Brussels Airlines ends the year on a higher note

Brussels Airlines ends the year on a higher note



  eTN Article:

Nor increased competition nor the fear attack on Brussels Airport as well as the subsequent shift of operations to airports in Belgium, Germany, plus Switzerland could stop Brussels Air carriers from ending the financial 12 months 2016 with a profit, albeit less than in 2015.

Crucial data availed show an impressive functionality:

•   Functional profit of 20. 4 mil and net profit of fifteen million, despite very difficult year
•   1 . 271 billion dollars euro revenue and 3. 2% passenger growth
•   2 . 5 million euro income redistribution to personnel (included within the result)
•   Tactical investments in line with plans

Brussels Airlines’ financial results were mainly influenced by the attacks that strike Brussels last year. Before March twenty two, Brussels Airlines was heading for a list year and was registering solid growth. Following the attacks, and the 12-day closure of Brussels Airport, nevertheless , there was a sharp decrease in the number of travellers – especially with regards to incoming company traffic (to Belgium). Yet, because of several commercial initiatives, Brussels Air carriers managed to close the year with a traveler growth of 3. 2% – a total of 7. 7 mil passengers took a Brussels Air carriers flight. The seat load factor had been just under 75% and the transported packages volume grew by 6%.

The direct financial influence of the attacks amounted to a lot more than 100 million euro. Only a part thereof could be offset through settlements already granted by the insurance companies or even estimated to be granted in the future.

Despite this major financial problem, Brussels Airlines continued with its prepared investments. The intercontinental network extended thanks to the successful launch of Toronto and the announcement of a Mumbai provider for 2017, the European chair offer grew by 3 %, and the fleet renewal program had been further implemented. The planned purchases for passenger comfort, including the intro of the new long-haul travel course Economy Privilege, was launched.

“ Although it seemed logical to examine our aspirations after the attacks, we now have nevertheless chosen to continue our opportunities without exception, because we understood we had created a strong base intended for Brussels Airlines over the years. ”

– Bernard Gustin, CEO Brussels Airlines

While revenues remained steady due to the challenging conditions (1. several billion euro), Brussels Airlines published an operational profit of twenty. 4 million and a net revenue of 15 million euro. As a result of these results both the company’ h cash position and its equity have got improved.

“ With no attacks, 2016 would have been a record calendar year for Brussels Airlines. Yet, regardless of the difficult context of the attacks as well as the incredibly competitive market environment, that has put great pressure on solution prices, we realized a positive outcome. I’ m very grateful to the employees for what we have attained both operationally and commercially within 2016, especially after March twenty two. Therefore , the Board of Company directors has decided to redistribute 2 . five million euro to the staff. ”

– Bernard Gustin, CEO Brussels Airlines

2016 was also the entire year in which the success of Brussels Airlines’ hybrid business model was confirmed. This allows passengers to choose from a large system of both business and enjoyment destinations on the one hand and travel items that appeal to both price-sensitive clients and clients for whom extra services are important on the other.

“ By offering personalized products to anticipate the quickly changing market environment and by producing both our leisure and our own business offer even more relevant for the customer, we have laid the fundamentals for the further sustainable development of Brussels Airlines. ”

– Bernard Gustin, CEO Brussels Airlines

Within 2017, Brussels Airlines will keep on this strategy. The first two months of the brand new year have already showed passenger development. Yet it is clear that extra efforts are still necessary in order to more stimulate the incoming market (businessmen and tourists who travel to Belgium).

In late March, Indian will be added to the network and spring, the European network grows with four new destinations and lots of frequency increases. In the fall associated with 2017, the renewal and harmonization of the European aircraft fleet may reach a milestone, when the final AVRO RJ100 leaves the Brussels Airlines fleet. Together with the Lufthansa Team, which has fully owned the Belgian airline since the beginning of this calendar year, Brussels Airlines is currently working on an organized plan for the future ensuring growth and additional increase of the competitiveness of Brussels Airlines.

Finally, Brussels Airlines will in 2017 more optimize the quality of its services, more invest in digital and further improve the profitability and market position via revenue-enhancing and cost-cutting initiatives.

“ Our challenge is to improve our customer service even more, whilst speeding up our cost reduction plan. This is the best way to differentiate yourself from low-cost competition, while making sure adequate profitability in an environment exactly where prices are falling. ”

– Jan Sobre Raeymaeker, CFO Brussels Airlines

 

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