By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Starr FmStarr FmStarr Fm
  • Home
  • Election Hub
  • General
    GeneralShow More
    GTDC boss outlines commercial vision for tourism development
    July 12, 2025
    I don’t lobby for positions – Prof. Kobby Mensah
    July 12, 2025
    Mahama appoints based on competence – Prof. Kobby Mensah
    July 12, 2025
    Politics is not a business venture – GTDC CEO schools party financiers
    July 12, 2025
    Back parties for values, not favours – GTDC CEO advises young voters
    July 12, 2025
  • Business
    BusinessShow More
    Mayekoo doubles donations to African causes with new matching fund campaign 
    July 10, 2025
    Government inaugurates new NIB board, announces plan to recapitalise bank
    July 9, 2025
    Ghana’s gold now powers cedi stability – President Mahama
    July 8, 2025
    VRA sets the benchmark in African public procurement
    July 8, 2025
    IMF Executive Board approves $370 million disbursement for Ghana
    July 7, 2025
  • Politics
    PoliticsShow More
    I don’t lobby for positions – Prof. Kobby Mensah
    July 12, 2025
    Mahama appoints based on competence – Prof. Kobby Mensah
    July 12, 2025
    Politics is not a business venture – GTDC CEO schools party financiers
    July 12, 2025
    Back parties for values, not favours – GTDC CEO advises young voters
    July 12, 2025
    Young leaders must do better with state institutions – Prof. Kobby Mensah cautions
    July 12, 2025
  • Entertainment
    EntertainmentShow More
    GTDC CEO slams former leaders over mismanagement and lack of innovation
    July 12, 2025
    Sim Majorley: Korea, Ghana to share cultures through stage production
    July 11, 2025
    I took a pause to gather strength- Kwesi Slay
    July 8, 2025
    Kinaata questions TGMA credibility over ‘Record of the Year’ snub
    July 7, 2025
    Ghana grows movie premiere ignites new thinking among youth in Ashaiman
    July 7, 2025
  • Sports
    SportsShow More
    Tottenham secure Mohammed Kudus in high-profile transfer deal
    July 10, 2025
    Ghana, Nigeria share spoils in thrilling opener of 2025 WAFU U20 Boys Cup
    July 10, 2025
    Otumfuo rallies mining sector to support revamp of Ashanti sports facilities
    July 10, 2025
    Liverpool’s Ambitious Summer: Chairman Predicts Big Moves as Champions Build a Stronger Squad
    July 10, 2025
    Kofi Adams undertakes inspection of Baba Yara Stadium
    July 9, 2025
  • Technology
    TechnologyShow More
    Samsung Galaxy Z Flip7: A pocket-sized AI powerhouse with a new edge-to-edge flexwindow
    July 10, 2025
    Real Quantum Dot Technology in Samsung QLED TVs
    June 29, 2025
    GCAA and South Korea sign deal to advance Ghana’s Drone sector
    June 25, 2025
    Onafriq, PAPSS partner to launch cross-border payment services in Ghana 
    June 20, 2025
    Yellow Card, Visa partner to accelerate stablecoin adoption across emerging economies
    June 19, 2025
  • International
    InternationalShow More
    47th AU Forum: Ablakwa criticizes $1.2m AfCFTA allocation as ‘highly insufficient’
    July 10, 2025
    Minority demands audit over $1.2m passport relaunch cost and delays
    July 9, 2025
    Minority demands compensation for citizens stranded by US embassy closure
    July 9, 2025
    Foreign Minister Okudzeto Ablakwa and Chinese Ambassador Tong Defa sign $30 million grant agreement for Aflao market
    Ghana secures $30 million Chinese grant for Aflao market project
    July 9, 2025
    The end of USAID is not catastrophic for Africa – Dr. Brian Reuben
    July 8, 2025
  • Factometer
Search
© 2024 EIB Network Ltd. All Rights Reserved.
Reading: Brussels Airlines closes challenging 2016 with a profit
Share
Notification Show More
Font ResizerAa
Starr FmStarr Fm
Font ResizerAa
  • Headlines
  • Election Hub
  • General
  • Politics
  • Sports
  • Business
  • Entertainment
  • Factometer
Search
  • Headlines
  • Election Hub
  • General
  • Politics
  • Sports
  • Business
  • Entertainment
  • Factometer
Have an existing account? Sign In
Follow US
© 2024 EIB Network Ltd. All Rights Reserved.
Business

Brussels Airlines closes challenging 2016 with a profit

Starrfm.com.gh By Starrfm.com.gh Published March 16, 2017
Share
SHARE

Despite the terrorist attacks of 22 March and a very strong low cost competition, Brussels Airlines has succeeded in closing 2016 with a profit. The Belgian airline registered a passenger growth of more than 3% and was able to reach a net profit of 15 million euro, after a deduction of 2.5 million euro which the airline will redistribute to its personnel in recognition of the tremendous efforts made after 22 March.

