Vueling’s 2010 expected to beat 2009 results as clickair merger shows benefits

Vueling maintained its guidance for an improved net profit in 2010 upon the release of its financial results for the three months ended Jun-2010 (2Q2010), despite the negative effect of the volcanic ash cloud in the quarter (which resulted in 693 cancelled services affecting 86,619 passengers and resulting in a negative EBIT impact in excess of EUR1 million), an increase in fuel prices (of 52% year-on-year to USD723/metric ton), the US Dollar appreciation against the Euro (strength of Euro down 6%), and economic weakness in Greece, Portugal and Spain. [2549 words]

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This report contains the following subheadings:

• Vueling/clickair merger allowing for both growth and improved margins
• Continued focus on ancillary product offering
• Signs collective bargaining agreement with cockpit and cabin crew
• Net profits and revenues also up on a pro-forma basis; Reduces at the EBIT and EBITDAR levels 
• Targeting full year ex-fuel CASK below EUR 4 cents
• Revenue per ASK up, but unit ancillaries and revenue per flight weaken
• Seeing larger number of business pax; growth of GDS channel
• Emerges as a significant player in the Spanish and European LCC market
• Vueling handles more than 10 million pax since merger
• Vueling “ready to begin growing again”; fleet growth planned
• Model based on “obsessing” on lowest cost structure; maintain ‘traditional’ products/services
• Product updates
• Vueling ownership
• Future brighter for Vueling following merger, but challenges persist

This report contains the following charts and tables:

• Vueling financial highlights for three months ended 31-Jun-2010
• Vueling financial highlights for six months ended 31-Jun-2010
• EBIT development: 2Q2009 to 2Q2010
• Vueling financial results: 12 months after merger vs 12 months before merger
• Vueling operating expense breakdown: 2Q2010
• Vueling ancillary product offering
• Vueling and clickair proforma results:   2Q2010
• Vueling fuel and currency hedging: 2Q2010 to 4Q2010
• Vueling unit revenue and unit cost breakdown: 2Q2010
• Revenue per ASK (EUR cents) and Revenue per Passengers (Euros): 2Q2009 to 2Q2010
• Distribution of sales: 2Q2010
• Vueling destination map: Jun-2010
• Vueling growth at key bases: 3Q2009
• Vueling operational highlights: 2Q2010
• Vueling fleet plan: 1H2009 to 2011 
• Vueling model: Mix between LCCs and legacy carriers
• Vueling web channel products
• Vueling ownership: Jun-2010