The Swissair Group is further cutting its fleet and trimming its network in an effort to restore profitability as it reports a half-year loss of SFr234 million ($140 million) against a SFr3 million profit for the same period last year.
The group achieved an 8% increase in revenues to just over SFr8 billion, but the results were dragged down by a SFr251 million provision for its struggling German charter carrier LTU.
Three long-haul and three short-haul aircraft, probably Airbus A330s or Boeing MD-11s and some A320 family members, will go as Atlanta, Bologna, Izmir in Turkey, Saigon, Shanghai and Taipei routes are cut.
Revenues are expected to rise SFr4.5 billion in the next 18 months as the group disposes of assets. Ground handler Swissport has been sold to equity provider Candover Partners, while retailer Nuance is likely to be sold in 2002.
Following suggestions that the Swissair Group could be forced to sell its 37% stake in LOT, chief executive officer Mario Corti said: "LOT has had difficulties with expansion that was expensive, but strategically speaking, it is a very interesting company."
Source: Flight International
