SWISS is taking several steps to cut losses related to COVID-19, may expand schedule over summer months

SWISS Reports First-Quarter Loss Of CHF 84.1 Million

Roland Ohaeri Foreign Airline News, News, News Updates Leave a Comment

The coronavirus pandemic brought civil aviation worldwide to a virtual standstill within weeks. This has also had a dramatic impact on results at Swiss International Air Lines (SWISS) for the 2020 first-quarter period.

 

SWISS reports an operating loss for the quarter of CHF 84.1 million -Q1 2019 operating profit of CHF 48.3 million-. With demand for air travel collapsing and capacities reduced accordingly, SWISS’s total first-quarter revenues declined 20 per cent to CHF 923 million -Q1 2019; CHF 1.15 billion. With the further development of the present coronavirus pandemic extremely difficult to predict, no forecast can currently be given on results for 2020 as a whole.

 

The airline notes that it responded immediately to the lost ticket revenues by initiating various cost-reducing actions. These have included the companywide adoption of short-time working and a hiring freeze, along with the deferral of planned investments. The company will also be resizing its fleet by deferring deliveries of short- and medium-haul aircraft currently on order, and is further considering withdrawing older aircraft earlier than planned. SWISS has also sought government support to avert the still-present threat of temporarily insufficient liquidity.

 

SWISS Chief Financial Officer Markus Binkert says: “Once it became clear that we would be facing a longer coronavirus pandemic, we took immediate action to reduce our costs. And this, together with financial support from the Lufthansa Group and the loan guarantees that have been provided by the Swiss Confederation, will enable us to bridge any liquidity gap. Needless to say, we will be doing everything in our power to repay such loans with interest with all possible speed.”

 

On gradual reopening, SWISS reveals that it has maintained a minimum timetable of scheduled services comprising selected routes within Europe from Zurich and Geneva and a thrice-weekly service between Zurich and New York / Newark in the USA. With travel restrictions now being eased within Europe, the company will be gradually expanding its range of scheduled services to some 15 to 20 per cent of its originally planned programme from June onwards.

 

SWISS CEO Thomas Klühr explains: “We will be steadily expanding our services from Zurich and Geneva, with the aim of restoring the direct intercontinental connections that are so vital to Switzerland’s economy, politics, society and tourism sector. This will be a step-by-step process that will take two to three years. But we will be doing our utmost to offer the best possible passenger and cargo services under the current circumstances.”

 

Further schedule expansion is planned over the summer months, with a constant eye on all developments in the present various travel restrictions and on the people of Switzerland’s air travel needs.SWISS says it has also expanded its air cargo services through its Swiss WorldCargo division, in response to the present high demand for airfreight services. Some 375 cargo-only flights have been performed since the end of March, with a particular emphasis on helping to maintain the supply chains of humanitarian and medical goods from and to Switzerland. Three of SWISS’s 12 Boeing 777 aircraft have also had their Economy Class seating removed to provide more main-deck cargo capacity.

Share on Social Media

Leave a Reply

Your email address will not be published. Required fields are marked *