Vueling Chalks Up Good First-Quarter Numbers

Vueling achieved a better EBIT margin during the first quarter of 2010 than in 2009 (-9 percent vs. -13 percent during the same period of 2009), thanks to improvements in costs based on costs reduction plan (Vueling saved €9,6m for the first quarter 2010).

Ex-fuel CASK is 7 percent below than the first quarter 2009, consolidating the Vueling forecast: an ex-fuel CASK below than 4.0 Euro cents for 2010. Revenue synergies, due to the merger, offset the competition increase. First quarter 2010 revenues reached €141.8m (+90 percent from 2009).

Easter effect had an impact of +1 percent of RASK on the first quarter 2009. RASK reached above the levels of the first quarter 2009 (5.02 Euro cents vs. 4.98 Euro cents in the first quarter 2009).

Vueling consolidates its position of leadership in its main bases of Barcelona, Seville and Bilbao. Vueling flew during the first quarter to almost 100 routes offering a wide range of destinations to the passenger. Vueling operated 35 aircraft (+119 percent from the 2009), and 17,781 flights (+97 percent from the 2009).

Travel agent sales increased because of the merger with Clickair (access to the code-sharing of Iberia). The sales grew from 18 percent to 32 percent in Q1 2010. Vueling hedging policy helped to reduce the impact of the rise in fuel. Fuel CASK increased by 21 percent from 1.01 Euro cents in the first quarter of 2009 to 1.22 Euro cents in 2010.

CASK decreased by 2 percent from 2009 to 2010 (5.48 Euro cents in 2010 vs. 5.62 Euro cents in 2009). The strong fuel rise was offset by the costs reduction plan. The ex-fuel CASK decreased from 4.61 Euro cents in 2009 to 4.27 Euro cents in 2010.

After the merger with Clickair, Vueling has become the fourth airline passenger volumes in Spain and it is the leading airline in three of its six bases: Barcelona (26 percent of market share), Seville (37 percent) and Bilbao (20 percent).

Its increased size translates into greater than before magnitudes in every aspect: Vueling doubled the number of passengers carried in the first quarter 2010 (2.2 million), as well as the number of routes. Also, it has a huge growth in the number of airports where it operated, from 26 in 2009 to 49 in 2010.

All bases of Barcelona, Seville, Valencia, Malaga and Bilbao increased the number of destinations on offer, being the case of Barcelona the most significant grow from 16 to 43 routes (31st March 2009 and 2010, respectively).