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In the first half, Swiss increased its business by a tenth and the EBIT margin jumped to 12.8%. This is exceptionally good in comparison with the rest of the industry, but also in comparison with other Lufthansa companies.
Switzerland continues its ascent. (Christian Merz / Keystone)
Driven by a strong economy, Switzerland continues its rise in the second quarter. Operating profit rose 38% year-on-year to CHF 224 million, up 11% to CHF 1.4 billion, as EBIT margin rose by 2.1% over the same period last year. from 12.9 to only 16%. Thomas Klühr, CEO of Swiss Group, said it was possible to reduce the increased capacity of the market while reducing unit costs with the new aircraft. Positive side effects were added in the second quarter, suggesting that the results from April to June should not be extrapolated.
Fueling the Future
Switzerland also recorded good results in the first half. The turnover increased by one-tenth to CHF 2.58 billion, while operating profit rose by 67% to CHF 330 million. The Swiss airline has achieved a margin of EBIT 12.8%, after 8.4% in the second quarter Previous year According to an approximation, the aviation needs an EBIT margin of 8% to obtain the cost of capital.
By way of comparison: Japan Airlines, one of the most profitable airlines in Asia, announced an EBIT margin decline from 7.9% to 7.3% in the second quarter, according to a press release issued Tuesday.
] Swiss now has 10 Boeing 777 Extended Range and 23 C-Series from Bombardier. There is also a long line of Airbus, but the Swiss fleet includes 90 aircraft. Despite the significant increase in capacity, capacity utilization increased by 0.9 point to 81.5% in the first half. Swiss has already ordered two additional Boeing 777s, which are expected to join the fleet in early 2020. Kluhr hinted in a conversation at Head Office that on the one hand he would come to the compression of the existing road network, but to do so. on the other hand also a new destination is on the menu label.
For the second half of the year, Swiss expects solid results, but expects a growing load due to rising oil prices. If this effect was significantly mitigated by hedges in the first half, according to Swiss data, a downward effect or a sharp rise in costs is expected. Overall, the adjusted EBIT, the relevant Lufthansa Group benchmark, is expected to be stable or "slightly higher than the previous year".
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