Transportation Industry

Company Watch - SkyEurope Airlines

AirGuide Business, Sept 8, 2008

Sep 7, 2008

SkyEurope Airlines suffered a EUR16.8 million ($24.8 million) loss in the fiscal third quarter ended June 30, widened from a EUR5.1 million deficit in the year-ago quarter, as high fuel prices offset the company's continuing efforts to cut costs and streamline its operation. The airline said it responded by raising fares and cutting capacity in addition to eliminating "poor performing" routes, but revenue rose just 0.1% year-over-year to EUR67.9 million and EBIT declined to a EUR14 million loss from the EUR5.2 million lost in the year-ago quarter. Sep 1, 2008

SkyEurope passenger numbers were up 3.3% to 957,382 but RPKs dropped 1.6% to 963 million. Capacity climbed 3.5% to 1.26 billion ASKs and load factor fell 5.2 points to 74.3%. Yield increased 1.7% to 7.05 euro cents and unit revenue declined 3.3% to 5.41 euro cents. Unit cost rose 8.2% to 6.53 euro cents but CASK excluding fuel improved 7% to 4.43 euro cents. Sep 1, 2008

SkyEurope Airlines is adjusting its fleet-expansion plans, again with a capacity reduction that will give it 26 aircraft by 2013. SkyEurope ordered up to 32 Boeing 737-700s three years ago, but has been hacking back its commitment - first to 30 aircraft by 2011, then to 28 by 2012. Fifteen of these aircraft have been delivered. In a third-quarter financial update last week, the carrier said it has firmed two of its five outstanding options, giving it 10 outstanding firmly ordered aircraft and three options. It will return two aircraft leased from GE Commercial Aviation Services and replace them with new aircraft. Sep 1, 2008

SkyEurope took delivery of its 15th Boeing 737-700 during the quarter and now operates 76 routes to 41 destinations. It has 11 more aircraft on firm order and three purchase rights and expects to be operating 26 planes by 2014. It will return two leased aircraft to GECAS, one in October and the second in January, and replace them with new aircraft scheduled for delivery in May and June 2009. Sep 1, 2008

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