SWISS sees 26% drop in H1 operating profit amid cost pressures and capacity shortages

Swiss International Air Lines (SWISS) reported an operating profit of CHF 195.1 million for the first half of 2025, marking a 26% decline compared to the same period last year. Revenues held steady at CHF 2.69 billion, but rising costs, supply constraints, and a cooling transatlantic market weighed heavily on the bottom line.

While fuel prices offered some relief and operational reliability improved—72.4% of flights departed on time, a 3.9-point gain year-on-year—structural challenges like aircraft, engine, and pilot shortages dampened performance. CFO Dennis Weber called the result “solid but below expectations,” citing macroeconomic tensions and growing cost burdens in personnel and airport fees.

Transatlantic Weakness and Cargo Slowdown

The airline’s core transatlantic business softened, particularly in non-premium travel, directly pressuring yields. Meanwhile, cargo demand waned, reflecting slowing global economic momentum after an earlier surge linked to trade disruptions.

To stabilise operations, SWISS has launched a broad action package, including a new agreement with pilot union Aeropers to boost cockpit availability and expanded partnerships with wet-lease operators to preserve long-haul integrity during short-haul disruptions.

Q2 Earnings Fall 18%

Second-quarter adjusted EBIT fell 18% to CHF 191.7 million, as revenues dipped to CHF 1.47 billion, down 1.2% year-on-year. SWISS carried 8.5 million passengers in H1 (+0.1%), operating over 70,000 flights (+1.8%). Capacity rose 2.7%, but the seat load factor dropped 1.8 points to 80.0%, hinting at softening demand.

Premium Focus Amid Mounting Headwinds

Despite turbulent market conditions, CEO Jens Fehlinger reaffirmed SWISS’s commitment to its premium strategy, announcing continued investment in fleet and service quality. Two new Airbus A350s featuring the SWISS Senses cabin will join the fleet in H2, accompanied by refreshed inflight dining and digital services.

Fehlinger struck a cautious tone on the outlook:

“The global instabilities and rising local fees are eroding Zurich’s competitiveness. While we’ll continue to invest in stability and innovation, the outlook for the rest of 2025 and into 2026 gives us reason for caution.”

With persistent cost pressure, ongoing infrastructure constraints, and shifting travel patterns, SWISS is bracing for a more challenging second half, even as it presses forward with its long-term growth and service ambitions.