Brussels Airlines announced remarkable financial results for the fiscal year 2023, signalling a substantial turnaround in its operations. The Belgian carrier closed the year with an adjusted EBIT of 53 million euros, an improvement of 127 million euros compared to 2022. Employee discontent over pay and working conditions cast a shadow over the good figures of the airline, with new social actions planned anytime soon.
The key drivers behind this success were the record-breaking second and third quarters, which compensated for the traditionally weaker performance in the first and last trimesters. Despite challenges posed by the pandemic and geopolitical events, the airline achieved a 3.4% margin in 2023, inching closer to its target of 8% for the coming years.
One of the pivotal factors contributing to this achievement was the increase in operating income by 24%, amounting to a robust EUR 1.60 billion, reminiscent of pre-pandemic levels in 2019. This growth was propelled by a 19% surge in flights, an expanded network, heightened demand, and improved yields, particularly in sub-Saharan destinations.
Although Brussels Airlines welcomed 8.29 million passengers in 2023, marking a notable 21% increase from the previous year, it still fell short of pre-COVID levels.
Operating expenses rose by 14% to EUR 1.55 billion, primarily attributed to the production increase and escalating airport charges. However, the historic EUR 53 million adjusted EBIT reflects a significant leap forward for the airline.
Nina Öwerdieck, Chief Financial Officer of Brussels Airlines, expressed pride in the company’s achievement, acknowledging the collective effort of its employees. She emphasised the ongoing commitment to achieving sustainable profitability and outlined plans to focus on margin objectives in 2024.
The airline’s commitment to enhancing customer experience and investing in its workforce remained unwavering. In 2023, Brussels Airlines allocated resources to initiatives such as the renovation of the Sunrise Lounge at Brussels Airport, the introduction of new amenity kits for business class, and the expansion of its fleet with environmentally friendly aircraft.
Looking ahead, the airline aims to further bolster its capacity and network through strategic additions to its fleet and route offerings. Moreover, efforts to cultivate a healthy work environment and foster constructive dialogue with employee unions underscore Brussels Airlines’ commitment to sustainable growth.
Dorothea von Boxberg, Chief Executive Officer of Brussels Airlines, hailed the record-breaking results as a testament to the collective efforts of the entire team. She underscored the importance of profitable growth and emphasised the airline’s dedication to becoming a top employer in Belgium.
However, there is a significant gap in positions between the management of Brussels Airlines and the company’s unions, acknowledged the airline during a press conference on Thursday. The company has presented what it considers a “very decent” offer during negotiations, and it does not intend to revise it upwards, as stated by its CFO. Despite facing strikes in January and February, costing the company 4 million euros, the management remains firm in its stance. The unions have consistently demanded salary increases and improved working conditions, citing concessions made by the staff during the COVID-19 crisis. However, negotiations have not reached a consensus, and a conciliation procedure on Wednesday failed. The company’s proposal includes an average purchasing power increase of 6% for its approximately 3,400 employees, with variances up to 12% for some workers, in addition to a 4% salary indexation implemented in January. The CEO emphasised the fragility of the company’s financial situation and the need to remain viable, indicating a reluctance to go further, even in the face of potential strikes. The company’s profit margin (3.4%) has not yet reached the targetted level of 8%.
In reply to a question from Aviation24.be about destinations, Dorothea von Boxberg said that there were indeed few new destinations (in fact resumptions) and she recognised that some destinations had to be cancelled, for two reasons: the company preferred increasing frequencies on busy destinations, and the wet-lease from smaller Cityjet jets serving less busy cities had to be suspended in 2024 by lack of available aircraft.
