Air India losses astound; Ryanair to run airports?
22nd August 2012
Lufthansa has ordered Swiss International Airlines to cut CHF100 million ($107 million) by 2015 to cope with rising costs and stiff competition. Swiss is reportedly considering increasing fares and surcharges as well as reshuffling ground staff.
Even though Swiss posted a SFr306 million ($327) operating profit in 2011, this was a 17% below the 2010 figure and the airline posted a CHF4 million loss in Q1 2012 due to fuel costs and carbon costs added by the European Union’s Emissions Trading Scheme.
Although the airline has not officially confirmed the fare and charge increases, chief executive of Swiss Harry Hohmeister stated recently that lower fares could not be maintained due to the high fuel costs, which he said caused the “most expensive year we have ever experienced.”