Vueling reports €3.6m profit for 2Q11

Vueling has announced a net profit of €3.6 million in the second quarter of 2011 (2Q11) despite another sharp increase in the price of fuel (+51% compared with the same period of last year).

The airline’s EBIT was also positive, totalling €4.2 million, an EBIT margin of 2%.

The company recorded 16% passenger growth compared with the same quarter last year, carrying 3.3 million passengers. The load factor improved by 1.3 percentage points compared with 2Q10. Aiding this increase were the new international bases in Toulouse and Amsterdam and also operations at Madrid Airport which allow Vueling to feed Iberia’s long-haul flights and also to increase its point-to-point route offering.

Vueling’s revenue of €229.8 million in 2Q11 was 9% up on last year in the period from April to June, the result of an increase in the company’s activity (+11% ASKs) and a fall in unit revenue per available seat kilometre (–2%). This fall is due to new route development and the overcapacity that some Vueling routes are suffering. During the last month of the quarter (June) this trend changed and there was an increase in unit revenue.

Total costs increased by 19% compared with the same period of last year. The main increase was in the cost of fuel, which rose by 30%. Other costs rose by 11%, in line with the increase in the company’s activity (i.e. ASKs).

The unit cost per available seat kilometre excluding fuel (CASK ex-fuel) stood at 4.08 eurocents, 0.4% up on the same period of last year. The positive performance of ex-fuel costs was supported by the successful implementation of the cost reduction programme, which led to savings of approximately €4 million over the quarter.

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