MIAMI – SWISS International Air Lines (LX) will temporarily remove 28 Airbus A320 family aircraft from service as a cost-saving measure effective this Winter season.
As these jets are older, LX decided to operated “more efficient” Airbus A220s, A320neos and A321neos aircraft instead across its short and medium-haul networks. In September, LX took delivery of its first Airbus A321neo jet to play its part in what is or will be a more environmentally-friendly industry.
Implications from Q3 Operating Results
Apart from its fleet strategy, LX also seeks to reduce costs in other areas after it recorded an operating loss of CHF148m in Q3 2020, which represents less than the CHF244m it reported in Q2.
The carrier expects to continue with the “substantial cost reductions.” These efforts include deferring all non-essential projects and investments in the company. It also plans on reducing 1,000 jobs. The work cuts will take place until 2022 in the form of hiring freezes, early retirements, and part-time working options.
SWISS CFO Markus Binkert said that the airline did minimize cash burn in Q3 with a “rigorous cash and cost management.” Alas, LX expects a tough Q4 with a full-year operating loss not seen in 15 years.
Featured photo: SWISS Airbus A320 aircraft. Photo: Jacopo Vismara.