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Switzerland continued its rise in the third quarter of the year. The Lufthansa subsidiary made an operating profit of 277.6 million francs in the three summer months, compared with 220.5 million francs the previous year.
Switzerland also increased its sales from July to September by almost 11 percent to 1.5 billion francs (previous year: 1.3 billion), as it announced on Thursday. 99 percent of the flights were carried out in the region where travel, including summer holidays, is the busiest. And this despite strikes, difficult weather conditions or staff shortages in partner companies.
Calculated over the entire nine-month period, Swiss sales amounted to 4.0 billion francs, according to the communiqué; which is about the same as the year before the pandemic. Operating profit rose sharply to 615.9 million francs. Switzerland had a surplus of 287.5 million last year, compared to 490 million before the pandemic.
What happened after the epidemic
According to Swiss, this is the strongest operating result in the company’s history. “As a result of the restructuring in connection with the corona pandemic, we benefited from our competitive cost structures,” CFO Markus Binkert was quoted as saying in the statement. The airline’s administrative costs currently remain below pre-pandemic levels.
With the onset of the epidemic in 2020, sales fell from one day to the next and the company announced losses in every quarter. As a result, the company had to take drastic cost-cutting measures, which have paid off handsomely with current results.
Looking at figures from German parent company Lufthansa, the company also benefited from higher ticket prices. Average revenue per ticket in the third quarter was higher than ever. Lufthansa earned more from day-to-day business after Air Berlin went bankrupt in the third quarter of 2017.
The parent company is also on a good track
The parent company, headquartered in Frankfurt, made an operating profit of around 1.5 billion euros (about 1.44 billion Swiss francs) between July and September. This is almost a third more than a year ago, as Lufthansa also announced on Thursday.
Lufthansa boss Carsten Spohr thinks his group is on track to make operating profits of at least 2.6 billion euros this year as planned. The Swiss subsidiary is also optimistic about the rest of the year. It is said that a “very good result” is expected here.
However, things will become “more challenging” again in the medium term, according to Swiss. The industry is currently facing challenges. Energy costs are rising, but average incomes are on the verge of “normalisation”.
(SDA/sak)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
