SAirGroup is blaming a 29% fall in first-half operating profits on an "accelerating deterioration in yields" in its airline operations, coupled with air traffic control (ATC) restrictions caused in part by the Kosovo conflict.
It has become the latest major European airline group to report a slump in profits, including British Airways and Lufthansa.
The Swiss company says moves to expand its airline-related businesses such as catering, cargo and engineering helped to offset the worsening performance of its core airline operations, which accounted for 46% of revenues in the first half, but provided 69% of the overall operating profit of SFr214 million ($143 million).
Swiss national carrier Swissair was particularly badly hit, with operating profits "substantially below those of a year ago", says the company.
Source: Flight International
