Air Transport World

Rising costs pinch Swissair. (company profile)

Zurich-Swissair posted a net profit of Sfr94.7 million ($58.82 million) for 1989, a 25% improvement on the previous year. But Otto Loepfe, the airline's president, warned here of "tougher times ahead," as rising fuel prices and expanded production will be major factors, while currency exchange rates are proving less beneficial than before. All this means that we have a demanding year ahead of us," Loepfe commented.

For 1989, Swissair's overall revenues were Sfr4.84 billion ($3.004 billion), and expenditure Sfr.37 billion ($2.72 billion), both up 13% on the year. Gross profit was Sfr463 million ($287 million). The dividend was set at Sfr4O ($24.84) per share.

The airline carried 8.6 million passengers to its 1 1 0 destinations, up 6%, raised production by 4% and increased the overall load factor 2.3 points to 66.2%. Seat load factor went up from 63.6% to 65.3%. Cost of delays rises

Delays because of airport congestion and poor coordination of ATC were "a continuing source of concern," Loepfe commented. "In 1989, these irregularities cost us some Sfr8O million ($50 million), twice as much as in the previous year. Longer waits mean extra flight hours, more fuel, missed connections, the costs of overnight accommodations and much more.

Currency exchange rates also influenced 1989 results for the first time in a number of years, at the same time that revenue was being seriously eroded by rising fuel prices, especially toward the end of the year. …

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