euro adhoc: SkyEurope Holding / quarterly or semiannual financial statement / SkyEurope: Report of the Third Quarter(Q3) of FY 2008 (E)

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SkyEurope: Report of the Third Quarter(Q3) of FY 2008

SkyEurope reports results impacted by sharp rise in fuel costs despite an ex-fuel seat cost reduction in Q3 of 12.9%

• SkyEurope was awarded as the best low-cost airline in Eastern Europe and 3rd best low-cost airline in Europe according to the largest worldwide airline survey performed by SkyTrax;

• Significant cost reductions were realized in H1 2008 furthered in Q3 with a unit cost per seat reduction ex-fuel of 12.9% (down 18.5% on a YTD basis);

• These cost savings were offset by record fuel prices. Fuel costs nearly doubled from EUR 15.4 million to EUR 26.3 million year over year in the same quarter;

• Reduction in overhead costs continue as administrative expenses decreased by 20.6%(cost per seat reduced by 28.1%) and head count decreased from 841 to 714 despite continued growth;

• SkyEurope continues to grow, year to date passenger and revenue increases of 19.9% and 14.4% respectively;

• Increase in average yield of 1.7% in Q3 2008 and 3.8% on a YTD basis as a result of new pricing policies implemented to increase the average fares;

• Ancillary revenue increased by 81.2% in Q3 as a range of new ancillary revenue products have been introduced to our portfolio;

• SkyEurope announced real-time connectivity to another important GDS channel - Sabre obtaining better access to the corporate travel and travel agent markets, which will help achieve higher yields;

• Capacity will be reduced during the upcoming winter months to minimise seasonal risk due to high fuel prices;

• Delivery of 15th brand new aircraft in April 2008. The average age of our aircraft fleet is 18 months, the youngest in Europe;

• Lower than expected cash balance was due to delays in the settlement of credit card sales. SkyEurope has been working closely with its credit card acquirer to resolve this issue to substantially improve the airline´s liquidity.

SkyEurope´s full financial results are available on the investor relations section of the SkyEurope website,

Further inquiry note:
SkyEurope Holding AG

Nick Manoudakis, CFO

Tel.:+421 915 782 432

end of announcement euro adhoc

emitter: SkyEurope Holding
Wipplingerstraße 24-26
A-1010 Wien
phone: +421 2 4850 0
sector: Air Transport
ISIN: AT0000497003
indexes: WBI
stockmarkets: official market: Wiener Börse AG
language: English