SWISS can look back on a successful year 2010

Swiss International Air Lines (SWISS) can look back on a highly successful year 2010. In its winter flight plan 2010/2011 the company serves 72 destinations in 39 countries from its hub Zurich and from airports in Basel, Geneva and Lugano. With a modern product it positions itself in all three classes as a quality airline and premium brand. As the national airline of Switzerland and a member of the Star Alliance, SWISS embodies the brand values of personal service, superlative quality, reliability and Swiss hospitality. The target group for SWISS is principally business travellers, but it also has a strong presence in the leisure travel segment. In this segment it is supplemented by the holiday airline Edelweiss Air, whose numbers are also consolidated in the SWISS group. In March 2010 SWISS celebrated the fifth anniversary of its successful engagement with the Lufthansa Group as a largely autonomous airline. Since 2005 SWISS has increased annual passenger numbers by 50 per cent and hired around 1,000 new people.

Strong revenue development in its home market

The success of SWISS is due largely to effective cost management, but also to strong demand and the upswing in intercontinental and freight business, as well as strong sales in the domestic Swiss market. The gratifying growth in bookings was especially pronounced in the premium, long-haul segment. In European traffic average yields remained under heavy pressure, however. SWISS therefore continues to promote strict cost discipline and flexibility in order to respond swiftly to fluctuations in demand.

In October the one-hundred-millionth SWISS passenger was recorded since the company was established in early 2002. In 2010 SWISS (without Edelweiss Air) carried more than 14 million passengers – a record in the company’s history. Capacities were adjusted over the course of the year flexibly, precisely and in line with demand. Altogether they were increased by 4.4 per cent compared with 2009. The flights were fuller than in the previous year, with an average load factor of 82.3 per cent – a high figure even compared with the Passenger Airline Group and the sector as a whole.

Since mid 2010 SWISS has operated a new long-haul service from Zurich to San Francisco, registering a high load factor on the route from the first month onwards. Furthermore, since early 2010 SWISS has been flying six times a day from Geneva to London Heathrow. In December the route Geneva–Madrid was opened. Frequencies from Zurich and Geneva to other destinations were also ramped up. This doubled capacity at Geneva over the last five years. SWISS offers new routes from Basel to London Heathrow in cooperation with bmi as well as to Copenhagen and Rome. This increases capacities from Basel by about 70 per cent.

Changes in Board of Directors

In September the SWISS Board of Directors lost Dr Rolf Jetzer, its respected president of many years, who died unexpectedly at the age of 59. In November Dr Bruno Gehrig, president of the Swiss Air Transport Foundation, was appointed as the new President of the Board of Directors to replace him.

SWISS continues to expand its fleet and to invest in its product

SWISS is committed to a careful use of resources and demonstrates its involvement at various levels. It has reduced specific fuel consumption continually over the last five years. This course is being pursued by means of investment in technological innovations to renew and expand the fleet. As part of this fleet programme SWISS is expecting delivery of seven Airbus A330-300s and five Airbus A320s in the years ahead. From 2014 it is to replace its Avro-RJ regional fleet completely by more environmentally friendly and noticeably quieter aircraft from the Bombardier C-Series. Altogether SWISS has 42 aircraft on its order list.

Furthermore, until mid 2011 SWISS will be investing in an integrated and modern three-class product for its entire long-haul fleet. Alongside capital expenditure in Business and First Class the company also invested in Economy Class in 2010. The undiminished focus on a high-quality product is paying off: in the first half-year SWISS received several awards, including the Skytrax 2010 World Airline Award for Staff Service Excellence in Europe. In early 2011 SWISS was voted best European airline by the readers of Business Traveller magazine and commended for the best Business Class range in routes to North and South America.

Sustainable growth track to be pursued consistently

After a difficult start, the financial year 2010 developed extremely well. SWISS generated revenue of EUR 3.5bn (+24.9 per cent) and an operating profit of EUR 298m (previous year: EUR 93m). SWISS intends to improve earnings moderately again in 2011 and is to pursue its course of sustainable growth consistently.