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.This content was published on December 14, 2000 - 09:18
"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.
swissinfo with agencies
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