SkyEurope reports a record profit for 4Q07
Tags :
Eastern Europe,
SkyEurope Airlines
(c) Centre for Asia Pacific Aviation: SkyEurope Holding reports record fourth quarter (to 30 September 2007) EBIT profits, strong increase in revenue and significant reductions in costs. The airlines new management continues its focus on restructuring and sustained profitability.
SkyEurope reports a Q4 EBIT profit of EUR14.3 million and EBITDAR for the year of EUR9.6 million, achieving full year EBIT and EBITDAR guidance. Continuing the strong growth, SkyEurope’s revenue increased 22.1%, carrying 1.1 million passengers in 4Q07 (compared to 991,000 in 4Q06), despite operating less aircraft.
“We are pleased with the results especially with how Q4 compares with last year. Our financial performance clearly shows that our new strategy is working. We have focused and will continue to focus on delivering stronger revenues with a better product, utilising our assets better, and significantly improving our cost base while maintaining growth,” says Nick Manoudakis, SkyEurope’s Chief Financial Officer. Mr Manoudakis, who joined SkyEurope in May-07 after a successful career as Finance Director and one of the founding members of easyJet, was tasked with helping the airline reach profitability.
Revenue per available seat kilometre improved by 15.7% in 4Q07 and 11.5% on an annual basis, reflecting better load factors and yields. This improvement is contributed to an overall improved product, featuring higher frequencies to less destinations and more convenient departure times. SkyEurope maintained its on-time performance record and reputation as one of the most punctual airlines in Europe.
Aircraft utilisation also improved by 9.1% during the quarter to 12.25 hours (up from 11.23 hours in 4Q06) in line with the high asset utilisation policy. The continued and constant focus on cost base improvements showed results with unit costs decreasing by 11.0% during the quarter.
In 4Q07, two new on-balance sheet financed B737-700 aircraft were delivered, further reducing the average age of the fleet. SkyEurope now has the youngest fleet in Europe with an average aircraft age of ten months.
After a successful year, in which he has significantly contributed to the positive development of SkyEurope Airlines, leading to profitable results of the airline in 4Q07, Karim Makhlouf, Chief Commercial Officer of SkyEurope Airlines, has decided to leave. Karim Makhlouf’s position with SkyEurope Airlines will end on 31-Dec-07. Mr Makhlouf will be replaced by Steven Greenway who will be appointed as SkyEurope’s new Chief Commercial Officer. Mr Greenway comes to SkyEurope from Virgin Blue in Australia where he has worked as Head of E-Commerce. His strong airline background comes from various commercial positions with aviation related companies such as OAG Worldwide, Virgin Atlantic Airways, PwC Consulting and Qantas Airways.
In addition, Jason Bitter, CEO of SkyEurope Airlines will take over the same function at the parent company SkyEurope Holding AG with effect from 01-Dec-07. Christian Mandl, co-founder of SkyEurope, decided to leave the Management Board to join SkyEurope Holding’s Supervisory Board as a non-executive director subject to shareholder approval.
“The transition of day-to-day management duties is now completed. Financial targets for 2007 have been delivered and the airline is in good shape with a brand new fleet and a quality product. As founder and shareholder of SkyEurope, I will continue to support the Company in non-executive functions”, says Christian Mandl.
Date posted: 03-Dec-07
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SkyEurope reports a record profit for 4Q07 
