Brussels Airlines 2008 Financial Results

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In 2008, a year marked by high fuel prices and the first negative impact of the financial crisis as from the last quarter, Brussels Airlines group posted a positive consolidated operating result of 1,5 million euro and limited the consolidated net loss to 12,2 million euro.

A positive operating result of 1,5 million euro was achieved through capacity optimisation and strict budgetary control.

2008 was a crucial year in the history of Brussels Airlines as the foundations for the further development of the airline were created. Indeed, on September 15th the company announced that the Brussels Airlines shareholders concluded an agreement with the Lufthansa group on a new joint future.

This partnership with Lufthansa is essential for Brussels Airlines’ further development as the airline that connects the European capital with the rest of the world as well as for the realisation of future necessary investments.

On top of that, Brussels Airlines was invited in December 2008 to join the world’s largest alliance in air traffic, the Star Alliance. This membership will give Brussels Airlines the opportunity to offer its clients an even broader and better service.

In 2008, the airline built further on the innovative b.flex economy + and b.light economy product strategies that were successfully launched in 2007. In Africa, Brussels Airlines grew thanks to an additional long-haul aircraft, an Airbus 330.

As the first Belgian passengers airline, Brussels Airlines received the international IOSA (IATA Operational Safety Audit) safety certificate, awarded only to airlines permanently working on achieving the highest international safety requirements possible.

Key numbers
The consolidated turnover of Brussels Airlines increased by 7 percent compared to 2007 to a total of 984,6 million euro.

Even though the economic downturn and capacity adjustments resulted in a slight decrease in European passengers, the success of the fleet expansion on the African market was confirmed by an increase in passenger numbers to and from Africa of 15 percent. In total, 4,6 million passengers chose to fly Brussels Airlines on European destinations and 0,46 million passengers chose to fly Brussels Airlines to African destinations. Code share passengers included, the company welcomed 5,456 million passengers.

The Brussels Airlines cargo activities also grew: cargo and mail on flights to Africa increased by 30 percent; from Africa to Europe, 15 percent extra cargo was transported.

The operating result of 1,5 million euro was negatively impacted by the rising fuel prices, not completely offset by the low US Dollar exchange rate nor by fuel surcharges. The negative impact of the financial crisis significantly influenced the Belgian home market as from the last quarter. The implemented capacity reductions on the European network however minimized the impact on the results.

The consolidated net loss of the financial year amounted to 12,2 million euro, due in part to the necessary provisions for the market-to-market consequences of the fuel hedging.

Prospects for 2009
Just like all other airlines, Brussels Airlines is currently being impacted by the recession. In this challenging economic environment, the company is taking the necessary measures to further reduce costs, safeguard its market position and increase revenues. Brussels Airlines and Lufthansa are expecting a decision from the EU Commission before June 2009.

The Brussels Airlines European network will expand this summer with new flights to Vilnius, Palermo and Seville while on the African network a 2nd frequency will be added to and from Angola. During the summer, there will also be an increase of flights to Rwanda and Kenya.

About Brussels Airlines
Brussels Airlines is the Belgian airline that offers the widest choice of flights to and from its base in Brussels Airport. The group’s 3000 employees and 51 aircraft operate some 300 punctual flights daily, connecting the Capital of Europe to some 70 premium European and African airports.

On its European routes, operated with AVRO, Airbus A319 and Boeing 737, Brussels Airlines offers the choice of an ultra-flexible product, which offers timesaving and comfort at reasonable prices: b.flex economy +, and a low fare product: b.light economy. On medium- and long-haul flights, the airline operates traditional business or economy class. Long-haul flights to Africa are operated with Airbus A330-300 aircraft.

In addition to 16 destinations on the African continent, Brussels Airlines and its intercontinental partners also offer long-haul service to the United Arab Emirates, China, Thailand, India, Toronto and 33 North American destinations via New York or Chicago.

Brussels Airlines is owned by SN Airholding and is backed up by more than 80 years of aviation experience in Belgium. On 15 September 2008, Lufthansa Group announced an equity investment in the Belgian airline. On 11th of December 2008, Brussels Airlines received an official invitation to join Star Alliance.

Brussels Airlines press release, 3 April 2009