EgyptAir (MS) has reported a 2011 decrease in profit to $12 million, down 75% year-over-year.
EgyptAir 777. Courtesy, MS
EgyptAir (MS) has reported a 2011 decrease in profit to $12 million, down 75% year-over-year. The carrier, which had been in the middle of an expansion year, cited the civil unrest in Cairo and other parts of Egypt as reasons for the results (ATW Daily News, March 2, 2011).
CEO Hossam Kamal told ATW that business traffic to and from Cairo is still being affected. “We [have] already cut costs by 30%, he said, adding that cost-cutting will be an ongoing process.
Kamal said MS plans to launch Cairo (CAI)-Toronto services in 2013, along with several other routes.
MS, which reopened its CAI-Tokyo Narita services from April 15, sees strong traffic to its 17 destinations in Africa and the Middle East. For now the carrier said it will focus on increasing frequencies.
Transfer business at its Cairo hub is at the 25% level, which is up from single digits five years ago. “We hope by the end of this year to come back to normal traffic, up to a 69% load factor,” Kamal said. In 2012, he hopes to transport 12 million passengers, up from 8.5 million in 2011 and 10.2 million in 2010.
Earlier this month Kamal told ATW the carrier is considering replacing its Boeing 777s and Airbus A330s with 787s and A350s between 2020-2025 (ATW Daily News, April 5).
Negotiations are ongoing with Star Alliance partner Ethiopian Airlines to create a new base or a new joint carrier in Accra, Ghana, West Africa (ATW Daily News, Oct. 7, 2010). “We want to set up a hub or a new airline there. Since last month, talks [have] become … very serious,” he said.