cent reduction on the intercontinental network.
Swiss has maintained its present range of destinations, but has temporarily withdrawn two aircraft from its fleet. Capacity in Europe has also been reassigned to meet the shifts in demand, a move which also saw Lyon and Oslo added to the Swiss network in the course of the year.
“We’ve set some ambitious objectives for 2010,” Hohmeister continued. “We want to substantially increase the revenues from our passenger and our cargo business, to ensure that we don’t only improve our bottom line through further cost economies.”
In the current year, Swiss will add San Francisco to its network, which will receive a six-times-weekly service from June onwards.
“Swiss continues to create new jobs and generally benefit the Swiss economy too and we expect to add several hundred more people to our workforce this year,” Hohmeister says.
Last year, Swiss carried 13.8 million passengers, a record number and a 2.4 per cent increase on the 13.5 million in 2008.