SkyEurope financial losses mount

SkyEurope is increasingly finding itself faced with turbulent times as the Bratislava-based low cost carrier sees its losses nearly triple during the second fiscal quarter. The carrier indicated that it generated a loss of approximately €16.8 million during the second quarter alone. When compared to the far more modest loss of €5.1 million during 2007, it becomes apparent that SkyEurope has major challenges to address.

The carrier, which has its main hub at Bratislava’s airport but also operates headquarters in neighbouring Austria, informed journalists that it has little choice but to raise airfares and to cut routes and frequency. The discount airline already started scaling back its operations in some parts of Central Europe last year, when it pulled out of Budapest’s Ferihegy Airport. SkyEurope’s management has now pledged to continue a policy aimed at “eliminating poor performing routes.”

Another factor behind SkyEurope’s challenges is that it faces stiff competition from Hungarian discount carrier Wizz Air, which has expanded very aggressively in the region over the course of the past year. As such, Wizz Air has now essentially overtaken SkyEurope as East/Central Europe’s largest home grown low cost carrier.

Thank you to M&C Business for the initial report.

www.skyeurope.com