Published on : Wednesday, November 2, 2016
Swiss International Air Lines has reported earnings before interest and taxes (EBIT) of CHF 194 million for the third quarter of 2016, a 4.0% increase on the same period last year. EBIT for the first nine months of the year amounted to CHF 348 million. The 13.2% decline on January-to-September 2015 is due primarily to non-recurring items which boosted the prior-year earnings: the beneficial effects of new collective labour agreements for cockpit and cabin personnel and a more favourable currency hedging result.
SWISS achieved earnings before interest and taxes (EBIT) of CHF 194 million for the third quarter of 2016, a 4.0% improvement on the CHF 187 million of the prior-year period. EBIT for the first nine months of 2016 was 13.2% down, however, at CHF 348 million (Q1-3 2015: CHF 401 million). The decline is mainly attributable to last year’s conclusion of new collective labour agreements for cockpit and cabin personnel and its more favourable currency hedging result, which both impacted positively on earnings for the period.
Total income from operating activities amounted to CHF 3,571 million for the first nine months of 2016, a 2.6% decline from the CHF 3,666 million of the same period last year. Third-quarter operating income stood at CHF 1,293 million, a 1.3% decline . The lower revenues are largely the result of a strong Swiss franc, which enables competitors to lower their prices and thus put pressure on SWISS’s revenue flows.
“2016 has always been a year of implementation for us,” says SWISS CEO Thomas Klühr. “In introducing the new Boeing 777-300ER on our long-haul network, putting our first Bombardier C Series aircraft into service on our short- and medium-haul routes and migrating to a new central reservation and departure control system, we have given ourselves several sizeable challenges. I am pleased to say that we have met and mastered much of these already, and remain on a very good track. At the same time, the present strength of the Swiss franc does substantially affect our revenue and earnings results. So it’s all the more heartening that our intensified collaboration within the Lufthansa Group is bearing its first fruits.”