SWISS reports decline in operating profit amid rising costs

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SWISS reports decline in operating profit amid rising costs

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Dieter Vranckx Vice-Chairman | Swiss International Air Lines

By Sky Industry News

Oct 29, 2024

Swiss International Air Lines (SWISS) reported an operating result of CHF 505 million for the first nine months of 2024, marking an 18% decrease compared to the same period in 2023. Total revenues during this time reached CHF 4.2 billion. The airline attributes its solid performance to strong demand for tourist travel over the summer, despite facing rising costs and challenging business conditions.

Dennis Weber, SWISS Chief Financial Officer, commented on the results: “We continued to benefit from strong demand for tourist destinations and other private travel in the traditionally busy summer months.” He also noted cost increases related to fees, maintenance, and personnel due to new recruitment and salary hikes.

In the third quarter alone, SWISS achieved an operating result of CHF 240.8 million, a decrease of 13.3% from the previous year. Revenues for this period increased by 5.9% to CHF 1.6 billion.

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The cargo sector played a significant role in SWISS's performance, driven by strong business in Asia and a robust e-commerce market. CEO Jens Fehlinger acknowledged these contributions: “Given the increasingly demanding business and operating conditions that air transport is facing, our SWISS team can be proud of these solid earnings results.”

Passenger numbers rose significantly with SWISS transporting 13.7 million passengers in the first nine months of 2024, up by 10.5% from last year. The airline operated over 108,000 flights during this period.

Despite challenges such as geopolitical unrest and European airspace capacity shortages affecting operations over the summer, Fehlinger expressed satisfaction with financial outcomes: “Summer 2024 proved a genuine trial of strength, but one we passed with sound financial success.”

Looking ahead to the final quarter of the year which is typically more challenging due to fewer vacation travelers, Fehlinger remains optimistic about achieving a good financial year despite fare pressures: “Fares remain under pressure... at the same time that we are seeing rising costs and fees.”