Brussels Airlines announces significant improvement of financial results
As predicted by Brussels Airlines’ management, 2013 has proven to be a key year in the history of the company. Beyond 2012-2013, the performance improvement plan that was initiated in 2012, has led to a decrease of 15% of the overall cost structure and a considerable productivity increase. In addition, further investments were made for the harmonization of the fleet and for an upgrade of the airport- and in-flight product quality. Moreover, the commercial strategy was reinforced by the addition of an extra long-haul aircraft and the launch of several product formulas and partnerships. Nevertheless, the economic conditions were very challenging due to weak economic growth, high fuel prices and increased competition in Europe and Africa.
Brussels Airlines closes 2013 with a passenger growth of two percent, an improvement of the seat load factor by 2.6% and a 4,000 tonne increase in cargo volume. This has led to a record revenue of 1.138 billion euro (+2.2%). The net result also improved notably. While the net loss amounted to 59.9 million in 2012, it was reduced to -21.95 million last year. Furthermore, the balance sheet structure of the company was reinforced by a reduction of the debt and an equity investment.
“Thanks to the great efforts made by our staff and partners, for which we are very thankful, we have clearly laid the foundations for a more efficient, more flexible and more competitive airline. Our cost structure is significantly lower and our product offer is better tailored to market demand. The first results of 2014, which show a passenger increase of more than 11% in both January and February, are a clear indication of a more performant Brussels Airlines that we are developing thanks to an ambitious investment program.”
-- Bernard Gustin, CEO of Brussels Airlines
The investment program currently being implemented includes growth and further harmonization of the fleet, the opening of 11 new European destinations, the launch of a new website, the introduction of new product formulas and the renovation of the Brussels Airport lounges. Along with the efforts of the plan Beyond 2012-2013, this should lead to a further improvement in operating results in 2014.