Brussels Airlines has seen a downturn in its first-quarter results compared to 2023, according to the carrier’s Q1 results released on 30 April.
Customer numbers and revenue were in fact up for the first three months of the year, with a four per cent increase in numbers to 1.66 million passengers and three per cent increase in revenue. However, instead of seeing profits up, operating losses increased by 15 million to 58 million euros.
Q1 loss all down to strikes?
While Q1 results are often lower than the rest of the year in the travel sector, the airline put the seemingly anomalous results down to disruption caused by industrial action and strike notices, estimating the direct cost of the strikes over the period in recent months to be 14 million euros, accounting for almost all the loss.
As soon as a strike is threatened, we see an immediate impact on our travellers. When there is uncertainty, people stop booking
Nina Öwerdick, Brussels Airlines’ chief financial officer
Belgium’s largest airline and flag carrier, Brussels Airlines made a record operating profit for the whole year in 2023, at 53 million euros, a result it has said it intends to build on in 2024. Its news releases are largely emphasising the positive outlook for the year ahead, noting the relaunch of flights to Krakow and to Nairobi, the purchase of a third Airbus A320neo, its Tomorrowland partnership with the advent of the new Icon Amare shared livery, as well as the development of a new training centre and a new crew room at Brussels Airport.
Dogged by strikes
Nonetheless, beating last year’s “revenge travel” results, may prove to be a challenge if services continue to be affected by staffing issues to the extent they have been in Q1.
The airline has been dogged during the period by ongoing disputes between management and unions over pay and working conditions. Consecutive strikes took place in the first two months of the year, with pilots withdrawing their labour for a day in January and a three-day cabin crew walkout in February.
A further strike mooted for the end of March was narrowly avoided by negotiations that resulted in agreements for both groups of staff.
The Lufthansa group, of which Brussels Airlines is part, also announced its first quarter figures on Tuesday, showing the overall cost of industrial action to the group in recent months reaching as much 350 million euros.
