Vueling Says Bookings Steady For Q3
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Spanish low-cost airline Vueling made a net loss but an underlying operating profit in the first half of the year, it reported Thursday, and said the third quarter was looking good thanks to steady bookings and savings from its merger with Iberia unit Clickair.
Iberia will own 45.85 percent of the company, Spain's second largest, which will continue to be known as Vueling and fly a 35-plane fleet of Airbus aircraft.
"Prospects for Q3 are positive, as bookings are evolving cautiously well," Vueling said in a statement.
The Barcelona-based firm reported first-half earnings before interest and tax of EUR3.7 million euros (USD$5.25 million), which compared with a loss of EUR43.5 million in the same period of last year as it cut unprofitable routes to reduce costs and boost revenue per flight.
However the EBIT result excluded EUR10 million of restructuring costs, meaning it made a net loss of EUR3.3 million, while revenue fell 9.8 percent to EUR180 million.
Posting its last full-quarter results as an independent airline, the budget carrier said it would make a pre-tax profit this year.
"While possible increases in fuel prices remain a source of concern, the company expects to post a pre-tax profit for the full-year period, even after restructuring costs are factored in," the company said.
A spokesman for the firm later confirmed it stood by a previous forecast of also making a profit after tax in 2009.
Vueling is one of Europe's first airlines to report H1 figures and also one of the sector's best performers this year, its stock climbing 167 percent in the year to date.
The airline met a pledge made in April to increase revenue per plane by posting a 5.3 percent rise, and also cut total costs thanks to cheaper fuel. However the non-fuel bill rose 5 percent in Q1 as its fleet cuts reduced economies of scale.