Central European budget carrier SkyEurope Airlines has sold one of its winter aircraft delivery slots and deferred another five in a bid to rein in losses and bring its development under control.
SkyEurope’s first-quarter operating losses increased more than 20% to €14.8 million ($22.5 million). Although revenue for the three months to 31 December 2007 rose by one-third, fuel costs soared by 40% and overall costs were up by 30%.
The airline continues its efforts to bring its finances into line. It ordered up to 32 Boeing 737-700s in 2005 but last December opted to trim this expansion to 30. Under a revised agreement with Boeing, disclosed today, the airline has cut another two aircraft and extended the period over which it will take deliveries.
SkyEurope ordered 16 737-700s in 2005 and placed options on 16 more. Ten of those options were subsequently firmed. Fourteen aircraft have been delivered but in December the airline said it had sold two of the new jets in its backlog.
Its latest agreement shows that it has reduced its outstanding firm aircraft to nine, by selling a winter delivery slot, and cutting the number of purchase rights to five.
SkyEurope adds that it has deferred deliveries of five aircraft, stating: “We have recently concluded a revised delivery schedule with Boeing to provide a more profitable future capacity growth in line with management’s new strategy.”
Before the revision SkyEurope had expected to take 30 aircraft by 2011. The adjustments and the new delivery schedule will give the airline up to 28 aircraft by 2012.
Source: flightglobal.com's sister premium news site Air Transport Intelligence news
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Source: FlightGlobal.com
