Positive third quarter for Brussels Airlines thanks to strong summer demand

Positive third quarter for Brussels Airlines thanks to strong summer demand

Thanks to a summer with high leisure demand and a competitive cost structure resulting from its restructuring program, Brussels Airlines reports an Adjusted EBIT of EUR 1 million in the third quarter of the year (previous year: EUR – 51 million). For the first nine months of the year, the airline reports a 12% revenue increase year on year and an operating expense decrease of 10%. The Adjusted EBIT in the January-September period improved by 39% to -142 million, a result that is still heavily impacted by the Covid-19 pandemic.

 

Brussels Airlines' revenue in the first nine months of the reporting year rose by 12% year on year to EUR 380m (previous year: EUR 339m), while operating income was 7% higher than last year at EUR 402m (previous year: EUR 374m).

Operating expenses decreased by 10% to EUR 544 million (previous year: EUR 607 million) due to lower personnel expenses and expenses for external technical services as well as further effects of its successful restructuring program Reboot Plus.

Adjusted EBIT in the first nine months was EUR -142 million (previous year: EUR -233 million); EBIT in the reporting period was also EUR -142 million (previous year: EUR -256 million), with the previous year's figure burdened by impairment losses on aircraft and rights of use for aircraft amounting to EUR 31 million.

Brussels Airlines closed the third quarter with an Adjusted EBIT of EUR 1 million, compared to EUR -51 million in the same period last year. In June 2021, Brussels Airlines restarted its hub structure and significantly increased its offer during the summer months in response to the increased market demand. The summer peak, which traditionally ends beginning of September, lasted much longer this year due to a catchup effect.

 

“We see that due to the pandemic, many people who had not been able to travel due to lockdowns were eager to travel in the summer, but also in September, outside of traditional holiday periods, which led to a prolonged summer peak for us. This high demand, together with the competitive cost position resulting from our restructuring in the Reboot Plus program, have led to a positive result in the third quarter.”
– Nina Öwerdieck, Chief Financial Officer of Brussels Airlines

 

Within its Reboot Plus transformation program, Brussels Airlines has almost completed the restructuring phase which reduces the fleet size by 30% and the workforce by 25%. Among other additional measures in this program, new collective labor agreements have been in force since January 2021 for all employee groups, generating a competitive cost structure at the level of the personnel costs. Brussels Airlines in the meantime has started the second phase of Reboot Plus, which is the improvement phase, in order to create a sustainable and profitable future for the company. This phase includes investments in people, in tools to improve process efficiency and in the renewal of its fleet. In that respect 3 A320 Neo will join Brussels Airlines’ fleet by summer 2023. These state-of-the-art aircraft, with significantly lower CO2 and noise emissions, will replace three older A319 aircraft. Modernizing the fleet is crucial for Brussels Airlines in order to reach its ​ target of carbon neutrality by 2050.

 

Story image

 

About Brussels Airlines

Brussels Airlines is the home carrier of Belgium and one of the four network airlines of the Lufthansa Group. It connects the European capital from Brussels Airport with over 85 destinations, 17 of which are in Sub Saharan Africa. The company employs 3,100 people and operates 41 aircraft.

Brussels Airlines aims to emit 50% less CO2 by 2030 compared to 2019 and plans to be carbon neutral by 2050. The airline is participating in the Stargate Project led by Brussels Airport and is therefore part of the testing ground for sustainable aviation at its home base. In addition, the airline signed the Circular Economy agreement of the Antwerp Management School in 2021. In 2023, Brussels Airlines welcomes three state-of-the-art Airbus A320neo allowing the airline to significantly lower its CO2- and noise-emissions on its medium-haul network. Next to that, the airline aims to operate its first flight using Sustainable Aviation fuel (SAF) by 2023.

As an ambassador of its country, Brussels Airlines brings the world to Belgium and the best of Belgium to the world, among others through collaborations with Belgian Star Chefs, Belgian culinary products and the  Belgian Icons, specially painted aircraft that honor a Belgian iconic person, team or event to promote Belgian culture worldwide.

More information on brusselsairlines.com 

Brussels Airlines
b.house
Zone General Aviation - Airport Building 26
1831 Diegem