Condor increases profit, passenger numbers and utilization

posted on 27th November 2019 by Eddie Saunders
Condor increases profit, passenger numbers and utilization

Thanks to disciplined cost management, adjusted operating profit (EBIT) increased by 32.4 percent year-on-year to EUR 56.9 million. The number of passengers carried increased by 4.5 per cent to 9.4 million (+6.9 per cent). Despite the long summer of 2019, Condor posted stable revenue and a stable seat load factor of around 90 percent, increasing its revenue by six percent to 1.6 billion euros.

Ralf Teckentrup, CEO of Condor Flugdienst GmbH, was highly satisfied with this result: “We are an operationally sound and profitable company. Our key figures and the further increase in profits underscore that. Condor is thus further expanding its market leadership in the tourism holiday business.”

Bookings above expectations

Ralf Teckentrup continues: “This is also a clear vote of confidence from the tour operators, the travel agencies and our end customers.”

The dropped passenger share of the German Thomas Cook customers of approximately 15 percent is offset by the good demand,

Meanwhile, Condor was able to expand the range of routes with the new summer destinations on the short- and medium-haul routes, such as Paphos (Greece), Tivat (Montenegro) and Toulon (France). Other destinations and destinations are currently under review.

One of the most punctual airlines in Europe

Condor is one of the most punctual airlines in Europe. Punctuality was increased after the difficult summer of 2018 with numerous measures agreed at the aviation summit in Hamburg. In the financial year 2018/19, around 80 percent of all Condor flights departed on time. The relevant share of longer delays has been reduced to a historic low.

Tight cost management

Condor’s profitable development is also based on a continuous focus on tight cost and earnings management. Overall, measures-based earnings improvements of around EUR 54 million were achieved on the basis of the 2016/17 financial year. The basis was a reduction of Condor’s own stations from twelve to eight as well as a variety of measures to increase operational efficiency. These include, for example, improved maintenance through improved material supply and purchasing processes, optimized planning and production processes through further standardization and measures to optimize technical reliability. In addition, revenue per passenger increased by 18 percent.

Outlook

Ralf Teckentrup continues: “I am confident that we will be operationally and economically stable after the anticipated conclusion of the protective screen procedure in the spring of 2020, so that we can further consolidate our position as the most popular holiday flier in Germany. Around 5,000 Condorians are grateful for the trust and great encouragement we have received from all sides. The Condor team is highly motivated to take the other important steps to secure our future together. We thank all our customers, sales and business partners and all those involved that they always believe in us and support us even in difficult times.”

photo credit: Juergen Lehle http://albspotter.eu