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AF-KL FY2008 Expected Loss Of 200M Euros  
User currently offlineMindscape From United States of America, joined Apr 2004, 315 posts, RR: 0
Posted (5 years 3 weeks 1 day 6 hours ago) and read 2415 times:

Link in French for now (LaTribune):
http://www.latribune.fr/entreprises/...rtissement-sur-ses-resultats-.html

AF-KL is about to publish an operating loss of 200 millions euros for FY2008 (around $270M), final results to be known on 3/31.

9 replies: All unread, jump to last
 
User currently offlineIkramerica From United States of America, joined May 2005, 21413 posts, RR: 60
Reply 1, posted (5 years 3 weeks 1 day 6 hours ago) and read 2403 times:

Doesn't seem too bad considering the size of the combined carrier and the economic conditions during that period.


Of all the things to worry about... the Wookie has no pants.
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 2, posted (5 years 3 weeks 20 hours ago) and read 2223 times:

But it will require deep replanning of expansion plans plus redesign of current route network and fleet allocation. In the current scenario, without any changes, the loss will increase exponentially if AF/KL do not take appropriate measures.

Rgs,


User currently offlineMindscape From United States of America, joined Apr 2004, 315 posts, RR: 0
Reply 3, posted (5 years 3 weeks 12 hours ago) and read 2051 times:



Quoting Hardiwv (Reply 2):
But it will require deep replanning of expansion plans plus redesign of current route network and fleet allocation. In the current scenario, without any changes, the loss will increase exponentially if AF/KL do not take appropriate measures.

Like BA, AFKL doe not expect a profit for next FY2009. The 3 first Q of FY2008 were still showing profit, but the loss made on the last quarter (around 645 MEuros from 1/09 to 03/09) wiped out all the profit. Because that huge loss on Q4, analysts are expecting a more aggressive restructuring plan to be announced by May 20th...


User currently offlineAirbazar From United States of America, joined Sep 2003, 7869 posts, RR: 10
Reply 4, posted (5 years 3 weeks 9 hours ago) and read 1976 times:



Quoting Ikramerica (Reply 1):
Doesn't seem too bad considering the size of the combined carrier and the economic conditions during that period.

Until you remember that the operating numbers are typically much better looking than the net numbers.


User currently offlineZRH From Switzerland, joined Nov 1999, 5564 posts, RR: 37
Reply 5, posted (5 years 3 weeks 8 hours ago) and read 1902 times:

I am wondering, why are LH/LX almost the only legacy airlines in Europe which made quite big profit in 2008. What are they doing better than AF/KL or BA?

User currently offlineMindscape From United States of America, joined Apr 2004, 315 posts, RR: 0
Reply 6, posted (5 years 3 weeks 7 hours ago) and read 1873 times:



Quoting ZRH (Reply 5):
I am wondering, why are LH/LX almost the only legacy airlines in Europe which made quite big profit in 2008. What are they doing better than AF/KL or BA?

Keep in mind LH/LX fiscal year correspond to the calendar year, while AFKL and BA fiscal year starts in April and ends in March.
LH/LX were able to show profit for their FY2008 ending Dec 2008. Comparing same period, AFKL was posting profit as well end of December 2008.


User currently offlineAirbazar From United States of America, joined Sep 2003, 7869 posts, RR: 10
Reply 7, posted (5 years 3 weeks 6 hours ago) and read 1829 times:



Quoting ZRH (Reply 5):
I am wondering, why are LH/LX almost the only legacy airlines in Europe which made quite big profit in 2008. What are they doing better than AF/KL or BA?

Because LH is arguably the best run airline in the World. As I posted in another thread LH is still to this day reaping the benefits of a plan implemented in 1992 to save LH from inevitable bankrupcy and possible liquidation. Do a google search on "Programm 93" and you will have your answer.


User currently offlineCityofAthens From , joined Dec 1969, posts, RR:
Reply 8, posted (5 years 3 weeks 6 hours ago) and read 1815 times:



Quoting ZRH (Reply 5):
I am wondering, why are LH/LX almost the only legacy airlines in Europe which made quite big profit in 2008. What are they doing better than AF/KL or BA?

I also wondered this, and in fact the question was printed in our company newsletter a few weeks ago.

According to our company's CFO, LH's impressive figures have more to do with the fact that LH is made up of a number of divisions which have contributed to the overall financial result. If you look at the airline division of the LH group, the figures are not apparently as impressive.

Well, that was the explanation given to BA staff that were also impressed by the LH figures .... how much truth there is in that explanation (as opposed to company propaganda!) is not something I would know.


User currently offlineEghansen From , joined Dec 1969, posts, RR:
Reply 9, posted (5 years 3 weeks 5 hours ago) and read 1781 times:



Quoting CityofAthens (Reply 8):
According to our company's CFO, LH's impressive figures have more to do with the fact that LH is made up of a number of divisions which have contributed to the overall financial result. If you look at the airline division of the LH group, the figures are not apparently as impressive.

The greater Lufthansa has divisions that build and lease out airport terminals, repair aircraft for such airlines as Philippines, cater meals and invest in hotels. They are particularly big in Russia and the old communist bloc.

Quoting Hardiwv (Reply 2):
But it will require deep replanning of expansion plans plus redesign of current route network and fleet allocation. In the current scenario, without any changes, the loss will increase exponentially if AF/KL do not take appropriate measures.

I think that view is a little drastic. Airline economics closely track that of the underlying economies. When Europe is in recession, AF/KL traffic declines. For their losses to mount exponentially, Europe would have to go into a deep depression. That does not seem to be in the cards for now.


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