NIKIs Press Releases
NIKI posts record results for 2008
NIKI doubled its post-tax profit to EUR 7.1m in 2008, for a return on sales of 3.1%. Passenger volume and revenue were up by about one-quarter on 2007, to 2.1 million (m) and EUR 229m, respectively.
Commenting on this success, in a year when the airline industry first had to grapple with high fuel prices and was then faced with slumping demand from the autumn onwards, Niki Lauda said: “The fact that our growth has been profitable, even in a challenging environment, shows how efficient we have been, and how well we have managed our business. Our service offering is well received. Instead of wasting our time bemoaning the crisis, we are putting our energy into positioning ourselves to come out of it stronger than ever and exploit the market opportunities that are emerging.”
NIKI is pressing ahead with its expansion strategy in 2009. The fleet is being upped by three aircraft, and the airline is aiming for passenger growth of about 30%. This approach is paying off, as NIKI is the only top airline at Vienna International Airport to have bucked the industry trend by growing in the first two months of 2009. The number of passengers carried was up by 40.7% in the January-February period, compared to a 14.3% drop in overall volume at the airport. NIKI’s market share hit a record 9.3% in February 2009.
Niki Lauda commented: “Particularly in tough economic times, when people are looking to make savings wherever they can, as a low cost airline we are the alternative for consumers and corporate customers. The fact that every tenth passenger who comes to Vienna International Airport is boarding one of my planes shows we are working on the right lines.”
Due to the growth in capacity NIKI will create about 150 new jobs, mainly in the flight operations and engineering areas, meaning that the head count will top 500 in 2009. As Niki Lauda noted: “My team can see that you make progress if you work harder than other airlines. This upbeat mood makes a world of difference to the way we put our service philosophy into practice. And satisfied passengers are the only healthy foundation for growth.”
2009 will see a number of new additions to the flight schedules. The frequency of flights on the Vienna-Rome route will double in June, while the new Airbus A321 will boost capacity on the Frankfurt, Moscow and Zurich routes. Another aircraft, stationed in Graz, will serve about 20 destinations on the Iberian peninsula via the Palma hub. And NIKI is stepping up capacity on the tourist routes to Egypt and Turkey. Meanwhile there will be a record-breaking number of flights to NIKI’s longest standing holiday destination, Spain, and 90 connections per week between Austria, and the Balearic Islands and the mainland during the summer.
2008 financial highlights
* Passengers: 2.1m (up 23% yoy)
* Capacity utilisation: 78.1% (2007: 79.8%).
* Revenue: EUR 229m (up 25% yoy)
* Total operating revenues: EUR 243.2m (up 29% yoy)
* Profit before tax: EUR 9.4m (up 124% yoy)
* Profit after tax: EUR 7.1m (up 103% yoy)
* Equity ratio: 9.3% (2007: 6%, i.e. 58% increase)
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