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Vueling reports after-tax profit of ?8.5m in 2008

25th February 2009 - 14:39 GMT | by The Shephard News Team

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Vueling Airlines has recorded an after-tax profit of €8.5 million, with an operating loss of €30.8m and a –7.0% margin (before financial revenues, restructuring costs, and taxes), 12.8 percentage points above 2007. EBITDAR went from –€5.9m in 2007 to €31.2m in 2008.

Vueling increased revenues by 21%, to €438.9 million, bolstered by a 27.9% increase in the average revenue per passenger and a 22.9% increase in revenue per flight. Pure ancillary revenue increased by 66.9% and already makes up 14.2% of the company’s revenues.

The airline’s cost-base – excluding fuel – was reduced by 7.8%, which helped to absorb the fuel-price hike. With fuel though, the total cost-base increased by 2.6%, to 5.91 eurocents per available seat-kilometre (ASK).

Vueling says its prospects for Q1 2009 are very positive, in both revenue and cost lines. The carrier expects that, in comparison to Q1 2008, revenue per flight will increase by 10%-15%; fuel costs will be approximately 40% lower. Vueling has hedged 48% of its fuel needs for Q1. This means that the equivalent cost of a barrel would be around $50.

The company therefore expects for the combination of higher revenues and lower costs to significantly improve its Q1 margin with regards to the same period last year.

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