This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Swiss National Airline Posts Big 1Q Loss May 27, 2003 By THE ASSOCIATED PRESS Filed at 9:11 a.m. ET BASEL, Switzerland (AP) -- Switzerland's national airline Tuesday announced it lost 200 million Swiss francs ($155 million) in the first quarter and said that ``further drastic'' cuts would be needed. ``The results reflect the extremely difficult economic environment currently affecting all airlines, a situation which has been exacerbated by the war in Iraq and the SARS virus,'' said Swiss International Air Lines, or Swiss. The results were little changed from a loss of 199 million Swiss francs for the three months ended March 31 a year earlier. The airline, which was formed with the help of the Swiss government in March 2002 on the foundation of the collapsed Swissair, said its revenues increased to 1.04 billion francs ($812.5 million) from 489 million francs during the same quarter a year earlier. Swiss, which plans to cut costs by 600 million francs ($468 million) this year, said, ``In view of the current situation affecting the air travel industry, further drastic cost-cutting measures will have to be implemented.'' The company has made similar announcements earlier this year without being very specific. Swiss media reported over the weekend that Switzerland's flag carrier may cut as many as 3,000 jobs and reduce its long-haul fleet to 18 planes from 26 as part of its announced restructure. By the end of March, the payroll had been reduced to 10,521 employees from 10,606 at the end of last year. The company said its liquidity stands at 913 million francs ($713 million), and that shareholders' equity stands at 1.49 billion francs, adding that it expects to reduce the rate at which it uses cash in the next few months. The company posted a net loss of almost 1 billion francs in 2002. It hopes to break even next year at the earliest. Its fleet of around 110 aircraft is considered too big -- and the airline too unprofitable -- for it to join a major airline association, such as OneWorld alliance, led by U.K. British Airways PLC and AMR Corp.'s American Airlines. The company has reportedly been in talks with Germany's Deutsche Lufthansa AG. http://www.nytimes.com/aponline/business/AP-Earns-Swiss-Airline.html?ex=1055043761&ei=1&en=f07f9784f1457a24 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company