Brussels Airlines’ financial results were largely influenced by the attacks that hit Brussels last year. Before 22 March, Brussels Airlines was heading for a record year and was registering strong growth. Following the attacks, and the 12-day closure of Brussels Airport, however, there was a sharp decrease in the number of passengers – especially with regards to incoming business traffic (to Belgium). Yet, thanks to several commercial initiatives, Brussels Airlines managed to close the year with a passenger growth of 3.2% – a total of 7.7 million passengers took a Brussels Airlines flight. The seat load factor was just under 75% and the transported cargo volume grew by 6%.

The direct financial impact of the attacks amounted to more than 100 million euro. Only a portion thereof could be offset through compensations already granted by the insurance companies or estimated to be granted in the future.

Despite this major financial setback, Brussels Airlines continued with its planned investments. The intercontinental network expanded thanks to the successful launch of Toronto and the announcement of a Mumbai service for 2017, the European seat offer grew by 3 percent and the fleet renewal programme was further implemented. The planned investments for passenger comfort, including the introduction of the new long-haul travel class Economy Privilege, was launched.

“Although it seemed logical to review our aspirations after the attacks, we have nevertheless chosen to continue our investments without exception, because we knew we had created a strong base for Brussels Airlines over the years.”

— Bernard Gustin, CEO Brussels Airlines.

Success of the hybrid business model

While revenues remained stable due to the challenging conditions (1.3 billion euro), Brussels Airlines posted an operational profit of 20.4 million and a net profit of 15 million euro. As a consequence of these results both the company’s cash position and its equity have improved.

“Without the attacks, 2016 would have been a record year for Brussels Airlines. Yet, despite the difficult context of the attacks and the incredibly competitive market environment, which has put great pressure on ticket prices, we realised a positive result. I’m very grateful to our employees for what we have achieved both operationally and commercially in 2016, especially after March 22nd. Therefore, the Board of Directors has decided to redistribute 2.5 million euro to the staff.”

— Bernard Gustin, CEO Brussels Airlines

2016 was also the year in which the success of Brussels Airlines’ hybrid business model was confirmed. It allows passengers to choose from a large network of both business and leisure destinations on the one hand and travel products that appeal to both price-sensitive customers and clients for whom additional services are important on the other.

“By offering customized products to anticipate the rapidly changing market environment and by making both our leisure and our business offer even more relevant for our customer, we have laid the foundations for the further sustainable development of Brussels Airlines.”

— Bernard Gustin, CEO Brussels Airlines

2017

In 2017 Brussels Airlines will continue this strategy. The first two months of the new year have already showed passenger growth. Yet it is clear that additional efforts are still necessary in order to further stimulate the incoming market (businessmen and tourists who travel to Belgium).

In late March, India will be added to the network and in spring, the European network expands with four new destinations and numerous frequency increases. In the fall of 2017, the renewal and harmonization of the European aircraft fleet will reach a milestone, when the last AVRO RJ100 leaves the Brussels Airlines fleet.

Together with the Lufthansa Group, which has fully owned the Belgian airline since the beginning of this year, Brussels Airlines is currently working on a strategic plan for the future ensuring growth and further increase of the competitiveness of Brussels Airlines.

Finally, Brussels Airlines will in 2017 further optimise the quality of its services, further invest in digital and further improve its profitability and market position through revenue-enhancing and cost-cutting initiatives.

“Our challenge will be to improve our customer service even more, while speeding up our cost reduction programme. This is the best way to differentiate ourselves from low-cost competition, while ensuring adequate profitability in an environment where prices are falling.”

— Jan De Raeymaeker, CFO Brussels Airlines

You Might Also Like

Mayekoo doubles donations to African causes with new matching fund campaign 

Government inaugurates new NIB board, announces plan to recapitalise bank

Ghana’s gold now powers cedi stability – President Mahama

VRA sets the benchmark in African public procurement

IMF Executive Board approves $370 million disbursement for Ghana

TAGGED:brussels
Share This Article
Facebook Twitter Email Print
Share
Previous Article MTN FA Cup kick starts March 22
Next Article CAF Elections: Nyantakyi joins FIFA Council

Starr 103.5FM

Starr FmStarr Fm
Follow US
© 2024 EIB Network Ltd. All Rights Reserved.
newsletter icon
Join Us!

Subscribe to our newsletter and never miss our latest in news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.
adbanner
AdBlock Detected
Our site is an advertising supported site. Please whitelist to support our site.
Okay, I'll Whitelist
Welcome Back!

Sign in to your account

Lost your password?