Vueling has been able to improve its total income per passenger during the third quarter of 2010 by 1% from the same period in 2009 (from 78.24 euros in 2009 to 79.15 euros in 2010). Total revenue increased by 7% from 259.2m euros in the third quarter of 2009 to 276.6m euros in 2010.
Vueling negotiated 3 new aircrafts for 2011 within its program of growth. The Company’s flexibility will allow for growth without increasing its fixed costs. The conditions agreed in the new Collective Agreement will contribute to achieving this growth with low costs.
Vueling will increase its presence in national and international airports, exploring new business opportunities in France and Italy, as well as other new markets with multi-channel distribution.
Travel agent sales grew from 27% in Q3 2009 to 29% on total sales in Q3 2010 (72.1m euros in the third quarter of 2010 compared to 63.5m euros in the same period of 2009).
The EBIT margin on total revenue decreased from 26% to 21% in the third quarter of 2010 compared to the same period in 2009, due to:
– the exfuel costs improvement on total revenue (+3.5%)
– the fuel and dollar impact on total revenue (- 6.6%)
– the RASK adjusted to the sector length decrease (- 2%)
Vueling’s hedging policy helped to reduce the impact of the rise in fuel cost and the dollar appreciation. Fuel CASK increased by 24% from 1.13 Euro cents in the third quarter of 2009 to 1.40 Euro cents in 2010. Fuel price ($/Tm) increased by 15% from 607 $/Tm in the third quarter of 2009 to 700 $/Tm in 2010. The $/€ exchange rate has had a negative impact, from 1.43 $/€ in the third quarter of 2009 to 1.29 $/€ in 2010 (+10%).
Outlook for 2010
– Better cost reduction than expected up to -6%, affected by the dollar the net
effect is the -4%.
– The EBIT expected for the year is in the range of €60m to €70m at current
exchange rates and fuel price
Outlook for 2011 and beyond
– Background: An increase of competition in the short term is expected. The fuel cost will increase approximately by 10%
– Product Improvement:
– Launch of 2011 cost reduction program (more than 100 initiatives)
– Growth plan confirmed
– 3 planes signed until now, others still in negotiation
– Next phase of connections launched
– Interline for long haul connection in Barcelona.