Losses Force Swiss Airline to Cut Back

Swiss, the international airline, yesterday announced plans to cut jobs, planes and routes to stop heavy losses.

The airline, created by a merger between failed flag carrier Swissair and the regional airline Crossair and backed by a national Sf2.7bn (£1.2bn) support package, is aiming to break even next year.

But with the latest figures from the International Air Transport Association showing the full extent of the global downturn in the industry, Swiss's target of breaking even next year is seen as very ambitious.

Iata said yesterday that it expected the airline industry to lose between $5bn and $7bn (£3bn-£4.5bn) this year - though it held out the possibility of a modest recovery next year.

Swiss said it lost Sf582m in the first nine months while its operating loss in the third quarter was down to Sf60m before non-recurring charges of Sf75m.

The airline is cutting 300 jobs among pilots, cabin crew and ground staff though it said it was taking on another 200 technical and IT services staff to reduce flight cancellations.

It is cutting its fleet on scheduled routes by five aircraft and withdrawing from some routes, while its charter fleet is cut by three.