In the traditionally high-traffic third-quarter period Swiss International Air Lines (SWISS) was able to continue the positive business momentum of the previous months and further raise its operating profit for the year to date. The company was bolstered in doing so by almost unique market conditions which saw an industrywide reduction in capacities owing to global shortages of resources combine with sizeable pent-up travel and transport demand in both the passenger and the cargo segments. Operating results were further boosted by the cost optimizations and the profitability improvements deriving from the company’s restructuring activities.
In the first nine months of 2022 SWISS achieved an operating result of CHF +287.5 million (1st to 3rd quarter of 2021: CHF -375 million). Total nine-month revenue was raised 132.3 per cent to CHF 3.18 billion (1st to 3rd quarter of 2021: CHF 1.37 billion). For the third-quarter period, operating profit was increased to CHF 220.5 million (3rd quarter of 2021: CHF 22.7 million) on total revenue that was raised 88.2 per cent to CHF 1.33 billion (3rd quarter of 2021: CHF 707.8 million).
“In this most important quarter of the year for us as an airline in financial terms, the reduced capacities industrywide and the high pent-up demand for air travel combined to provide advantageous market conditions,” explains SWISS Chief Financial Officer Markus Binkert. “And thanks to our effective restructuring and the high scheduling stability that we managed to maintain throughout the summer months, we were able to translate these conditions into strong business results.”
Sizeable growth in passenger numbers
SWISS transported some 9.3 million travellers in the first nine months of 2022, around two-and-a-half times as many as it had in the same period last year. Over 78,000 flights were performed between January and September, more than twice as many as in the prior-year period. Systemwide available-seat-kilometre (ASK) capacity was up 82.5 per cent year-on-year, while total traffic volume for the period, measured in revenue passenger-kilometres (RPKs), was raised 186.6 per cent. Systemwide seat load factor for the first nine months of 2022 amounted to 79.6 per cent, 28.9 percentage points above its prior-year level.
In the third quarter of 2022 SWISS transported 4.0 million passengers, compared to 2.6 million in the prior-year period. Just under 31,000 flights were conducted, compared to some 22,000 in the third quarter of 2021. Systemwide third-quarter seat load factor amounted to 89.4 per cent, up 23.0 percentage points on its prior-year level. Over 99 per cent of SWISS’s flights were operated as scheduled in the third-quarter period.
A solid full-year operating profit expected for 2022
With its strong financial results for the first nine months of this year, SWISS has laid a sound business foundation for the seasonally weaker autumn and winter months. Despite the prevailing economic and geopolitical uncertainties, the company is currently seeing very high booking levels and expects to report a solid full-year operating profit for 2022.
“The agreements that we have recently reached with our social partners for our ground and our cockpit personnel provide new prospects and perspectives and further strengthen our operational stability,” adds SWISS CEO Dieter Vranckx. “As such, these developments are of fundamental importance to our continued business success, not only for 2022 but also beyond. We expect as well to be able to conclude our collective labour agreement negotiations with our social partner for our cabin personnel by the end of November.”
Tags: SWISS
