Luxair has recorded losses in 2012
The group accuses a loss of 10.5 million euros in 2012 against a gain of 3.6 million in 2011, due to a difficult environment and increased competition.
The difficult economic environment had a negative impact on the trade and the freight operations of LuxairCARGO. At the same time unstable political situation in North Africa and uninviting situation in Southern Europe penalized LuxairTours. In addition the increased competition in Findel airport harmed Luxair Luxembourg Airlines. All these factors together have caused a negative balance for Luxair Group.
If we add to this cocktail 43% of the shares held by Luxair Group in Cargolux, which has seen its losses double in 2012 (35 million) and its other subsidiaries, the group recorded a total loss of 21.2 million euros in 2012 against a profit of 1.4 million euros in 2011.
The group has cumulated difficulties in 2012. During the year the airline group met a dramatically increased competition on the destinations such as Munich, Geneva, Hamburg and via the hubs of its rivals. The increase of fuel prices became another negative factor. Luxair has certainly experienced a 7% increase in the number of passengers, but the analysis of the type of the sold tickets shows that its business model suffers. While low-cost airlines have invested Findel airport Luxair has consistently recorded higher sales of its Primo cheapest tickets, which now represent 38% of all tickets sold. This increase go with decline in the sale of more expensive but more flexible Ecoflex and Business classes tickets whose share has been halved since 2007. The traveler 2012 preferred the low cost to the flexibility.
Source: le Quotidien