VUELING AIRLINES REPORTS FIRST QUARTER NET LOSS

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By admin May 6, 2011 08:35

VUELING AIRLINES REPORTS FIRST QUARTER NET LOSS

Vueling Airlines has reported a first-quarter net loss of €23.6 million ($35 million), widened from a €6.3 million deficit in the year-ago period. In common with other airlines posting a Q1 loss this week, fuel costs were blamed for the loss but in the case of Vueling, a “significant” 15% fare reduction owing to the weak domestic Spanish market and increased competition resulting in tactical schedule cuts was also a factor. The airline was forced to reduce capacity by 6% down on last year.

Revenue fell 10% to €126.2 million and pure fare revenue was down 11% to €110.7 million. It also reported a 5% drop in ancillary revenue. Total costs were up 5% to €162.4 million due to a 20% increase in fuel costs to €41.4 million.

Average fare per passenger fell 4% to €53.5. RASK fell 5% to €0.048. CASK ex-fuel increased by 7% to €0.047, while total CASK rose 12% to €0.06.1.

Meanwhile, GECAS has delivered one new Airbus A320 to Vueling Airlines under a lease agreement.

admin
By admin May 6, 2011 08:35
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