Condor reported a strong performance, increasing yields by 12% to offset capacity reductions, increased fuel costs and the negative impact of swine flu.
- Ralf Teckentrup
- Chief Executive Officer,
Airlines Germany
Condor is a strong, profitable stand-alone airline. Through robust capacity and yield management, an outstanding operational performance and consistent efficiency gains, Condor was profitable for a fifth successive year.
Financial highlights1
Key performance indicators
| Change | |
|---|---|
| Capacity†† | -9.8% |
| Yield### | +12.2% |
| Seat load factor††† | -2.3% |
| Sold seats‡‡‡ | Change |
|---|---|
| Thomas Cook tour operators | -16.0% |
| 3rd party tour operators | -9.5% |
| External seat only | -17.3% |
| Total sold seats | -14.4% |
| Sold seats‡‡‡ | Change |
|---|---|
| Europe excl. cities | -11.3% |
| Long haul | -10.4% |
| Cities | -94.9% |
| Total sold seats | -14.4% |
| Revenue* | Year ended 30 September 2009 |
Pro forma year ended 30 September 2008 |
Change |
|---|---|---|---|
| Revenue – external* | £740.8m | £680.7m | +8.8% |
| Revenue – internal* | £320.4m | £297.5m | +7.7% |
| Total Revenue* | £1,061.2m | £978.2m | +8.5% |
- Market conditions have not changed significantly in the German airlines market, but we expect to build on our success in trading in challenging conditions over the past year.
- Focus on cost-saving, especially fuel related efficiencies.
- Drive synergies and other benefits through greater co-ordination of activities with other Thomas Cook Group airlines.
- Enhance
benefits from cooperation with other external
airlines.
- 1The Group statutory results for the financial year ended 30 September 2009 are set out in the Financial Statements section. Current year figures have been compared to the unaudited pro forma figures for the 12 months ended 30 September 2008 (Read Appendix 1 for more detail). See Appendix 2 for key.
Progress against strategy
- Condor reported a strong performance, increasing yields by 12% to offset capacity reductions, increased fuel costs and the negative impact of swine flu.
- On-time performance improved to an impressive 85%, up from 74% in the prior year.
- Further improvements were made to our product and operational performance, whilst we reduced our environmental impact through investment in winglets for our fleet.
- An ongoing efficiency programme delivered benefits from a range of initiatives, including an adjustment to seat-only commission and a reduction in catering costs.
- We maintained our balanced sales split, with 35% of seats sold to our in-house tour operator, 33% to other tour operators and 32% on a seat-only basis.
Financial performance
Our Airlines Germany segment has continued to perform well, increasing profit from operations by £2.0m, to £47.4m, whilst maintaining the overall margin at 4.5%. This result is particularly pleasing as it comes despite the impact of swine flu, which management believe adversely impacted the results by £9.2m, and in a period when other airlines have suffered significantly from the global recession.
Total revenue increased by 8.5%. However, this increase reflects the impact of movements in euro to sterling translation rates. Excluding this, total revenue fell by 4%, reflecting a 14% reduction in passengers carried and a 12% increase in yield. The 12% increase in yield reflects increased income from fuel surcharges to offset the impact of higher fuel costs, together with the full year effect of the elimination of the loss-making city programme. Margin was further protected by a number of initiatives undertaken during the year to create sustainable additional revenue streams and reduce direct costs.
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