Network carriers broadly posted good results in the latter part of 2007 both in Europe and the Asia-Pacific
With the exception of AirAsia representing low-cost players, it was the network majors that demonstrated the most impressive profits at the tail end of last year, and in the case of European carriers, for the full year.
Some also showed decent double-digit operating results. This was the case for Air New Zealand and Qantas in their figures for the second half of 2007, and for AirAsia and Singapore Airlines in their final quarter numbers. Cathay Pacific boosted its margin for the full year above 10%. Only Jet Airways of India disappointed, falling into the red in the quarter. It blamed the loss on high fuel costs and start-up costs associated with new international services.
The full year figures from European carriers were solid if not spectacular. Only the large loss at Spanish low-cost carrier Vueling spoilt the selection shown here as it plunged to a $104 million operating loss amid strong competition in the home market.
Europe's low-cost players had mixed results. Norwegian saw massive revenue growth in 2007 and managed to creep into profit. The final quarter saw Bratislava-based SkyEurope post a loss while Ryanair only managed an operating margin of nearly 8%, disappointing by its high standards. With high fuel prices and declining yields, the carrier sounded a warning about profits for this year.
Among the majors, Lufthansa saw its operating profits rise by over 60% in 2007 to top $2 billion. "It is especially worth mentioning that we have achieved this record result at a time when fuel prices are at their highest, financial markets are full of uncertainty and competition is harder than ever," said chairman Wolfgang Mayrhuber.
Source: Airline Business
