Two Belgian financial newspapers, L’Echo and De Tijd, have reported that Brussels Airlines must lessen its costs by 8 to 12% in order to achieve satisfactory profitability for their services. This follows a report from last year as the airline recorded a rather low profit margin. Out of the 154 seat average of a Brussels Airlines flight, only one makes a profit; 27 are unsold and the other seats just cover costs.
The thought to implement a turnaround programme is mentioned in an internal communication with in the company of which the newspapers managed to get a copy: “8% is the margin we need to be able to fund our current and planned investments (fleet renewal, seats, network expansion, people development, etc.).”
The leaked document reflected on a turnaround programme called “Reboot”. Through the same document, Brussels Airlines clearly explains to its staff the extent of the challenge ahead. Except for one seat per plane on average, revenues from the remaining seats are fully used to cover all costs.
However, the document does not go ahead to mention any examples of palpable savings that could be implemented to administer the challenge at hand, although the company calls on all staff to suggest ideas that could be turned into projects.
With an EBIT (earnings before interest and taxes) target of 8% in 2022, CEO Christina Foerster is very ambitious. The average EBIT margin in the European aviation sector is 6%, although other network airlines of the Lufthansa Group (Lufthansa, SWISS) are well above that target and Aer Lingus managed to achieve a record 15% EBIT by completely transforming their business and brand in recent years.
About Guide2Uganda
Guide2Uganda (www.guide2uganda.ug) is the most comprehensive source of information about Uganda that exists on the web, with more content on Uganda and surrounding towns, attractions, museums and galleries than any other online guide that currently exists for Uganda as well as being a dynamic news and comprehensive events driven site with content being added daily.
According to WeFollow & Peer Index (whom both measure online influence) we are among the most influential online media organizations in Uganda. We were also awarded for ‘’Best Destination Website in Uganda’’ by Jumia Travel Uganda in the 2017-2018 Africa Travel Awards. If you are planning a visit to Uganda you can always reach us on; info@guide2uganda.ug
