In the first half of 2023, Swiss posted one of the strongest results in its history. Sales reached 2.5 billion francs, the operating profit 338 million francs. This makes it clear: the bear market caused by the corona pandemic is over.
At CHF 2.5 billion, Swiss’ sales in the first six months were practically the same as the sales achieved in the last pandemic-free first half of 2019 – but Swiss was able to significantly increase its profit.
The operating profit in the first half of 2023 was over CHF 338 million, almost 40 percent more than in the same period in 2019.
However, the comparison with the figures from last year should be treated with caution – after the total slump due to the pandemic, air traffic only slowly got going again in the first half of 2022. Nevertheless: Compared to the first half of 2022, sales increased by 38 percent, and operating profit even quintupled.
Big demand, high prices
The reason for the good result at Swiss lies in the high demand for air travel with a simultaneous shortage of supply and thus high prices. This increases the margin and thus the profit.
“The biggest challenge for the airlines at the moment is to master the demand,” says SRF business editor Susanne Schmugge. For example, the Swiss is currently only flying at a good 85 percent of the capacity it had before the pandemic.
Lack of staff and aircraft
The problem is the lack of staff. Swiss is in the process of hiring several hundred employees as cabin crew and pilots. But other airlines are also desperately looking for staff.
There is also a shortage of aircraft. That is why Swiss had to borrow machines from Air Baltic, Edelweiss and Helvetic in order to be able to handle all the flights offered.
Despite high prices, the demand for air travel is enormous. Apparently, many people have postponed vacations abroad for a long time because of the pandemic, perhaps put the money aside and are now making up for the trips.
Strong franc makes stays abroad cheaper
The strong Swiss franc also makes holidays abroad attractive: the Swiss currency has recently appreciated, especially against the dollar, but also against the euro. This makes it cheaper for Swiss people to stay abroad.