SWISS International Air Lines, the flag carrier of Switzerland, has reported an operating loss of 398 million Swiss francs for the first six months of 2021. The company has been battling to recover from the economic losses it faced in 2020.
With more than one year of COVID-19 travel restrictions, entry bans, distancing regulations, and tough testing requirements, the airline industry, and transport sector as a whole has suffered greatly. Though many cities are beginning to slowly return to normal, with restaurants, shops, and landmarks allowed to reopen, international travel remains as one key area that may not return to its former capacity for quite some time yet.
Even with their best efforts, SWISS have been unable to prevent large losses during the pandemic, in large part due to the fact that there are still many travel bans in place across the globe.
In areas where there are no travel bans, many tourists are still unwilling to book a trip, simply due to the uncertainty of whether or not new restrictions will be put into place, and result in them losing money. This further exacerbates the negative impact of the pandemic on the transport industry.
The company remains optimistic though, adding that “strict cost and cash management combined with consistent network and capacity control helped keep the loss within a reasonable bound”.
The company has stated that there will be around 550 job losses by the end of the year as part of a transformative restructure, aimed at “regaining the trust of investors”. SWISS also added that it will only use half of the 1,5 billion Swiss francs credit package that it has been allocated by the government in order to help the company battle the financial aftermath of the pandemic.
The firm, which is a subsidiary of Lufthansa, the largest airline in Germany, hopes that as travel restrictions lift, more people will head to the airport for a chance to get away. So far, the figures for SWISS’ second financial quarter have given reasons for cautious optimism, having shown a gradual upturn in business for the firm.