Crossair warns of no profit for 2000
SAirGroup's regional carrier, Crossair, will not make a profit for the year 2000 because of the high cost of fuel and the strength of the US dollar.
“After overall disappointing results in November, we can now no longer expect a positive result for 2000,” the company said in a statement on Thursday.
Higher fuel prices have been affecting profits throughout the airline industry.
The airline said that high fuel prices and the dollar’s advance to a 14-year high against the Swiss franc have made costs soar. Its fuel bill rose by 80 per cent or SFr75 million ($44 million) in the first ten months of the year.
Cost cutting measures designed to save SFr50 million were, according to Crossair, unable to prevent the collapse in numbers.
The company which recorded a SFr6.1 million loss in the first six months of the year declined to comment on whether or not the company will report a loss or break even for the year as a whole.
Crossair also announced it is to buy eight Airbus A320 planes and take options on four more. The Airbuses will replace the McDonnell Douglas MD-80 fleet from 2002.
Crossair said it had also considered buying the Boeing 737-800 plane.
The new planes will be taken from an existing order from parent company SAirGroup with GATX Flightlease.
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