Kuoni back in profit

Kuoni is back on the right path after recording a big loss in 2001 Keystone Archive

Kuoni, Switzerland's largest travel group, returned to the black last year with a net profit of SFr26.2 million ($19 million) after a 2001 loss of SFr282 million.

The return to profit came despite lower sales in 2002.

The results, announced by Kuoni on Tuesday, exceeded analysts’ expectations of a SFr20.3 million profit.

Global slump

But Europe’s fifth-largest travel company felt the effects of the global slump in the travel market, with turnover down eight per cent at SFr3.7 billion.

“The geopolitical situation in Iraq and the generally unfavourable development of the global economy did, however, have an adverse impact on booking behaviour,” Kuoni said in a statement.

The travel industry has suffered a downturn since the September 11 attacks on the United States, and recent fears of a war in Iraq and general economic uncertainty have also suppressed demand for holidays.

Kuoni said travel to and from the United States and to destinations in the Middle East, such as Egypt and the UAE, had been worst hit by the fall in demand.

Bali and Kenya had also lost popularity as holiday destinations following attacks in recent years.

Kuoni said it expected demand to remain repressed in the current year.

“With current market trends far from transparent, the present outlook is necessarily hazy, making it hard to offer any reliable prognosis of future business developments,” the company said.

swissinfo with agencies

Kuoni summary

Kuoni recorded a profit of SFr26.2 million in 2002.
The return to profit followed a loss of SFr281.7 million in 2001.
But 2002 sales were down eight per cent at SFr3.7 billion.
Kuoni says demand is not expected to increase substantially in 2003.