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SkyEurope Posts Loss For 3Q 2008  
User currently offlineAndrej From United Kingdom, joined Jun 2001, 925 posts, RR: 0
Posted (5 years 10 months 3 weeks 5 days 5 hours ago) and read 1917 times:

Hey all,

SkyEurope announced loss of €16.8 million ($24.8 million) for the third quarter ended June 30th. Company blames high fuel prices (cost increase of 71% form 3Q 2007 to 3Q 2008) as it interfered with its cost cutting plan.

Also NE received new B73G in April 2008 and plans to return 2 planes to GECAS during the winter season and will receive 2 new jets for summer 2009.

Load factor (LF) for June 2008 was 80.1% compared to LF for June 2007 85.8% and Trailing Twelve Months (TTM) LF in June was 74.4% compared to TTM LF for June 2007 80.3%. Company blames this increased capacity, but states that its yields improved.

Sources:

http://www.atwonline.com/news/story.html?storyID=13868

http://www.skyeurope.com/Documents/Q3_2008_financial_report_EN.pdf

http://www.skyeurope.com/Documents/Passenger_Traffic_July_2008_en.pdf

Overall I am not sure how long NE can last. I remember that last year the company secured loan and predicted to have better financial situation in late 2008 to 2009. Now I understand that fuel costs cut into these plans, but I hope that the company will survive.

The company is bleeding cash (from January 2007 burned about EUR 39.12 million) , and what is most unfortunate is that they generated negative operating cash flows (in 3Q 2008 about EUR 12.58 million).


Cheers,
Andrej

3 replies: All unread, jump to last
 
User currently offlineFlyTUITravel From United Kingdom, joined May 2007, 723 posts, RR: 0
Reply 1, posted (5 years 10 months 3 weeks 5 days 5 hours ago) and read 1896 times:

Havent Skyeurope have been in the red for a few years now?
I guess the future of this company remains [unfortunately] uncertain.


User currently offlineAdriaticflight From United Kingdom, joined Jan 2004, 515 posts, RR: 2
Reply 2, posted (5 years 10 months 3 weeks 5 days 1 hour ago) and read 1838 times:

Flew them this summer from Split to Prague. Great airline, the flight was full!! I wish them well.!!

User currently offlinePEET7G From Hungary, joined Jan 2007, 695 posts, RR: 0
Reply 3, posted (5 years 10 months 3 weeks 4 days 18 hours ago) and read 1773 times:

It is a shame that they struggle with such a bad management and terrible business model...

-SkyEurope is by far the best LCC airline in Europe with a perfect service for the business traveller, yet they focus on markets like Bratislava and Kosice that really can support a Ryanair style service, while axing hub at BUD (It is simply not true that BUD was the worst performing hub, they simply chickened out ahead of Ryanair, and didn't want to move head on with WizzAir, and of course they kept BTS instead)
-This year they returned with a W style routing from PRG-TRS-BUD-TRS-PRG... I mean what idiot planned a low yield, leisure route with a premium LCC service as an entry again to BUD? You could get to Trieste on highway within hours...
-I can understand them busting hubs at BUD, WAW, KSC, etc, but I never understood why they didn't return with W style, premium routes like 1 of their hub-AMS-BUD or 1 of their hub-CDG-BUD or like that, those flights where always full, and full with business travellers like me (we fly to both destinations almost every week, and many times fly there with the earliest flight and return with the last)... our company was even a B2B partner for them in those days...and both morning and evening flights where always full...
-instead they moved into routes like VIE-INN 3Xdaily!!!, BTS-KSC!!! and things like that... Right in that topic I claimed they will all go bust, and here we are less than a year away and most of those routes have vanished or have been reduced dramatically.

All in all, I still claim they are a super premium LCC with the best product in that market, with a stupid management basically waisting the product in a market that can not pay for the premium services... Just think, the market on a London-Poprad rout (ski tourists, or migrant workers) do they need a Ryanair style "bus" or premium LCC?



Peet7G
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