Swiss aims for breakeven as it outperforms Lufthansa Group partners

Swiss saw the biggest Q1 operating result improvement of all Lufthansa Group carriers and is targeting breakeven this year, as it rides a wave of strong demand after a challenging couple of years. The Zurich-based carrier’s Q1 operating loss improved by more than 75% to SFr47.4m ($48.1m). By contrast, adjusted EBIT losses at Lufthansa Airlines and Brussels Airlines improved by 14% and 11%, respectively, while Austrian Airlines and Eurowings saw their losses worsen by 5% and 14%, respectively. Swiss attributes the results to strong demand for air travel and better cost structures as a result of its restructuring. The airline says it remains committed to achieving a breakeven earnings result for full-year 2022. “The substantial year-on-year improvement that we have achieved in our first-quarter results and our positive cash flow give us confidence, and help us confirm our commitment to posting a ‘black zero’ earnings result for 2022 as a whole,” says Swiss chief financial officer Markus Binkert. The airline generated a positive cash flow of more than SFr200m in the three month period ended 31 March. Swiss’ revenue more than doubled in Q1 to almost SFr712m, although the carrier says its results were “burdened” by rising fuel costs and a temporary weakening of demand when Russia invaded Ukraine in February.<br/>