SAirGroup's airline operations ended the first half of 2000 in the red but the losses have been more than offset by the strong performance of the parent company's non-airline businesses, says chief executive officer Philippe Bruggisser.
Bruggisser is seeking to reassure investors that his diversification strategy is paying off after rumours among financial analysts that the company is in trouble, with its airline operations under pressure from high fuel costs, a strong dollar, mounting losses at LTU and industrial relations problems at its French subsidiaries.
Speculation increased following the departure earlier this month of Swissair CEO Jeffrey Katz, which Bruggisser admits was prompted by a management dispute.
"There is absolutely no foundation to rumours regarding a financial or management crisis," says Bruggisser. Referring to first-half results due to be released on 21 August, he adds: "Results for the airline sector will be negative. But results from the airline-related activities will be very positive. The group can therefore expect a balanced result."
SAirGroup's airline-related divisions include SAirRelations, SAirLogistics and SAirServices, which are active in aircraft maintenance, ground handling, catering, cargo and information technology markets.
In an effort to ease the pain of higher fuel costs Swissair and regional subsidiary Crossair have announced a three per cent fare hike with immediate effect, applicable to all business class and full-fare economy tickets but excluding discount offers.
Source: Flight International
