Spain's second-largest carrier Spanair is forecasting break-even this year and a profit in 2003, due largely to new route deals with its Star Alliance partners and a tight rein on costs. A move into the black would mark a change of fortunes for the carrier, which is 74%-owned by Scandinavian Airlines (SAS), after two years of losses, says chief executive Gonzalo Pascual.
The carrier had operating losses of €50.9 million ($50.2 million) in 2001 on revenues of €847 million.
"I am very satisfied that our growth plans are being consolidated and that profits will rise substantially next year," Pascual says.
Joining Star earlier this year has already allowed Spanair to add flights to Vienna from Madrid and to Munich from the coastal cities of Valencia and Malaga, under codeshare agreements with Star Alliance members Austrian Airlines, Lufthansa and SAS. Fledgling domestic routes include from Malaga to Tenerife and Las Palmas in the Canary Islands.
Source: Flight International
