TRANSAVIA AIRLINES blames declining fares and rising costs outside its control for failing meet its profit targets in the year to 31 March. Net profits were Dfl23.5 million ($16.5 million), just 0.7% ahead of the 1993/4 figure and well below the 15% margin targeted by the airline.
Transavia president and chief executive Peter Legro singles out airport ground-handling monopolies and flight delays as the main factors behind the disappointing performance, which came despite a 12% increase in turnover, productivity improvements and a 20% increase in passenger numbers.
Legro also warns that flat growth in the Dutch charter market, and continuing pressure on yields and the airline's leasing business, will make it difficult to match the performance in 1995/6.
The Dutch scheduled and charter carrier, 80% owned by KLM, says that operating costs for the year rose 13.2%, to DFl 486.5 million, giving an operating profit of DFl 16 million.
Source: Flight International
