Swissair parent’s first-half profits drop 31.5 percent

(AP) -- Swissair parent SAirGroup said on Wednesday that its net profit for the first half of this year fell 31.5 percent to SFr87 million ($58 million) from the same period last year.

(AP) — Swissair parent SAirGroup said on Wednesday that its net profit for the first half of this year fell 31.5 percent to SFr87 million ($58 million) from the same period last year.

The group, which also includes regional airline Crossair, noted “continuing steep declines in yields from flight operations.”

Last year’s first-half net profit was SFr127 million ($84.7 million).

In a statement, chief executive Philippe Bruggisser (above) said 1999 as a whole will be “difficult” and cautioned that the company will be unable to match its full-year results for last year, when it posted a net profit of SFr361 million ($247 million).

Downward pressure on air fares and restrictions and delays resulting from the Kosovo conflict were among the factors that let to the slide in profits, SAirGroup said.

It estimated that delays resulting from European airspace restrictions cost the group’s airline operations between SFr5 and 6 million ($3.33 million and 4 million) per month so far this year.

The group’s cargo division also had a difficult first half, “facing both substantial yield declines and a steep falloff in traffic from the United States and on Europe-to-Asia routes.”

However, the group said its other airline-related activities, in particular its services and relations divisions, produced encouraging results.