Swiss confirms 2004 loss

Swiss plans to get rid of its Saab regional aircraft as part of cost-cutting measures. Swiss

The national carrier Swiss has confirmed its results for 2004, which resulted in a net loss of SFr140 million ($117 million).

This content was published on March 11, 2005 - 12:02

The airline reiterated on Friday that it aimed to lower annual costs by about SFr300 million from 2007 and that it would be hard to break even this year.

The company had already announced in February that it had narrowed its 2004 net loss to SFr140 million from SFr687 million in 2003, thanks to its cost-cutting programme. Further cuts were announced in January.

It reported an operating loss (before interest and tax) of SFr122 million.

"While our quarterly operating results exceeded their prior-year equivalents in every period in 2004, our overall net result for the year is not satisfactory," said CEO Christoph Franz.

"Our company did make impressive progress and improved its result by approximately ten percent of annual turnover, and this confirms to us that the path we have taken is a promising one, but the actions we announced in January are indispensable if we are to become and remain a sustainably competitive company," he added.

Lowering costs

The carrier also said that it would aim to lower costs further in the future.

"Present indications suggest that if the [cost-cutting] actions resolved are not swiftly implemented, Swiss would be unable to post a positive operating result for 2005," said the airline in its statement.

The company refused to comment on media speculation that it has broadly agreed a union with the German airline, Lufthansa.

In 2003 Swiss accepted a preliminary invitation to join Oneworld, the aviation alliance dominated by British Airways (BA). But talks with BA later broke down and analysts have since speculated that Swiss is seeking a tie-up with Lufthansa.

The airline has been making losses ever since it was formed in 2002 after the collapse of Swissair.

In January it announced plans to reduce its fleet of 62 aircraft by 13 and axe 800 to 1,000 jobs by 2006.

swissinfo with agencies

Key facts

The first flight operated by Swiss took off in 2002.
The airline was formed following the demise of national carrier Swissair in 2001.
In January, Swiss announced plans to shed up to 1,000 jobs between 2005 and 2006 and the reduction of its fleet by 13.

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